Figma openly shared its financials Tuesday, inching the design software business closer to an IPO.
And while this initial S-1 is missing information such as variety of shares to be offered and what price, the regulative filing offers the clearest view yet of its financial health and potential.IPO professionals Renaissance Capital estimate that Figma could raise up to $1.5 billion in this offering.
If it does fulfill or surpass that, Figmas IPO will match or beat CoreWeaves, which raised $1.5 billion and has been the biggest tech IPO of 2025 so far.There are some factors to think that Figma could pull it off.
Its financials are impressive, per the S-1 filing.The business generated $749 million in income in 2024, a 48% jump from 2023.
Figmas income continued to increase in the very first quarter of 2025 with 46% year-over-year growth.
The company reported rolling 12-month revenue as $821 million, with a 91% gross margin.Figmas profit is intriguing, too.
The business paid in 2023 and then swung to a giant loss of $732 million in 2023.
This was mainly due to one-time expenses related to a significant staff member stock payment event.
(Figma provided 10.5 million stock choices, with a strike rate of $8.50 per share to eligible employees, it stated.)By the fourth quarter of 2024, Figma reported earnings once again, as it did in Q1 of 2025.
Figma has also computed its total financial obligation to be so negligible that it reports it has none.
Again, this is a line item that needs to be filled in.
The business, naturally, has a revolving debt line, and left space to update its overall financial obligation in association with that.We also dont understand yet if any of the executives or VCs will be offering shares.
Major backers include Index, Greylock, Kleiner Perkins, and Sequoia.We do know that in 2024, executives took part of a big tender deal that enabled staff members to squander of shares.
For example, Figma co-founder CEO and chairman Dylan Field cashed out of $20 million worth of shares as part of that sale.The S-1 document made another intriguing disclosure, about co-founder Evan Wallace, who left Figma in 2021, according to his website.
Wallace is named in the documents as a co-founder.
Figma says Wallace has actually given Field complete voting rights and control over his shares.
Wallaces family trust holds about one-third of the super-voting rights Class B shares (15 votes per share, Figma says).
All informed, the S-1 discloses that Field, pre-IPO, controls about 75% of the voting rights.The financials certainly look like the type of company that Wall Street and retail financiers typically like to buy.
The one black cloud, if you can call it that, is the increase of ambiance coding/designing AI apps.
Upstarts like Lovable are targeting Figmas market and growing fast.
Figma, though, has its own set of AI items as well.Figma acknowledges in the S-1 the dangers of stopping working to stand out in a competitive AI industry.While we have actually made, and expect to continue to make, considerable investments to incorporate AI, includinggenerative AI, into our platform, AI innovations are rapidly developing and there can be no guarantee thatour products will stay competitive as new AI innovations are established, embraced, and incorporated intosoftware solutions, the business states in the regulative file.