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A month has gone by since the last earnings report for Figma, Inc. (FIG). Shares have added about 5.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Figma, Inc. due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Figma, Inc. before we dive into how investors and analysts have reacted as of late. Figma came out with non-GAAP earnings of 8 cents per share, beating the Zacks Consensus Estimate by 100%. Figma posted revenues of $370.1 million in the second quarter of 2026, surpassing the Zacks Consensus Estimate by 5.5%. Revenues increased 48% year over year, marking the company’s third consecutive quarter of accelerated year-over-year growth. Figma’s second-quarter results reflected continued seat expansion, strong customer retention and increasing AI adoption. The quarter also marked the company’s first full quarter of AI credit monetization, with customers expanding both seats and AI credit add-ons. Net dollar retention was 136% at the end of the quarter. A key theme in the second quarter was Figma’s progress in monetizing AI usage while continuing to expand adoption across its platform. The company began enforcing AI credit limits across seats in March 2026 and introduced additional options, including AI credit add-ons and pay-as-you-go usage. More than 80% of paid customers generating more than $10,000 in annual recurring revenue were consuming AI credits weekly as of June 30. Figma also launched new AI capabilities, including the Figma agent, while introducing Code Layers and additional creative tools that expand the potential applications for AI on its platform. FIG’s GAAP gross profit increased to $309.6 million, while GAAP gross margin was 84%. Non-GAAP gross profit was $314 million, up 40% year over year, with a non-GAAP gross margin of 85%. The company reported a GAAP operating loss of $117.3 million, compared with non-GAAP operating income of $36.1 million. Non-GAAP operating margin was 10%. Results were impacted by increased sales and marketing spending related to Figma’s annual Config user conference. Management also noted that higher inference costs weighed on the year-over-year change in free cash flow. Figma ended the quarter with 15,964 paid customers generating more than $10,000 in ARR, up 34% year over year. The company had 1,635 customers generating more than $100,000 in ARR, representing 46% year-over-year growth. Net dollar retention improved from 129% in the year-ago quarter to 136%. As of June 30, 2026, Figma held $1.7 billion in cash, cash equivalents and marketable securities. The company generated $60.9 million in net cash from operating activities during the quarter and $53.2 million in free cash flow, representing a free cash flow margin of 14%. For the third quarter of 2026, Figma expects revenues between $373 million and $375 million, implying 36% year-over-year growth at the midpoint. For 2026, the company raised its revenue outlook to $1.463-$1.467 billion, implying 39% year-over-year growth at the midpoint and representing a $40 million increase from its previously issued guidance. Figma maintained its non-GAAP operating income outlook at $125-$135 million, implying a 9% operating margin at the midpoint. Since the earnings release, investors have witnessed a downward trend in estimates review. The consensus estimate has shifted -6.86% due to these changes. Currently, Figma, Inc. has a subpar Growth Score of D, however its Momentum Score is doing a lot better with an A. However, the stock has a score of F on the value side, putting it in the lowest quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Figma, Inc. has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Figma, Inc. belongs to the Zacks Internet - Software industry. Another stock from the same industry, Snap (SNAP), has gained 9.2% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Snap reported revenues of $1.6 billion in the last reported quarter, representing a year-over-year change of +18.9%. EPS of $0.06 for the same period compares with -$0.01 a year ago. Snap is expected to post earnings of $0.16 per share for the current quarter, representing a year-over-year change of +166.7%. Over the last 30 days, the Zacks Consensus Estimate has changed +75%. Snap has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of A. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Figma, Inc. (FIG) : Free Stock Analysis Report Snap Inc. (SNAP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Wednesday, Aug. 5, 2026 at 5 p.m. ET Vice President of Investor Relations - Kate DeLeo Co-Founder and Chief Executive Officer - Dylan Field Chief Financial Officer - Praveer Melwani Operator: Hello, everyone. Thank you for joining us, and welcome to the Figma Second Quarter 2026 Earnings Call. [Operator Instructions] I will now hand the conference over to Kate DeLeo, Vice President of Investor Relations. Kate, please go ahead. Kate DeLeo: Good afternoon, and thank you for joining us on today's conference call to discuss Figma's results for the second quarter of 2026. On the call, we have Dylan Field, Figma's Co-Founder and Chief Executive Officer; and Praveer Melwani, our Chief Financial Officer. During the course of today's call, we may make forward-looking statements, including, but not limited to, statements regarding our guidance and future financial performance, market demand, product development, growth prospects, business strategies and plans, partnerships, ability to attract and retain customers and ability to compete effectively. These forward-looking statements are based on management's current views and assumptions and should not be relied upon as of any subsequent date, and we disclaim any obligation to update any forward-looking statements. Actual results may vary materially from today's statements. Information concerning our risks, uncertainties and other factors that could cause results to differ from these forward-looking statements are included in our filings with the SEC, including our quarterly report on Form 10-Q for the quarter ended June 30, 2026. Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute or in isolation from GAAP measures. Our non-GAAP measures exclude the effect of our GAAP results of stock-based compensation and certain other items. Reconciliations of non-GAAP financial measures to comparable GAAP measures can be found in our press release accompanying this call, which is posted to the Investor Relations page on our website. I would now like to turn the conference call over to Dylan. Dylan Field: Hi, everyone, and thanks for joining. I'm excited to share the results of another strong quarter for Figma. In Q2, we delivered $370 million in revenue, representing a year-over-year growth rate of 48% and our third consecutive quarter of accelerated growth. Q2 was also our first full quarter of AI monetization. And what we're seeing follows a pattern that is familiar to Figma, a core group of users driving outsized usage, paving the way for broader adoption across the organization. This gives us confidence in the AI consumption opportunity ahead. On the P&L front, net dollar retention rate was 136%. Non-GAAP gross profit dollars grew by 40% year-over-year, an acceleration on the previous quarter. Non-GAAP operating margin was 10%, reflecting the typical seasonal impact of Config. Free cash flow margin was 14%, and we ended Q2 with $1.7 billion in cash, cash equivalents and marketable securities. These numbers reflect incredible execution from the Figma team. They also show that as companies reimagine how they build products with AI, they are doubling down on Figma. This is because what Figma offers is unique, a performant professional-grade canvas where humans as well as agents can work side by side, deep product context that makes agents actually useful and full creative control through a combination of AI and direct manipulation. These differentiators are even more valuable in a world where code is a commodity and value is moving up the stack. We see a big opportunity for Figma as we make code a primitive on our platform and become the canvas for full stack creation. Let me explain. In June, at Config, we announced Code Layers, which we plan to roll out in early access soon. AI has made individuals more productive than ever. Everyone is working with their own agent, exploring their own path in their own tool. Teams are moving faster, but they're often pointed in completely different directions. Collaboration takes a back seat as tunnel vision takes over. Individuals grow more attached to the direction they've explored and less open to ideas from their team. Code Layers is designed to address these challenges. With Code Layers, interactive code lives directly on the Figma canvas. Teams can edit designs and code or manipulate them visually. They can also compare different variations of code-backed prototypes on the canvas side by side. And this makes iteration fast and collaboration the default. Code Layers is built on the same technical foundations as Figma Make. Simply put, it's Figma Make on the canvas. And Figma Make itself is getting more powerful. For example, in May, we started rolling out the ability for teams to start working directly in the production code base with Make. Teams can go from idea to ship product without leaving Figma. 