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Figma (FIG) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Information Technology· Aug 5, 2026

Source: earnings call transcript

Executive summary

Figma Q2 FY26 — Accelerated Revenue Growth and AI Monetization

Figma delivered strong Q2 FY26 results, marked by accelerated revenue growth and the first full quarter of AI monetization. The company is strategically investing in new AI-powered features like Code Layers and Figma Agent, currently in beta, to expand its market and drive future consumption. This investment, alongside seasonal event costs, temporarily impacts near-term margins as the company navigates evolving pricing models and aims for durable, profitable growth.

Highlights

5

  • Revenue reached $370 million, representing 48% year-over-year growth and the third consecutive quarter of acceleration.

  • Net dollar retention rate remained strong at 136% for paid customers with over $10,000 in ARR.

  • Non-GAAP gross profit dollars grew by 40% year-over-year, accelerating 9 percentage points quarter-over-quarter.

  • Paid customers with more than $10,000 in ARR grew 34% year-over-year, and those with over $100,000 in ARR grew 46% year-over-year.

  • Over 80% of paid customers with more than $10,000 in ARR were consuming AI credits weekly by the end of Q2.

Concerns

3

  • Non-GAAP operating margin was 10%, impacted by the seasonal costs associated with the Config user conference.

  • Free cash flow margin was 14%, also affected by increased inference spend and Config expenses.

  • Full-year non-GAAP operating income guidance was maintained at $125 million to $135 million, implying a 9% operating margin at the midpoint, reflecting strategic investment over near-term margin expansion.

Guidance & targets

CategoryTargetConfidence
Revenue
$373 million to $375 million
high materiality
High
Full-year Revenue
$1.463 billion to $1.467 billion
high materiality
High
Full-year Non-GAAP Operating Income
$125 million to $135 million
medium materiality
High

FIG operating KPIs by quarter

FIG operating KPIs stated on its earnings calls, by fiscal quarter
KPI Mar 2026 Q1 FY26This call Jun 2026 Q2 FY26Change vs prior quarter
Net revenue retention rate ARR > $10,000
139% Our net dollar retention rate for paid customers spending more than $10,000 in ARR reached 139%, up 3 percentage points from the prior quarter and our highest level in over 2 years. Source: earnings call transcript
136% In Q2, net dollar retention rate for paid customers with more than $10,000 in ARR remained strong at 136%, even as we begin to anniversary our pricing and packaging changes from March 2025. Source: earnings call transcript
-3 pt

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
Code Layerslaunch
Figma Make enhancementsupdate
Motionlaunch
Shaderslaunch
Figma Weave Toolsupdate
Figma Agentlaunch
Generative Pluginslaunch
User-level limits for AI creditsupdate

Deals & partnerships

One of the world's largest technology companies Expanded enterprise contract and AI credit add-on purchase

Expanded its enterprise contract with Figma in Q2, purchasing an AI credit add-on.

Technology infrastructure company Expanded AI credit add-ons multiple times

Expanded its AI credit add-ons multiple times within a single quarter as part of a company-wide push for AI native workflows.

Global financial institution Purchase of enterprise AI credit add-on subscription

Held an internal Hackathon using Figma Make, reducing prototype development time from a full quarter to days, leading to a significant enterprise AI credit add-on purchase.

One of Europe's largest software providers New contract and targeted training for AI product adoption

Building on a successful 5-year partnership, Figma identified opportunities to further accelerate AI product adoption with targeted training.

Risks & headwinds

Seasonal impact of Config user conference Q2 FY26

Impacts Q2 operating income and free cash flow

Mitigation:Viewed as an investment in community and customers.

Increased inference spend Q2 FY26

Largest single driver for year-over-year variance in free cash flow

Mitigation:Company is developing first-party models and optimizing across providers to manage inference costs as adoption scales.

Investment in new beta products Near term (H2 FY26)

Gross margin will vary from quarter-to-quarter in the near term; full-year non-GAAP operating income guidance maintained despite revenue raise.

Mitigation:These products (Figma Agent, Code Layers, Motion, Shaders, Generative Plugins) do not currently consume paid credits, so Figma bears the cost of inference. This is a strategic investment to drive future usage, retention, and growth, with monetization expected upon GA transition.

