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Good day, everyone, and welcome to the Figma Q1 2026 Earnings Call. At this time, I would like to hand the call over to Mr. Brendan Mulligan. Please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss Figma's results for the first 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 will make forward-looking statements, including, but not limited to, statements regarding our guidance and future financial performance, market demand for our products, including adoption of Figma Make and other AI features, our product development plans, business strategies and plans, and our ability to attract and retain customers and 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. 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 three months ended March 31st, 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 for or in isolation from, GAAP measures. Our non-GAAP financial 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 our website. I would now like to turn the conference call over to Dylan.

Hello, everyone, and thank you for joining. I'm looking forward to sharing the results of another incredible quarter at Figma. First, though, let me tell you how I'm thinking about the opportunity ahead. Anyone building software today knows that we are living through an extraordinary time, because with AI, what used to take months can now ship in sometimes an afternoon. Code is more plentiful, easier to write, and the distance between an idea and its implementation is collapsing. You've heard me say it many times in the past. When execution is cheap, design and creativity are the edge. Now it's not only me saying it, the entire world sees it too. The bottleneck has shifted away from can we build it and toward can we imagine something that's worth building? More design tools are launching, more people are creating, more software is now being built than ever before.

In this world where bits are abundant, what's scarce is human creativity, actual point of view, care and craft and judgment. This is what makes a product, a company, a campaign cut through the noise. Designers, builders, and creatives, they all need tools that let them explore without limits and express their vision exactly as they imagined it. That is what Figma has always been built for. Our Q1 numbers reflect this momentum. Here are a few highlights. In Q1 2026, revenue grew 46% year-over-year to $333 million, accelerating from 40% last quarter and 38% in Q3. Growth came from across our business: seat expansion, retention, enterprise adoption, new users, and of course, AI through Figma Weave, our broader AI capabilities, and early traction from AI credit monetization, which started on March 18th.

Net dollar retention rate also increased to 139%, our highest rate in over two years. This is up 3 percentage points from last quarter. We also continue to generate strong cash flow. Non-GAAP operating margin was 16% in the quarter. Free cash flow was 27%, and we ended Q1 with $1.6 billion in cash equivalents, and marketable securities. Thank you to the Figma team for your focus and for your execution. I'm also especially proud of how our team is adapting to new ways of working with AI during this time of exponential change. The momentum we've built gives us the confidence to raise our revenue and non-GAAP operating profit guidance for the year. Praveer will share more details on that in just a moment. The story of our quarter, of course, goes far beyond the numbers.

We're seeing our customers go bigger and deeper with Figma. Let me share a few examples. First, Google. Google is a longtime Figma customer. Many of their most iconic products have been designed and built on our platform. As they build the next generation of AI-native products, they're doubling down on Figma. The team designing agentic Gemini experiences for millions of enterprise customers uses Figma end-to-end as their single source of truth from the earliest concept work all the way through to shipping. In their words, they can only "Get to a level of detail that we want in Figma that's not possible with vibe coding." Lufthansa is another example of a customer going deeper with Figma to drive real innovation.

Their Lido navigation product design team used Figma Make to prototype Lido mPilot, an integrated iOS charting app that streamlines flight navigation for commercial pilots. They did it with a level of fidelity that goes well beyond traditional prototypes, though. By connecting Figma Make to their in-house API. The team could prototype dynamic interactive map features. That way pilots could test real gestures before any production code was written. As they put it, pilots could really imagine what we were trying to show them. We validated our concepts before touching implementation. That's the goal of every product team, and we actually did it. Teams aren't just going deeper with Figma. We're seeing broader adoption across the organization as well. Rocket Mortgage, for example, serves one in six American homeowners, unifying multiple brands and technology stacks into a single home ownership platform.

To help scale that vision, the team built their design system directly into Figma Make as a shared template infrastructure for their entire org, accelerating adoption well beyond the design team. As design engineering lead Will Hobick describes it, we're seeing adoption across the organization. Teams across Rocket are now using Figma Make to rapidly build dashboards, craft presentations, and explore new customer experiences, all built on top of our shared design system and brand foundations. Design director Emily Strobl had this to say on why it's resonating. We've all experienced AI tools that just don't quite hit the mark or reflect our brand standards. Embedding our design system into Figma Make has fundamentally changed that. In some cases, expansion goes even further, beyond product development altogether. At NBBJ, one of the world's leading architecture firms, Figma Weave, formerly known as Weavy, is changing how they win business.

NBBJ's architects are subject matter experts in the industries that they design for. Their work is about understanding how a space needs to function, not just how it looks. Pitching a client used to mean commissioning photorealistic renders from an external studio, and that process took days and returned only one or two versions with little room for refinement. Now, architects at NBBJ can just do it themselves. Figma Weave lets them translate their 3D models into precise photorealistic renderings. They're able to generate and refine in real time, pushing until the result meets the exact bar that their work demands, dialing in time of day lighting, grounding a design in actual urban context, and getting the materiality just right. Figures placed at human scale make a ceiling height or entry sequence immediately legible to a client.

The result is a faster pitch, a stronger presentation, and full creative control from start to finish. Adoption of Weave at NBBJ is expected to triple in the next three months. Across these customers and countless others, Figma remains the place where teams with the highest bar come to do their best work. Teams that know that creativity and craft are what will set them apart, they need tools that can match that ambition, tools that let them explore freely and express their vision without limits. That's who Figma is built for. Our platform is where creativity lives and compounds, where teams can move quickly on their first idea and push further, questioning, refining, iterating with the best of AI, code, and direct manipulation until the work is unmistakably theirs. We see this in how our customers actually work.

As of Q1, around 60% of our largest customers used Figma Make on a weekly basis, and over 80% of Make users on full seats continued using Figma Design for visual editing and broader exploration alongside Make. We love seeing how the ambition of our users and our community is always growing, and we are moving faster than ever to meet it. In the last few months, we shipped major updates to Figma Make that let users bring their own context into every prompt and give them more control over every decision as they build. We introduced new MCP capabilities that let agents read and write directly to Figma files so that teams can stay in control. In Q1, MCP weekly active users in design grew 5x quarter-over-quarter.

We shipped updates to Figma Weave, including a timeline editor for refining AI generated video. Figma Make has driven the most AI usage so far, but MCP, Figma Weave, and our AI assistant, which is currently in alpha, are meaningfully expanding the surface for AI consumption in Figma. All this builds on what has made Figma the choice for the world's best teams building the world's best software. First, a performant enterprise-grade multiplayer canvas and platform where humans and agents can work side by side with no silos, no handoffs, just the best ideas rising to the top. Second, deep product context that makes AI actually useful. The institutional taste, the historical decisions, the accumulated understanding of how your product should work and feel.

Third, full creative control, the ability to prompt code and manipulate visually all in one place, unlocking the full power of AI without giving up intent or the full range of what you can imagine. In a world of abundant software, all this together is what it takes to build products that stand out. The companies that figure out how to harness human creativity alongside AI, those companies will define what the next era of software and creativity looks like. Having spent over a decade building for the most creative community on the Internet, this is our moment. I cannot wait for you all to see what we're shipping over the next weeks and months, including at Config, our annual user conference in June. With that, I'll pass it to Praveer.

Thanks, Dylan. Dylan shared some of the headlines and why we believe Figma is outperforming. I'll share a bit more detail on what we're seeing and our outlook for the rest of the year. AI continues to be an incredible tailwind for our business. Total revenue in the first quarter was $333 million, representing 46% year-over-year growth and exceeding the high end of our guidance. This marks our second consecutive quarter of acceleration in our year-over-year revenue growth. Our outperformance resulted from stronger than expected seat expansion across entire organizations, driven by design's growing importance and adoption of our AI products, including Figma Make, MCP, and Figma Weave. Our international business also contributed to our results, with revenue growing 48% year-over-year. We also saw increased demand for our Governance+ add-on and advisory services.