1Password uses Figma from prototype all the way to code that ships to production. Their design systems team has built a full AI-assisted prototyping pipeline with Figma Make, complete with the custom MCP and AI-powered skills, and that lets them scaffold and publish new prototypes automatically. They've also opened Figma Make access to licensed engineers. And when that process starts outside of Figma, we've also made it easier to bring your work into Figma with our MCP server. At Clay, designer Alex Fortney was tasked with redesigning the company's tools panel, a surface undergoing its fourth redesign in the last 5 years. Using MCP, Alex was able to expedite what would have been a tedious process by pulling all the existing components out of legacy code base and into Figma. That way, she could audit the entire surface visually and altogether. As she put it, "The Figma MCP has saved me countless hours of manual labor on all the design system files, and it's made it a lot easier for Clay's engineers to translate design into production-ready code." MCP is what makes this possible at scale. Write-back support lets teams push work into Figma, not just pull from it. And in Q2, MCP write-to-Figma usage grew 75% quarter-over-quarter. Code Layers pushing into production with Figma Make and the Figma MCP server together will all drive more usage and credit consumption by expanding what you can do with code in Figma. As AI makes code easier to write, everything though is starting to look the same. These models are trained on what already exists. So what you get back is in distribution. It's the expected answer. The teams that will stand out are the ones with a bold point of view that are willing to push past obvious solutions. At Config, we launched Motion and Shaders, 2 new expressive capabilities that used to require leaving Figma, but now are native to our canvas. And with Figma Motion, teams can build custom animations from scratch, layer those on to existing designs or ask the agent to even generate a starting point. And this is all in the same canvas that their team already works in. Atlassian is a great example. The design systems team is building motion directly into the Atlassian design system, giving anyone on the team the ability to design with and generate motion themselves. This is important because Motion is something teams almost always want but rarely get because it's time-consuming and it's expensive to build. As Senior Product Designer, Alexandra Pereira put it, "Figma Motion turns animated illustrations from a specialist handoff into a system capability." Like Motion, Shaders make products feel live in new ways. With Shaders, anyone can describe a texture or effect like liquid glass and a Figma agent will build it for you. And then you can manipulate the output directly with fine-grain controls that give you ways to customize your results. Figma Weave brings a similar approach to AI-generated media. Instead of stopping at the first prompt, you can sculpt generated outputs like Clay, connecting models and refining results until what's on the canvas is exactly what you had in your head. Weave Tools can now run inside Figma, which means teams can generate images and other visual assets without switching tools. This matters more as visual assets become a bigger part of how software gets made. In addition, this also opens up Figma to new audiences we haven't served historically, in-house brand designers, creative agencies doing complex hands-on work. Taxi Studio, a U.K.-based brand design agency, set up a Weave workflow to generate 3D renders for design presentation with our client, Carlsberg, using 3 simple inputs, a beer glass, a hop leaf and also a background. They create a starting point for brand imagery and then further refined lighting, camera angle and texture. As designer Jack Goozee put it, "All this took a day, whereas it would have taken a 3D specialist weeks and tens of thousands of pounds to ideate through these elements. It is such a great way to elevate and add richness to the work while staying very much in control." And it's this control that sets Weave apart, the ability to express your creative vision exactly as you imagine it. Together, Motion, Shaders and Weave give teams the tools to make work that's genuinely distinctive, not just AI generated. The market this can serve is significant. And overall, it points to a larger shift. The line between building software and making creative work is dissolving. This opens up new mediums, new possibilities and new audiences for Figma. The third opportunity is agents. The Figma agent is built natively for design. It's fluent in Figma and increasingly powered by our own proprietary models. Because it works on the same canvas as your team, it has access to all the same tools that you do, including our new expressive capabilities like Motion and Shaders. One way to think of the agent is as a capable design intern you can hand work off to, everything from time-consuming tasks like documenting your design system to generating design variations that your team can build on. And because it works directly on the Figma canvas, you can have multiple agents running in parallel while you and your team focus on higher level work. But the agent can do more than complete tasks. They can also build custom tools. And that's what generative plugins are for. You can describe what you need and the agent will build something that your entire team can reuse, like custom chart generators or plugins that pull in live data directly onto the canvas. The response to generative plugins has been strong. As of July 31, weekly plugin creation was more than double what it was prior to the launch of generative plugins. Together, this represents a significant opportunity for our business. As the Figma agent takes on more work, AI consumption increases and the ceiling on what a team can create in Figma moves up. The Figma agent rolled out in open beta in June, and the early signs are promising. As of July 31, over 50% of paid customers with more than $10,000 in ARR were already using the Figma agent on a weekly basis. The agent is also expanding who uses AI in Figma, not just how much. As of July 31, more than 20% of weekly credit consuming users on paid plans were exclusively consuming credits using the Figma agent. The common thread across code, new creative capabilities and the Figma agent is that they increase the surface for AI consumption and the possibilities for what and who can create in Figma. Together, they can grow our total addressable market in ways that we are only beginning to capture. More than 10 years ago, Figma introduced the Infinite Canvas as a shared space for teams to design software. The next evolution is a canvas for full stack creation, one place where anyone, anywhere can reach for whatever tool they need to build whatever they dream up, exactly as they imagine it. Before I close, I want to share some updates on our leadership team. First, our Chief Technology Officer, Kris Rasmussen, will become Figma's Chief Architect. After almost 10 years at Figma, Kris sees an opportunity to scale his impact by working directly on Figma's most business-critical engineering challenges, starting with Figma agent. We are kicking off the search for a new CTO. And in the meantime, the engineering teams responsible for our AI and editor efforts will report directly to me. Additionally, our long-time security leader, Dev Akhawe, will become Figma's Chief Security Officer. Dev and his team were early to adopt AI in Figma's cybersecurity efforts, and I'm excited for Dev to step into this role. We also have 2 internal leadership transitions. First, after 7 incredible years, our Chief Product Officer, Yuhki Yamashita, has decided to close the Figma chapter and take extended time off. Yuhki has helped shape Figma's product and culture, and I'm so grateful for his dedication and impact. Loredana Crisan, who joined Figma as our Chief Design Officer in 2025, will expand her scope and lead Figma's product function as well. Loredana joined us almost a year ago after spending nearly a decade leading design and product at Meta for Messenger and Meta's AI efforts. Her remarkable design and product aptitude and a strong point of view that she brings have already made a tremendous impact on Figma. Lastly, Sheila Vashee, our Chief Marketing Officer, will be departing Figma at the end of August. Sheila has built strong marketing foundations for Figma as we have scaled our go-to-market efforts. Nairi Hourdajian, Figma's long-time Chief Communications Officer, will be our new CMO. Nairi is a leader I trust deeply. Her creativity and sharp perspective have shaped so much of our strategy in marketing and across Figma's business. I know her bold approach will further strengthen Figma's marketing and differentiate our brand. A year into our journey as a public company, the opportunity is bigger than even we expected. The tools are changing, the creative possibilities are expanding and Figma finds itself at the forefront of this shift. We have so much work ahead and even more left to build for our customers. I'm super excited for it, and I know the team is too. And with that, I'll pass it off to Praveer. Praveer Melwani: Thanks, Dylan. As Dylan shared, our vision of becoming the canvas for full stack creation is resonating with customers. We consistently hear from our customers that they want to build more, move faster and push the boundaries of what is possible, all while elevating craft and taste. We're proud that our financial results indicate that we are delivering the right products and features to our customers as AI transforms the way products are built. Q2 was another record quarter. Importantly, it was our first full quarter in which AI credit monetization contributed to results. Q2 revenue was $370 million, up 48% year-over-year and our third straight quarter of accelerated year-over-year revenue growth. Just as importantly, that growth was accretive to gross profit in Q2. Non-GAAP gross profit for Q2 grew 40% year-over-year with our gross profit dollar growth accelerating 9 percentage points quarter-over-quarter. Let's start with AI credit monetization. As a reminder, we embed AI credits in each of our seats. Starting in mid-March, we implemented credit limits on all seats. Today, teams are able to purchase additional credits beyond these limits. A key signal we wanted to understand was how credit utilization would trend as customers began paying for incremental usage. A full quarter in, we are encouraged by what we've observed. Sustained usage is translating into revenue in 2 ways. First, credits included in every seat make those seats more valuable, supporting upgrades, new team conversion and retention. As of the end of Q2, approximately 2/3 of paid customers with more than $10,000 in ARR added full seats compared to their prior renewal, which is consistent with prior quarters. At the same time, gross retention rate was stable in the mid- to high 90s, highlighting the mission-critical nature of our platform for our customers. Second, as customers exceed the credits built into their seats, they can purchase additional credit add-on subscriptions or enable pay-as-you-go. We're encouraged by the paid conversion we're seeing and the continued broadening of adoption across our customer base. As of the end of Q2, over 80% of paid customers with more than $10,000 in ARR were consuming AI credits weekly. We are also continuing to learn how customers want to purchase, scale and govern AI usage. We're moving quickly to iterate on our pricing model based on customer feedback. Just this week, we began rolling out user level limits, giving admins more precise control over how AI credits are allocated across their organizations. We're also working to make it easier for users to request additional credits when they need them. There is meaningful room ahead as adoption deepens and we introduce new features and products that consume AI credits. Our products and features that are in beta and are still rolling out to customers, including Figma agent, Figma Make on local code, Motion, generative plugins and Code Layers do not currently consume paid credits. Early usage of