Figma Beats Q3 Estimates, Stock Climbs

Figma (NYSE:FIG) reported robust third-quarter results, exceeding analyst expectations with EPS of $0.10 and revenue of $274.17 million, a 3.38% beat. The company achieved a 131% Net Dollar Retention Rate for customers with over $10,000 ARR, added significant high-value customers, and surpassed a $1 billion annual revenue run rate, which CEO Dylan Field attributed partly to AI product investments. Figma also provided an optimistic outlook, raising its fiscal 2025 revenue guidance to $1.044-$1.046 billion, well above previous estimates, leading to a 2.20% increase in its stock during extended trading.

Analysis

Figma (NYSE:FIG) reported a strong third quarter, significantly surpassing analyst expectations with earnings per share of $0.10 against an estimated $0.05. Revenue reached $274.17 million, exceeding the Street's $265.21 million estimate by 3.38%, indicating robust top-line growth and market demand.

Operational metrics further reinforced the positive results, with Net Dollar Retention Rate for customers with over $10,000 ARR improving to 131% as of September 30, 2025, a two percentage point increase quarter-over-quarter. The company added over 1,000 paid customers in the >$10k ARR segment and over 140 in the >$100k ARR segment, demonstrating strong customer acquisition and expansion. CEO Dylan Field attributed this record quarter, which saw the company cross $1 billion in annual revenue run rate, partly to strategic AI product investments.

Figma provided an optimistic outlook, projecting fourth-quarter revenue of $292 million to $294 million, well above the $282.85 million analyst estimate. The company also raised its fiscal 2025 revenue guidance to between $1.044 billion and $1.046 billion, significantly higher than the previous $1.025 billion estimate. This positive news led to a 2.20% increase in FIG stock during Wednesday's extended trading, reflecting investor confidence.

Key Decisions for Investors

• Investors should consider the robust Q3 performance and significantly raised fiscal 2025 revenue guidance as a strong indicator of continued operational momentum.
• Monitor the ongoing contribution of AI product investments to customer growth and retention, as this appears to be a key driver for Figma's recent success.
• Evaluate the sustainability of the high Net Dollar Retention Rate and customer acquisition trends in future reports to assess long-term growth prospects.