Figma, the popular collaborative design platform, is making headlines again, this time for its long-awaited IPO. Set to trade under the ticker FIG, the company is positioning itself as one of the most exciting tech public offerings of 2025. But is investing in Figma stock a smart move for long-term investors? In this article, we’ll break down:
- What Figma does and why it’s valuable
- IPO details: share price, valuation, and timing
- Key risks and opportunities
- Whether FIG stock deserves a spot in your portfolio
Quick Link: See how Figma compares to other high-growth stocks
What Is Figma and Why Should Investors Care?
Founded in 2012, Figma is a cloud-based interface design and prototyping tool that allows teams to collaborate in real-time. Unlike Adobe XD or Sketch, Figma is completely browser-based, allowing seamless collaboration similar to what Google Docs did for word processing.
Key Highlights:
- Over 4 million users globally
- Used by major tech companies: Microsoft, Uber, Zoom, Airbnb
- Massive popularity in product design, UI/UX, and front-end development teams
Figma has essentially become the “Google Docs for designers.” Its ability to make design real-time and collaborative gives it a major edge in the growing market for productivity tools.
Its value was so evident that Adobe attempted to acquire Figma for $20 billion in 2022, an effort blocked by regulators in 2023.
Figma IPO Details: What You Need to Know
Here’s a breakdown of what’s currently known about the Figma IPO:
| Feature | Details |
|---|---|
| Ticker Symbol | FIG |
| Exchange | NYSE |
| Expected Share Price | $30–$32 |
| Shares Offered | ~36–37 million (Class A), plus 5.5M extra (over-allotment) |
| Target Valuation | ~$18.8 billion |
| Expected Date | Late 2025 (exact date TBA) |
Fun Fact:
Figma’s latest IPO price range is higher than initially planned due to investor demand. Originally priced at $25–28, strong interest has pushed the range to $30–32 per share.
Financial Performance and Revenue Growth
Despite being a private company until now, Figma shared some insights in its S-1 filing:
- Q1 2025 revenue: $196 million (up 46% YoY)
- 2023 Net Income: $624 million (largely due to Adobe’s failed acquisition fee)
- 2024 Net Loss: -$146 million (expansion costs + hiring)
- Q1 2025 Net Income: $44.9 million (profitable!)
Key Takeaway:
Figma isn’t just growing, it’s already profitable in early 2025, which is rare among high-growth tech IPOs. This makes FIG stock especially attractive to investors looking for sustainable growth.
Strengths and Opportunities for FIGMA Stock
1. Dominant Product in a Growing Market
Figma is the gold standard in UI/UX design. Its browser-first, collaboration-focused approach has made it the go-to platform for tech teams and startups alike.
2. Loyal Customer Base
Figma has incredible retention metrics. Many teams build their entire product design workflow on Figma, making switching costly.
3. Expansion Potential
The company is already experimenting with tools beyond design, like FigJam for whiteboarding, expanding its total addressable market (TAM).
4. IPO Proceeds
The funds raised from the IPO can be reinvested into R&D, international growth, and possibly acquisitions of smaller design or AI tools.
Risks to Consider Before Investing in FIGMA Stock
1. Valuation Pressure
An $18.8 billion valuation puts Figma in the same category as companies like Atlassian or Snowflake. If growth slows, the stock could be punished.
2. Competition
While Adobe failed to acquire Figma, it’s still a fierce competitor. Tools like Adobe XD and Canva (especially with AI features) could chip away at Figma’s dominance.
3. Tech IPO Volatility
Recent IPOs like Instacart and Reddit saw strong openings but mixed medium-term results. FIG could face similar post-IPO turbulence.
4. Economic Uncertainty
In a high-interest rate environment, growth stocks often underperform. FIG stock may suffer in a risk-off market.
Should You Buy Figma Stock?
If you’re a long-term investor who believes in the future of design, collaboration tools, and remote work, Figma is one of the most promising IPOs of the year.
FIG Might Be Right for You If:
- You’re looking for exposure to innovative SaaS companies
- You can tolerate short-term volatility for long-term gain
- You missed early opportunities in companies like Zoom, Adobe, or Atlassian
FIG Might Not Be Right for You If:
- You prefer dividend-paying or value stocks
- You expect immediate large returns
- You’re already overexposed to tech
How to Buy Figma Stock Once It IPOs
- Create a brokerage account with platforms like Fidelity, TD Ameritrade, Robinhood, or Interactive Brokers.
- Watch for the IPO listing date.
- Once FIG is trading, search the ticker in your brokerage account and place a market or limit order.
Want a refresher on stock investing terms? Check out our guide on how to read the PE ratio.
Final Thoughts On Figma Stock
Figma’s IPO is not just another tech listing; it’s the biggest enterprise software IPO since 2021. The company’s profitability, product quality, and market dominance make it one of the top IPOs to watch in 2025.
However, like any growth stock, it comes with risk. If you’re investing in Figma, make sure it fits into your broader strategy of diversification, risk management, and long-term thinking.