these new products and features is trending ahead of expectations. We're already seeing that the Figma agent is drawing new users to consume AI credits as well as driving existing users to deepen their usage. As of July 31, over 50% of paid customers with more than $10,000 in ARR were already using the Figma agent on a weekly basis. Now let's turn to our key metrics. In Q2, net dollar retention rate for paid customers with more than $10,000 in ARR remained strong at 136%, even as we begin to anniversary our pricing and packaging changes from March 2025. We are continuing to both add new customers and go deeper with our existing customers. In Q2, paid customers with more than $10,000 in ARR grew 34% year-over-year and paid customers with more than $100,000 in ARR grew 46% year-over-year. We continue to invest in our go-to-market teams to support our global customer base. Last quarter, we expanded our footprint with a new office in Sao Paulo to better serve our customers in one of the fastest-growing markets. We also now offer local data hosting in Brazil after introducing data localization in Australia and India earlier this year. All of these efforts have continued to help drive our global business and international revenue, which grew 50% year-over-year in Q2. Now let me highlight a few of our customer wins from the quarter. One of the world's largest technology companies expanded its enterprise contract with Figma in Q2, purchasing an AI credit add-on covering more than 25,000 total paid seats with the company now having more paid seats held by engineers than designers, a strong signal of developer adoption at scale. A technology infrastructure company expanded its AI credit add-ons multiple times within a single quarter, increasing its purchase credit commitment by 5x from its first add-on as part of a company-wide push for AI native workflows across its product development org. During a month-long trial of Figma Make, a global financial institution held an internal Hackathon across its product, design and engineering teams, reducing prototype development time from a full quarter to a matter of days. New admin tools for managing user credits also unblocked a path to broader adoption by giving the company greater visibility and control over AI usage across teams. Together, these productivity gains and stronger governance capabilities led the company to purchase a significant enterprise AI credit add-on subscription, while AI credit consumption increased 2.5x quarter-over-quarter. Building on a successful 5-year partnership with one of Europe's largest software providers, we identified opportunities to further accelerate adoption of our AI products. With targeted training for power users, we drove organization-wide adoption. The impact was immediate. AI credit consumption grew 2.5x month-over-month in the first month following the engagement and a new contract. Turning to the income statement. Unless noted, all metrics are non-GAAP. We have provided a reconciliation of GAAP to non-GAAP financials in our earnings release, which is posted to our website. Gross profit grew and gross margin improved in Q2. Gross profit was $314 million, up 40% year-over-year, and gross margin was 85%, up 2.5 percentage points quarter-over-quarter. The acceleration in gross profit growth and the improvement in gross margin this quarter is the result of our first full quarter of AI credit monetization. Looking ahead, we have a clear set of tools to manage inference costs as adoption scales. We route across models based on task complexity, optimize across providers through our model-agnostic architecture and are beginning to bring first-party models trained on Figma's design corpus into specific design tasks inside the Figma agent. For the right tasks, we believe those models can deliver comparable quality at lower cost and latency and will continue to represent a key area of investment and development in the second half of the year. With the new products and features rolling out in beta post-Config, the goal remains to drive usage, retention and growth while improving quality, latency and cost ahead of GA. We do not charge our customers for their usage of products that are currently in beta, and we bear the cost of inference without offsetting consumption revenue. As a result, gross margin will vary from quarter-to-quarter in the near term. Over the long term, we expect additional usage to drive revenue and gross profit dollar growth. Q2 operating income was $36 million, a 10% operating margin. We hosted over 10,000 members of our community in San Francisco in Q2 for Config, our annual user conference. We view Config as an investment in our community and customers. This investment impacts our Q2 operating income and free cash flow. Inclusive of Config, our Q2 operating expenses grew at a slower rate than our top line. Q2 free cash flow was $53 million, a margin of 14%. The largest single driver for the year-over-year variance was costs related to our increased inference spend. The Config expenses also impacted our free cash flow. We ended the quarter with $1.7 billion in cash, cash equivalents and marketable securities, and we remain confident in the long-term cash-generating profile of the business. Now let's close it out with our outlook. A reminder on our guidance philosophy. We provide a snapshot of our current view based on recent trends, including what we have high confidence in and where visibility is more limited, we observe sustained trends before fully incorporating them. For the third quarter, we expect revenue of $373 million to $375 million or 36% growth at the midpoint of the range. For the full year, we are raising our outlook to $1.463 billion to $1.467 billion, implying 39% growth at the midpoint, a raise of $40 million. The raise is reflective of strength in AI credit consumption for products being monetized today, positive early signal on the back of our new launches, strong conversion and continued expansion. We are maintaining our full year non-GAAP operating income guidance of $125 million to $135 million, a 9% operating margin at the midpoint. This is the right moment to lean into investment given the strong signals we see. The question we ask ourselves is whether investment in product and go-to-market increases the likelihood that Figma builds a durable advantage over the long term, even at the temporary cost of near-term margin. Over the long term, we remain focused on innovating while driving durable revenue growth and maximizing operating profit dollars. To close, Q2 was another strong quarter, our first full quarter of AI credit monetization, a deepening of our product portfolio, a broadening of our AI workflows, an acceleration of growth in revenue and gross profit dollars and continued strength in retention and expansion. More importantly, we are confident in how this all will compound in the quarters ahead. AI is changing how teams build software and how creative work is done, and that makes Figma more important. We are pairing product velocity with a monetization model that will evolve alongside usage and that gives us confidence in durable, profitable growth from here. With that, I'll hand it over to the operator for Q&A. Operator: [Operator Instructions] Your first question comes from the line of Alex Zukin with Wolfe Research. Aleksandr Zukin: Two quick ones for me. Dylan, given the amount of products out there right now in the marketplace from cloud design to Vercel to the vibe coding platforms, maybe just level set and remind us what are you seeing on both top of funnel and upsell dynamics and cross-sell? And why Figma seems to be winning even more in what looks like a more crowded field and the confidence that you have that, that differentiation should continue. Dylan Field: Absolutely. Thank you for the question. So I think that what we've seen overall is as teams explore how to integrate AI into their workflows, they go through a journey on that. And what we've continued to see is teams doubling down on Figma as they come out of that process. Now to your question, as you mentioned, there's many tools, they're solving different problems. Some of them are primarily coding tools. Others are more optimized for individuals or small teams. And I think it's really important to remind everyone that building software at scale is different. And the challenge isn't just generating code or making sort of design assets that anyone in the organization might want to create or bathroom signs or greeting cards. I think what's really important is to understand that our offering is really optimized for professional designers and it's unique. And the way we get there is a performant professional-grade canvas, one where humans and agents can work side by side, deep product context that makes those agents actually useful and very importantly, full creative control through a combination of AI, but also direct manipulation and a ton of long-tail functionality and workflow features we've really built into a professional design environment that our customers still have plenty of requests for us to improve on. And overall, you bring those capabilities together and you layer the ecosystem that we've built on top with MCP, with Code Layers coming and with Figma Make continuing to improve. And what we see when those all come together is that these tools are very good for different parts of the process, and teams continue to come back and double down on Figma to build products. I'll pass it over to Praveer for anything he wants to add. Praveer Melwani: No, the only thing I'd add, Alex, are some of the key indicators that I'm staring at. We're looking at the number of customers that are expanding at time of renewal within our 10,000-plus customers, and you saw about 2/3 of those customers adding full seats at time of renewal. Our NDR rate of 136% remains healthy and strong, and it's built on the back of continued and steady expansion, strength in gross dollar retention and us now being able to overlay our AI credit model on top. So there's a lot of tailwinds that we get the benefit of, but it starts with product and it ends with product. And I think Dylan kind of did a fantastic job there describing it. Operator: Your next question comes from the line of Gabriela Borges with Goldman Sachs. Gabriela Borges: I wanted to pick both of your brain on 2 questions that we're getting with the stock being down in the aftermarket. Praveer, the first question is on the sequential that you're guiding to for 3Q. Maybe just give us a little bit more color. It looks much more conservative than what you guided to in 2Q and then much smaller in absolute dollars than what you guided to in 2Q. And then the flip side of this is on the gross margin. I know you have a number of