Design software company Figma has filed for an IPO, which is expected to raise up to $1.5 billion. Its entry to public markets comes more than a year after the collapse of Adobe’s attempted $20 billion acquisition.
The S-1 filing contains key insights about Figma’s growth, customer base, and founder-led strategy.
Read below for key insights potential investors should know.
1. Exceptional revenue growth and profitability
- 2024 revenue reached $749 million, up 48% from 2023, with a rolling 12-month revenue of $821 million and a gross margin of 91%.
- In Q1 2025, revenue grew 46% year-over-year to $228.2 million, and net income for the quarter tripled to $44.9 million, up from $13.5 million in Q1 2024.
- Figma was profitable in 2023, but reported a large net loss of $732 million in 2024 due to a one-time employee stock compensation event, not ongoing operations. The company returned to profitability by late 2024 and into 2025.
2. Massive market reach and customer base
- 13 million monthly active users as of early 2025.
- 95% of Fortune 500 companies use Figma, and two-thirds of its users are not professional designers, indicating broad adoption across business functions.
- As of March 2025, Figma had 1,031 customers contributing over $100,000 annually (up 47% year-over-year) and 11,107 customers contributing over $10,000 annually.
3. IPO structure and leadership control
- Figma is pursuing a dual-class share structure: CEO Dylan Field will retain majority voting power through super-voting Class B shares, protecting founder-led strategic direction post-IPO.
- Field personally controls about 75% of voting rights, with cofounder Evan Wallace’s family trust holding about a third of the special voting shares (Field controls their votes).
4. Financial health and use of proceeds
- Figma reports minimal debt, only a revolving credit line.
- Proceeds from the IPO are expected to support global expansion, R&D, AI innovation, enterprise integration, and possible acquisitions. The company is also working toward FedRAMP certification to target U.S. government contracts.
5. Strategic positioning and competitive landscape
- Figma’s S-1 mentions AI hundreds of times, highlighting both the opportunity and challenge of integrating generative AI into design workflows. The company warns that AI investments may impact efficiency in the near term but are seen as critical for future growth.
- Figma’s collaborative, cloud-based platform is positioned as a solution to fragmented design workflows, enabling real-time, multi-user collaboration and seamless designer-developer handoff.
- The failed $20 billion Adobe acquisition (blocked by regulators) continues to shape market expectations. Recent secondary transactions valued Figma at $12.5 billion, but analysts expect a public valuation in the $15 billion to $20 billion range.
6. Liquidity and employee morale
- A significant 2024 tender offer allowed employees and executives to sell shares pre-IPO, providing liquidity and potentially aiding retention. CEO Dylan Field sold $20 million in shares during this event.
7. IPO details and market context
- Figma will list on the New York Stock Exchange under the ticker “FIG.” The number of shares and price range have not yet been disclosed.
- The IPO is expected to raise up to $1.5 billion, potentially making it one of the largest tech IPOs of 2025, rivaling CoreWeave’s offering.
Disclaimer: For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing.