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    FIG
    Earnings call· Mar 2026(Q1 FY26)

    Figma Q1 FY26 earnings call FIG

    May 14, 2026 Source

    Executive summary

    Figma Q1 FY26 — AI-driven Revenue Acceleration and Strong Monetization Signals

    Figma delivered a strong Q1 FY26, marked by accelerating revenue growth and robust net dollar retention, driven by broad adoption of its AI products and seat expansion. The company is confident in its AI monetization strategy, which began in March, and is focused on driving ubiquity and continued product innovation. Management raised its full-year revenue and non-GAAP operating income guidance, citing strong early signals from AI credit utilization and sustained seat expansion.

    Highlights

    5

    • Revenue grew 46% year-over-year to $333 million, accelerating for the second consecutive quarter.

    • Net dollar retention rate increased to 139%, its highest in over 2 years, up 3 percentage points from prior quarter.

    • Paid customer base grew 54% year-over-year to approximately 690,000.

    • Paid customers spending more than $100,000 in ARR grew 48% year-over-year, accelerating 2 percentage points QoQ.

    • Non-GAAP operating margin was 16% and free cash flow margin was 27%.

    Concerns

    1

    • Q1 free cash flow margin was impacted by 17 percentage points due to a $56 million annual corporate bonus cash outflow.

    Guidance & targets

    3
    CategoryTargetConfidence
    Q2 FY26 Revenue
    $348 million to $350 million
    high materiality
    High
    Full-year FY26 Revenue
    $1.422 billion to $1.428 billion
    high materiality
    High
    Full-year FY26 Non-GAAP Operating Income
    $125 million to $135 million
    high materiality
    High

    Operational metrics

    14
    Non-GAAP operating margin
    16%
    Q1 FY26
    Free cash flow margin
    27%
    Q1 FY26
    Cash and investments balance
    $1.6 billion
    Q1 FY26

    Cash, cash equivalents and marketable securities

    Annual corporate bonus program cash outflow
    $56 million
    Q1 FY26

    Accrued for in 2025 and paid out for the first time in Q1 2026.

    MCP weekly active users in Design growth
    5xquarter-over-quarter
    Q1 FY26
    Make users on Full Seats using Figma Design
    >80%
    Q1 FY26

    Continued using Figma Design for visual editing and broader exploration alongside Make.

    Largest customers using Figma Make weekly
    ~60%up from over 50% last quarter
    Q1 FY26
    Pro team conversions
    >150%compared to Q1 of last year
    Q1 FY26

    Viewed as a leading indicator for future growth, demonstrating ability to expand TAM and convert existing users to paid plans.

    Org and Enterprise users over credit limit continuing to use credits
    >75%
    April

    Users who were previously over their credit limit continued to use credits since implementation on March 18.

    Pro teams purchasing AI credit add-ons average annualized spend
    >3x
    Q1 FY26

    Higher than that of teams that haven't purchased add-ons.

    Customers with >$100K ARR using MCP grew full seats
    ~70%faster over the quarter
    Q1 FY26

    Faster than customers who are not using MCP server.

    Paid customers with >$10K ARR adding full seats
    >60%
    Q1 FY26

    Compared to their prior renewal, consistent with what was observed last year and at equivalent expansion rates.

    International business revenue growth
    48%year-over-year
    Q1 FY26
    Non-GAAP gross margin
    82%
    Q1 FY26

    Gross profit was $275 million.

    Industry KPIs

    7
    MetricValueDetails
    Revenue growth$333 millionUSD
    Customer account countapproximately 690,000customers
    Large deal new logo metrics37% (>$10K ARR), 48% (>$100K ARR)%
    Multi product platform attach~60%%
    Operating FCF margin rule of 4016% (operating margin), 27% (FCF margin)%
    Ai product adoption monetization>75%%
    Net revenue net dollar retention139%%

    Product announcements

    4
    ProductTypeDetails
    Figma Makeupdate
    MCP capabilitiesupdate
    Figma Weaveupdate
    AI assistantroadmap

    Deals & partnerships

    10
    GoogleLongtime customer, doubling down on Figma for AI-native products.

    The team designing agenetic Gemini experiences uses Figma end-to-end as their single source of truth.

    LufthansaLido navigation product design team used Figma Make to prototype Lido mPilot.

    Prototyped an integrated iOS charting app with dynamic, interactive map features by connecting Figma Make to their in-house API.

    Rocket MortgageBuilt their design system directly into Figma Make as a shared template infrastructure.

    Accelerating adoption across the organization for building dashboards, presentations, and exploring new customer experiences.

    NBBJArchitecture firm using Figma Weave to translate 3D models into photorealistic renderings for client pitches.

    Allows architects to generate and refine renderings in real time, with adoption expected to triple in the next 3 months.

    One of the world's largest hyperscalersUnified fragmented Figma usage across the enterprise into a single agreement.

    Secured over 35,000 paid seats, one of the largest deals in Figma's history.

    A top global media and entertainment companyCompany-wide rollout of Figma Make after organic usage.

