Figma Price Prediction: The Stock Could Pop Over 125% This Year

"Figma is down 48.27% year to date and 83.26% over the past year, trading near its $16.60 52-week low. Two narratives drove the unwind: Google's free Gemini image-generation tools raised pricing-power fears in February, and a class-action investigation by Lowey Dannenberg followed in March. Yet Q4 revenue grew 40% year over year, full-year 2025 revenue cleared $1.056 billion, and gross margins held at 84.76%. Director Reed Phillips bought $36.5 million of stock in late February, a meaningful contrarian signal."

"The bull case rests on three pillars. First, growth durability: 40% revenue growth at 84.76% gross margins is a rare combination, and analyst commentary points to profitability in fiscal 2026. Second, AI as an offensive lever: Figma's product velocity on enterprise AI features is expanding seat counts internationally. Third, valuation reset: at 10x sales, FIG trades well below its IPO multiple. Goldman Sachs lifted its target to $54, and Piper Sandler holds an Overweight. Our bull-case scenario points to $78.72 over the next 12 months."

"The bears are not wrong about the immediate setup. Forward P/E sits at 86, EBITDA is negative $1.27 billion, and RBC Capital trimmed its target to $38 citing AI margin pressure. Insider tax-withholding sales continue almost weekly. It should be noted, however, that the bulk of recent insider selling is routi"

Figma’s stock has fallen sharply since its IPO, trading near its 52-week low after a major drawdown. The decline followed concerns about pricing power from Google’s free Gemini image-generation tools and legal scrutiny tied to a class-action investigation. Despite the sentiment hit, revenue growth accelerated, with Q4 revenue up year over year and full-year 2025 revenue exceeding $1.056 billion. Gross margins remained high at 84.76%. The bullish outlook centers on durable growth with improving profitability expectations, enterprise AI features expanding seat counts internationally, and a valuation reset to about 10x sales. Key risks include a very high forward P/E, negative EBITDA, potential AI-related margin pressure, and ongoing insider selling.

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