Figma, Inc.

Previous wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management's Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2025 included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 18, 2026. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements. The matters discussed in these forward-looking statements are subject to risk, uncertainties, and other factors that could cause actual results to differ materially from those made, projected or implied in the forward-looking statements. Please see the sections titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements” appearing elsewhere in this Quarterly Report on Form 10-Q for a discussion of the uncertainties, risks, and assumptions associated with these statements.

Current wording

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management's Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2025 included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 18, 2026. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those made, projected or implied in the forward-looking statements. Please see the sections titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements” appearing elsewhere in this Quarterly Report on Form 10-Q for a discussion of the uncertainties, risks, and assumptions associated with these statements.

Previous wording

With the addition of these new products and increasing AI functionality across our platform, Figma has expanded to help teams go from idea to shipped product all in one place. We believe AI will continue to accelerate this journey by helping users of all skill levels to ideate, iterate, and build faster. We are continuing to invest in AI so our customers can continue to innovate and push what is possible on our platform. We have also made acquisitions that expand Figma’s capabilities, such as Payload CMS, Inc., a leading open-source headless content management system, and Weavy Inc., now Figma Weave, which brings the world’s leading AI models together with professional editing tools on a single, browser-based canvas.

Current wording

With the addition of these new products and increasing AI functionality across our platform, Figma has expanded to help teams go from idea to shipped product all in one place. We believe AI will continue to accelerate this journey by helping users of all skill levels to ideate, iterate, and build faster. Over the last few years we have integrated generative AI and code-related capabilities across our platform, including through AI-powered design generation, agentic workflows, and native code layers. We are continuing to invest in AI so our customers can continue to innovate and push what is possible on our platform. We have also made acquisitions that expand Figma’s capabilities, such as Payload CMS, Inc., a leading open-source headless content management system, and Weavy Inc., now Figma Weave, which brings the world’s leading AI models together with professional editing tools on a single, browser-based canvas.

Previous wording

We believe that the number of Paid Customers with more than $10,000 in ARR on our platform is an important indication of the value that our products deliver. We define a Paid Customer with more than $10,000 in ARR as a Paid Customer with a total of $10,000 or more of ARR as of the last day of the

Current wording

We believe that the number of Paid Customers with more than $10,000 in ARR on our platform is an important indication of the value that our products deliver. We define a Paid Customer with more than

Previous wording

applicable period of measurement. We believe that $10,000 in ARR is an important threshold, as it is a strong indicator of significant paid usage of our products.

Current wording

$10,000 in ARR as a Paid Customer with a total of $10,000 or more of ARR as of the last day of the applicable period of measurement. We believe that $10,000 in ARR is an important threshold, as it is a strong indicator of significant paid usage of our products.

Previous wording

(1)Net cash provided by operating activities for the three months ended March 31, 2026 includes the impact of a $56.1 million payment under our annual corporate bonus program, accrued during the year ended December 31, 2025, with no comparable payment in the prior year period.

Current wording

(1)Net cash provided by operating activities for the six months ended June 30, 2026 includes the impact of a $56.1 million payment under our annual corporate bonus program, accrued during the year ended December 31, 2025, with no comparable payment in the prior year period.

Previous wording

AI and Related Costs. As a part of our product innovation, we have made and will continue to make significant investments to integrate AI, including generative AI, into our platform. We expect that the use of AI technologies and our investments to integrate AI into our platform will impact our business, operating results, and financial condition. For example, in the short-term, we expect that our AI investments and use of AI technologies, including spend on AI inference and model training, will impact our cost of revenue, research and development expenses, and sales and marketing expenses, which we expect to negatively impact our gross margins and operating margins. Given the newness and rapid development of these technologies, the impacts on our gross margins and operating margins, and our business, operating results, financial condition, and future prospects over the longer term are currently unknown.

Current wording

AI and Related Costs. As a part of our product innovation, we have made and will continue to make significant investments to integrate AI, including generative AI, into our platform. We expect that the use of AI technologies and our investments to integrate AI into our platform will impact our business, operating results, and financial condition. For example, in the short-term, we expect that our AI investments and use of AI technologies, including spend on AI inference and model training, will impact our cost of revenue, research and development expenses, and sales and marketing expenses, which we expect to negatively impact our gross margins and operating margins. These costs may also fluctuate from period to period as we implement operational and platform changes intended to manage usage and optimize the efficiency of our AI-related spend. Given the newness and rapid development of these technologies, the impacts on our gross margins and operating margins, and our business, operating results, financial condition, and future prospects over the longer term are currently unknown.

