Figma IPO: Valuation, Timeline, and Key Details

Figma has officially filed for its initial public offering on 1 July 2025, marking one of the most anticipated tech IPOs of the year. The cloud-based design platform, which will trade on the New York Stock Exchange under the ticker "FIG," represents a significant opportunity for traders seeking exposure to the growing collaborative software market.

With strong financial performance and a clear path to profitability, the Figma IPO offers compelling prospects for both growth-focused and value-oriented investors.

Figma IPO Filing and Timeline

Figma submitted its S-1 registration statement with the Securities and Exchange Commission on 1 July 2025, after initially filing a confidential draft in April 2025. The company plans to list on the New York Stock Exchange under the ticker symbol "FIG". Whilst no specific IPO date has been announced, the public filing suggests the offering could occur in the second half of 2025, subject to market conditions.

The IPO aims to raise approximately $1.5 billion, which would make it one of the largest tech listings of the year. However, the final number of shares to be offered and the price range have not yet been determined.

Current Valuation and Financial Performance

Figma's most recent valuation stands at $12.5 billion, established during a 2024 tender offer that allowed employees and early investors to cash out some of their stake. This valuation provides a baseline for the IPO pricing, though public market conditions will ultimately determine the final offering price.

The company's financial performance has been particularly strong, with Q1 2025 results showing:

• Revenue of $228.2 million, up 46% year-over-year from $156.2 million

  
  

• Net income of $44.9 million, tripling from $13.5 million in Q1 2024

  
  

• Over 1,000 customers generating at least $100,000 in annual recurring revenue, marking a 47% increase year-over-year

For the full year 2024, Figma reported revenue of $749 million, representing a 48% increase from 2023, with a gross margin of 91%. Despite reporting a net loss of over $700 million in 2024, this was largely attributed to one-time costs related to the failed Adobe acquisition.

Background and Market Context

The Figma IPO comes more than a year after Adobe's failed $20 billion acquisition attempt, which was terminated in December 2023 due to regulatory opposition from European and UK antitrust authorities. This setback ultimately paved the way for Figma's independent public listing.

Founded in 2012 by CEO Dylan Field, Figma has established itself as a leader in cloud-based collaborative design tools, competing directly with Adobe's creative suite and other design platforms. The company's browser-based approach to design collaboration has resonated strongly with enterprise customers, particularly in the post-pandemic remote work environment.

Strategic Focus on AI and Growth

In his letter to investors accompanying the S-1 filing, CEO Dylan Field emphasised Figma's commitment to artificial intelligence, with the company making over 200 references to AI in its filing[research]. Field noted that whilst AI investments may impact short-term efficiency, the company will continue to "double down on the technology".

Field also signalled an aggressive growth strategy, writing: "Expect us to take big swings when we see a chance to invest in our platform or pursue M&A at scale. That means at times we will make decisions that may not seem immediately rational". This suggests Figma may use IPO proceeds for strategic acquisitions to expand its market position.

Market Opportunity and Competitive Position

Figma operates in the expanding $30 billion no-code/low-code market, positioning itself at the intersection of cloud collaboration and AI-driven productivity. The company's strong financial metrics, including a Rule of 40 score of 64% (combining 46% revenue growth and 18% non-GAAP margin), place it among the top 5% of SaaS companies.

The collaborative design software market has seen increased demand as organisations embrace digital transformation and remote work capabilities. Figma's real-time collaboration features and browser-based accessibility have given it a competitive advantage over traditional desktop-based design tools.

Key Risks and Considerations for Traders

Whilst the Figma IPO presents attractive growth prospects, traders should consider several risk factors:

• Market volatility: Tech IPOs can experience significant price swings in early trading

  
  

• Competitive pressure: Adobe and other established players continue to develop competing products

  
  

• Valuation concerns: The $12.5 billion private valuation may face scrutiny in public markets

  
  

• Execution risk: Management's stated intention to "take big swings" could impact near-term profitability

Conclusion

The Figma IPO represents a significant opportunity for traders to gain exposure to a leading player in the collaborative design software market. With strong revenue growth, improving profitability, and a clear strategic focus on AI innovation, Figma is well-positioned for its public market debut.

However, traders should carefully evaluate the company's valuation and competitive position whilst monitoring market conditions leading up to the offering. The combination of strong fundamentals and growth potential makes the Figma IPO one of the most compelling tech listings to watch in 2025.

Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.