cohorts, a number of new products layering in, all of which will be monetized when the time is right. But maybe just level set us on how to think about what the cadence of gross margin looks like over the medium term and any kind of balance you can put around that for us? Praveer Melwani: Yes. Thanks, Gabriela. Really good to hear from you. So our guidance philosophy here remains consistent in that we provide a snapshot of our current view based on recent trends, including what we have a high degree of confidence in and where we have -- visibility is a little bit more limited. We wait until we observe sustained trends there before fully incorporating them. So both in Q1 and Q2, this provided us more telemetry in how AI consumption will translate into revenue, which we've been able to flow through for the back half of the year. However, as we continue to create new surfaces that are going to draw even more credits over a longer period of time in agent, in Code Layers, in Make and local code. Today, those products are sitting in beta or early access programs and are not drawing down paid credits. And so what we've given ourselves an opportunity to do is to continue to invest to learn how those products actually mature to ensure that we're improving latency, reducing cost and improving quality before we transition those into generally available products. And then as we make those transitions, similar to the investment trajectory that we've taken with our AI products thus far, we'll observe our ability to monetize them on the other side before fully incorporating them. And so the sort of philosophy actually also translates to our operating income in that we have an opportunity here to both drive deeper investment into a number of these newer surfaces, which is exactly what we've started to do and observe. And so that's why you're seeing deepening investment into the back half of this year is because we're really excited about the initial metrics and components there. Operator: Your next question comes from the line of Michael Turrin with Wells Fargo. Michael Turrin: I just want to ask a 2-parter on Make, if I may. Dylan, I'm curious, given the rise in focus around open source and open weight models, if there's anything you see there that could potentially help further improve the overall position of Make as you're talking to customers. And for Praveer, we actually saw gross margin expansion this quarter. I think the 85% is a bit better than what we were expecting. So just curious if you have an updated view on whether we're reaching a local bottom in any way, given you're now monetizing credit consumption or just how to think about the improvement in gross margin there? Dylan Field: Thank you. I'll start with an answer around model and what we can see on the horizon, what we think might be possible. So I would orient everyone around 3 variables. One is latency, the second is quality, the third is cost. And as we work on first-party model development, which could include post trains of open source models, especially U.S.-based open source models, you will likely see us be able to further discretize certain tasks, which could help with latency, it can help with quality and it can help with cost. And we think that's applicable not just to Make, it's also applicable to agent and to plenty of other surfaces across the Figma platform. And with that, I'll pass to Praveer for the second part. Praveer Melwani: Really good to hear from you again. So the thing that we're seeing over here is actually a consistent behavior that we've observed as we've had different product launches over time. The initial -- while we're seeing widespread use of our AI products, so about 80% of our 10,000-plus customers are using -- are drawing down credits on a weekly basis. What we are seeing is that we have an opportunity here to grow usage within those accounts, finding those initial champions and then expanding it over time. In addition, as I was mentioning with the prior question, a number of the newer products that we just rolled out either in beta or early access programs are not drawing down paid credits today. And that then is an investment that we make in driving ubiquity of these newer surfaces. So the trajectory that we've taken over the past year now where we have these periods of investment that then serves as a headwind to gross margin. And then in a period where we flip on monetization, we can then start to see the acceleration in gross profit dollar growth is one that I expect in subsequent periods. So I think we're now, again, in an investment period, an investment cycle as we continue to drive ubiquity of these newer products. And then my expectation over the medium to long term there is then we'll then start to be able to translate that into gross profit dollars and more durable long-term growth as well. Operator: Your next question comes from the line of Arjun Bhatia with William Blair. Arjun Bhatia: I was -- I wanted to ask maybe a little bit just on the credit consumption of the products that are sort of drawing down these paid credits. I imagine that's mostly Make, maybe agent here to come. But as we're looking at the back half guidance, should the sequential consumption of paid credits for those surfaces continue to increase? I'm curious what you -- I know it's just 1 quarter in, but I'm curious what you saw in 2Q and then as we're going through July, if that trend -- if those trends accelerated or if there's any change there that you've baked into the guide? Praveer Melwani: Yes. Thanks for the question, Arjun. I think we've seen a number of different trajectories that customers take. Some were ready to make scaled purchases as soon as our AI credits came out of -- as soon as we began implementing those AI credit limits. Others started on pay-as-you-go offerings, and then they exceeded their limits there before purchasing more scaled add-ons. And there's also a set of customers that required us to have more direct partnership with where we went into those accounts and really drove enablement side by side with the champions there and saw credit consumption multiply over those same periods prior to them actually going and purchasing these scaled add-ons. What's really interesting here is our customers are looking to us for strategic thought and direction. They're advocating for a partner. They want to be -- they want us to be a part of the conversation on how folks should be building product in this AI age. And as that starts to pick up, we fully believe that we should continue to have the opportunity to increase our credit consumption within these customer accounts as well. This is in addition to the newer surfaces that just came out in beta and early access program. And you're exactly right that while they sit in beta and early access programs, they are not drawing down paid credits, but they will as they transition over into our -- into GAs over time, which then serves as a tailwind for us in the latter part of the year, early into next as well. Operator: Your next question comes from the line of Billy Fitzsimmons with Piper Sandler. William Fitzsimmons: For Dylan, can you just contextualize how Figma's MCP usage has trended year-to-date? You mentioned it was up 75% year-over-year, but just help us think about how that tracked sequentially. Last quarter, there were some questions kind of about the general competitive environment. But talking to Figma customers, many are pulling in external AI workflows into Figma. Would be curious to the extent you can kind of quantify the magnitude of that occurring. And if I could just ask one for Praveer. On the OpEx side, how is Figma's hiring needs kind of trended year-to-date versus maybe your initial expectations going into the year? Dylan Field: Yes, I can start, and thank you for the question. First off, I'll just quickly correct what you said there in terms of the 75% growth. It's actually quarter-over-quarter on the write MCP. So that's people that are using our MCP to get work into Figma. And so we've been thrilled to see the overall MCP growth as well as the specific growth on the write MCP and that use Figma tool call. Now when we look at overall the picture at MCP, we see a bunch of stuff happening. We see people pulling work from Figma to go build it elsewhere. We see people pushing work into Figma. Overall, our point of view is that we really want to make sure that wherever you start, whether it's a coding agent and then you realize, wow, there's a lot of opportunity to make the design better here or it's in Figma and you're starting with a very design forward view, that Figma is adding value to the process overall. And what we want as well is to offer people ways to complete that whole workflow in Figma. But overall, yes, we're thrilled to see the growth of MCP. We'll be curious to watch the trade-off potentially between MCP and agent in the future. Definitely, as you're able to complete more of the workflow in Figma, we'll want to see if there's any change that creates in MCP, and that's something that we're watching as well. Praveer Melwani: And then to your question on hiring, I think it's -- we continue to invest and build the team. But to your point, we are hiring fewer people today than we originally had planned, and that's because we've been able to augment the team that we have with AI and tools and have seen modernization of processes across the board. So I think we've been really thoughtful now as folks are both coming in and transitioning out to make sure that the process by which that someone is coming in and operating in is the right one for the way that people should be building companies in this new age. And so even as our customers are going through this process of retooling as are we internally, and I think we're really excited about some of the levers that we've been able to find. Operator: Your next question comes from the line of Rishi Jaluria with RBC. Rishi Jaluria: Just one for me. I'll keep it to one. As you think about some of the success that you're having with some of the newer SKUs, not just Figma Make, obviously, you've shared a lot around that, but even some of the exciting products that we saw at Config. Can you maybe walk us through not only what does the success look like in driving usage among the existing customer base, but are you seeing situations where you're actually landing net new customer logos as a result of having these additional products and what that kind of expansion motion could look like? Praveer Melwani: Rishi, I really appreciate the question. I think largely, what we found is a lot of the new products here give us an opportunity to grow the number of folks that can sit on -- can sit and hold paid seats within existing paid plans. That's more within