Previous wording

General and administrative. Our general and administrative expenses consist primarily of employee-related costs, including stock-based compensation and related employer payroll taxes, for our legal, finance, human resources, and other administrative teams, as well as certain executives. In addition, general and administrative expenses include general business expenses, professional services fees, software subscription fees, and allocated overhead. We expect to incur additional expenses as a result of operating as a newly public company, including costs to comply with the rules and regulations applicable to companies listed on a national securities exchange, costs related to compliance and reporting obligations, and increased expenses for insurance, investor relations, and professional services. Over time, we expect that our general and administrative expenses will increase in absolute dollars relative to our general and administrative expenses prior to 2025, as our business grows. However, we anticipate that general and administrative expenses will decrease as a percentage of revenue over time, although these expenses may fluctuate as a percentage of our revenue from period-to-period depending on the timing of these expenses.

Current wording

General and administrative. Our general and administrative expenses consist primarily of employee-related costs, including stock-based compensation and related employer payroll taxes, for our legal, finance, human resources, and other administrative teams, as well as certain executives. In addition, general and administrative expenses include general business expenses, professional services fees, software subscription fees, and allocated overhead. We expect to continue to incur additional expenses as a result of operating as a newly public company, including costs to comply with the rules and regulations applicable to companies listed on a national securities exchange, costs related to compliance and reporting obligations, and increased expenses for insurance, investor relations, and professional services. Over time, we expect that our general and administrative expenses will increase in absolute dollars relative to our general and administrative expenses prior to 2025, as our business grows. However, we anticipate that general and administrative expenses will decrease as a percentage of revenue over time, although these expenses may fluctuate as a percentage of our revenue from period-to-period depending on the timing of these expenses.

Previous wording

Revenue increased by $105.2 million, or 46%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase in revenue was primarily driven by growth and expansion in total Paid Customers, as the number of Paid Customers with more than $10,000 in ARR and Paid Customers with more than $100,000 in ARR increased by 37% and 48%, respectively, as of March 31, 2026 compared to the prior year.

Current wording

Revenue increased by $120.4 million, or 48%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase in revenue was primarily driven by growth and expansion in total Paid Customers, as the number of Paid Customers with more than $10,000 in ARR and Paid Customers with more than $100,000 in ARR increased by 34% and 46%, respectively, as of June 30, 2026 compared to the prior year.

Previous wording

Cost of revenue increased by $49.2 million, or 253%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily due to a $33.7 million increase in technical infrastructure and hosting costs relating to AI and increased usage of our platform by paid users, an $8.7 million increase in employee-related costs primarily driven by $5.6 million of stock-based compensation expense and related employer payroll taxes recognized in connection with the completion of our initial public offering (our “IPO”) in July 2025, and $4.4 million of higher amortization of capitalized internal-use software development costs and acquired intangibles from acquisitions.

Current wording

Cost of revenue increased by $32.6 million, or 117%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to a $27.1 million increase in technical infrastructure and hosting costs relating to AI and increased usage of our platform by paid users, and a $2.8 million increase in employee-related costs primarily driven by $2.0 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our initial public offering (our “IPO”) in July 2025. There was also an increase of $2.3 million in payment processing fees driven by the growth in Paid Customers.

Previous wording

Research and development expenses increased by $103.0 million, or 147%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was primarily due to a $93.3 million increase in employee-related costs primarily driven by $84.8 million of stock-based compensation expense and related employer payroll taxes recognized in connection with the completion of our IPO in July 2025 and increased headcount due to the growth of our business, and a $4.5 million increase in technical infrastructure and hosting costs, primarily driven by AI-related costs as we improved and extended our product offerings and developed new technologies.

Current wording

Research and development expenses increased by $84.3 million, or 101%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to a $70.8 million increase in employee-related costs primarily driven by $58.1 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our IPO in July 2025 and increased headcount due to the growth of our business, and a $10.1 million increase in technical infrastructure and hosting costs, primarily driven by AI-related costs as we improved and extended our product offerings and developed new technologies.

