Figma, Inc. (FIG) shares fell 15.31% in after-hours trading to $23.84, reversing a 3.80% intraday gain that had pushed the stock to a $28.15 close. The post-earnings sell-off came despite the design platform reporting strong second-quarter revenue growth, expanding AI monetization, and a raised full-year outlook.

Market participants appeared to focus on the company's GAAP operating losses and elevated spending tied to product expansion rather than the top-line acceleration. The reaction highlights the tension investors often weigh in software names between growth, margin discipline, and the timing of investments needed to support new product rollouts.

Q2 Revenue Accelerates for Third Consecutive Quarter

Figma reported second-quarter revenue of $370.1 million, representing 48% year-over-year growth. The result exceeded the company's earlier guidance range and marked a third straight quarter of accelerating revenue growth.

Following the strong quarterly performance, Figma raised its full-year 2026 revenue forecast by $40 million. The company now projects annual revenue between $1.463 billion and $1.467 billion, implying approximately 39% growth at the midpoint.

AI Credit Monetization Gains Traction

Figma completed its first full quarter of AI credit monetization during the period. By June 30, more than 80% of larger paid customers were using AI credits on a weekly basis. Customers also expanded both seat counts and paid credit add-ons throughout the quarter.

The platform currently integrates collaborative design, coding, prototyping, and agent-based workflows, giving the company multiple product surfaces where monetization can build over time.

Enterprise Customer Base Expands

Figma's Net Dollar Retention Rate reached 136%, reflecting continued spending growth among existing customers.

The company counted 15,964 customers generating more than $10,000 in annual recurring revenue, a 34% increase from the prior year. Additionally, Figma reported 1,635 customers with annual recurring revenue exceeding $100,000, representing 46% year-over-year growth and reinforcing the company's enterprise positioning.

Margins and Profitability

Figma generated GAAP gross profit of $309.6 million in the second quarter. GAAP gross margin reached 84%, while non-GAAP gross margin stood at 85%. Gross profit growth accelerated to 40% under both accounting measures.

On an operating basis, Figma posted a GAAP operating loss of $117.3 million with a negative 32% operating margin. Higher sales and marketing expenses associated with the company's Config conference weighed on quarterly profitability. Non-GAAP operating income reached $36.1 million, yielding a 10% margin.

Operating cash flow totaled $60.9 million, while free cash flow reached $53.2 million with a 14% margin. Figma ended June with $1.7 billion in cash, cash equivalents, and marketable securities.

Guidance

For the third quarter, Figma guided revenue to a range of $373 million to $375 million. The company also projected annual non-GAAP operating income between $125 million and $135 million. With the stock's after-hours drop coming after a sizable regular-session gain, investors will be watching whether management's updated outlook and AI usage trends translate into sustained customer expansion in coming quarters.