Figma Q1 Earnings Call Highlights

Figma NYSE: FIG reported accelerating revenue growth in its fiscal first quarter of 2026, with management pointing to stronger seat expansion, enterprise adoption and early monetization of artificial intelligence features as key drivers.

Co-founder and Chief Executive Officer Dylan Field said the company is benefiting from a shift in software development in which AI has made code easier and faster to produce, increasing the importance of design and creativity. “When execution is cheap, design and creativity are the edge,” Field said on the earnings call.

For the quarter, Figma reported revenue of $333 million, up 46% year-over-year. Field said growth accelerated from 40% in the prior quarter and 38% in the quarter before that. The company’s net dollar retention rate rose to 139%, up three percentage points from the previous quarter and its highest level in more than two years.

Figma also reported non-GAAP operating margin of 16% and free cash flow margin of 27% in the quarter. The company ended the period with $1.6 billion in cash equivalents and marketable securities.

AI Products Drive Usage and Expansion

Management repeatedly cited AI as a tailwind across the business, including adoption of Figma Make, Figma Weave, Model Context Protocol capabilities and other AI features. Field said about 60% of the company’s largest customers used Figma Make on a weekly basis in the first quarter, while more than 80% of Make users on full seats also continued using Figma Design for visual editing and broader exploration.

Chief Financial Officer Praveer Melwani said first-quarter outperformance was driven by stronger-than-expected seat expansion across organizations, “driven by design’s growing importance and adoption of our AI products.” International revenue grew 48% year-over-year, and the company also saw increased demand for its Governance+ add-on and advisory services.

The company’s paid customer base grew to approximately 690,000, up from approximately 450,000 in the prior-year quarter, representing 54% growth. Customers spending more than $10,000 in annual recurring revenue grew 37% year-over-year, while customers spending more than $100,000 in ARR grew 48%.

Melwani said new Pro team conversions were up more than 150% compared with the first quarter of last year, which the company views as a leading indicator for future growth.

Early AI Credit Monetization Shows Momentum

Figma began implementing AI credit limits for all seats on March 18, and executives said early signals from monetization have been encouraging. Melwani said that as of the end of April, more than 75% of users on organization and enterprise plans who had previously exceeded their credit limits continued to use credits, and more than 95% of those users remained active on the platform.

Melwani said Pro teams that purchased AI credit add-ons had more seats per team and an average annualized spend more than three times higher than teams that had not purchased add-ons. He added that current credit usage is being driven by products such as Figma Make and advanced image editing features, while newer capabilities such as the company’s AI assistant are expected to draw on credits in the future.

“Q2 will be our first full quarter of credit monetization,” Melwani said. He said the company is investing in expanded admin controls, pay-as-you-go options for Pro customers and more flexible enterprise contracting structures.

Customer Examples Highlight Broader Use Cases

Field cited several customer examples to illustrate broader and deeper adoption. He said Google uses Figma as a single source of truth for teams designing agentic Gemini experiences for enterprise customers. Lufthansa’s Lido navigation product design team used Figma Make to prototype an integrated iOS charting app for commercial pilots by connecting Make to an in-house API, allowing pilots to test interactive map features before production code was written.

Rocket Mortgage built its design system into Figma Make as shared template infrastructure, according to Field, enabling teams beyond design to build dashboards, create presentations and explore customer experiences using the company’s brand foundations.

Field also said architecture firm NBBJ is using Figma Weave to create photorealistic renderings from 3D models for client pitches, reducing reliance on external studios and allowing architects to refine visual presentations in real time. He said adoption of Weave at NBBJ is expected to triple over the next three months.

Margins, Costs and Guidance

Figma reported non-GAAP gross profit of $275 million, representing an 82% gross margin. Melwani said broader and deeper adoption of AI features increased engagement and retention, while also increasing use of higher-capability models. He said the company has levers to manage inference costs, including routing queries across models based on task complexity, using a model-agnostic architecture and investing in first-party models trained on Figma’s design corpus.

During the question-and-answer portion of the call, analysts pressed management on gross margin trends as AI usage grows. Melwani declined to provide a specific floor for gross margins, saying the company is focused on optimizing gross profit dollars and driving growth. Field added that the company will balance short-term spending with the long-term opportunity in AI-related markets.

For the second quarter of fiscal 2026, Figma expects revenue of $348 million to $350 million, implying 40% year-over-year growth at the midpoint. For the full year, the company expects revenue of $1.422 billion to $1.428 billion, implying 35% growth at the midpoint. Figma also raised its full-year non-GAAP operating income outlook to a range of $125 million to $135 million, representing a 9% non-GAAP operating margin at the midpoint.

Melwani said the full-year revenue outlook reflects increased paid conversion, sustained seat expansion and stronger-than-expected credit utilization, retention and add-on purchases since the implementation of credit limits.

Competition and Product Outlook

Executives were also asked about competition from large AI and cloud providers. Field said he expects the design and visual software-building space to “continue to heat up,” with some tools becoming complementary to Figma’s ecosystem and others serving as more direct competitors.

Field identified Figma’s differentiators as its performant multiplayer canvas, deep product context and ability to bring together AI, design, code and direct visual manipulation in one platform. He said the company is shipping faster than ever and pointed investors to Config, Figma’s annual user conference in June, where the company plans to show upcoming products and features.

About Figma NYSE: FIG

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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