Previous wording

Sales and marketing expenses increased by $56.7 million, or 82%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The increase was due to a $38.3 million increase in employee-related costs primarily driven by $25.0 million of stock-based compensation expense and related employer payroll taxes recognized in connection with the completion of our IPO in July 2025, and increased headcount due to the growth of our business, $8.0 million of higher technical infrastructure and hosting costs for users of our free version of Figma due to continuing growth in our user base and AI-related costs as we continued to roll out our AI offerings to free users during the period, and $5.4 million of higher spend related to marketing and advertising expenses.

Current wording

Sales and marketing expenses increased by $57.2 million, or 58%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to a $32.4 million increase in employee-related costs primarily driven by $19.0 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our IPO in July 2025 and increased headcount due to the growth of our business, $13.5 million of higher technical infrastructure and hosting costs for users of our free version of Figma due to continuing growth in our user base and AI-related costs as we continued to roll out our AI offerings to free users during the period, and $5.0 million of higher spend related to marketing and advertising expenses, including due to our annual user conference.

Previous wording

The provision for income taxes decreased by $1.5 million, or 68%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The provision for income taxes recorded for the three months ended March 31, 2026 was primarily due to taxes in foreign jurisdictions. The provision for income taxes recorded in the three months ended March 31, 2025 was primarily due to our estimated U.S. federal taxable income position as of March 31, 2025.

Current wording

The provision for income taxes decreased by $8.4 million, or 77%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The provision for income taxes recorded for the three months ended June 30, 2026 was primarily due to taxes in foreign jurisdictions. The provision for income taxes recorded in the three months ended June 30, 2025 was primarily due to our estimated U.S. federal taxable income position as of June 30, 2025.

Previous wording

Other income (expense), net decreased by $11.6 million, or 159%, for the three months ended March 31, 2026 compared to the three months ended March 31, 2025. The decrease was primarily due to a $7.3 million increase in total unrealized losses on equity securities, which was primarily driven by an unrealized loss on our investment in a Bitcoin exchange traded fund, and a $3.3 million remeasurement loss on our Bitcoin investment.

Current wording

Other income, net decreased by $41.0 million, or 93%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease was due to a $33.9 million unfavorable change in the fair value of equity securities, primarily due to a shift from an unrealized gain on our investment in a Bitcoin exchange traded fund during the six months ended June 30, 2025 to an unrealized loss during the six months ended June 30, 2026, and a $5.0 million remeasurement loss on our Bitcoin investment.

Previous wording

As of March 31, 2026, our principal sources of liquidity were cash and cash equivalents of $405.7 million, digital assets, current of $15.7 million, which is comprised of holdings in USDC, and marketable securities of $1.2 billion. Our Revolving Credit Facility also serves as a source of liquidity. Cash and cash equivalents are comprised of bank deposits, money market funds, U.S. agency securities, U.S. treasury securities, corporate bonds, and commercial paper. Digital assets, current on the condensed consolidated balance sheets is comprised of USDC, a stablecoin redeemable on a one-to-one basis for U.S. dollars. Marketable securities are comprised of commercial paper, U.S. agency securities, U.S. treasury securities, corporate bonds, and a Bitcoin exchange traded fund. The majority of our cash and cash equivalents are held in the United States, with the remainder held in international regions to support our foreign operations. Since our inception, we have financed our operations primarily through proceeds from the issuance of our convertible preferred stock and common stock and cash generated from the sale of our products. On August 1, 2025, we completed our IPO, in which we issued and sold an aggregate of 12.5 million shares of Class A common stock at a public offering price of $33.00 per share, resulting in net proceeds to us of approximately $393.1 million after deducting underwriting discounts and commissions, but before deducting offering expenses payable by us.

Current wording

As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents of $445.8 million, digital assets, current of $15.8 million, which is comprised of holdings in USDC, a stablecoin redeemable on a one-to-one basis for U.S. dollars, and marketable securities of $1.2 billion. Our Revolving Credit Facility also serves as a source of liquidity. Cash and cash equivalents are comprised of bank deposits, money market funds, U.S. agency securities, U.S. treasury securities, corporate bonds, and commercial paper. Digital assets, current on the condensed consolidated balance sheets is comprised of USDC. Marketable securities are comprised of commercial paper, U.S. agency securities, U.S. treasury securities, corporate bonds, and a Bitcoin exchange traded fund. The majority of our cash and cash equivalents are held in the United States, with the remainder held in international regions to support our foreign operations. Since our inception, we have financed our operations primarily through proceeds from the issuance of our convertible preferred stock and common stock and cash generated from the sale of our products. During the third quarter of 2025, we completed our IPO, in which we issued and sold an aggregate of 12.5 million shares of Class A common stock at a public offering price of $33.00 per share, resulting in net proceeds to us of approximately $393.1 million after deducting underwriting discounts and commissions, but before deducting offering expenses payable by us.

