Figma’s stock has plummeted over 50% since its mid-2025 IPO, but the company hit a milestone of $1 billion in annual revenue. Despite external factors impacting its stock price, Figma’s strong fundamentals, loyal customer base, and innovative tools position it well for long-term growth and recovery.

The company’s focus on customer loyalty shows with over 1,200 customers paying over $100,000 annually and 12,910 customers paying over $10,000 annually. Figma reported 140 new $100,000 ARR customers in Q3 2025, with a net revenue retention of 131% for customers with $10,000 ARR or more.

Figma’s Q3 earnings saw a 38% increase year over year, reaching $274.2 million in revenue and an annual revenue run rate of over $1 billion. The company’s free cash flow improved from negative $139 million to $204 million for the first nine months of 2024 and 2025, respectively.

With the recent launch of Figma Weave, an AI-based feature for video and animation, the company is poised for continued growth. Figma dominates the market with over 40% share, leaving competitors like Adobe XD far behind.

Despite challenges and a high valuation, Figma’s profitable business, loyal customer base, and AI innovations make it a strong investment for the long term. Investors should look past short-term stock fluctuations and consider the company’s growth potential and market dominance.

Read more at Yahoo Finance: Is Now the Time to Buy Figma Stock?