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

Figma'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'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's valuation is still rich despite the stock's decline
• Figma vs. Adobe, Microsoft, Wix, and the private design-tool field
• AI'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&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.

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