Our Q1 results are a testament to the team's relentless work building, shipping, iterating, and listening to feedback from our customers. Retention and expansion metrics continued to strengthen in Q1. Our net dollar retention rate for paid customers spending more than $10,000 in ARR reached 139%, up 3 percentage points from the prior quarter and our highest level in over two years. Our outperformance in NDR was driven by strength in seat expansion and growth in our non-seat-based offerings, including AI add-ons. We also saw acceleration in our customer cohorts. Paid customer spending more than $10,000 in ARR grew 37% year-over-year in Q1, a 5 percentage point acceleration relative to Q4 last year.

Paid customer spending more than $100,000 in ARR grew 48% year-over-year in Q1, a 2 percentage point acceleration relative to Q4 of last year. Our overall customer base grew to approximately 690,000 paid customers from approximately 450,000 in Q1 of last year, growing 54% year-over-year. As AI gets better, Figma is accelerating, and customer usage and workflows on our platform are deepening. Our platform and AI products drove faster growth for both new customer acquisition and expansion within existing accounts. Across all tiers, we're seeing customers grow seats and expand into new functions and teams. Within our larger enterprise customers, approximately 60% of customers with more than $100,000 in ARR were using Make weekly in Q1, up from over 50% just last quarter.

In the long tail, we're also seeing continued acceleration in adoption of our AI features with new Pro team conversions, which we view as a leading indicator for future growth, up over 150% compared to Q1 of last year, demonstrating our ability to both expand TAM and convert existing users to paid plans. A few of our notable customer wins from the last quarter include one of the world's largest hyperscalers running thousands of product and engineering teams across dozens of business units unified its fragmented Figma usage across the enterprise into a single agreement with over 35,000 paid seats, one of the largest deals in Figma's history. A top global media and entertainment company that started with organic Make usage ended up with a full company-wide rollout. As teams adopted Make, every developer upgraded to a full seat.

That growth happened organically, driven by how the product is actually being used, not by a top-down mandate. We also saw some incredible wins in Q1 internationally. In India, one of the country's largest IT services firms signed our largest ever deal in the region, consolidating design and engineering teams onto Figma. In Europe, one of the world's largest industrial automation companies with over half of its R&D workforce focused on digital development more than doubled their dev seats on platform. Engineers at the company now outnumber designers on Figma. The team is now leaning into Figma's MCP to connect design directly into their development environment. The themes across our customers are clear. They're deepening their usage of our products, expanding their seats with Figma, and finding even more value in their user experiences with AI products.

In Q1, over 60% of paid customers with more than $10,000 in ARR added full seats compared to their prior renewal, consistent with what we observed last year and at equivalent expansion rates. I want to take a minute to highlight the strong early signal we are seeing on AI credit monetization. We are at an exciting inflection point. On March 18th, we began implementing AI credit limits for all of our seats and have been very encouraged by the usage trends we’ve seen since then. As of the end of April, over 75% of users on our org and enterprise plans who were previously over their credit limit continued to use credits, and over 95% of those same users remain active on the platform. Early enterprise customers who have committed are doing so at scale.

For example, one of the world's largest enterprise technology companies in the middle of a company-wide push to become an AI-native organization after standardizing on Make, they are now purchasing additional credits to expand AI capabilities across product, engineering, and PM teams spanning seven business units. One of the world's largest professional services firms expanded their Figma investment after a company-wide Figma AI training drove a step change in adoption and embedded AI capabilities at the center of how they design, prototype, and deliver client work across every major industry. Additionally, as of the end of Q1, pro teams that purchase AI credit add-ons had more seats per team and an average annualized spend of over 3x than that of teams that haven't purchased add-ons. Importantly, the service area for credit consumption continues to expand.

While today's credit usage is driven by products like Figma Make and our advanced image editing features, new capabilities currently in our early access program, like our AI assistant, which enables new AI native creative workflows directly in the Figma design canvas, are expected to begin drawing on credits in the near future as well. Our MCP enables developers and AI agents to build and interact with Figma directly within their workflows. We are seeing more teams convert to paid plans and upgrade seat types to access higher rate limits for our MCP. Among customers with more than $100,000 in ARR, those that were using our MCP grew full seats approximately 70% faster over the quarter than customers who were not using our MCP server. We expect this to evolve into a usage-based offering, but is currently available for free during the beta period.

Q2 will be our first full quarter of credit monetization. We have been investing in more features to improve the customer experience, including expanded admin controls, pay-as-you-go for pro customers, and more flexible contracting structures for enterprises. Our goal remains the same, for our monetization model to support adoption rather than constrain it. Lots more to come here in the quarters ahead. Now, turning to some key income statement results. Unless otherwise noted, all metrics are non-GAAP. We've provided a reconciliation of GAAP to non-GAAP financials in our earnings release, which is posted to our website. Gross profit in Q1 was $275 million, representing a gross margin of 82%. During the quarter, we saw broader and deeper adoption of our AI features with our users benefiting from access to higher capability models, which in turn increased engagement and improved retention.

With full seat AI credit limits now live, growing AI usage and adoption now translates into revenue, a key monetization milestone. We expect to continue to capture efficiency gains where available and have a clear set of levers to manage inference costs as adoption scales. This includes routing queries across models based on task complexity and leveraging our model-agnostic architecture to optimize across providers. We are also investing in first-party models trained on Figma's design corpus to improve performance on design-specific tasks while reducing cost. As we've re-accelerated our business, we've also delivered $52 million in operating income, representing an operating margin of 16%. Across the business, we've taken a first principles approach to rebuilding how we work across engineering, go-to-market, and operations with AI tooling at the center. It's been energizing to see the creativity of our team and tangible wins in productivity across the board.

We continue to evaluate our hiring needs to make sure we're operating efficiently. We believe the future calls for flatter organizational structures and more smaller, high agency teams that can move even faster, which gives us more capacity to invest and retool how we work. Our Q1 free cash flow was $89 million, representing a free cash flow margin of 27%. We ended the quarter with $1.6 billion in cash equivalents, and marketable securities. As we previewed, we introduced an annual corporate bonus program in 2025, which was accrued for during 2025 and paid out for the first time in Q1 this year. This was a $56 million cash outflow and had a 17 percentage point impact on our Q1 free cash flow margin.

Going forward, we expect to continue to accrue for the annual bonus each quarter and pay out in Q1 of each year. We remain confident in the long-term cash generating profile of the business. We also remain committed to managing dilution responsibly. As our pre-IPO equity grants amortize, we expect that strong revenue growth, disciplined hiring, and expanding operating leverage from AI will continue to drive improvement in stock-based compensation as a % of revenue. Now, turning to our outlook, a reminder on our guidance philosophy. We're providing a snapshot of our current view of the business based on recent trends. We include what we have a high degree of confidence in and where our visibility is more limited, we look to observe sustained trends in the data before we fully incorporate the benefit in our guidance.

For the second quarter of 2026, we expect revenue in the range of $348 million-$350 million, implying 40% year-over-year growth at the midpoint. For the full year, we expect revenue in the range of $1.422 billion-$1.428 billion, implying 35% growth at the midpoint and a raise of $55 billion relative to our prior outlook. Our raise for the full year is driven by three things. First, increased paid conversion across our customer base, fueled by the depth and breadth of AI across our platform. Second, sustained broad-based seat expansion across every tier with teams and organizations opting for more dev and full seats to access our AI products and credits. Third, outperformance versus our expectations across credit utilization, retention, and add-on purchases since implementing credit limits.

On operating income for the full year, we expect non-GAAP operating income in the range of $125 million-$135 million, representing a non-GAAP operating margin of 9% at the midpoint. This represents a raise of $25 million relative to our prior outlook. Our increase in operating income is driven by our revenue increase for the full year, operational efficiencies, and continued optimizations we have made in our AI implementations. While we are not issuing quarterly operating income guidance, we would note that Q2 operating income and free cash flow are historically impacted by Config, our annual user conference. We anticipate a similar effect in 2026.

In closing, Q1 was an exceptional quarter across multiple dimensions. Year-over-year revenue growth has now accelerated for two consecutive quarters. Net dollar retention rate reached its highest level in over two years, and the early signs from AI credit monetization give us tremendous confidence in the road ahead. As Dylan shared, design has never mattered more, and Figma is built for this moment. With that, I'll hand it over to the operator for Q&A.

Thank you. Everyone, if you would like to ask a question today, please press star one on your telephone keypad. We do ask that you limit your questions to one. We will take the first question from Michael Turrin, Wells Fargo.

