Figma Gears Up for Major IPO Projected to Raise $1.5 Billion
On Tuesday, Figma revealed its financial details, moving the design software firm closer to its IPO launch. While the initial S-1 filing does not specify the number of shares or their pricing, it provides a detailed look at the company’s financial health and future potential.
IPO experts at Renaissance Capital estimate that Figma could raise as much as $1.5 billion from this offering. If it meets or exceeds this figure, Figma’s IPO would rival or even surpass CoreWeave’s, which raised $1.5 billion, making it the largest tech IPO of 2025 so far.
There are strong indicators that Figma could find success in this venture, as shown by the impressive financials in the S-1.
In 2024, the company reported $749 million in revenue, reflecting a 48% increase compared to 2023. Figma’s revenue also grew in Q1 of 2025, with a 46% year-over-year rise. Its rolling 12-month revenue was reported as $821 million, accompanied by an outstanding gross margin of 91%.
Figma’s profitability is noteworthy as well. Although the company achieved profitability in 2023, it faced a significant loss of $732 million that year, mainly due to one-time expenses from a major employee stock compensation event. (Figma granted 10.5 million stock options to eligible employees at a strike price of $8.50 per share.)
By Q4 of 2024, Figma reported profits again, as it did in Q1 of 2025.
Moreover, Figma has indicated that it carries minimal total debt, even claiming to have none. However, this aspect still requires clarification, as the company has a revolving debt line and will account for updates regarding its total debt accordingly.
It remains unclear whether any executives or venture capitalists will be selling shares. Major investors include Index, Greylock, Kleiner Perkins, and Sequoia.
In 2024, executives took part in a significant tender offer that allowed employees to cash in on their shares. For instance, Figma co-founder, CEO, and chairman Dylan Field cashed out shares worth $20 million during that transaction.
The S-1 document also contains an interesting note about co-founder Evan Wallace, who left Figma in 2021, according to his website. He is acknowledged as a co-founder in the filings, but Figma has stated that Wallace transferred full voting rights and control over his shares to Field. Wallace’s family trust holds about one-third of the super-voting rights Class B shares (15 votes per share, as noted by Figma). Overall, the S-1 reveals that Field has control over approximately 75% of the voting rights ahead of the IPO.
The financials present a profile that typically attracts both Wall Street and retail investors. However, there is a notable concern regarding the rise of vibe coding/designing AI applications, with competitors like Lovable quickly entering Figma’s market. Still, Figma is also working on its suite of AI products.
In the S-1, Figma addresses the challenges of standing out in a competitive AI landscape.
“While we have made, and expect to continue making, significant investments to integrate AI, including
generative AI, into our platform, AI technologies are advancing rapidly, and there is no guarantee that
our products will remain competitive as new AI technologies emerge, gain traction, and become part of
software solutions,” the company states in the regulatory filing.
