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Figma shares fall after-hours despite Q2 revenue beat and higher 2026 forecast

Figma shares fall after-hours despite Q2 revenue beat and higher 2026 forecast

Design software maker posted $370.1 million in second-quarter revenue, raised its full-year outlook by $40 million and reported strong customer expansion and AI usage, yet the stock fell after the release.

Fact Check
Every element of the claim is corroborated. The Benzinga article confirms 48% revenue growth, an earnings beat ($370.08M vs $351.56M; EPS $0.08 vs $0.04), a raised full-year outlook to $1.463-1.467B, AI credit uptake cited by the CFO, and a 16.52% after-hours stock decline. Reuters confirms surging expenses, thinner margins, and AI-cost concerns driving the selloff despite the upbeat outlook. Morningstar/MarketWatch and TradingKey independently confirm the 48% growth and the AI-investment-driven stock decline.
Summary

Figma shares fell in after-hours trading after the design software company reported second-quarter revenue of $370.1 million, up 48% from a year earlier and ahead of both its $348 million to $350 million guidance range and Wall Street estimates, while raising its full-year 2026 revenue forecast by $40 million to $1.463 billion to $1.467 billion. The quarter extended Figma's run of accelerating year-over-year growth and showed continued customer expansion, with net dollar retention at 136%, customers generating more than $100,000 in annual recurring revenue rising 46% to 1,635, and the cohort above $10,000 in ARR growing 34% to 15,964. More than 80% of customers in the $10,000-plus ARR tier were consuming AI credits weekly, and more than half were using the Figma agent weekly by July 31. Free cash flow was $53.2 million and cash, equivalents and marketable securities totaled about $1.7 billion, but investors continued to focus on margin pressure as GAAP operating expenses nearly doubled to $426.9 million and Figma kept its full-year non-GAAP operating income outlook unchanged at $125 million to $135 million.

Terms & Concepts
  • net dollar retention: A measure of how much revenue from existing customers increases or decreases over time after expansions, downgrades and cancellations.
  • annual recurring revenue: A subscription metric that estimates how much revenue a customer account generates over a year.
  • free cash flow: Cash left after operating expenses and capital spending, often used to gauge how much money a company can reinvest or retain.