Hey, this is Richard Poland for Michael Turrin. Thanks for taking the question here. First one for me is just with respect to the AI credit monetization. I know it's been, you know, only two weeks in the quarter and, you know, I think somewhere around six to eight weeks since that officially went through. How should we think about that starting to ramp and show up in the model into the, you know, Q2 and second half?

Yeah, I appreciate the question here. You know, I think as where we stand, we're ahead of our expectations, and it's giving us confidence in the raise in our ability to raise our guide for the full year. You know, we felt the momentum across big and small. Our paid customer base grew 54% year-over-year with the long tail of pro teams there. Pro team conversions rather up over 150% in Q1 compared to the same quarter last year. In Q1, we're now up to approximately 60% of our customers, over $100,000 in ARR using Make weekly.

Actually, we're seeing over 75% of our org and enterprise users who were previously over the limit prior to credit enforcement continue to consume credits in April. You know, as we sit here at the end of Q1, teams that are purchasing AI credit add-ons on Pro have an average ARR of over 3x more than teams that had not purchased add-ons. The part I'm candidly most excited about is all the amazing work that our team has still coming, which will increase the surface area for teams and organizations to experience the magic of our AI features.

When you, when you know, when you think about the rest of the year for us, we very much believe that we've got a tailwind here from our credit monetization. You know, it's both gonna be through the consumption that teams are actually seeing while also helping us drive continued seat upgrades for users and teams in the months ahead.

I'll also add that we're excited about the different surfaces that you'll see AI consumed on. For example, Figma Weave is something that we're very excited about, and we really believe in the paradigm of database editing and the ways that you can create workflows where agents and models are working on the same canvas, and you can move between the outputs of the various surfaces.

Your next question is Arjun Bhatia from William Blair.

Yes. Perfect. Thank you so much, and congrats on a great start to the year. Dylan, maybe I'm curious for you. It's been almost a year now, or maybe we're a few months away since Make has been in GA. I'm wondering what sort of change or evolution you've seen in the way customers and users are using Make. It sounds like in your prepared remarks, you mentioned some enhancements that you had made around context and MCP. I'd be curious how those new capabilities are resonating with customers and maybe enhancing the value of that solution. Thank you.

Absolutely. Thank you for the question. I think it's definitely the case that we'll continue to see, just like we've seen in the last year, paradigms evolve and expectations of our users evolve. Like we said in the prepared remarks, our users are incredibly ambitious, and we always intend to meet their ambition to make it so they can take full advantage of the Figma platform to create what's in their head. When it comes to Make, we've been really impressed by the way that our users have stretched the platform to create everything from tools, to prototypes, to beautiful website designs, to actual shipped software. Some of them have just really done an incredible job of leveraging the platform to its fullest capabilities.

At the same time, we believe there's so much more that we can bring to Make. As we do the look back, some of the early technical decisions that we made did constrain us in ways that are obvious in hindsight, but were not obvious then. We've corrected those. If you haven't tried Make recently, please try it again. It is already so much better, and in the weeks and months to come, I think you'll be amazed by the progress, and so please check it out.

Up next is Keith Weiss from Morgan Stanley.

Excellent. Thank you guys for taking the question, and congratulations on a really awesome start to the year, both in terms of what we're seeing the customer base growth as well as your ability to monetize against that. Dylan, kind of digging into that sort of exponential change that you're talking about and the improvements that you're seeing in Figma Make, I think a question a lot of us have is how these pricing models and the value proposition is gonna evolve as we understand how customers are utilizing the tooling, whether it be Figma Make or an MCP or whatnot. Any initial kind of learnings that you could talk to us about in terms of how well the pricing model today is capturing that value proposition and how it might evolve going forward?

For Praveer, we saw some degradation in gross margins as AI ticked up. You talked about monetization starting to kick in again, some of that usage. Is there any kind of guardrails you could give us on where gross margins may be going forward? Do you have any indication of what type of gross margin business this like AI activity is and anything that could help us understand sort of the lower limits or whatnot of where those gross margins may come as AI becomes a bigger and bigger component of what you guys are serving your customers?

Thank you for the question. I would say that, first of all, I firmly believe, as I've talked with customers, that the value prop, and how it relates to pricing, what matters most is that we are providing the most value that we can to our customers, and we're solving their problems. In this era at least of where we're at with AI and pricing, that is what customers are looking for first and foremost. How it evolves going forward, I think, we might see change where people become more discriminating on how much they're spending on tokens. In fact, I think we're already seeing that with some of our customers.

You know, if the first chapter was, "Oh gosh, we all have to use AI," the second chapter was, "Okay, leaderboards for token usage," well, the third chapter seems to be, "Let's put some limits on this because this is real spend." Some of the things we're doing around MCP, for example, and Code Connect actually do translate to more efficiency for our customers. Of course, we'll try to make sure that as we think about Make and other aspects of our platform, that we're striking the right balance on efficiencies that our customers can use our product more. I'll pass to Praveer to answer the rest of the question.

Yeah. I appreciate the question, Keith. I think the spirit and sentiment that we get from customers that is that they are looking, you know, they're looking for it to have more control. They wanna have the ability to have governance on who gets access to what set of credits across which teams, which we've moved fast to address. You know, we've expanded admin controls. We've been exploring pay-as-you-go models for our pro customers and more flexible contracting structures generally for enterprises. To the broader question, I think, you know, we're seeing really encouraging signals and signs and early results on our AI monetization. We've got, you know, a number of early champions that are looking to continue to invest and work with us here.

To the spirit of your question on gross margin, I think, you know, in large part, it's hard to predict with precision where things will ultimately land. We've been completely focused around optimizing gross profit dollars. With full seat AI credit limits now live, you know, any growing AI usage and adoption now translates into revenue, a much more natural offset to the growing use and customer value we're providing. You know, in Q4, we previously demonstrated an ability to drive efficiency, while also continuing to drive adoption and use, and our expectation is that, you know, we'll continue to have levers to pull in the future.

That includes things like routing queries across models based on task complexity, leveraging our model-agnostic architecture to optimize across providers, and investing in first-party models, trained on Figma's design corpus to improve performance on design-specific tasks while reducing costs. The core focus for us right now, drive growth, ubiquity of our solutions, and we have every intention to ship and ship extremely quickly.

Gabriela Borges from Goldman Sachs has the next question.

Hi. Good afternoon. Thank you. Dylan, I really appreciated your case study in the prepared remarks on Google's usage. I'd love for you to talk a little bit about some of these new tools that are coming out from the LLM providers like Google Stitch and Claude Design. I'm curious how you think about the impact those tools will have on the industry, and it sounds like there may be some underappreciated synergies between how Figma could potentially work with those tools as part of a bigger design cycle. Would love to hear a thought broadly on that. Thank you.

Absolutely, and thank you for the question. Well, I mean, first off, I just think that this is such an extraordinary time to build. As code becomes more commoditized and easier to write, design is clearly the layer above code, and visual thinkers outnumber those who are comfortable in a terminal or an IDE. We expect this space to continue to heat up, and to be the battleground for how software gets built. We also expect that tools around visual communication and creative design, for purposes of marketing and advertising are going to be essential for breaking through the noise in a very crowded information environment online.

I think that's why we're going to see more and more tools come out. To your point, many of them will be tools that we can integrate with and will actually be complementary and something that we can work with in our ecosystem. Others will be, you know, more direct competitors. We, I think, try to understand that context by direct communication and conversation whenever possible and by having close relationships with our partners.

I think that overall we have to focus on what we know best, which is, you know, for 14 years now almost, we've been deeply in the details of designers, designer workflows, and we have a team that is just absolutely incredible, that just cares so much about craft, about quality, and about designing products with a strong point of view. We're shipping faster than ever right now. As I said in my remarks, I think that's what it's going to take to win in this era, along with that partnership and making sure that we're working with our ecosystem.

Your next question is from Alex Zukin from Wolfe Research.