our larger customers as we go deeper and that will be evidenced and has been evidenced in our net dollar retention rate. I do think that there has been moments on the lower end parts of the business and the overall number of customers that are on platform, and we've disclosed this in prior quarters, we've seen an acceleration in our ability to go and acquire customers over there as well. And so we've both been able to grow the overall number of folks sitting on paid plans while also then deepening within existing. On agent specifically, what we found is -- and Dylan kind of -- Dylan did disclose this in our prepared remarks, that we've actually increased the overall number of weekly active credit consuming users on paid plans. And that today, folks that are actually drawing down paid credits or rather consuming credits on paid plans via agent represents about 20% of the overall. So that in and of itself is broadening who can now hold a paid seat and lowering the floor over time as well. Operator: Your next question comes from the line of Elizabeth Porter with Morgan Stanley. Elizabeth Elliott: I was hoping to get an update on the unit economics of AI credit revenue just after you've gone through this full quarter of monetization. So what are some of the levers, whether it's the task-based model routing, the optimization across providers or first-party models that are already starting to lower inference costs? And how we should think about those efficiencies affecting the incremental gross margin profile as usage scales? Praveer Melwani: Yes, we've taken a model -- sorry, a model-agnostic approach to the way that we're serving inference to our customers. And so that will continue to be a growing place of investment for us, especially as we deepen our investments on the first-party side. So today, we're able to serve an increasing share of requests that come in on agent via first-party models. And again, you then have the constant back and forth and trade-off that we're making around what is -- are we able to serve that customer and that query with lower latency, lower cost and higher quality alongside of it. And so we'll continue to make good decisions there and pull the right levers at the right moments in time. And as we've demonstrated over the course of the quarter, we have the ability here to accelerate our gross profit dollar growth as we transition more and more of our credit consuming products to being paid. Dylan Field: I'll just add, I think that there's so much we've done and so much more we can do when it comes to efficiency here. But again, you won't see us redo that at the expense of quality or at the expense of lower latency. We think those are also ways to drive revenue up when it comes to consumption. Operator: Your next question comes from the line of Samik Chatterjee with JPMorgan. Samik Chatterjee: And maybe this is more for Praveer. Just the $40 million raise for the outlook for the year, I'm wondering how much of that is driven by the incremental credit usage that you're seeing relative to maybe other things coming in better like higher seats, et cetera? And are you now post the beta release of some of these AI products that you did at Config, are you now -- any change in thoughts in terms of how much they contribute as you're going through that beta release at this point? Praveer Melwani: Yes, I'll be explicit here. I think right now, at this moment, we are not taking credit for the products that are in early access programs or beta in our full year revenue outlook. I think that represents upside as we transition from these periods where the credits are not drawing down paid credits, and we transition those to GA products. And then as a result, we'll be able to take more credit for it in our revenue outlook. Our philosophy here has always been to give you a transparent view of the things that we know and have a high degree of confidence over -- and in areas where we're still learning and/or products haven't fully transitioned to that -- to being paid, we give ourselves some opportunity to learn and share that with you when we have a higher degree of confidence. Operator: Your next question comes from the line of Nick Altmann with BTIG. Nicholas Altmann: I wanted to circle back on the proprietary model. And Dylan, you touched on it a little bit, but just which use cases and surfaces do you feel like the first-party model will take priority with your users? And then just given it sounds like the initial usage of your design agent is going really well, like how much of that would you attribute to your proprietary model? And do you anticipate the first-party model maybe accelerating AI usage and engagement in the near term as you expand that beyond the design agent? Dylan Field: Yes. Thank you for the question. I would say that first-party models, plural, will have use cases and ways they show up across our platform. Right now, a lot of it you can think about as how do you work better with design, how do you work better with Figma and that is where we're seeing the most use cases show up. Over time, we think that will expand. At the same time, we're also still very much working with Frontier Labs, especially where customers want us to, like actually taking the design and building it and implementing it fully. That is something that I expect we will continue to work with Frontier Labs on in the immediate future, and we're grateful for those partnerships as well. And in general, I think that the more that we can make it so that first-party models combined with Frontier models end up at that -- the right place in that Frontier I mentioned between quality, latency and cost, the more that we can get to the right place there, the more we'll see acceleration of usage in general. Operator: Your next question comes from the line of Tyler Radke with Citibank. Tyler Radke: Maybe this one is for Praveer. So we're getting some questions. Obviously, really strong Q2 results. But as we look at the sequential guide into the Q3, can you just remind us some of the sets of assumptions you're making? It looks like sequentially kind of some of the smallest growth that you've guided to. I know there's some moving pieces with price. But I guess more specifically, as you think about AI becoming a larger piece of the business, obviously, usage is more volatile than subscription seats. So how are you just incorporating that mix dynamic into your guidance philosophy? Praveer Melwani: Yes. No, I appreciate the question, Tyler. I think maybe I'll start on the products that are and aren't included. I won't belabor it because I think I've spoken about this a couple of times during the call. The products that are in early access programs or betas that are not drawing down paid credits. We're going to wait until those transition over to GA products where we can observe how they actually monetize before taking credit for it in the guide. I think more broadly than that, the back half of this year, we start to come up against the anniversarying of the pricing changes that we made last year. So there's a couple of tougher comps there that we start to run into in Q3 and Q4. But largely, the key health indicators of the business and the places that I'm spending time and attention staring at, it's like how -- what is our ability to go and drive AI consumption across our customers. 80% of our 10,000-plus customers are consuming credits on -- 10,000-plus customers are consuming credits on a weekly basis. What is our ability to go and add full seats at time of renewal. Within our 10,000 plus customers, 2/3 of our customers there added full seats at time of renewal, which is consistent with what we've observed in prior quarters. We're both being able to go deeper within these customers, go broader and then you then have the overlay of what can come in a number of the products that will roll out over time. And we do have some upside to the plan that should we execute, we can achieve. But today, we want to give you guys a true view of what we know. And then lastly, just to give you a flavoring of how our AI consumption revenue is actually translating or rather is being contracted. The majority of the structures today are via add-ons that are coterminous subscriptions with an individual subscription. So we have a fair amount of visibility in how those will translate over time. But you're exactly right that if more and more of that were to move to pay-as-you-go or if we end up with more extended contracting structures, we could see more variability and when that gets recognized. Operator: Your next question comes from the line of Parker Lane with Stifel. John McShane: This is Jack McShane on for Parker. Praveer, you mentioned in your prepared remarks and in this last question, customers looking to -- or are you guys looking to iterate your pricing model based on customer feedback. Not sure you'll provide much on future pricing plans, but can you provide any color on what feedback around pricing has been from your customers? Are customers looking for more certainty around AI costs? Or are they becoming increasingly comfortable with paying consumption? Praveer Melwani: Yes. I think at the very basic level, and I see this even as a purchaser of a number of different AI tools is your customers want control and choice. They want to understand that their investment here is driving return, and we need to be able to both provide our customers with that same level of choice and control while also then being able to be really clear with the ROI that they're seeing on the other side of it. I think that from a true ROI perspective, we're actually seeing some really interesting early indicators. Folks that are relying on Code Connect and then also using our MCP are seeing that the overall number of tokens consumed on the other side of it as they're translating it to a code it will be that much more efficient. We're finding that folks like the ability to both lead with AI in certain places, but then have the full creative control on the canvas. And so not each action needs to be credit consuming as a result. There are things that we're rolling out on the actual pricing and packaging side that give folks the ability to set user level controls, the ability to set restrictions in certain places. I think we want -- we hear from customers that they want to have the ability to draw down credits over longer periods of time. And as we think about the right ones and the right changes to make to our model, again, to provide customers with the control that they want and choice that they want, my expectation is that, that will start to break down even more barriers and make the sales process that much more efficient over time. Dylan Field: I'll just add before we end here that we are learning a lot