Beaten-Down Figma Shares Rebound on Strong Growth Outlook. Is the Stock a Buy?

By Geoffrey Seiler – Feb 23, 2026 at 8:45AM ESTKey PointsFigma delivered strong revenue growth and issued upbeat guidance.The SaaS sell-off has left the company at an attractive valuation given its growth.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: FIGFigmaMarket Cap$14BToday's Changeangle-down(-7.09%) $1.85Current Price$24.24Price as of February 23, 2026 at 10:49 AM ETThe stock is still trading below its 2025 IPO price.After rejecting a buyout offer from Adobe and instead opting to go public, Figma (FIG 7.09%) has struggled in terms of stock price. The collaborative design platform company has been caught in the software-as-a-service (SaaS) sell-off, which has taken the stock to below its $33 IPO price. For a stock that opened at $85 its first day of trading and closed at $115.50, it has been a hard fall from grace. Image source: Getty Images. Figma is still reporting strong revenue growth However, the action in Figma's stock price hasn't necessarily been correlated with its operational performance. For Q4, the company saw its revenue soar 40% year over year to $303.8 million, easily topping the $293.15 million analyst consensus compiled by London Stock Exchange Group. Adjusted EPS, meanwhile, came in at $0.08, a penny above analyst estimates. One of the most impressive metrics that Figma reported was a 136% net revenue retention (NRR) rate for customers with annual recurring revenue (ARR) of $10,000 or more. This metric measures how much additional money existing clients who have been customers for a year or more have spent over the past year, after any churn. Any number over 100% represents growth. This number has been accelerating with the company reporting 131% NRR in Q3 and 129% in Q2. The growth in NRR has been helped by strong cross-platform adoption, with customers opting to use both Figma Make and Figma Design. Figma noted that 80% of weekly users who use Figma Make on full software licenses now also use Figma Design, showing how the products can be tightly integrated. Figma Design is its core product that helps create layouts and user interfaces, while Figma Make is an AI tool that can help turn designs into apps or prototypes. The company has leaned into AI, and its product lineup doubled in 2025 to eight solutions. Meanwhile, it said about 75% of its customers with ARR above $10,000 are now using AI credits weekly, up from none a year ago. In March, the company's model will shift to charging for both seat and AI credits. Looking ahead, Figma forecast that its 2026 revenue would come in between $1.366 billion and $1.374 billion, representing about 30% year-over-year growth at the midpoint of its guidance. For Q1, it is looking for revenue of between $315 million and $317 million, representing 38% year-over-year growth at the midpoint. ExpandNYSE: FIGFigmaToday's Change(-7.09%) $-1.85Current Price$24.24Key Data PointsMarket Cap$14BDay's Range$23.46 - $25.2052wk Range$19.85 - $142.92Volume443KAvg Vol10MGross Margin82.43% Is the stock a buy? Figma is growing quickly with no signs of AI disrupting its business. Meanwhile, its valuation has shrunk to a forward price-to-sales (P/S) ratio of around 8.5 times. That's pretty attractive for a company projecting 30% revenue growth this year. Meanwhile, the company is introducing new AI-powered products that should continue to drive strong growth and looking to shift its pricing model from subscription to charge for AI credit usage. I'd consider buying a small position in the stock while looking to add more shares on any further price pressure.Read NextFeb 22, 2026 •By Rick MunarrizCathie Wood Goes Bargain Hunting: 3 Stocks She Just BoughtFeb 12, 2026 •By Rick MunarrizCathie Wood Goes Bargain Hunting: 3 Stocks She Just BoughtFeb 10, 2026 •By Jeremy BowmanWhy Figma Stock Popped TodayFeb 6, 2026 •By Will HealyWhere Will Figma Be in 5 Years?Feb 5, 2026 •By David Jagielski, CPADown More Than 80% From Its High, Has Figma Stock Become a No-Brainer Buy?Feb 4, 2026 •By Stefon WaltersDown 80%, Should You Buy the Dip on Figma?About the AuthorGeoffrey Seiler is a contributing Motley Fool stock market analyst covering technology, consumer goods, healthcare, energy, and materials stocks. Prior to The Motley Fool, Geoffrey was a senior equity analyst at Raging Capital Management, a $600 million long-short hedge fund. He holds a bachelor’s degree in history from Haverford College.TMFFindProfitStocks MentionedFigmaNYSE: FIG$24.24 (7.09%) $1.85*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.