Yeah. Hey, guys. Thanks for taking my question. I guess maybe first, this is your largest beat, being public. Appreciate that, you know, you guys have some really stellar new customer additions and a couple of really inspired key metrics. Maybe like what surprised you the most in the quarter that drove the outsized beat? Praveer, maybe just Again, the quality of the beat is so high, I think it would be really helpful if you could help maybe set some guardrails around the low end of where, you know, how should we think about gross margins, particularly exiting the year. Like, is this something that, you know, stays above 80 because of all the commentary, and, you know, technical innovations that you guys are doing or do we pierce that 80 level at some point?

Yeah. Maybe I'll take the spirit of the, you know, the last part of your question there on gross margin. Like I was sharing with Keith, you know, our focus right now is to drive gross profit dollars and really focus on growth. You know, that is the key metric for us versus thinking that there's a, you know, there's a specific floor that we won't pierce through. We wanna make sure that we're driving ubiquity of our solutions. We're investing and investing deeply and we feel like we have the best product and, you know, and team behind, team that's working behind it in order for us to win.

I think in the spirit of your first question, you know, the, the beat and, you know, the core makeup of the quarter for us, came from, you know, all different directions. Our product portfolio today looks extremely different than a year ago. With each new surface and feature that we've introduced, we've made it that much more compelling to hold a paid seat. You know, it's a consistent trend we've seen with users upgrading to full seats for access to higher rate limits on our MCP or access to products like Make.

When you put that all together, all the components that, you know, helped us orchestrate a strength in our net dollar retention rate, you know, TAM expansion, seat expansion, product expansion, tier expansion, as well as pricing, we're all kind of kicking into high gear there. You know, you called it out there on Q1. You know, we saw paid customer count growth overall up 54% year-over-year. 10K+ customer cohort growth continued to signal strength and showcasing that they're continuing to add full seats across their teams at renewals. Our international business is humming. We're deepening our investments in stuff like our Governance+ add-on, as well as advisory services.

It's early, but you know, we're obviously seeing strong signal in AI monetization start to kick in. You know, as our pricing tailwind start, our pricing tailwinds from last year start to wane, we really get the benefit of some of these newer levers, and I'm excited about what the team's got cooking because, you know, I think it gives us confidence in the rest of the year here.

I'll just add on to the first part of the question around that floor. I will plus one what Praveer said, and also just stress that we always are working to be extremely rigorous about our short-term and long-term thinking. I think there are many aspects around delivering and playing for the big prizes when it comes to these new markets around AI, where short-term thinking might create spend, but it's only, you only engage in that if you believe in the long-term TAM and profile of the business that you're entering. We will continue to, like, apply that thinking and framework to the decisions we make and be very selective about the opportunities we go after.

The next question is Billy Fitzsimmons from Piper Sandler.

Hey, guys. Thanks for taking my question. Dylan, maybe for you, I wanted to expand on one of your earlier questions on kind of the evolving competitive landscape. I guess since last quarter, one of the cloud hyperscalers announced a seemingly similar product to Make at the end of the first quarter, and then one of the frontier labs subsequently announced a design tool. It feels like there's both co-opetition with those vendors. Given kind of competition and how rapidly things are moving come up in investor conversations, first, Dylan, I know you just reported really strong growth, and there are a few application software companies in that ballpark, but just help investors think about Figma's differentiation in kind of this rapidly changing landscape. I know you've talked about that before.

Second, anything from a numbers perspective in the second quarter, either from top of funnel, new logo usage standpoint, that investors should be aware of that suggests a change in competition? It really doesn't seem like it based on the strong guide for 40% growth, but anything worth calling out. Thank you.

Thanks for the question. Obviously, this is a call about the first quarter, not the second quarter. We'll stick to first quarter. In terms of the competition or perceived competition, again, I think you have to look at each player individually. You know, to speak directly, very, very thankful for our partnership with Google. We are big fans of the Gemini series of models. We think that they're doing a lot of really interesting work. There's a lot of opportunity to collaborate. A Labs product, you know, is not something that we're seeing as getting in the way of that, nor do we see the effect, as far as I can tell, in a substantial way.

I think when it comes to Anthropic, you know, obviously we can't dismiss them, and I said that earlier, I'll say it again. They have the ability to train first-party models and couple those with their own products, if they choose to. We have to pay attention to that. They're doing a lot of things, and we'll see what remains their focus. In terms of differentiators, I think there are many. A few that I'll mention today. Performant multiplayer canvas, I think is something that people underestimate how hard it is to get those mechanics right and to really execute with quality on. This is something that has been a deep area of expertise for us for years, and I think there's a misconception that it only pertains to design.

It pertains to many representations, including design, but also can pertain to code in the future. Deep product context, I think, is another main differentiator that we have, in terms of the context we can build from workflows, but also the context that our team has on serving our users. Finally, this ability to bring the best of AI in design and code and freeform direct manipulation together all in one place, in one platform, that is what I think will ultimately create flow for people doing design work and serving their users. I believe it'll be our ultimate differentiator is the ability to go between these modalities rapidly.

Yeah. Just to be explicitly clear there, we're confident in our guide for Q2. You know, the numbers that we reported this quarter and the strength that we've shown in NDR in Make usage for our, you know, our largest customers growing from 50% as of the end of Q4 up to 60% as of the end of Q1. You know, pro team conversion's up 150% year-over-year over the course of the quarter. You know, the bottom line is customers are going bigger, they're going broader with Figma than ever before. You heard about Google, Lufthansa, Rocket Mortgage, and countless others. We're moving fast. We have every, you know, history here of showing that we can meet the moment, and we're gonna continue to out-execute there.

Next up from Stifel is Parker Lane.

Hey, guys. Thanks for taking the question here. If you look at the last few months since the enforcement of the credit limits here, I was wondering if you could talk about the split of those customers who have exceeded their limits buying more credits versus upgrading into full seats. As you look out to 2026 and these tools continue to improve, do you expect that split to be roughly similar, or do you think there's gonna be more of a likelihood that people, you know, choose one path or the other here?

You know, I think customers are gonna get both, right? It's a little bit too early to comment on the long-term mix, but we expect consumption to be an upside driver for the year. You know, our goal remains the same over here, for our monetization model, to support adoption rather than constrain it. You know, as we reinvest in the business, there's an opportunity for us to encourage use of our new products and features as we roll them out, and we get excited about the opportunity for our customers, for our users to experience all the magic of the products and features that we've got coming. You know, we've got an opportunity to both go deep with organizations as well as broad.

As we go deep, we'll drive more consumption, cross-platform use, purchases of add-ons like our Governance+ and advisory services, and going broad, we'll license more of the team. You know, as they go broad in that way, they'll be able to unlock more features and use and potentially drive more consumption as well. You know, we've got early signal right now, but we've been very excited by the usage trends we've been seeing since implementing credit limits on March 18th there. You know, I just remind you that, you know, as of the end of April, the majority of, or rather 75% of the enterprise users who were previously over their credit limits, they continue to consume credits.

They continue to consume credits over the month of April. When you think about it, you know, the right model here is the one that meets the needs for our customers. Today we believe that it's, you know, we're gonna consistently see a mix of the two models, both seats as well as AI consumption.

In terms of the product aspect of your question around, you know, when does a user choose inference versus when do they choose doing direct editing, this is something that I believe we really need to bring together and make it so it's a flexible approach where customers can choose the right thing at the right time, the right tool at the right time. The more we can do that, the more customers can save on inference should they need to, and also they can get the benefits of AI when that is applicable.

There are some workflows in Figma Design that are 10x or 100x faster than AI. There are some workflows with AI that are way faster than if you're going to do it manually, and really try to do, like, some bulk editing task. As we move to a world where Assistant expands in the alpha and ultimately comes out of alpha, more of our customers will be able to get those benefits in Figma as well.

Nick Altmann from BTIG has the next question.

Hey, awesome. Thank you so much. I kinda had a higher level question, but this notion of, you know, code to canvas or canvas to code, it creates a bi-directional or maybe a round trip workflow. Dylan, can you just talk about, you know, what you're hearing or what you're seeing from customers in regards to this workflow change? Then the follow-up is, you know, you've talked about how design being the differentiator gets accentuated in this new era. If we look out over the next couple years, like how much do you think your customers will adopt more of a code to canvas workflow approach? Does that potentially foster, you know, more users to adopt full seats rather than dev seats or collab seats? Thanks.

