Figma (FIG) opened Q1 2026 with total revenue of US$333.4 million and a basic EPS loss of US$0.27, while trailing 12 month revenue reached US$1.2 billion against a trailing EPS loss of US$3.38 and year on year revenue growth of 41.4%. Over recent quarters, the company has seen revenue move from US$216.9 million in Q4 2024 to US$333.4 million in Q1 2026. Quarterly EPS has swung between a profit of US$0.46 in Q4 2024 and a loss of US$2.72 in Q3 2025 before landing at a loss of US$0.27 this quarter, creating a picture in which strong top line progress is being weighed directly against persistent pressure on margins.

See our full analysis for Figma.

With the headline numbers on the table, the next step is to see how this mix of rapid revenue growth and ongoing losses lines up with the dominant market narratives around Figma and where those stories might need updating.

US$1.2b trailing revenue meets heavy US$1.4b loss

• Over the last twelve months, Figma generated about US$1.2b in revenue but reported a net loss of about US$1.4b and a trailing basic EPS loss of US$3.38, so every dollar of revenue has been paired with a little more than a dollar of loss.
• Consensus narrative leans on strong revenue momentum to justify future upside, yet the scale of trailing losses tests that view:
  • Analysts point to 41.4% trailing revenue growth and forecast revenue growth of about 18.3% a year as support for the business model, while trailing net income moved from a profit of US$155.3 million in Q2 2025 to a loss of US$1.4b by Q1 2026.
  • This mix means the growth story is intact on the top line, but the consensus expectation that margins improve over time is not yet reflected in the recent earnings profile.

Quarterly losses narrow from US$1.1b spike

• On a quarterly basis, net loss excluding extra items moved from US$1.1b in Q3 2025 to US$226.6 million in Q4 2025 and US$142.4 million in Q1 2026, so losses are still large in absolute terms even after that prior spike.
• Bears focus on heavy AI and platform investment as a drag on margins, and the recent pattern gives them plenty to point to while also adding some nuance:
  • Bearish narrative flags that AI infrastructure and stock based compensation could keep GAAP losses elevated, which is consistent with trailing basic EPS at a loss of US$3.38 and three consecutive loss making quarters since Q3 2025.
  • At the same time, the shift from a quarterly EPS loss of US$2.72 in Q3 2025 to a loss of US$0.27 in Q1 2026 shows that quarterly results can swing sharply, so the very weak Q3 2025 outcome is not a straight line indicator of future quarters.

On top of this, skeptics who highlight the drag from AI related spending can see how the recent Q1 2026 loss still keeps the long term bearish concerns in play even as quarterly EPS moves around. 🐻 Figma Bear Case

High growth valuation with a DCF cushion

• Shares trade at a P/S of 10.4x, below the peer average of 13.2x but above the broader US Software sector at 3.5x, while the current price of US$22.92 sits below a DCF fair value estimate of about US$27.40 and below an analyst price target of US$36.88.
• Bulls argue the combination of strong growth and a discount to estimated fair value supports their case, and the current numbers give them clear talking points alongside some trade offs:
  • The 41.4% trailing revenue growth and forecast mid teens growth compare with a share price that is about 16.4% below the DCF fair value and below the cited analyst target, which supports the view that the market is not fully pricing in the revenue profile.
  • However, valuation still embeds growth expectations, with a 10.4x P/S multiple sitting well above the 3.5x sector average while the company is expected to remain unprofitable for at least three years, so the bullish case depends heavily on that growth holding up alongside improving loss levels.

For anyone weighing whether this growth profile justifies the current premium to the wider software sector, it can help to see how bullish investors link these earnings to their longer term story. 🐂 Figma Bull Case

Next Steps

To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for Figma on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.

With a mix of strong growth data and heavy losses on the table, sentiment around Figma is clearly split. It makes sense to look through the numbers yourself, weigh both the risks and rewards, and decide where you stand after reviewing the 3 key rewards and 2 important warning signs

See What Else Is Out There

Figma pairs strong revenue growth with heavy losses, including a trailing net loss of about US$1.4b and three consecutive loss making quarters since Q3 2025.

If you like Figma's growth story but want stocks where financial risk looks more contained, it is worth checking companies in the 66 resilient stocks with low risk scores today.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.