Stock prices of design platform Figma soar more than double following its initial public offering, prompting questions about a potential investment opportunity
Figma, the design and user experience company often compared to Google Sheets for design collaboration, has made waves in the tech industry with its impressive growth and recent initial public offering (IPO).
In the second quarter of this year, Figma's revenue soared to an impressive $250 million, marking a year-over-year increase of 40%. This strong performance has continued, with the company recently disclosing the generation of up to $12 million of operating income.
The IPO for Figma was significantly oversubscribed, reflecting the high demand for its shares. The initial valuation for the IPO was between $13.6 billion and $16.5 billion, but based on IPO pricing, the current valuation stands at approximately $58.5 billion. This valuation is noteworthy, but given Figma's strong revenue growth and emerging profitability, it doesn't seem excessive.
Shares of Figma's IPO initially roared out of the gate, reaching over 240% before trading was halted. However, the stock currently trades over 58 times the company's revenue, and some experts recommend better entry points before buying. If annualized, Figma's second-quarter revenue would amount to $1 billion.
Figma is not just a design company; it's a pioneer in integrating artificial intelligence (AI) into its product set. The company has significantly advanced AI tool integration across its design and development workflows, demonstrating strong potential for future growth in AI-assisted prototyping, code generation, and collaboration.
One of Figma's AI-powered tools, Dev Mode MCP server, launched in beta recently. This server connects design files directly to AI coding tools, enabling AI to generate code that reflects design specs and existing codebase patterns. This reduces initial setup time for developers but still requires oversight and refinement to be production-ready.
Another notable AI tool from Figma is Figma Make, which exited beta in July 2025 and is now generally available. This AI-powered prompt-to-code prototyping tool supports natural language prompts to generate interactive prototypes, image editing, resolution boosting, and cross-team collaboration capabilities.
The Figma ecosystem also includes a growing number of AI plugins that automate tasks such as text generation for UI elements, design element creation, and image editing. These plugins reduce repetitive work and increase design efficiency.
Figma's integration of AI tools spans design creation, prototyping, developer handoff, and code generation, reflecting a holistic approach that leverages AI across the product development lifecycle. The ongoing enhancements and broadening adoption indicate strong future growth potential as AI continues to improve design-to-code accuracy and collaborative workflows.
Figma is also making a name for itself as a potential disruptor in the artificial intelligence space. The company was even the subject of an acquisition attempt by Adobe for $20 billion before the deal was cancelled due to regulatory issues.
Figma is widely used by companies in the Fortune 500 for their design needs, and its advancements in AI technology are attracting even more attention. As the company continues to innovate and grow, it will be interesting to see how it shapes the future of design and AI in the tech industry.
Investors are keen on Figma, as the tech industry marvel continues to show impressive growth, generating up to $12 million of operating income and a potential annual revenue of $1 billion. Figma's success isn't limited to design; it's also pioneering AI integration, with AI tools like Dev Mode MCP server and Figma Make revolutionizing design workflows. These advancements have earned Figma a reputation as a potential disruptor in the artificial intelligence space, attracting attention from major players like Adobe.
