Shares in Figma Inc. rose more than 12% in after-hours trading today after the design software company beat earnings and revenue expectations in its fiscal 2026 first quarter and raised its full-year guidance on stronger-than-expected seat expansion and early traction from its artificial intelligence products.

For the quarter ended March 31, Figma reported adjusted earnings per share of 10 cents, up from three cents per share in the same quarter of 2025, on revenue of $333.4 million, up 46% year-over-year. Both figures were ahead of the six cents per share and revenue of $316 million expected by analysts.

Revenue growth accelerated for the second consecutive quarter, up from 40% year-over-year in the fourth quarter and 38% in the third quarter of 2025. On a non-adjusted basis, the company reported a net loss of $142.4 million, or 27 cents per share, weighed down by $169 million in stock-based compensation in its first full quarter as a public company.

Customer growth was a standout. Figma ended the quarter with 15,218 paying customers spending more than $10,000 in annual recurring revenue, up 37% year-over-year and 1,525 customers spending more than $100,000 in annual recurring revenue, up 48%. Total paid customers grew 54% year-over-year, to approximately 690,000. The company’s net dollar retention rate ended the quarter at 139%, its highest level in more than two years.

Adoption of Figma’s AI features continued to climb. Approximately 60% of paid customers with more than $100,000 in annual recurring revenue used Figma Make, the company’s natural-language design generation tool, on a weekly basis during the quarter, up from more than 50% in the prior quarter. New Pro team conversions grew more than 150% year-over-year.

Figma implemented AI credit limits across all seats on March 18, a test of how willing customers are to pay for AI usage. The results were positive, with more than 75% of organization and enterprise users who had previously exceeded the limits continuing to use AI credits in April and more than 95% of those users remaining active on the platform. Pro teams that purchased AI credit add-ons averaged more than three times the annual recurring revenue of teams that did not.

Weekly active users of Figma’s Model Context Protocol server in Figma Design grew five times quarter-over-quarter and paying customers with more than $100,000 in annual recurring revenue that use the MCP server grew full seats roughly 70% faster than those that did not.

Business highlights in the quarter included expanded Code to Canvas integrations across tools including Claude Code, Codex, Cursor, VS Code and Warp that allow developers to bring AI-generated user interfaces directly into Figma’s multiplayer canvas as editable layers. The company also shipped new MCP capabilities that let agents read and write directly to Figma files and rolled out a timeline editor for Figma Weave, its AI video tool formerly known as Weavy.

“Q1 was an exceptional quarter for Figma, exceeding expectations across multiple dimensions of our business,” Chief Financial Officer Praveer Melwani said in the company’s earnings release. “Our outperformance in Q1 was fueled by stronger-than-expected seat expansion across entire organizations, driven by design’s growing importance and adoption of our AI products.”

For its fiscal second quarter, Figma expects revenue of $348 million to $350 million, ahead of the $330.25 million expected by analysts. For the full year, the company raised its outlook to revenue of $1.422 billion to $1.428 billion, a $55 million increase from prior guidance and well ahead of the $1.376 billion analysts had been expecting.

Image: Figma