and so is the market generally as it comes to purchasing software on different ways that AI credits and consumption should be purchased. And so as we continue to learn, we'll continue to improve. And I think that will be something that continues to happen over the long term because I think we're still in the early days of what people want to see here and how they'll express that. Operator: There are no further questions at this time. This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Figma, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Figma wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has positions in and recommends Figma. The Motley Fool has a disclosure policy. Figma (FIG) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Figma, Inc. FIG used its second-quarter 2026 earnings call to frame AI consumption as the next expansion layer on top of seat growth, while noting that several new AI products still do not draw paid credits. Management raised its 2026 revenue outlook after the first full quarter of AI credit monetization, but analysts focused on the modest sequential third-quarter guide and the gross-margin cost of funding beta products before monetization. CEO Dylan Field said the second quarter marked Figma’s first full quarter of AI monetization and described adoption as following a familiar pattern: concentrated usage among power users that broadens across organizations. CFO Praveer Melwani said more than 80% of paid customers with over $10,000 in ARR were consuming AI credits weekly. Net dollar retention remained 136%, while roughly two-thirds of those customers added full seats at renewal. Non-GAAP EPS of 8 cents topped the Zacks Consensus Estimate of 4 cents. Revenues of $370.10 million exceeded the consensus mark of $350.80 million and rose 48% year over year. Figma, Inc. price-consensus-eps-surprise-chart | Figma, Inc. Quote Field positioned Code Layers, Figma Make and the MCP server as core pieces of Figma’s move toward a full-stack creation canvas. Write-to-Figma MCP usage rose 75% quarter over quarter. Management also highlighted Motion, Shaders and Weave as tools extending the platform beyond interface design into animation, visual effects and AI-generated media. More than 50% of paid customers above $10,000 in ARR were using the Figma agent weekly by July 31. More than 20% of weekly credit-consuming users on paid plans were exclusively using credits through the agent. Melwani said non-GAAP gross profit rose 40% year over year to $314 million, while non-GAAP gross margin reached 85%, up 2.5 percentage points sequentially. He emphasized model routing, provider optimization and first-party models as levers for lowering inference costs. Field said cost improvements would not come at the expense of quality or latency. The agent, Make on local code, Motion, generative plugins and Code Layers do not yet consume paid credits while in beta or early access. Management said that can pressure gross margin before monetization begins. Figma guided third-quarter revenues to $373-$375 million, implying 36% year-over-year growth at the midpoint. Full-year guidance rose $40 million to $1.463-$1.467 billion, or 39% growth at the midpoint. Goldman Sachs and Citigroup analysts pressed management on the limited sequential increase implied by third-quarter guidance. Melwani said the outlook reflects high-visibility trends and begins to lap the March 2025 pricing changes. In response to JPMorgan, Melwani said the full-year outlook does not include revenues from products still in beta or early access that are not drawing paid credits. Figma will incorporate them only after observing monetization. Melwani said paid customers with more than $10,000 in ARR increased 34% year over year to 15,964, while customers above $100,000 in ARR rose 46% to 1,635. International revenues grew 50%. He also cited enterprise customers increasing AI commitments after productivity gains and broader adoption. One technology infrastructure customer increased its purchased credit commitment fivefold from its first add-on within the quarter. Asked by RBC whether new products drive new logos or expansion, Melwani said the larger opportunity currently centers on adding paid seats within existing enterprise plans, while the lower end has also seen stronger customer acquisition. Management maintained full-year non-GAAP operating income guidance of $125-$135 million, equal to a 9% operating margin at the midpoint, despite raising revenue guidance. Melwani said Figma will keep investing in product and go-to-market capacity where it can strengthen long-term advantage, even at a temporary margin cost. He also said AI tools have allowed the company to hire fewer people than originally planned. FIG carries a Zacks Rank #2 (Buy). Its Momentum Score of B is the strongest Style Score, while the Value Score is F, the Growth Score is D and the VGM Score is F. Zacks Style Scores complement the rank, with A and B grades preferred alongside Zacks Rank #1 (Strong Buy) or 2. FIG’s profile therefore combines a favorable rank and Momentum reading with weak Value, Growth and VGM signals. The Zacks Rank can change as earnings estimates are revised after the just-reported results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Figma, Inc. (FIG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Figma, Inc.? Here are five stocks we like better. Figma’s Q2 revenue rose 48% year over year to $370 million, with 136% net dollar retention among larger customers and strong international growth. The company raised its full-year revenue outlook to $1.463 billion-$1.467 billion while maintaining its operating-income forecast. AI monetization is gaining traction: more than 80% of larger paid customers used AI credits weekly, while over half used the Figma agent weekly by July 31. Figma is expanding AI features across design, prototyping and coding workflows, including Code Layers, Figma Make and its MCP server. Figma is investing heavily in AI infrastructure and beta products, with inference costs pressuring free cash flow and causing quarterly gross-margin variability. The company also announced leadership changes, including a search for a new CTO and expanded product responsibilities for Chief Design Officer Loredana Crisan. Investors Abandoned These 3 AI Stocks Too Early, Says Jeff Clark Figma (NYSE:FIG) reported second-quarter 2026 revenue of $370 million, up 48% from a year earlier, as the company recorded its third consecutive quarter of accelerating growth and its first full quarter of AI credit monetization. Co-founder and CEO Dylan Field said companies are “doubling down on Figma” as they adapt product-development workflows for artificial intelligence. The company ended the quarter with $1.7 billion in cash equivalents and marketable securities. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling 3 Sectors to Buy While They're Down and 1 to Walk Away From Figma’s net dollar retention rate for paid customers with more than $10,000 in annual recurring revenue was 136% in the second quarter. Chief Financial Officer Praveer Melwani said approximately two-thirds of those customers added full seats at renewal, while gross retention remained in the mid- to high-90% range. Paid customers with more than $10,000 in annual recurring revenue increased 34% year over year, while customers with more than $100,000 in annual recurring revenue rose 46%. International revenue grew 50% from a year earlier. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Insiders Step in to Buy These 3 Tanking Stocks On a non-GAAP basis, gross profit totaled $314 million, up 40% year over year, and gross margin reached 85%, improving 2.5 percentage points sequentially. Non-GAAP operating income was $36 million, representing a 10% operating margin. Free cash flow was $53 million, or a 14% margin. Melwani said the company’s annual Config user conference, which drew more than 10,000 community members in San Francisco during the quarter, affected both operating income and free cash flow. Increased AI inference costs were also the largest driver of the year-over-year change in free cash flow. → No Hangover: Revisiting Microsoft One Week After Earnings For the third quarter, Figma forecast revenue of $373 million to $375 million, representing 36% growth at the midpoint. The company raised its full-year revenue outlook by $40 million to a range of $1.463 billion to $1.467 billion, implying 39% growth at the midpoint. It maintained its full-year non-GAAP operating-income outlook of $125 million to $135 million. Melwani said the full-year revenue increase reflects strength in monetized AI credit consumption, customer conversion and expansion, as well as early signals from recently launched products. However, products still in beta or early-access programs are not included in the outlook because they do not yet consume paid credits. Figma began applying credit limits to all seats in mid-March, with customers able to buy additional credits through add-on subscriptions or pay-as-you-go arrangements. As of the end of the second quarter, more than 80% of paid customers with over $10,000 in annual recurring revenue were consuming AI credits weekly, according to Melwani. Field said the company is expanding the potential uses of AI across design and software-development workflows. In June, Figma announced Code Layers, a planned early-access feature that will allow interactive code to exist on the Figma canvas, enabling teams to edit code, manipulate it visually and compare code-backed prototypes side by side. The company is also expanding Figma Make, including an ability introduced in May for teams to work directly in production code bases. Field said 1Password uses Figma from prototyping through code that is deployed to production. Figma’s Model Context Protocol, or MCP, server is intended to let teams move work between Figma and external tools. Usage of MCP write-to-Figma capabilities rose 75% sequentially in the second quarter, Field said. Other new capabilities include Figma Motion for animations, Shaders for generating and editing visual effects, and Weave for refining AI-generated visual media on the canvas. Field said these features could expand Figma’s reach to audiences including in-house brand designers and creative agencies. Figma’s agent entered open beta in June. As of July 31, more than half of paid customers with over $10,000 in annual recurring revenue were using the Figma agent weekly, according to Field. More than 20% of weekly credit-consuming users on paid plans were exclusively consuming credits through the agent. The company also reported that weekly creation of generative plugins had more than doubled from levels before the feature’s launch. Generative plugins allow users to describe a needed tool, which