Figma&#x27;s Q1 2026 revenue grew 46% YoY to $333M, with net dollar retention hitting a multi-year high of 139%. But even after its post-IPO slide, the stock still trades at ~75x next-12-month free cash flow. We break down what&#x27;s driving the valuation gap, why free cash flow per share is still feeling IPO dilution effects, and what Figma needs to prove on profitability as AI disruption looms over creative software. Topics covered: Why Figma&#x27;s valuation is still rich despite the stock&#x27;s decline Figma vs. Adobe, Microsoft, Wix, and the private design-tool field AI&#x27;s disruption risk to creative/design software Q1 2026 results: $333M revenue, 139% net dollar retention, $89M free cash flow (27% margin) Free cash flow per share and the impact of IPO-related dilution $1.6B cash, no debt, and why M&amp;A could be on the table The $116M RSU tax settlement behind the cash balance dip Q2 and full-year 2026 guidance (40% and 35% YoY growth) This episode is sponsored by fiscal.ai — get 15% off any paid plan at fiscal.ai/csi. Liked this breakdown? Head to chipstockinvestor.com for our full library of semiconductor and tech stock research, deep dives, and analysis — plus access to Semi Insider, our premium subscription for investors who want the data behind every call we make.

Figma Q1 Earnings: Revenue Soars 46%, Stock Still Pricey

Chip Stock Investor Podcast

# Full Transcript

**Podcast:** Chip Stock Investor Podcast

## Participants

- **Nicholas Rossolillo** (Chip Stock Investor)
- **Kasey Rossolillo** (Chip Stock Investor)

## Transcript

Last year, one of the hottest IPOs out there was Figma. And then it suddenly wasn't hot. It was no longer a darling, as some may call it. And then Saspocalypse happened. And it's been downhill from there. So today we're going to talk about what happened, what's changed and what needs to change, I should say, for there to be a recovery for Figma. And we're going to do that with the help of our friends over at Fiscal.ai, who are the sponsor of today's video.

You're going to see a number of charts from Fiscal in today's episode as we analyze Figma. We'll zoom in on this high-level overview of Figma's valuation from Fiscal.ai. And you can see right off the bat, even after a pretty sizable decline in the stock, it is still trading for expected next 12-month free cash flow. About 75X expected next 12-month free cash flow. So still a hefty price tag.

There are, of course, some effects of the IPO. A lot of new stock issuance is distorting that valuation. This is why, at most, we're usually very cautious about purchasing even small positions in IPOs. But let's break it down a little bit further. We'll come back to Fiscal here in just a minute. Remember to check them out. Fiscal.ai forward slash CSI. You can get 15% off any paid plan.

Figma fits into this enterprise software part of the supply chain, one of the largest end markets in our supply chain. Figma is a popular software, but they do have a notable list of competitors. Adobe, of course, is one of the biggest. And if you remember, Adobe actually wanted to acquire Figma a few years ago. That didn't pan out. But Figma has a long list of other competitors as well.

Some of the public ones that we have listed here, Microsoft and Wix, and then loads of private competitors. If you're watching this video, you probably follow the software apocalypse. And, you know, creative software in particular not only has yet to recover from SaaSpocalypse, unlike, let's say, at least the cybersecurity leaders, which we discussed back in early March, there is still a lot of doubt that these companies will have a really healthy future because of AI.

Creative software, one of the easier, lower hanging pieces of fruit to be able to disrupt with AI. But what's interesting here, if you look at this long list of competitors, at least from an outside looking in perspective, these all may look like basically the same type of creative software. But a lot of these companies, while they overlap in some areas, for actual professional use cases in creative and design work,

they all have some differentiated feature or slightly different use case. So we have it as a competitor's list here, but it is really just a peer list, I would say, overall. AI is fantastic at bundling up a lot of these different features.

So let's focus a little bit more on ...

Figma Q1 Earnings: Revenue Soars 46%, Stock Still Pricey

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Figma Q1 Earnings: Revenue Soars 46%, Stock Still Pricey

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.