Figma (NYSE:FIG) Shares Gap Down - Here's What Happened

Key Points

• Figma shares gapped down sharply, opening at $23.23 versus the prior close of $28.15, despite trading volume of more than 16 million shares.
• Figma reported strong second-quarter results, with revenue rising 48.2% year over year to $370.1 million and adjusted EPS of $0.08. The company also raised its fiscal 2026 revenue outlook to approximately $1.5 billion and issued above-consensus third-quarter guidance.
• Investors remain concerned about the high costs of expanding AI capabilities, ongoing losses and the path to profitability. Analysts hold an overall “Hold” rating, with an average price target of $32.56.

Figma, Inc. (NYSE:FIG - Get Free Report)'s share price gapped down before the market opened on Thursday . The stock had previously closed at $28.15, but opened at $23.23. Figma shares last traded at $23.1730, with a volume of 16,029,670 shares changing hands.

Trending Headlines about Figma

Here are the key news stories impacting Figma this week:

• Positive Sentiment: Figma reported second-quarter revenue of $370.1 million, up 48.2% year over year, while adjusted earnings of $0.08 per share exceeded analyst expectations. Management also cited strong demand for its design software and AI-enabled tools. Figma Announces Second Quarter 2026 Financial Results
• Positive Sentiment: The company raised its revenue outlook to approximately $1.5 billion for fiscal 2026, above the roughly $1.4 billion consensus estimate. Third-quarter revenue guidance of $373 million to $375 million also exceeded expectations of about $362.4 million. Figma lifts annual revenue forecast as AI efforts drive solid demand
• Neutral Sentiment: Chief Accounting Officer Tyler Herb sold 1,536 shares for approximately $39,936 under a pre-arranged Rule 10b5-1 plan to cover tax withholding on vested equity. The relatively small, scheduled transaction offers limited insight into management’s current outlook. Tyler Herb Sells 1,536 Shares of Figma Stock
• Negative Sentiment: Investors remained concerned that expanding AI functionality will require substantial spending, potentially limiting operating leverage. Figma continues to report significant losses, including a negative net margin, making margin improvement and the path to sustainable profitability key risks. Figma’s upbeat outlook fails to stem margin worries as AI costs mount
• Negative Sentiment: CEO Dylan Field reportedly forfeited about $46 million in stock following the decline in Figma’s share price, adding to negative sentiment around the company’s equity performance and compensation arrangements. Figma CEO Forfeits $46 Million in Stock After Share Decline

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the company. Wells Fargo & Company decreased their price target on Figma from $42.00 to $36.00 and set an "overweight" rating for the company in a research note on Friday, June 26th. Stifel Nicolaus set a $25.00 price objective on shares of Figma in a report on Friday, May 15th. JPMorgan Chase & Co. decreased their target price on shares of Figma from $45.00 to $42.00 and set a "neutral" rating for the company in a research report on Friday, May 15th. Citigroup lowered their target price on shares of Figma from $36.00 to $35.00 and set a "buy" rating on the stock in a research note on Friday, July 24th. Finally, Bank of America assumed coverage on shares of Figma in a research report on Tuesday, July 7th. They set a "buy" rating and a $30.00 price target on the stock. Five equities research analysts have rated the stock with a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $32.56.

Figma Price Performance

The company has a fifty day moving average price of $21.74 and a two-hundred day moving average price of $22.80. The firm has a market cap of $10.38 billion and a price-to-earnings ratio of -6.72.

Figma (NYSE:FIG - Get Free Report) last released its earnings results on Wednesday, August 5th. The company reported $0.08 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.22) by $0.30. Figma had a negative return on equity of 98.51% and a negative net margin of 123.83%.The firm had revenue of $370.08 million for the quarter. During the same period in the previous year, the firm earned $0.09 earnings per share. Figma's revenue was up 48.2% on a year-over-year basis. On average, research analysts expect that Figma, Inc. will post -0.79 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Dylan Field sold 174,430 shares of the business's stock in a transaction that occurred on Friday, May 29th. The shares were sold at an average price of $25.02, for a total value of $4,364,238.60. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CTO Kris Rasmussen sold 327,046 shares of the stock in a transaction that occurred on Tuesday, May 19th. The shares were sold at an average price of $25.07, for a total transaction of $8,199,043.22. Following the sale, the chief technology officer directly owned 9,771,529 shares of the company's stock, valued at approximately $244,972,232.03. This represents a 3.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 1,395,647 shares of company stock worth $34,452,600. 32.26% of the stock is owned by insiders.

Institutional Investors Weigh In On Figma

Large investors have recently modified their holdings of the stock. Parallel Advisors LLC lifted its holdings in shares of Figma by 3,890.0% during the first quarter. Parallel Advisors LLC now owns 1,197 shares of the company's stock valued at $25,000 after purchasing an additional 1,167 shares during the last quarter. NewEdge Advisors LLC acquired a new position in shares of Figma in the third quarter worth about $26,000. DV Equities LLC purchased a new position in shares of Figma in the fourth quarter worth approximately $26,000. Concord Wealth Partners raised its holdings in shares of Figma by 1,446.8% during the fourth quarter. Concord Wealth Partners now owns 727 shares of the company's stock valued at $27,000 after acquiring an additional 680 shares during the period. Finally, Harbour Investments Inc. lifted its position in shares of Figma by 1,568.2% in the 4th quarter. Harbour Investments Inc. now owns 734 shares of the company's stock valued at $27,000 after acquiring an additional 690 shares in the last quarter.

Figma Company Profile

Figma is a San Francisco–based software company that offers a web-based platform for interface design, prototyping and collaboration. Its flagship product, Figma, enables teams to create and refine user interfaces, vector graphics and design systems directly in a browser, eliminating the need for local installations. The platform's real-time collaboration features allow multiple stakeholders—designers, developers and product managers—to edit and comment simultaneously, streamlining workflows and reducing version control issues.

In addition to its core design tool, Figma provides FigJam, a digital whiteboarding solution that facilitates brainstorming sessions, wireframing and diagramming.

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