the agent can create for teams to reuse. Melwani said Figma is investing in model routing, provider optimization and first-party models trained on its design corpus. The company seeks to improve quality and latency while reducing inference costs, though it expects gross margin to vary quarter to quarter as it funds usage of products in beta before monetizing them. “We do not charge our customers for their usage of products that are currently in beta, and we bear the cost of inference without offsetting consumption revenue,” Melwani said. Figma has begun rolling out user-level AI credit limits, providing administrators more control over credit allocations. Executives said customers want greater choice, governance and visibility into the return on AI spending. Field announced several leadership transitions. Chief Technology Officer Kris Rasmussen will become chief architect and focus on business-critical engineering challenges, beginning with the Figma agent. The company has started a search for a new CTO, while the engineering teams responsible for AI and editor efforts will report directly to Field in the interim. Security leader Dev Akhawe will become chief security officer. Chief Product Officer Yuhki Yamashita will depart after seven years to take extended time off, with Chief Design Officer Loredana Crisan expanding her responsibilities to lead the product function. Chief Marketing Officer Sheila Vashee will leave at the end of August, and Chief Communications Officer Nairi Hourdajian will become CMO. Figma is a San Francisco–based software company that offers a web-based platform for interface design, prototyping and collaboration. Its flagship product, Figma, enables teams to create and refine user interfaces, vector graphics and design systems directly in a browser, eliminating the need for local installations. The platform's real-time collaboration features allow multiple stakeholders—designers, developers and product managers—to edit and comment simultaneously, streamlining workflows and reducing version control issues. In addition to its core design tool, Figma provides FigJam, a digital whiteboarding solution that facilitates brainstorming sessions, wireframing and diagramming. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Figma Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Figma, Inc. (FIG) came out with quarterly earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.04 per share. This compares to a loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +100.00%. A quarter ago, it was expected that this company would post earnings of $0.06 per share when it actually produced earnings of $0.1, delivering a surprise of +66.67%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Figma, Inc., which belongs to the Zacks Internet - Software industry, posted revenues of $370.08 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.50%. This compares to year-ago revenues of $249.64 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Figma, Inc. shares have lost about 27.4% since the beginning of the year versus the S&P 500's gain of 13%. While Figma, Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Figma, Inc. was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.06 on $361.92 million in revenues for the coming quarter and $0.26 on $1.43 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, nCino (NCNO), is yet to report results for the quarter ended July 2026. This company is expected to post quarterly earnings of $0.28 per share in its upcoming report, which represents a year-over-year change of +27.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. nCino's revenues are expected to be $158.98 million, up 6.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Figma, Inc. (FIG) : Free Stock Analysis Report nCino Inc. (NCNO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Q2 revenue grew 48% year-over-year to $370.1 million, the third straight quarter of accelerated year-over-year growth. GAAP and non-GAAP gross profit year-over-year growth accelerated to 40%. Code Layers, the Figma agent, and new creative capabilities expand the surface for AI consumption and what teams can create in Figma. Figma raises full year revenue guidance, reflecting sustained seat expansion and AI adoption. SAN FRANCISCO, August 05, 2026--(BUSINESS WIRE)--Figma, Inc. (NYSE:FIG) announced financial results today for its second quarter ended June 30, 2026. "Q2 was Figma’s third straight quarter of accelerated revenue growth, and as code gets commoditized and value moves up the stack, the opportunity ahead of us has only grown," said Dylan Field, Figma's CEO. "By bringing code, new creative capabilities, and agents directly to the canvas, we’re increasing the surface for AI consumption in Figma and expanding the possibilities for what teams can create on our platform. Figma is building the canvas for full-stack creation: one place where anyone can reach for the tool they need to express their vision exactly as they imagine it." "Q2 was a record quarter and our first full quarter of AI credit monetization," said Praveer Melwani, Figma’s CFO. "Revenue grew 48% year-over-year, accelerating for the third consecutive quarter, and gross profit growth accelerated alongside it. Net Dollar Retention Rate remained strong at 136% as customers expanded both seats and AI credit add-ons. The strength of these signals gives us the confidence to raise our full year revenue outlook while continuing to invest behind the products we introduced at Config." Second Quarter 2026 Financial Highlights: Revenue was $370.1 million, up 48% year-over-year and above the range of Figma’s previously issued second quarter guidance. Year-over-year revenue growth accelerated for the third sequential quarter. GAAP gross profit was $309.6 million; GAAP gross margin was 84%. Non-GAAP gross profit was $314.0 million; non-GAAP gross margin was 85%. Year-over-year growth for GAAP and non-GAAP gross profit accelerated to 40%. GAAP loss from operations was $(117.3) million; GAAP operating margin was (32)%. Non-GAAP operating income was $36.1 million; non-GAAP operating margin was 10%. GAAP and non-GAAP operating income were impacted by the increased investment in sales and marketing spend related to Figma’s annual user conference, Config. Net cash provided by operating activities was $60.9 million; operating cash flow margin was 16%. Free Cash Flow was $53.2 million; Free Cash Flow Margin was 14%. GAAP net loss was $(112.2) million and non-GAAP net income was $42.6 million. GAAP net loss per share, basic and diluted was $(0.21) and non-GAAP net income per share, basic and diluted was $0.08. Cash, cash equivalents, and marketable securities were $1.7 billion as of June 30, 2026. Recent Business & Product Highlights: Net Dollar Retention Rate was 136% as of June 30, 2026. 15,964 Paid Customers with more than $10,000 in ARR as of June 30, 2026, growing 34% year-over-year. 1,635 Paid Customers with more than $100,000 in ARR as of June 30, 2026, growing 46% year-over-year. As of June 30, 2026, over 80% of Paid Customers with more than $10,000 in ARR were consuming AI credits weekly. Hosted Config, Figma’s annual user conference, which brought over 10,000 designers, product builders, and executive leaders from the world’s leading companies to San Francisco. Announced Code Layers, which brings the power of Figma Make to the Figma design canvas. With Code Layers, teams can turn static designs into interactive, code-backed prototypes that can be edited in code or manipulated visually. Also introduced the ability for teams to work directly in their production codebase with Figma Make. Introduced new expressive capabilities on the canvas such as Motion, Shaders, and 3D Transforms; also shipped Figma Weave Tools, which turn complex AI image and video generation workflows into re-usable tools on the canvas. Together, these new capabilities expand the types of work that can happen on Figma. Launched the Figma agent, a first-party agent that’s built into the canvas, fluent in Figma, and increasingly powered by Figma’s first-party model. The Figma agent handles everything from automating repetitive tasks to generating motion animations and shaders; as of July 31, 2026, over 50% of Paid Customers with more than $10,000 in ARR were already using the Figma agent on a weekly basis. Third Quarter and Full Year 2026 Outlook: Based on information as of today, Figma is providing the following guidance: Third Quarter 2026 Outlook: Full Year 2026 Outlook: Conference Call Details: Figma will host a conference call today, August 5, 2026, at 5:00pm Eastern Time (2:00pm Pacific Time) to discuss its financial results for the second quarter of 2026 and outlook for the third quarter and full year 2026. To access the call, please register at https://investor.figma.com/news-events/events-and-presentations/event-details/2026/Figma-Q2-2026-Earnings-Call/default.aspx. Figma will provide a written version of the prepared remarks portion of the call on Figma’s investor relations website (https://investor.figma.com) before the call begins. A live webcast of the call will be available on Figma’s investor relations website (https://investor.figma.com), and a replay and transcript of the webcast will be archived on the same website following the call. Investor Presentation: An investor presentation providing additional information can be found at https://investor.figma.com. About Figma Figma is where teams design and build the world’s best digital products. Founded in 2012, Figma’s canvas brings teams, agents, code and design together to go from idea to shipped product, all in one place. Whatever you’re building, Figma makes your workflow more collaborative and efficient—while keeping everyone on the same page. Figma, the Figma logo, and other registered or common law trade names, trademarks, or service marks of Figma appearing in this press release are the property of Figma, Inc. All third-party trademarks and trade names appearing in this press release are the property of their respective owners. The use of such trademarks and trade names is for identification purposes only and does not imply any affiliation with, endorsement of, or sponsorship by their respective owners. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of applicable securities laws. All statements other than statements of historical fact could be deemed to be forward-looking, including, but not limited to, statements regarding Figma’s future operating results and financial condition, including financial outlook for the third quarter of 2026 and full year 2026, Figma’s business strategy and plans, Figma’s expectations regarding opportunity, customer adoption, growth, and expansion, Figma’s expectations regarding AI products, features, and monetization, as well as any assumptions relating to the foregoing. The words "believe," "may," "will," "potentially," "estimate," "continue," "anticipate," "intend," "could," "would," "project," "target," "plan," "expect," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are made as of the date they were first issued and are based on information available to Figma together with Figma’s expectations, estimates, forecasts, projections, beliefs, and assumptions as of such date. