Design software leader Figma has taken a major step toward going public, revealing its financials in a newly filed S-1 with the SEC. While the filing doesn’t yet include details like the number of shares or pricing, it provides the clearest snapshot yet of the company’s financial position — and it’s a strong one.
A Potentially Historic IPO
IPO analysts at Renaissance Capital estimate that Figma could raise up to $1.5 billion in its public offering. If it hits or surpasses that target, it would match or outpace the current largest tech IPO of 2025 — CoreWeave, which also raised $1.5 billion earlier this year.
Strong Revenue Growth
According to its S-1, Figma generated $749 million in revenue in 2024, marking a 48% year-over-year increase from 2023. Momentum has continued into 2025, with Q1 revenue up 46% YoY. The company reported $821 million in rolling 12-month revenue, supported by an impressive 91% gross margin.
Profitability & One-Time Loss
Figma was profitable in 2023, but reported a substantial $732 million loss that same year — largely attributed to a one-time employee stock compensation event. The company issued 10.5 million stock options at a strike price of $8.50 per share.
However, by Q4 2024, Figma had returned to profitability, a trend that continued into Q1 2025.
Clean Balance Sheet
Figma also reported negligible debt, stating it currently has no outstanding obligations, though it maintains a revolving credit line that may be updated later in the filing.
Leadership, Ownership, and Control
One notable disclosure concerns co-founder Evan Wallace, who left the company in 2021. While Wallace is still named a co-founder in the S-1, he has transferred full voting rights to CEO Dylan Field. Wallace’s family trust holds about one-third of Figma’s Class B super-voting shares (which carry 15 votes per share), giving Field about 75% control of voting rights pre-IPO.
Also revealed: Field cashed out $20 million in shares in a 2024 employee tender offer.
Major backers of Figma include Index Ventures, Greylock Partners, Kleiner Perkins, and Sequoia Capital. It remains unclear if any executives or VCs will sell shares in the IPO.
Competitive Risks in the AI Era
Despite its strong fundamentals, Figma acknowledges the competitive pressure from emerging AI-powered design tools like Lovable, which are rapidly gaining traction.
Figma has been investing in its own AI features but flagged the evolving nature of generative AI as a key risk in its filing:
“While we have made, and expect to continue to make, significant investments to integrate AI, including generative AI, into our platform, AI technologies are rapidly evolving and there can be no guarantee that our products will remain competitive,” the company stated.
With a healthy balance sheet, strong growth, and dominant market position, Figma appears well-positioned for a successful IPO. If investor enthusiasm holds, this could be one of the biggest tech IPOs of the year — and a defining moment for the design software sector.
Stay tuned to Techxnow for updates as Figma moves closer to its public debut.
Sources (Techcrunch)