Previous wording

As of March 31, 2026, we held approximately 173 Bitcoins for investment purposes with a fair value of $11.8 million based on observable market prices, which is included within digital assets, non-current on the consolidated balance sheets. We expect to hold these Bitcoins for the long term, but will continue to reassess our Bitcoin investment relative to our balance sheet.

Current wording

As of June 30, 2026, we held approximately 173 Bitcoins for investment purposes with a fair value of $10.1 million based on observable market prices, which is included within digital assets, non-current on the consolidated balance sheets. We expect to hold these Bitcoins for the long term, but will continue to reassess our Bitcoin investment relative to our balance sheet.

Previous wording

We believe that our current cash, cash equivalents, digital assets, current, and marketable securities, in addition to amounts available for borrowing under our Revolving Credit Facility, will be sufficient to fund our operations for at least the next twelve months. Our future capital requirements, however, will depend on many factors, including our subscription growth rate, the timing and extent of spending to support our research and development efforts, our investments in and usage of AI, the expansion of sales and marketing activities, the introduction of new and enhanced products and features, particularly for large organizations, and the continuing market adoption of Figma. We have historically, and may in the future, enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights. In the event that additional financing is required from outside sources, we may seek to raise additional funds at any time through equity, equity-linked arrangements, and debt. If we are unable to raise additional capital when desired and at reasonable rates, our business, results of operations, and financial condition would be adversely affected. See the section titled “Risk Factors—Risks Related to Financial and Accounting Matters—We may require additional capital to fund our business and support our growth, and any inability to generate or obtain such capital may adversely affect our business, operating results, and financial condition” included in Part II, Item 1A of this Quarterly Report on Form 10-Q.

Current wording

We believe that our current cash, cash equivalents, digital assets, current, and marketable securities, in addition to amounts available for borrowing under our Revolving Credit Facility, will be sufficient to fund our operations for at least the next twelve months. Our future capital requirements, however, will depend on many factors, including our subscription growth rate, the timing and extent of spending to support our research and development efforts, our investments in and usage of AI, the expansion of sales and marketing activities, the introduction of new and enhanced products and features, particularly for large organizations, and the continuing market adoption of Figma. We have historically, and may in the future, enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights. In the event that additional financing is required from outside sources, we may seek to raise additional funds at any time through equity, equity-linked arrangements, and debt. If we are unable to raise additional capital when desired and at reasonable rates, our business, results of operations, and financial condition would be adversely affected. See the section titled “Risk

Previous wording

During the three months ended March 31, 2026, operating activities provided $97.3 million in cash. The primary factors affecting our cash flows during this period were our net loss of $142.4 million, adjusted for $205.1 million from non-cash charges, and net cash inflows of $34.6 million from changes in our operating assets and liabilities. The non-cash charges primarily consisted of $169.0 million of stock-based compensation expense, net of amounts capitalized, $15.6 million in unrealized losses from the remeasurement of equity securities, and $6.5 million of amortization of deferred commissions. The cash provided from changes in our operating assets and liabilities was primarily due to a $32.3 million increase in deferred revenue related to increased billings and a $59.5 million decrease in accounts receivable, reflecting an increase in collections driven by increased billings in the prior period. These amounts were partially offset by a $44.0 million decrease in accrued compensation and benefits, which includes the impact of a $56.1 million payment under our annual corporate bonus program, and a $18.2 million increase in other assets.

Current wording

During the six months ended June 30, 2026, operating activities provided $158.2 million in cash. The primary factors affecting our cash flows during this period were our net loss of $254.6 million, adjusted for $373.3 million from non-cash charges, and net cash inflows of $39.4 million from changes in our operating assets and liabilities. The non-cash charges primarily consisted of $316.6 million of stock-based compensation expense, net of amounts capitalized and $20.0 million in unrealized losses from the remeasurement of equity securities. The cash provided from changes in our operating assets and liabilities was primarily due to a $56.6 million decrease in accounts receivable, reflecting an increase in collections and a $31.4 million increase in deferred revenue related to increased billings. These amounts were partially offset by a $43.6 million decrease in accrued compensation and benefits, which includes the impact of a $56.1 million payment under our annual corporate bonus program.