Absolutely. Thank you for the question. I would say that first of all, just to frame up where I see us in the timeline right now, we're in the early innings still of the product interfaces around models and inference. I don't think that anyone would tell you that an IDE or a terminal is where, you know, people are going to gravitate towards long term if given the choice. It is instead, I think, the way that they can access these workflows today. As that abstraction barrier goes up and they can instead access AI workflows, model capabilities through richer interfaces that are more accustomed to the task that they're trying to complete, I believe very strongly customer workflows will shift in that direction. That said, it's where we're at today.

Whether you're building an IDE or building in a terminal or you're building in Figma, or you're doing both and going back and forth, it's really important to help our customers connect those dots and make sure that they're efficient with their token spend, but also the time that they spend translating between these surfaces. That's why we do that. We've been glad to see the usage of Use Figma on the right side from models to and code to the canvas.

On the MCP side, you heard it earlier, that's growing tremendously and people are getting real value out of that in terms of implementing designs and doing that in a much faster way. There's still so much more we can do there. We're excited by the round trip, and it has applications on our platform too, even within the walls of Figma.

Everyone, at this time there are no further questions. I'll hand back to our speakers for any additional or closing remarks.

Thank you all for joining. You know, we're exceptionally proud of the quarter, and we look forward to speaking to you guys soon.

I'll also just finish off by thanking the team. Our team has been doing an incredible job executing with such strength and working extremely hard to meet the moment. We have so much gratitude for everything they're doing. I'm excited for all of you to see some of the stuff that we're working on in the weeks and months ahead. Tune into Config, our annual user conference in June. Excited for you to see what we're shipping there and also to hear your feedback. Thank you.

Once again, everyone, that does conclude today's conference. We would like to thank you all for your participation. You may now disconnect.

Well, good day, everyone, and welcome to the Figma Q4 2025 Earnings Call. Today's call is being recorded. [Operator Instructions] I would now like to turn the conference over to Mr. Brendan Mulligan. Please go ahead.

Good afternoon and thank you for joining us on today's conference call to discuss Figma's results for the fourth quarter of and full year 2025. 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 annual report on Form 10-K for the year ended December 31, 2025. 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 [Audio Gap] for 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 our website. I would now like to turn the conference call over to Dylan.

Hi everyone and thank you for joining today's call. 2025 was a massive year for Figma, and the fourth quarter was our best quarter yet. I'll share a few highlights. We delivered $304 million in revenue last quarter. This represents an accelerated year-over-year growth rate for the quarter, of 40%. Our net dollar retention rate for customers with more than $10,000 in ARR also grew 5 percentage points quarter-over-quarter to 136%. And we generated cash, with a non-GAAP operating margin of 14%, and an adjusted free cash flow margin of 13%, ending the year with $1.7 billion of cash, cash equivalents and marketable securities. Our growth and momentum show that our strategy is working. As AI gets better, Figma gets better and we're shipping faster than ever. In 2025, we expanded from 4 to 8 products and launched over 200 features, including new AI-native functionality. This momentum reflects amazing execution by our team. Thank you, Figmates. We've carried that same pace and product velocity into 2026. In fact, we're accelerating. Just yesterday, we launched the ability to bring work from Claude Code directly into Figma. Let me show you how it works. Let's say I'm a developer building an app that looks like this. Many developers using AI start in Claude Code. The terminal is familiar, fast, and powerful. So now I've brought this to a decent place. But if I want it to truly stand out, it needs to be excellent. I need to think about the ways to make it awesome. And that's where things get interesting. Part of me wants to keep polishing, tweaking spacing, adjusting colors, refining every last detail. And you can see, I've been painstakingly prompting AI, trying to nudge it toward perfection. But what I really need to do is step back and explore different possibilities. I need to see the big picture, to bring in the smartest people on my team and push toward bolder ideas. That's what design is about. Design is about giving people the freedom to explore. It's about asking what if? It's about seeing the bigger picture and pursuing the best possible solution. And it's hard to do that when you're exploring one idea at a time, in a linear fashion, with one screen, one prompt, alone in a terminal. So, we're changing that. We're making design accessible even from Claude Code. And I can do that by simply typing send this app to Figma. And when I open Figma, you can see the screen right there. These are fully editable design layers. I can adjust spacing, color, layout directly, which is much faster than all that prompting that I was doing earlier. So, now let's go back to the app. I can capture any part of it and send it to Figma. Maybe I want to go to this specific state, so I can iterate on it more. Or perhaps I just want this card, because I'd like to explore how to make it better. In seconds, I can extract the key parts of the experience and send them to a shared canvas in Figma Design where my team and I can explore freely. And you can already see my teammates jumping in. Greg is exploring a completely different look and feel, it's bold, and unexpected. Anna is mapping the user journeys and identifying gaps in the experience. Now we're not polishing one idea, we're exploring many, together. I can build on their ideas using direct manipulation or even prompt AI for variations. What you're seeing is the power of design in this infinite canvas, the ability to bring everyone together on my team to explore and riff on divergent directions, to refine ideas with the precision and speed of direct manipulation; now I can just use my hands to make edits, and I have the ability to zoom out and have the birds' eye view of what's going on, and compare things side by side. And once we've explored, we've aligned, we've landed on the best solution, we can simply go back to Claude Code and use our MCP server to bring those designs directly back into code. Claude Code to Figma is one example of how we're making it easier for teams to go from code to the Figma canvas, with a lot more to come. And of course, this builds on our existing Dev Mode MCP, which allows users to go from canvas to code. We're excited about what we can do with additional partners via MCP to create a better roundtrip between design and production, wherever you start. And for many of our users, that work starts in Figma Make, either as a rough idea, a detailed PRD or an existing Figma design. And in Q4, usage of Figma Make surged. Weekly active users of Figma Make grew over 70% quarter-over-quarter. And, as of Q4, over 50% of paid customers spending more than $100,000 in ARR were building in Figma Make on a weekly basis. Figma Make has also unlocked new audiences and new use cases. In fact, of all Figma Make files created in 2025, nearly 60% were created by non-designers. We're talking developers, PMs, marketers and others inside the company, broadly. Let me share two stories from our customers that show how teams are adopting Figma Make. For the design and product teams at Cisco, deciding what to build and how to build it is a constant challenge. To move faster, they align by making, moving between Figma Design and Figma Make. Designers and PMs often work in the same Make file, passing ideas back and forth. PMs laying forth broad strokes, designers refining them in real time. That speed is grounded in a strong design system foundation in Figma, where teams work from a shared set of standards. Make templates kick off projects and can be adjusted to suit all types of purposes, increasing throughput across everything the team builds, from interactive research readouts to early-stage product explorations, and even custom internal tools. Building on that foundation, a newly formed agentic design ops function uses Make to explore AI-native workflows often starting from static design files and turning them into interactive simulations. With Dev Mode now available through the Cisco App Store, many engineers who previously had view-only access have now adopted Dev Mode, improving speed and efficiency by working directly inside Figma. Together, these workflows form a continuous system in Figma bringing design craft, engineering, and automation into one connected flow. We've found that for many teams using Figma Make, speed becomes a compounding advantage. At Flexport, teams use Figma Make to solve company problems faster. Every year, they bring the top 150 leaders at the company together. This year, they added a hackathon with this challenge stop coming up with reasons to choose Flexport. Instead, you have 24 hours to solve one of the reasons why buyers don't choose Flexport. The competition run like a March Madness bracket had basically every team pitching their solution to one of those problems using Figma Make, showing working apps within a day. One of the winners completely re-did onboarding of factories to the platform, solving a longtime challenge. That idea is shipping to customers within the next few weeks. Another winning team used AI to process transcripts of customer conversations and then fed this data into Figma Make to automatically create custom diagrams. These diagrams made it incredibly easy for sales to contrast the before Flexport and after Flexport worlds for the customer's supply chain. Figma Make is the preferred tool for not only the design team at Flexport, but also for an even bigger transformation that's underway, moving from a document culture to a rapid prototyping culture that solves problems faster. As the Flexport CEO told us the teams that do that with me are the teams that are doing really well. We're especially excited to see how Figma Make is driving meaningful cross-platform adoption. In Q4, over 80% of Figma Make's weekly active users on full seats also used Figma Design. To us, that means we need to go beyond features we've already launched. For example, the ability to copy UI generated in Figma Make as layers into Figma Design or, more recently, the ability to embed Make files as prototypes on the Figma Design canvas. These are great, but we have an opportunity to drive toward more integrated capabilities that bring these surfaces even closer together. But going from code to canvas is only one part of the story. We're also focused on completing the loop and helping teams go from design to production as well. When this happens, we want work started in Figma to flow easily into the tools developers use every day. With the Dev Mode MCP, which we launched last year, teams can pull design and codebase context built in Figma into their preferred agentic coding tools. Customers like GitHub have told us that Dev Mode MCP is a gamechanger. GitHub uses Figma to evolve and ship Primer, their design system, where even small updates can affect more than 7,400 design tokens and tens of thousands of lines of code. And at that scale, tight coordination between design engineering is essential. GitHub uses Figma's MCP server and Code Connect to surface real production design system code directly in Figma. Each component is linked to its canonical implementation, keeping design and engineering aligned. Changes can be validated early, before they cascade across thousands of tokens and components. Code Connect enables GitHub Copilot agents to generate against authoritative components improving accuracy and consistency from the start. What once required hours of back and forth during handoff can now move forward in just minutes. Beyond using Figma internally, GitHub is also partnering with Figma at the platform level. As a key partner in the GitHub MCP Registry, Figma makes its MCP server discoverable and ready to power AI-assisted workflows for developers using the GitHub product. While velocity is critical, the best product teams are not defined by speed alone. You can go really fast and still get to the wrong place. These teams are also defined by their craft. And in a world where software is growing exponentially, design, craft and point of view are what makes the best products stand apart. But delivering high-craft creative work often means stitching together multiple tools, each optimized for a particular task. We're working to bring more of these advanced capabilities directly into Figma, so teams can spend less time wrangling all these different tools and more time designing incredible products and staying in flow state. One way we've done this is through our AI Image editing capabilities, which we significantly enhanced with a new set of updates in December of 2025. In just a matter of weeks, these AI image editing capabilities were used more than 10 million times. More recently, we launched new vector functionality in Figma Draw, Vectorize uses AI to transform simple images, like a hand-drawn sketch, into dynamic vector illustrations that you can then tweak, refine and scale in Figma. As one user put it, this kind of work used to be painful, and now it's a click. It's clear that our users crave more ways to do their creative work in Figma, which brings me to our Q4 acquisition of Weavy, now Figma Weave. Figma Weave's AI image, video, animation and motion generation, alongside precise creative control, expands the creative work possible in Figma. Customers have told us they love how Figma Weave helps them enhance their creative process by bringing craft to everything from intricate compositions to show-stopping stage visuals. One example of this is NVIDIA. For the NVIDIA CES keynote, the team set out to create a high-fidelity group shot of 20 unique robots for the massive 12K keynote screen. For a moment of this incredible scale, they needed a flexible workflow that allowed for rapid iteration without rebuilding the entire scene. The primary challenge was pixel density. Current generative models are limited to 4K or maybe 5K resolution, meaning that in a single pass, each robot would occupy too small an area to capture the fine detail. NVIDIA used Figma Weave to generate low-fidelity 3D models that locked composition and camera angles. Then they created detailed 4K versions of each robot to fit the final frame. A custom AI agent, also built in Figma Weave, enhanced rapid lighting exploration before the full scene was generated, upscaled to 12K, and selectively refined for detail. The end result? A cinematic keynote visual powered by a modular, AI-driven workflow. In the future, we believe far more people will create across the Figma platform beyond the confines of traditional product development. To meet that opportunity, we're pushing the boundaries of not only what you can create in Figma, but who can create in Figma as well. And we are accelerating into that future. AI offers a new creative starting point; it's like clay that you can shape. The first prompt does not need to be the final output. That's where humans come in. And whether that process starts in a terminal, a prompt box, with UI in the Figma Canvas, a hand-drawn sketch, Figma is the place where it all comes together. Design is where all of that connects. With code and canvas; speed and craft; agents and human judgment. We're excited about what this means for our users-and for Figma. We're focused on building the platform that makes this future possible. With that, I'll pass it to Praveer.

