Design platform eyes $16.4 billion valuation as it steps into public markets post-Adobe deal collapse
Figma, the browser-based collaborative design platform, has officially filed terms for its long-anticipated initial public offering, seeking to raise up to $1.03 billion and achieve a fully diluted valuation of approximately $16.4 billion. The San Francisco-based firm plans to list on the NYSE under the ticker “FIG”, marking one of the most prominent public debuts of 2025 in the software sector.
The offering comprises 36.9 million shares, with roughly 66% being secondary shares sold by existing stakeholders. The price range is set between $25 and $28 per share, signaling institutional confidence in Figma’s market positioning despite recent macroeconomic headwinds.
From Adobe Breakup to IPO Revival
Figma’s move to go public comes just over a year after its proposed $20 billion acquisition by Adobe collapsed under antitrust scrutiny in both the U.K. and E.U. regulators. The failed deal resulted in Adobe paying $1 billion in termination fees, and placed Figma at a strategic crossroads. Rather than seeking another acquirer, the company opted to accelerate independent growth and capitalize on its expanding customer base and product suite.
“Going public now isn’t just about liquidity—it’s about solidifying our independence and fueling the next phase of product innovation,” said Dylan Field, co-founder and CEO, in a recent internal memo.
Financials Paint a Robust Picture
For the 12 months ended March 31, 2025, Figma reported $821 million in revenue, representing nearly 48% year-over-year growth. The first quarter of 2025 alone brought in $228 million, and annual recurring revenue (ARR) now exceeds $912 million. Gross margins stand strong between 88% and 91%, while adjusted operating margins have turned positive at 17%.
Figma is currently profitable on an adjusted basis, a rarity among high-growth SaaS IPOs. Its net dollar retention rate of 132% underlines strong upsell performance and product stickiness, driven in part by cross-product usage across enterprises.
Expanding Beyond Design
Initially launched in 2016 as a collaborative interface design tool, Figma has rapidly expanded its product portfolio. The company now includes FigJam (whiteboarding), Dev Mode (developer tools), and most recently, Slides, a presentation platform. During its annual Config 2025 conference, Figma revealed four new products in beta: Sites, Make, Buzz, and Draw—all aimed at consolidating the creative workflow from ideation to delivery.
About 76% of customers use more than one product, reflecting the firm’s strategy of becoming a full-stack creative operating system. The company claims users in over 150 countries, with 85% of monthly active users based outside the United States.
Strategic Investors and Bookrunners
Figma has assembled a high-caliber roster of bookrunners, including Morgan Stanley, Goldman Sachs, J.P. Morgan, BofA Securities, Allen & Company, Wells Fargo Securities, and RBC Capital Markets. The deal is expected to price during the week of July 28, 2025, with investor roadshows already underway in New York and San Francisco.
Private backers of Figma include Index Ventures, Sequoia Capital, and Greylock Partners. According to sources familiar with the matter, several of these firms are planning partial exits via the secondary component of the IPO.
Betting on the PLG Model
Figma is considered one of the most successful examples of Product-Led Growth (PLG), relying on viral user acquisition, seamless onboarding, and bottom-up adoption within large enterprises. This model has enabled it to scale efficiently with limited sales overhead, a key differentiator compared to traditional SaaS models.
That said, the company’s S-1 filing cites increasing competition from players like Canva, Adobe Express, and emerging AI-native design platforms. It also outlines risks from geopolitical instability, data regulation, and slowing enterprise software budgets.
Positioning for the AI Era
CEO Dylan Field has emphasized a “big swing” strategy—aiming to leverage AI to transform how teams collaborate and build digital products. The new tools introduced in Config 2025 incorporate generative design, AI-powered auto-layout, and real-time code suggestions.
Figma’s long-term vision, as laid out in the filing, is to become the central operating layer for digital creation across industries—from software to education, media, and beyond.
Investor Takeaway
Figma enters the public market not just as a design tool, but as a platform poised to reshape the entire collaborative workflow ecosystem. Its growth metrics, product breadth, and global footprint give it a competitive edge. But the IPO also tests investor appetite for high-growth, premium-valued SaaS firms amid a more disciplined funding environment.
If Figma’s market debut succeeds, it could open the floodgates for a new wave of tech IPOs—anchored not in hype, but in durable fundamentals and evolving enterprise needs.
