Figma Files Plans for an IPO

Figma is aiming to list shares at the New York Stock Exchange. (Courtesy Figma)

Design software company Figma has filed the paperwork for a proposed initial public offering.

The company, which Adobe once proposed acquiring in a cash-and-stock deal worth $20 billion, has filed a Form S-1 registration statement to the Securities and Exchange Commission for an IPO of its class A common stock.

Subject to market conditions, Figma aims to list the stock on the New York Stock Exchange under the ticker symbol “FIG.” The number of shares, the potential price range, and when it might proceed with the IPO are still to be determined.

Figma, founded in 2012 as a browser-based tool for designing user interfaces, said it has evolved from a design software company into an artificial intelligence-powered platform that helps teams turn ideas into shipped products.

The deal between Figma and Adobe fell apart in December 2023, with the two agreeing to part ways after announcing the proposed merger in Sept. 15, 2022. Although both companies said they believed in the merits and benefits of joining forces, they agreed to terminate the transaction after deciding that there was no clear path to receiving the necessary regulatory approvals from the European Commission and the U.K. Competition and Markets Authority.

“Figma has built an incredible product design platform, and I am confident in their continued innovation and growth after spending more than a year with their team and community,” David Wadhwani, president of Adobe’s Digital Media Business, said at the time.

Figma received a $1 billion termination fee in 2023.

“When Evan [Wallace] and I started Figma in 2012, our founding vision was to ‘eliminate the gap between imagination and reality,’” CEO, board chair, and President Dylan Fields wrote in a founder’s letter that was part of the S-1 registration statement. While many amazing companies stay private indefinitely, he said he decided to take Figma public because of benefits like building brand awareness, liquidity, and access to capital markets.

“More importantly, I like the idea of our community sharing in the ownership of Figma—and the best way to accomplish this is through public markets,” he said.

Its prospectus says Figma had $749 million in revenue for the year ended Dec. 31, 2024, a 48% increase from the previous year. Revenue for the three months ended March 31, 2025, was $228.2 million, a 46% increase over the year-ago quarter.

For the year ended Dec. 31, 2024, and for the three months ended March 31, 2025, its operating margin was a loss of 117% and a gain of 17%, respectively, and a non-GAAP operating margin of 17% and 18%, respectively. Its 2024 operating margin was affected by one-time events including its RSU Release in May 2024 and a 2024 stock option grant.

Net income for the year ended Dec. 31, 2023, was $737.8 million. For the year ended Dec. 31, 2024, its net loss was $732.1 million. For the three months ended March 31, 2024, and March 31, 2025, it had net income of $13.5 million and $44.9 million, respectively.

As of March 2025, it had 13 million monthly active users, of whom two-thirds are non-designers. It also said 95% of Fortune 500 companies and 78% of Forbes 2000 use Figma.

Fields warned that spending on AI will “potentially be a drag on our efficiency for several years, but AI is also core to how design workflows will evolve going forward.” Just like the GUI (graphical user interface) helped everyday users understand the capabilities of computers, “there will be a proliferation of interfaces that surface the capabilities of AI through exceptional design.”

The filing lists Morgan Stanley, Goldman Sachs & Co. LLC, Allen & Company LLC, and JPMorgan as joint lead book-running managers for the proposed offering, while BofA Securities, Well’s Fargo Securities, and RBC Capital Markets will act as book-running managers. William Blair and Wolfe Nomura Alliance will act as co-managers for the proposed offering.

Adam Nash, the CEO and founder at Daffy, a fintech platform for charitable giving, and the former CEO of Wealthfront, told Barron’s that he is a seed investor in Figma “because it is an amazing product and company,” and because Dylan Field had approached him in 2013 when he was an intern at LinkedIn and Nash was vice president of product.

Write to Janet H. Cho at janet.cho@dowjones.com