Thanks, Dylan. We're proud of how the team closed out the year with another strong quarter, punctuating a record 2025. Our total revenue in the fourth quarter was $304 million, growing 40% year-over-year and exceeding the high end of our guidance. For the full year, revenue was $1.056 billion, up 41% year-over-year, also above the high-end of our guidance. Sequentially, Q4 was our best quarter of net new revenue added and drove an acceleration in year-over-year revenue growth. Our new product launches supported both new customer acquisition and expansion-driving improvements across all of our key business metrics in Q4 compared to Q3. Our retention and expansion metrics outperformed expectations in Q4. Our Net Dollar Retention rate for paid customers spending more than $10,000 in ARR ended the quarter at 136%, an increase of five percentage points quarter-over-quarter and our highest rate over the last ten quarters. Our Gross Retention Rate for paid customers spending more than $10,000 in ARR remained consistent at 97%, reflecting the overall durability of our customer relationships. Q4 demonstrated momentum across each of our customer tiers. We ended the quarter adding 951 net customers spending more than $10,000 in ARR and 143 net customers spending more than $100,000 in ARR, growing that tier by 46% year-over-year, a three-percentage point acceleration, relative to Q3. Breaking down growth across the quarter and full year, a few things stand out. First, we continue to see strong expansion dynamics, as our customers broaden and deepen their use of our platform, driving larger renewals. We now have 67 paid customers spending more than $1 million in ARR, growing 68% year-over-year. Across tiers, customers are growing their seat counts, expanding into new functions and teams, and deepening their usage and engagement. Examples from last quarter include a hyperscaler doubling their footprint, with over a quarter of new licenses going to product managers, a top 10 global bank embedding Figma even deeper in key engineering workflows growing Dev seats by 69%, and a transatlantic airline going all in with Figma on a multiyear commitment to elevate all parts of their operations from booking and check-in experiences, their loyalty platform, and internal tools for crew and airport staff. The pull from our customers is real. Second, we've built deeper relationships at all levels within our customer base, focused on positioning and proving Figma's value as a system of record across design and product development. We are increasingly partnering not just with design champions, but with central IT teams on driving the adoption of Figma's platform as a core part of their enterprise technology stacks enabling more teams across the organization to collaborate in one platform. And we are seeing growing demand across our customer base for our governance plus add-on, as enterprises place greater emphasis on security, compliance, and centralized governance. Third, we continue to invest in our international business. Our international revenue grew 45% year-over-year. While international users represented approximately 85% of monthly active users, they accounted for 54% of revenue in Q4, and we see meaningful runway for continued investment, with the most recent being our launch in India last November. Finally, customers continue to renew into our new pricing and packaging through March of this year, which contributed a mid-single-digit benefit to full-year 2025 revenue growth. Turning to some key income statement results. Unless otherwise 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. Our gross profit for the quarter was $262 million, representing a gross margin of 86%. For the full year, gross profit was $931 million, with a gross margin of 88%. While customer adoption of Make and our AI features continued to ramp with Make weekly active users up over 70% quarter-over-quarter, improvements in infrastructure optimization reduced our cost to serve each user and led to stable gross margins quarter-over-quarter. Our operating income for the quarter was $44 million, representing an operating margin of 14%. And for the full year, operating income was $130 million exceeding the high end of our guidance with an operating margin of 12%. On a year-over-year basis, our operating expenses increased as we invested in our people, infrastructure, and systems, to support the pace of our product development and strategic growth opportunities for our business. This was offset by the outperformance we recognized in our top-line and gross margin, which flowed through to our operating income. Additionally our full year non-GAAP tax rate ended at 14.5%, which we expect to remain consistent throughout 2026. Our Q4 Adjusted Free Cash Flow was $38 million, with an Adjusted Free Cash Flow margin of 13%. We ended the year with $1.7 billion in cash, cash equivalents, and marketable securities on hand. As we previewed last quarter, Adjusted Free Cash Flow declined sequentially in Q4, driven by continued investment in infrastructure and AI, changes in the timing of vendor payments, and a one-time $25 million IP transfer tax payment related to our acquisition of Weavy. These impacts were partially offset by strength in customer collections. We remain confident in the long-term cash-generating profile of the business. Before turning to our outlook, I want to briefly address stock-based compensation and dilution. Stock-based compensation was elevated in 2025, reflecting the recognition of expenses attributable to the IPO, performance-based RSU vesting, the launch of our employee stock purchase program, and equity issued in connection with acquisitions. These impacts were largely one-time and not reflective of our steady-state compensation framework. Looking ahead, as revenue continues to scale, we expect stock-based compensation as a percentage of revenue to improve. We remain committed to managing dilution responsibly. Now turning to our outlook for 2026. When we look ahead, we believe that Figma will continue to set the standard for how great products are designed and built. We are investing deeply in the business to define new AI-native workflows and better support our customers as they adapt to new ways of working. At the same time, we have always been disciplined as we scale our business with a focus on the long-term. For the first quarter in 2026, we expect revenue in the range of $315 million to $317 million, implying 38% growth at the midpoint. And for the full year, we anticipate that revenue will be between $1.366 billion to $1.374 billion, implying 30% growth at the midpoint. Our outlook reflects the sustained strength and momentum in the business that we experienced in 2025 including benefits from our new products and offerings, seat expansion from new and existing customers, and international expansion. At this time last year, we had no customers consuming AI credits. Today, we're seeing approximately 75% of paid customers with over $10,000 in ARR consuming AI credits on a weekly basis with adoption continuing to ramp. Our outlook reflects the seat adoption and usage patterns we're seeing today. We'll plan to refine our assumptions in the months ahead, as we continue to both learn from customer consumption behavior, and drive further AI adoption around new feature releases. This March is when our model will shift to monetizing both seats and credits, a dynamic that is not reflected in our historical revenue results. We expect our full year non-GAAP operating income to be between $100 million and $110 million dollars. This represents a non-GAAP operating margin of 8% at the midpoint. In 2026, we plan to accelerate our investment in AI and inference, while building a world class team and go-to-market motion. As a reminder, while we are not issuing quarterly operating income guidance, there is some seasonality in our operating income. Our Q2 operating income has historically been impacted by our annual user conference, Config, and we anticipate a similar impact in 2026. We also expect adjusted free cash flow to be relatively consistent with non-GAAP operating profit for the full year. To close out, we are energized by the incredible year we had in 2025. We added a record number of new customers, exited the year with accelerating revenue growth, while focused on product velocity. But we are even more excited about what is ahead of us, both for our customers and for the expanding capabilities on our platform. With that, I'll hand it over to the operator for Q&A.