Tougher year-over-year comparisons Q3 and Q4 FY26

Sequential growth appears smaller

Mitigation:Due to anniversarying pricing changes made in the prior year (March 2025).

What to watch in Q3 FY26

AI credit monetization from new beta products

Latter part of FY26, early FY27
Current Not yet monetized, costs borne by Figma
Target Transition to GA, begin monetizing, contribute to revenue

Why it matters

These products (Agent, Code Layers, Motion, Shaders, Weave) are key to Figma's future growth and AI consumption expansion.

Our products and features that are in beta and are still rolling out to customers, including Figma agent, Figma Make on local code, Motion, generative plugins and Code Layers do not currently consume paid credits. Early usage of these new products and features is trending ahead of expectations.

Find out whether FIG delivers this. Inve re-checks your case every morning.

Q&A highlights

How does Figma continue to win in a market with many design and coding platforms, and what is the confidence in its continued differentiation?

Dylan emphasized Figma's unique offering for professional designers, focusing on a performant canvas for human/agent collaboration, deep product context for useful agents, and full creative control through AI and direct manipulation. Praveer added that key indicators like 2/3 of large customers adding seats at renewal and a 136% NDR rate demonstrate continued strength.

“Our offering is really optimized for professional designers and it's unique. And the way we get there is a performant professional-grade canvas, one where humans and agents can work side by side, deep product context that makes those agents actually useful and very importantly, full creative control through a combination of AI, but also direct manipulation.”

asked by Aleksandr Zukin · answered by Dylan Field

2 min read 6 chapters

Detailed narrative

AI Monetization & Adoption

Q2 FY26 marked Figma's first full quarter of AI monetization, with over 80% of paid customers with more than $10,000 in ARR consuming AI credits weekly. This sustained usage is translating into revenue through increased seat value, supporting upgrades and retention, and direct purchases of additional credit add-ons or pay-as-you-go options. The company is actively learning and iterating on its pricing model to provide customers with more control and choice over AI usage.

Product Innovation: Code Layers & Figma Make

Figma is expanding its platform towards 'full stack creation' by integrating code more deeply. Code Layers, soon to be in early access, will allow interactive code directly on the Figma canvas, enabling teams to edit designs and code visually. Enhancements to Figma Make, including the ability to work directly in production codebases, are streamlining workflows from idea to shipped product. MCP write-to-Figma usage grew 75% quarter-over-quarter, indicating strong adoption of tools that push work into Figma.

New Creative Capabilities: Motion, Shaders, Weave

At Config, Figma launched Motion and Shaders, new native capabilities for building custom animations and visual effects directly on the canvas, which previously required leaving Figma. Figma Weave brings a similar approach to AI-generated media, allowing users to sculpt and refine outputs. These tools aim to enable more distinctive creative work, moving beyond generic AI-generated content, and are opening up Figma to new audiences like in-house brand designers and creative agencies.

Figma Agent & Generative Plugins

The Figma Agent, rolled out in open beta in June, is designed as a capable design intern, assisting with tasks from documenting design systems to generating design variations. Generative plugins allow users to describe needed tools, and the agent builds them for reuse. Weekly plugin creation more than doubled since launch, and over 50% of paid customers with more than $10,000 in ARR are using the Figma Agent weekly, with over 20% of weekly credit-consuming users exclusively using the agent.

Strategic Leadership Transitions

Figma announced several leadership changes, including Kris Rasmussen transitioning from CTO to Chief Architect to focus on business-critical engineering challenges like the Figma Agent. Loredana Crisan, Chief Design Officer, will expand her scope to lead the product function, and Nairi Hourdajian, Chief Communications Officer, will become the new CMO. These internal transitions reflect a strategic focus on AI engineering and leveraging existing talent for future growth.

International Expansion & Customer Wins

Figma continues its global expansion, opening a new office in Sao Paulo and introducing local data hosting in Brazil, Australia, and India. International revenue grew 50% year-over-year in Q2. The company highlighted significant customer wins, including a large technology company expanding its enterprise contract with an AI credit add-on for over 25,000 seats, and a global financial institution purchasing a significant AI credit add-on after a successful Figma Make trial.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.