Figma 1Q'26: "Not Dead"
“Quick update: not dead”…that’s what Dylan Field tweeted after releasing Figma’s 1Q’26 earnings!
For the second consecutive quarters, Figma’s growth re-accelerated, growing ~46% in 1Q’26.
These sequential quarters of acceleration was due to multiple factors: the pricing tailwind from the March 2025 hikes layered on top of seat expansion, deepening international penetration, and now (finally) AI revenue. Figma’s CFO noted that the pricing tailwind from last year is starting to wane, but the newer levers are picking up the slack.
The other topline metric I always want to see is Net Dollar Retention. Figma’s NDR for customers with >$10k in ARR jumped 3 percentage points to 139% , the highest reading since 2Q’23.
Customer count growth was similarly super impressive. Paid customers with >$10k ARR grew by 1,357 in the quarter which was the largest sequential add in Figma’s history (vs. 951 in 4Q’25 and 1,004 in 3Q’25). The $100k+ ARR cohort added 120 customers which was a step down from 3Q’25 and 4Q’25’s 143, but still comfortably ahead of all the quarters before that. Overall paid customer count was up 54% YoY and reached 690k in 1Q’26 which means only 2.2% of Figma’s paying customers spend >$10k ARR. Clearly, Figma has a pretty deep funnel of paying customers.
Given their hypergrowth compared to Adobe’s more steady growth in recent years, Figma’s revenue as a percentage of Adobe’s Digital Media business went from just 4.2% in 1Q’24 to 7.1% in 1Q’26. More importantly, Figma’s incremental revenue growth as percentage of Adobe’s digital media incremental revenue growth was almost 20% in 1Q’26!
As you can see, Figma’s topline is not only “not dead” but very much alive and kicking. But how is it handling the constant drumbeat of AI threats? And how about margins? I will expand on those topics behind the paywall.
Subscribers get the daily journal and five+ years of Deep Dives, i.e. full-length analyses with financial models on 65+ companies. The daily is just how I think out loud between the Deep Dives!