[Operator Instructions] The first question comes from Arjun Bhatia from William Blair.

Perfect. Congrats on a very strong end to the year here. Dylan, if I can ask one just kind of philosophical question if we just step back a little bit. We've had, I think, a lot of noise made in the market about Agentic layer offerings like Claude Cowork and even OpenClaw. And I'm curious your perspective on what that means just for UI/UX broadly? Like does it make it more of a differentiator. Do you think like user interface gets pushed to the back as this new agentic layer emerges? Like what are sort of the puts and takes and the dynamics that you're thinking about as these new tools emerge?

Yes, absolutely. Thank you for the question for joining us today. So yes, I think right now, if you're willing to hand off mission-critical work to agents and just to let them do it unsupervised, you're a very brave person. But that joke aside, I think it is the case that humans will continue to use software and increasingly, agents will, too. And I'm excited about that. I think that this creates more surface for designers to work with and design and think through. I will say that I think that the discourse around UI and how agents will change UI or not change UI, it is a bit extrapolating from current state. And humans are really hardwired to think and process information visually. Even as agents take on more work, people still need to understand, audit, trust what's happening, and that requires visual interfaces that are human readable. Lastly, I would just say that we're going to see new interaction paradigms emerge here. And they'll have to be thoughtfully designed, adopted. For example, I think about Figma's multiplayer interface for Figma Design or Canvas and how humans work alongside other humans. And I think that we'll see agents also working alongside humans, both synchronously and asynchronously. And that, again, will lead to more intentionality around how to design software and what the surfaces are you need to design in the first place. And in a world where coding is just no longer a constraint, design and craft point of view, that's the differentiator. And I'm really excited for that future.

Perfect. That's very helpful color. And then, Praveer, I had one for you. Obviously, it seems like the business is firing on all cylinders. You had growth acceleration in Q4, NRR ticked up. This is all happening before your credit consumption monetization kicks in. And so I'm just curious, like as you think about the 2026 guide, how are you benchmarking the range of outcomes from credit monetization post March?

Yes. I appreciate the question, Arjun, and good to hear from you. I think if I take a step back for a second and just think about what we've been doing as we've embedded AI across the entirety of our product suite. Everyone from a user who's a starter user on a free plan has access to credits that we've embedded within their seats. So for some time now, we've already started to see usage ramp. We shared in the prepared remarks about 75% of our 10,000-plus customers today are actually consuming credits on a weekly basis. And this is an evolving number because we continue to introduce new AI features and surfaces that continue to draw an ever-increasing number of credits over time. We based our guidance on an understanding of current observed seat adoption behavior and usage trends. We expect that to be refined as we both introduce new surfaces as well as really start to navigate that point after we've begun to enforce our seat limits. There's an opportunity here to overperform as we build confidence in the observed usage behaviors, but we'll continue to add additional value to our users along the way. So we're excited here. I think we feel we've got some -- we've got a whole bunch of irons in the fire here, and we'll continue to refine our focus and story in the coming quarters.

The next question today comes from Michael Turrin from Wells Fargo.

I appreciate you making time. Dylan, I'd be remiss if I didn't start with another bigger picture question for you. The stats you're giving on Make seem to be hinting at new user types. Can you just speak to what you're seeing from customers using Make and the user types that you're seeing? I think it'd be interesting to hear you just articulate if this could be actually seat expanding for Figma in a world where investors are concerned around seat compression in most places.

Yes. Thank you for the question, and it's definitely something that we're excited about and tracking. As Praveer mentioned in his remarks earlier, we are seeing customers that are bringing, for example, product managers into the life cycle. And certainly, as we use Figma Make not just internally, but also witnessed with some of our customers, internal tools, which can mean all sorts of different personas are quite interesting. So I think that overall, there's a lot of opportunity to start to reach into use cases like UX researchers and other use cases around the team as well. And with that said, I think that there's much more to do here, and we're excited to go do that.

And just as a follow-up, Praveer, I've gotten some questions on just the free cash flow comment you made in terms of the guide. Are you saying dollar amount similar to operating income? And if so, that's, I think, a bit lower than we were forecasting. So just any commentary on if that's kind of Make consumption-based or just what the drivers in that comment were?

Yes. I mean I think there's a few things that will occur this year that are different from last year. And as we transition and as we continue to invest in the business, that was the spirit of the comment. So this will be a full year of us serving our AI features. We GA-ed them in the summer of last year. And as we start to see the continued ramp there, the expectation on what it does to margin is what we folded through to the guide. I think what is starting to get interesting here is as we start to introduce yet another monetization lever for us in the introduction of our AI credits, it starts to create a little bit more of a natural offset there over time. So I think we'll share more with you guys as we start to observe it. But right now, I think that's the best way to model it today.

Elizabeth Porter from Morgan Stanley has the next question.

Excellent. This is Keith Weiss sitting in for Elizabeth Porter. Congratulations on a spectacular end to what was a great year for Figma in 2025. Two questions, one for Dylan and one for Praveer. For Dylan, you announced an exciting new integration with Claude and Anthropic is doing a lot of great innovation. But investors are somewhat worried about kind of letting the fox into the henhouse, if you will, and trying to figure out where the dividing lines are of what is parts of the equation that are going to remain solely within kind of the Figma context and what is Anthropic going to be able to do? Do you guys -- how do you guys see that question? Like how do you see the dividing line between what is in the wheel well of Figma and is always going to be in the wheel well of Figma versus what Claude or what Anthropic brings to the equation. And then for Praveer, on the price increases, getting a lot of questions from investors in terms of we understand mid-single-digit impact for the full year. Can you give us any sense of how that ramped in Q4 and what type of contribution had in Q4? And how we should think about the price increase contribution to Q1 so we could better model kind of the slope for the coming year?