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Figma’s control. Figma’s actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors. Further information on potential risks that could affect actual results is included in Figma’s most recent filings with the Securities and Exchange Commission (the "SEC"), including in Figma’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed or to be filed with the SEC on August 5, 2026, copies of which may be obtained by visiting Figma’s Investor Relations website at https://investor.figma.com or the SEC's website at https://www.sec.gov. Past performance is not necessarily indicative of future results. Figma undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Forward-looking statements should not be relied upon as representing Figma’s views as of any date subsequent to the date of this press release. Non-GAAP Financial Measures This press release and the accompanying tables contain the following non-GAAP financial measures: Free Cash Flow, Free Cash Flow Margin, non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP operating income, non-GAAP operating margin, non-GAAP net income, non-GAAP net income attributable to common stockholders, non-GAAP net income attributable to common stockholders considering potentially dilutive securities, and non-GAAP net income per share, basic and diluted. Certain of these non-GAAP financial measures exclude stock-based compensation expense, amortization of stock-based compensation expense included in capitalized internal use software development costs, employer payroll taxes on employee stock transactions, and amortization of acquired intangibles from acquisitions. Additionally, Figma excludes certain non-recurring charges, including equity investment (gains) losses, net, remeasurement (gains) losses on digital assets, non-current, net, and impairment losses on long-lived assets. The tax rate used to compute income tax effects and adjustments is Figma’s blended current expected effective tax rate, based on tax legislation currently in effect, and is subject to change based on various factors, including but not limited to, changes to local and international tax laws, changes in the geographic mix of Figma’s earnings, or other changes to Figma’s strategy or business operations. Figma believes that these non-GAAP financial measures provide useful information to management and investors in evaluating Figma’s financial condition and operating performance. Figma’s management uses these non-GAAP measures, collectively, to evaluate Figma’s ongoing operations, and for budgeting and internal planning purposes. Figma believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. The non-GAAP financial information is presented for supplemental informational purposes only, should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly titled non-GAAP measures used by other companies. Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Figma’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. Figma urges investors to review the reconciliation of its non-GAAP financial measures to the comparable GAAP financial measures, and not to rely on any single financial measure to evaluate Figma’s business. Reconciliations of the most comparable GAAP financial measures to the non-GAAP financial measures presented in this press release are included in the financial tables at the end of this press release. Figma has not reconciled its outlook as to non-GAAP operating income and non-GAAP operating margin to their most directly comparable GAAP measures because certain items that impact non-GAAP operating income and non-GAAP operating margin are out of Figma’s control or cannot be reasonably predicted. Accordingly, reconciliations for forward-looking non-GAAP operating income and non-GAAP operating margin are not available without unreasonable effort. Certain Definitions Figma calculates Annual Recurring Revenue ("ARR") as the annualized value of Figma’s active customer agreements as of the measurement date, assuming any agreement that expires during the next twelve months following the measurement date is renewed on existing terms. A customer agreement is considered active when seats are provisioned to the customer at the start of their subscription. In cases where contracts are signed but not provisioned prior to the measurement date, the customer agreement is counted as active if provisioning takes place no more than 15 days after the measurement date. Figma defines a Paid Customer as a customer account that is billed separately for which Figma has an active paid subscription as of the last day of the applicable period of measurement. A single organization with multiple divisions, segments, subsidiaries, or subscribing teams that are each billed separately are counted as multiple Paid Customers. A customer account is considered active when seats are provisioned to the customer at the start of their subscription. In cases where contracts are signed but not provisioned as of the last date of the applicable period of measurement, the customer account is counted as active if provisioning takes place no more than 15 days after the last day of the applicable period of measurement. Figma defines a Paid Customer with more than $10,000 in ARR as a Paid Customer with a total of $10,000 or more of ARR as of the last day of the applicable period of measurement. Figma defines a Paid Customer with more than $100,000 in ARR as a Paid Customer with $100,000 or more of ARR as of the last day of the applicable period of measurement. Figma calculates Net Dollar Retention Rate as of the applicable period of measurement by starting with the ARR of Paid Customers with more than $10,000 in ARR as of twelve months prior to such date of measurement ("Prior Period ARR"). Figma then calculates the ARR for those same customers as of the applicable period of measurement ("Current Period ARR"). Figma then divides Current Period ARR by Prior Period ARR to calculate Net Dollar Retention Rate for the applicable date of measurement. Figma’s Net Dollar Retention Rate reflects customer expansion, contraction, and customer churn. Figma calculates Net Dollar Retention Rate using ARR from Paid Customers with more than $10,000 in ARR because Figma believes that $10,000 in ARR is an important threshold, as it is a strong indicator of significant paid usage of Figma’s products. Figma calculates Paid Customers with more than $10,000 in ARR consuming AI credits on a weekly basis for a given quarter using the week with the highest number of such users in the quarter. Additional terms are defined in Figma’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, filed or to be filed with the SEC on August 5, 2026. View source version on businesswire.com: https://www.businesswire.com/news/home/20260805158853/en/ Contacts Investor Contact: Kate DeLeoFigma, [email protected] Media Contact: Michael AmodeoFigma, [email protected]

The market expects Chegg (CHGG) to deliver a year-over-year decline in earnings on lower revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on August 6, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This an online learning platform is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of -150%. Revenues are expected to be $49.78 million, down 52.6% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Chegg, the Most Accurate Estimate is the same as the Zacks Consensus Estimate, suggesting that there are no recent analyst views which differ from what have been considered to derive the consensus estimate. This has resulted in an Earnings ESP of 0%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination makes it difficult to conclusively predict that Chegg will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Chegg would post a loss of$0.03 per share when it actually produced earnings of $0.03, delivering a surprise of +200.00%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Chegg doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Internet - Software industry, Figma, Inc. (FIG), is soon expected to post earnings of $0.04 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +200%. Revenues for the quarter are expected to be $350.8 million, up 40.5% from the year-ago quarter. The consensus EPS estimate for Figma, Inc. has been revised 1% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -6.67%. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Figma, Inc. will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Chegg, Inc. (CHGG) : Free Stock Analysis Report Figma, Inc. (FIG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Figma, Inc. (FIG) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 5. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This company is expected to post quarterly earnings of $0.04 per share in its upcoming report, which represents a year-over-year change of +200%. Revenues are expected to be $350.8 million, up 40.5% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 0.97% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Figma, Inc., the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -6.67%. On the other hand, the stock currently carries a Zacks Rank of #2. So, this combination makes it difficult to conclusively predict that Figma, Inc. will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Figma, Inc. would post earnings of $0.06 per share when it actually produced earnings of $0.10, delivering a surprise of +66.67%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Figma, Inc. doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Another stock from the Zacks Internet - Software industry, Arista Networks (ANET), is soon expected to post earnings of $0.89 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +21.9%. Revenues for the quarter are expected to be $2.83 billion, up 28.5% from the year-ago quarter. The consensus EPS estimate for Arista Networks has been revised 0.5% higher over the last 30 days to the current level. However, a higher Most Accurate Estimate has resulted in an Earnings ESP of +3.08%. This Earnings ESP, combined with its Zacks Rank #2 (Buy), suggests that Arista Networks will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Figma, Inc. (FIG) : Free Stock Analysis Report Arista Networks, Inc. (ANET) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research