With Figma stock down 80% post-IPO, investors cheer solid customer growth, ties to Anthropic and OpenAI

SaaS-pocalypse. SaaS-mageddon. Those are just a few of the clever software-as-a-service portmanteaus being tossed around as investors debate a massive selloff in the sector that has vaporized roughly $1 trillion in valuations from recent highs, with more than $285 billion in market value wiped out in February alone. 

On Wednesday, it was cloud-based design platform Figma’s turn to announce its fourth quarter 2025 earnings results to a market primed to search for signs of a continuing SaaS-nado. Investors were ready to pummel the stock after Figma saw a more than 80% tumble since an IPO last year that saw its price surge above $140 before sinking about $23. The Q4 headline numbers told a positive story with revenue of $303.8 million, up 40% year-over-year and an acceleration from the 38% posted in the third quarter. Net dollar retention rate—a measure of how much existing clients are spending— hit 136%, the highest it’s been in 10 quarters. Plus, the $12 billion design company crossed the $1 billion annual revenue threshold for the first time ever, wrapping up 2025 with roughly $1.1 billion. The fourth quarter saw Figma’s best performance ever of net new revenue. 

“2025 was a massive year for us,” said Figma chief financial officer Praveer Melwani in an interview before the announcement. “There’s a lot of momentum, and if you zero in on the quarter specifically, growth accelerated from........

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