Figma unveils strong growth ahead of its IPO in New York

Published: 2025-07-02 04:05:23 ET ADBE

Published on 07/02/2025 at 04:05

By Nicolas Thomas

Figma, creator of the design app of the same name, is preparing to go public on the NYSE. The timing is right: the IPO market is buoyant, the company's fundamentals are strong, and growth accelerated sharply in the last quarter. This combination makes this IPO one of the most promising of the year.

Figma reported a sharp rise in revenue and net income for Q1 2025 on Tuesday, as the online collaborative design platform prepares to go public on the New York Stock Exchange, more than a year after Adobe abandoned its $20bn takeover bid.

This is set to be one of the most high-profile IPOs of the year, at a time when stockmarket euphoria seems to be overshadowing concerns about US tariffs.

In a secondary offering in 2024, Figma was valued at $12.5bn, giving its employees and early investors the opportunity to sell some of their shares.

The IPO was widely anticipated after Adobe's takeover bid was blocked by competition authorities in the United Kingdom and the European Union in late 2023. The deal, which would have been one of the largest ever in the software sector, was abandoned by mutual agreement in December 2023.

Figma has since strengthened its fundamentals. In the first three months of the year, the company generated revenue of $228.2m, up from $156.2m in the same period in 2024. Its net profit tripled to $44.9m.

The company is also banking on artificial intelligence to accelerate its growth, although these investments may weigh on its short-term profitability. "Expect us to make ambitious bets when opportunities arise, whether to strengthen our platform or for significant external growth," CEO and co-founder Dylan Field said in a letter accompanying the IPO filing. "That means we will sometimes make decisions that don't immediately seem rational," he added.

Figma plans to use some of the proceeds to repay drawings on its revolving credit facility, including to settle upcoming tax payments.

Morgan Stanley, Goldman Sachs, Allen & Co., and J.P. Morgan are leading the transaction. Figma shares will trade under the symbol "FIG."

Nicolas Thomas