Figma (FIG) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue grew 46% year-over-year to $333.4 million, marking the second consecutive quarter of accelerating growth, driven by seat expansion, enterprise adoption, and strong AI product traction including Figma Make, MCP, and Weave.

• Net dollar retention rate reached 139%, the highest in over two years, up three points from last quarter.

• Paid customer base expanded to approximately 690,000, up 54% year-over-year, with paid customers spending over $10,000 in ARR up 37% and those over $100,000 up 48%.

• AI credit monetization launched in March 2026, with strong early adoption and revenue impact; over 75% of Org and Enterprise users exceeding AI credit limits continued to use credits.

• Raised full-year revenue and non-GAAP operating income guidance due to outperformance, AI tailwinds, and robust customer expansion.

Financial highlights

• Q1 revenue: $333.4 million, up 46% year-over-year, exceeding guidance.

• Gross profit: $275 million, gross margin 82% (GAAP gross margin 79%).

• Non-GAAP operating income: $52 million, margin 16%; GAAP operating loss: $(137.4) million.

• Free cash flow: $88.6–$89 million, margin 27%.

• Ended Q1 with $1.6 billion in cash, cash equivalents, and marketable securities.

Outlook and guidance

• Q2 2026 revenue guidance: $348–$350 million, implying 40% year-over-year growth at midpoint.

• Full-year 2026 revenue guidance raised to $1.422–$1.428 billion, 35% growth at midpoint.

• Full-year non-GAAP operating income guidance raised to $125–$135 million, 9% margin at midpoint.

• Guidance increase driven by paid conversion, seat expansion, and strong AI credit monetization.

• Q2 operating income and free cash flow expected to be impacted by annual user conference.