Previous wording

During the three months ended March 31, 2025, operating activities provided $97.2 million in cash. The primary factors affecting our cash flows during this period were our net income of $44.9 million and net cash inflows of $38.5 million from changes in our operating assets and liabilities, adjusted for $13.8 million from non-cash charges. The non-cash charges primarily consisted of $8.3 million in unrealized loss from the remeasurement of equity securities, $4.7 million of amortization of deferred commissions, and $4.1 million of non-cash operating lease costs. The cash provided from changes in our operating assets and liabilities was primarily due to a $25.3 million increase in deferred revenue related to increased billings and an $18.0 million decrease in accounts receivable, net, reflecting an increase in collections. These amounts were partially offset by a $9.2 million increase in prepaid expenses and other current assets, primarily driven by prepaid hosting services.

Current wording

During the six months ended June 30, 2025, operating activities provided $159.6 million in cash. The primary factors affecting our cash flows during this period were our net income of $73.1 million and net cash inflows of $77.0 million from changes in our operating assets and liabilities, adjusted for $9.5 million from non-cash charges. The non-cash charges primarily consisted of $9.7 million of amortization of deferred commissions, $8.7 million of non-cash operating lease costs, $7.5 million of stock-based compensation expense, net of amounts capitalized, and $5.1 million of depreciation and amortization, partially offset by $13.9 million in unrealized gains from the remeasurement of equity securities and $9.0 million in net accretion of discounts on marketable securities. The cash provided from changes in our operating assets and liabilities was primarily due to a $51.8 million increase in deferred revenue related to increased billings, a $19.8 million increase in accrued compensation and benefits as a result of our increased headcount associated with the growth of our business and implementation of a company-wide annual bonus program, and an $8.7 million increase in accrued and other current liabilities. These amounts were partially offset by a $10.3 million increase in other assets.

Previous wording

Net cash used in investing activities during the three months ended March 31, 2026 was $7.4 million, which was primarily due to the purchase of marketable securities of $262.9 million and capital expenditures of $7.8 million, partially offset by proceeds from sales and maturities of marketable securities of $263.9 million.

Current wording

Net cash used in investing activities during the six months ended June 30, 2026 was $13.7 million, which was primarily due to the purchase of marketable securities of $420.6 million, capital expenditures of $14.5 million, and purchase of intangible assets of $2.8 million, partially offset by proceeds from sales and maturities of marketable securities of $426.3 million.

Previous wording

Net cash provided by investing activities during the three months ended March 31, 2025 was $41.3 million, which was primarily due to the proceeds from sales and maturities of marketable securities of $283.3 million, partially offset by the purchase of additional marketable securities of $238.8 million.

Current wording

Net cash used in investing activities during the six months ended June 30, 2025 was $33.6 million, which was primarily due to the purchase of marketable securities of $525.6 million, the purchase of digital assets of $30.0 million, $21.0 million of cash paid for business combinations, and the capitalization of internal-use software development costs of $2.4 million, partially offset by proceeds from sales and maturities of marketable securities of $548.3 million.

Previous wording

Net cash used in financing activities during the three months ended March 31, 2026 was $87.5 million, which was primarily due to $116.2 million used to pay the employee portion of taxes related to the net share settlement of equity awards, partially offset by proceeds from option exercises of $28.9 million.

Current wording

Net cash used in financing activities during the six months ended June 30, 2026 was $101.3 million, which was primarily due to $161.6 million used to pay the employee portion of taxes related to the net share settlement of equity awards, partially offset by proceeds from option exercises of $47.3 million and proceeds from the issuance of shares of Class A common stock under our 2025 ESPP of $13.2 million.

Previous wording

Net cash provided by financing activities during the three months ended March 31, 2025 was $0.3 million and was from proceeds from option exercises.

Current wording

Net cash provided by financing activities during the six months ended June 30, 2025 was $15.8 million, which was primarily due to proceeds from option exercises of $20.7 million, partially offset by $3.5 million used to pay deferred offering costs and $1.4 million used to pay for issuance costs on the Revolving Credit Facility.