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Is FIG a good stock to buy? We came across a bullish thesis on Figma, Inc. on MTC’s Substack. In this article, we will summarize the bulls’ thesis on FIG. Figma, Inc.'s share was trading at $18.72 as of April 21st. FIG’s forward P/E was 76.34 according to Yahoo Finance.
Figma, Inc. develops and sells a collaborative, browser-based platform for designing, prototyping, building digital experiences, and subscriptions for access to its platform. FIG delivered a strong Q4 2025 performance, reinforcing its position as a leading AI-driven design and collaboration platform with exceptional growth and unit economics.
FIG generated $304 million in Q4 revenue, up 40% year over year, and achieved $1.056 billion in full-year 2025 revenue, growing 41%, underscoring sustained enterprise adoption at scale. Operating income reached $44 million in Q4 with a 14% margin, while full-year operating income was $129.5 million at a 12% margin, highlighting durable underlying profitability despite heavy reinvestment.
Gross margins remained elite at 86–88%, reflecting a highly asset-light SaaS model. GAAP operating losses were significant due to equity compensation and IPO-related costs, cash generation remained strong with positive adjusted free cash flow and a $1.7 billion cash balance supporting aggressive AI investment. Demand metrics remain best-in-class, with net dollar retention of 136%, low churn near 97% gross retention, accelerating expansion among large enterprise customers exceeding $1 million ARR.
International adoption continues to scale rapidly, indicating substantial monetization upside. Strategically, Figma is transitioning toward AI-first platform, introducing a hybrid pricing model combining seats and AI usage, which could materially expand revenue per customer time. Management’s 2026 guidance points to ~$1.37 billion in revenue with ~38% growth and operating margins of 7–8%, reflecting deliberate reinvestment into AI infrastructure.
Despite near-term margin compression, combination of high growth, expanding enterprise penetration, and AI monetization optionality supports a bullish long-term outlook, with potential for sustained re-rating as AI-driven productivity gains compound across its global design ecosystem over time, compounding returns.
Previously, we covered a bullish thesis on Adobe Inc. (ADBE) by jackandjillonthehill in May 2025, which highlighted strong margins, cash flow generation, pricing power, AI integration and undervaluation. ADBE's stock price has depreciated by approximately 34.08% since our coverage. MTC shares a similar view but emphasizes Figma’s higher growth, AI-first platform transition, and reinvestment-led margin compression.
Figma, Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 51 hedge fund portfolios held FIG at the end of the fourth quarter which was 38 in the previous quarter. While we acknowledge the risk and potential of FIG as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than FIG and that has 10,000% upside potential, check out our report about this cheapest AI stock.