    Every developer upgraded to a full seat as teams adopted Make, driven organically.

    One of India's largest IT services firmsSigned Figma's largest ever deal in the region.

    Consolidating design and engineering teams onto Figma.

    One of the world's largest industrial automation companies (Europe)More than doubled their dev seats on platform.

    Engineers now outnumber designers on Figma, leaning into MCP to connect design directly into their development environment.

    One of the world's largest enterprise technology companiesPurchasing additional AI credits to expand AI capabilities.

    After standardizing on Make, expanding AI capabilities across product, engineering, and PM teams spanning 7 business units.

    One of the world's largest professional services firmsExpanded Figma investment after a company-wide Figma AI training.

    Drove a step change in adoption and embedded AI capabilities at the center of how they design, prototype, and deliver client work.

    Risks & headwinds

    2
    Gross margin degradation from AI inference costsOngoing

    Gross margin was 82% in Q1.

    Mitigation: Focused on optimizing gross profit dollars; levers include routing queries across models based on task complexity, leveraging model-agnostic architecture, and investing in first-party models trained on Figma's design corpus to improve performance and reduce cost.

    Competition from LLM providers and frontier labsOngoing

    Not quantified, but acknowledged as a heating space.

    Mitigation: Figma focuses on its core differentiators: performant multiplayer canvas, deep product context, and full creative control (AI, code, direct manipulation). Maintains direct communication and close relationships with partners, while executing rapidly on product development.

    What to watch in Q2 FY26

    5

    AI credit monetization ramp

    Q2 FY26 and second half
    CurrentOver 75% of Org/Enterprise users previously over limits continued to consume credits in April; Pro teams with AI add-ons have >3x average annualized spend.
    TargetContinued strong consumption and revenue contribution from AI credits.

    Why it matters

    AI credit monetization is a key driver for revenue growth and underpins the confidence in the full-year guidance raise.

    we very much believe that we've got a tailwind here from our credit monetization. And it's both going to be through the consumption that teams are actually seeing while also helping us drive continued seat upgrades on -- help us drive continued to seat upgrades for users and teams in the months ahead.

    Q&A highlights

    6

    How should AI credit monetization ramp and show up in the model into Q2 and the second half of the year?

    Management is ahead of expectations on AI credit monetization, which is driving confidence in the full-year guidance raise. Over 75% of Org and Enterprise users previously over credit limits continued to consume credits in April, and Pro teams with AI add-ons have over 3x higher average annualized spend. They expect a tailwind from both consumption and seat upgrades, with new AI features expanding consumption surfaces.

    “we're ahead of our expectations, and it's giving us confidence in the raise -- in our ability to raise our guide for the full year.”

    asked by Richard Poland · answered by Dylan Field

    2 min read5 chapters

    Detailed Narrative

    01

    AI-Driven Growth and Monetization

    Figma's Q1 FY26 saw revenue grow 46% YoY to $333 million, accelerating for the second consecutive quarter, driven by seat expansion, retention, enterprise adoption, new users, and early traction from AI credit monetization, which started on March 18. The company's net dollar retention rate reached 139%, its highest in over two years, reflecting strong customer engagement with AI products like Figma Make, MCP, and Figma Weave. This momentum gives confidence to raise full-year guidance.

    02

    Customer Adoption and Expansion

    Figma is experiencing deeper and broader adoption across organizations. Google is doubling down on Figma for AI-native product design, while Lufthansa used Figma Make to prototype an integrated iOS charting app. Rocket Mortgage built its design system into Figma Make, accelerating adoption beyond the design team. NBBJ, an architecture firm, is using Figma Weave for photorealistic renderings, with adoption expected to triple in the next three months, showcasing the platform's versatility.

    03

    Monetization Strategy and Early Signals

    AI credit limits were implemented on March 18, with encouraging usage trends. Over 75% of Org and Enterprise users previously exceeding their credit limits continued to consume credits in April. Pro teams purchasing AI credit add-ons demonstrate an average annualized spend over 3x higher than those without. Figma is expanding admin controls, pay-as-you-go options for Pro customers, and flexible contracting structures to support adoption rather than constrain it.

    04

    Operational Efficiency and Financial Strength

    Non-GAAP operating margin was 16% and free cash flow margin was 27% in Q1. The company ended the quarter with $1.6 billion in cash, cash equivalents, and marketable securities. Figma is rebuilding operations with AI tooling at the center, aiming for flatter organizational structures and smaller, high-agency teams to drive efficiency and optimize AI implementations, contributing to increased operating income guidance.

    05

    Product Innovation and Future Outlook

    Figma continues to ship major updates to Figma Make, introduced new MCP capabilities (with weekly active users growing 5x QoQ), and updated Figma Weave, including a timeline editor for AI-generated video. The AI assistant is currently in Alpha. The company emphasizes its performant multiplayer canvas, deep product context, and full creative control as key differentiators in an AI-driven software development landscape, with more innovations expected at Config in June.

    AI-generated summary of the company’s earnings call. Not investment advice.