Figma (FIG) Stock Is Down 49% This Year. Is the Worst Finally Over?

TLDR

• Figma (FIG) rose 8.8% on Monday to $20.39, against a backdrop of heavy insider selling and a steep post-IPO decline.
• Revenue grew 40.1% year-over-year to $303.78M in Q4 2025, and EPS of $0.08 beat estimates of -$0.20.
• The stock is down roughly 49% year-to-date and sits far below its 200-day moving average of $32.08.
• Analyst consensus is a Hold, with an average price target of $43.25 — more than double the current price.
• Insiders sold about 956,362 shares worth ~$27.9M last quarter, including CEO Dylan Field offloading over 236,000 shares.

Figma (FIG) bounced 8.8% on Monday to close at $20.39, touching an intraday high of $20.40. The move came on roughly 4.82 million shares traded — well below its average daily volume of around 14.7 million, a 67% drop.

Figma, Inc., FIG

The stock had previously closed at $18.74.

The rally offered a brief reprieve for FIG investors who have had a rough ride. Since its July 2025 IPO, Figma has shed 68% of its value. It’s down another 49% so far in 2026.

Its 50-day moving average sits at $23.11. The 200-day moving average is $32.08. The current price is well below both.

The company’s market cap stands at $8.87 billion, with a price-to-earnings ratio of -6.40 — a reminder that Figma is still burning cash.

Strong Revenue, But Still in the Red

Figma’s last earnings report, released February 18, showed revenue of $303.78M for Q4 2025 — up 40.1% year-over-year. The company posted EPS of $0.08, blowing past analyst estimates of -$0.20.

But the headline numbers mask a deeper issue. Figma carries a net margin of -121.87% and a negative return on equity of 97.03%. Analysts expect full-year EPS of -$0.69.

Net dollar retention sits at 136%, which signals that existing customers are expanding their spending — a healthy sign in a tough climate.

Analysts Hold, But Targets Are Far Above Current Price

Wall Street’s view is mixed. Of the analysts covering FIG, four rate it a Buy, ten say Hold, and one says Sell. The average price target is $43.25 — roughly 112% above Monday’s close.

Several analysts cut their targets in February. Royal Bank of Canada trimmed its target from $38 to $31. Stifel Nicolaus cut from $40 to $30. Morgan Stanley holds a $44 target. Oppenheimer initiated with a market perform rating in March.

The gap between the consensus target and the current price is wide — suggesting analysts think the sell-off went too far.

Still, some headwinds are hard to ignore. Anthropic’s Claude Design product has raised questions about competitive pressure on Figma’s core business. At the same time, Figma’s tight integration with Claude Code may blunt that threat.

CEO Dylan Field sold 236,930 shares in late February at an average price of $30.77, netting over $7.29M. General Counsel Brendan Mulligan sold 4,817 shares in March. In total, insiders offloaded ~956,362 shares worth around $27.9M last quarter.

On the institutional side, appetite remains. JPMorgan Chase increased its stake by 119.4% in Q4. Baillie Gifford lifted its position by 93.8%. Early investors including SC US Ttgp, ICONIQ Capital, and a16z each entered with positions worth over $800M in Q3.

Analysts currently forecast EPS of -$0.69 for the full current year.

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