Yes. Thank you for the questions, and I'll start off with the first one. I would just say first that one thing that is interesting is how virtually every Frontier lab is using Figma to design how they bring their models to users and shape their product surfaces, and they are also been great partners with us. So that has been just interesting to see firsthand. I think zooming out, our AI strategy is pretty simple. We always want to be in a place where as models get better, Figma gets better. And easy to say, but you have to make sure that, that is the case for everything we do and also that we can have an edge. And I think that one thing that answers your questions directly around sort of where are the lines between is I would focus on tasks which are more verifiable versus non-verifiable. Design is inherently non-verifiable. And I think that's why you're going to see humans in the loop and even more focus on design as well because as code becomes something that more people can do with the assistance of models, the value will move up the stack. And with the value moving up the stack, I believe we're going to see an even greater focus on design. And we're already seeing it, I think, with the hires people are making and the ways that non-designers are getting involved in the design process. Praveer?

Yes. And I'll answer your question on pricing and packaging there. So just as a reminder, we're about 3 quarters out of the initial rollout of the changes that we implemented in March of last year. So the way that this is going to track to revenue as folks are filtering in through the renewals, you have a growing benefit there over the course of the year. We lapsed that anniversary in March of this year, and then you'll start to see a waning benefit towards the back half of this year. So it's a little bit like a bell curve there where it grows over the first 4 quarters, and then it will wane over the next 4.

Gabriela Borges from Goldman Sachs has the next question.

I wanted to follow up on the conversation on Figma Make and ask specifically about some of the competition that you're seeing in the prototyping space. Give us a sense of what you're seeing in terms of perhaps consolidating budget within your customers away from other prototyping solutions? And are you still seeing fragmentation in that world where customers maybe using multiple tools for prototyping and then pull them into Figma when they're ready to go to the next phase of the design process?

Yes. Thanks for the question. I think that some of the broad strokes we're seeing are really around the power of using Figma Make alongside Figma Design. And one stat that we shared in the earnings call is how over 80% of full seat users of Make are also using Design. And so I think that is an area that as we look ahead, we're really excited to lean into more is to really try to unite these surfaces better. We've seen it already with things like copy layers from Figma Make into Figma Design or taking embeds from Figma Make and putting them into Figma Design. But it's just a start. And I think that there's so much more we can do here. And a big part of the platform differentiation we'll have will come from the unification of the surfaces. I also think that it's really important to remember that the round tripping between code and design can really set us apart here. And I am just very bullish on the opportunity that could exist with that round trip.

Yes, that all makes sense. And a follow-up either for yourself, Dylan or for Praveer. I'm curious the budget implications. When you see a customer go all in on Figma, what does that mean for how they're thinking about labor resourcing versus software resourcing? One of the things we've noticed as well, you put more powerful engineering type design tools into the hands of designers who may not know how to code. So how does the mix change between design-focused designers versus engineering-focused designers, if that makes sense? So I would just love to hear your observations broadly on implications of Figma adoption for customer design and labor budgets.

Yes. I'll start first. I think that some people are starting to call themselves design engineers, we've seen that in the past as well. There's been sort of surges around even 8, 9 years ago, people getting really excited about calling themselves design engineers and kind of it went back to product design and now that term is coming up again. But I would say, overall, we're not really seeing the roles blurring, more the responsibilities blurring between roles, not just between design engineering and design, but the roles more broadly as you go out to the product design life cycle, PM, engineering, design, research and marketing even, responsibilities are starting to blur. People are feeling the need to be more generalist. And so I think that it's hard to split in a very accurate way because so many people that are non-designers by title are starting to really engage with design tasks. But I'll hand it to Praveer to speak more.

Yes. And then I think as it relates to the sales process and who we're having conversations with, I think we've, over time, elevated the conversations to IT that gives us access to broader budget. And when you then kind of look at the types of users that we're bringing in, there was a few that we spoke about in the prepared remarks the one that stands out to me is the hyperscaler that doubled their footprint with about 1/4 of their new seats going to product managers. And this is not a unique instance. We're starting to see this happen more and more so throughout the customer base. And so our expectation is that we're pitching wider, we're pitching broader, and it's the overall platform that's ultimately winning here.

Next up is Rishi Jaluria from RBC.

Maybe 2, if I may. First, for Dylan. Just kind of expanding on some of the dialogue that you have mentioned that a lot of kind of next-gen AI companies and AI labs are working with you, and you've talked about some of the MCP integrations you have with Anthropic and others. How do we think about the opportunity for you to, over time, start building out more formal partnerships with them, having maybe even deeper integrations or kind of joint product development, maybe if that's getting a little far. Maybe just help us understand what does that potential partnership opportunity between you and some of these other AI natives look like in terms of enabling success in your customer base? And then I've got a quick follow-up for Praveer.

Sure. So I think that right now, as we think about our core with design, and just the opportunities that models provide as they advance with code, that is a big part of our focus. And the opportunity to partner deeply and to really make sure that we are thinking in the right ways about how models will continue to have new capabilities in the future and then to make sure that we are accounting for that in our product road map as well as working closely and integrating well with various model providers is something that we paid a lot of attention to. I think going forward, as we think about some of the things we've seen with for example, Figma's apps on ChatGPT as well as Claude, there is definitely stuff that we'll explore there as well. But I think it is maybe secondary to the primary objective of just having that amazing ability to work and go from Code to Canvas and Canvas to Code and back again, that round trip is what we're really focused on and making sure that we are always meeting the criteria of as models get better, we're getting better.

All right. Very helpful. And then, Praveer, in your prepared remarks, you closed out by talking about March is kind of when we're going to start seeing this more mix between subscription and consumption more of a hybrid. It's very consistent with what you've talked about before and how the landscape seems to be shifting, maybe as we think about that mix, 2 pieces. #1, how do you expect, given some of the early traction you're having with your AI native SKUs, how do you expect that mix to shape over time? And then alongside that, how do you -- what tools in your arsenal do you have to at least have visibility and predictability into future revenue? So the model itself doesn't become overly volatile as we navigate through this change?

Yes. No, I appreciate the question, Rishi. I think the way that I'd frame it is we've already started studying this usage and utilization behavior, and we've been prepping for this hybrid model for some time. We basically have telemetry into the overall seat -- rather the overall credit consumption on a per seat basis. And what we've observed is it tends to be a parallel distribution where a subset of users within an organization are receiving outsized value and as such, are going over the projected limits that we intend to enforce. Now our expectation is that, that will continue to evolve as we introduce more services for folks to be able to draw down credits will create more opportunities for us to have -- continue to shift that distribution further and further right. The way that our AI add-ons are structured, they're structured as additional seat -- additional consumption packs in addition to providing folks the opportunity to pay-as-you-go. So in the instance that you're purchasing an add-on pack, it co-terms with your subscription, and we have more predictability in that. And on the pay-as-you-go side, that is more meant to be for burst type activity. So ultimately, it will be a mix. We're studying it very closely. And I think as we get post the actual monetization date is when we'll be able to further refine our assumptions.

Your next question comes from Billy Fitzsimmons from Piper Sandler.

The FY '25 -- or the FY '26, I should say, revenue starting point was well above expectations. If I look at the operating income guidance, midpoint implies, I think, 7.7% non-GAAP operating margins compared to, I think, 12.3% in 2025. Just as we think about the drivers of this, what's kind of the breakdown between expected gross margin compression from AI investments in the AI product ramp versus maybe some incremental investments you plan on making on the OpEx line. And I know you don't guide to it, but any directional commentary on kind of gross margins in 2026 would be helpful.

Yes. I think your point on us continuing to invest on the AI side is what's showing up flowing through both through gross margin and ultimately will hit our Op Inc and op margin there. At this moment, we're not kind of sharing more specifics on the gross margin side, but it is meant to signal that we do see that there's a pretty large opportunity for us to take more AI features to a broader set of our users. And so that's what we've used in our guide to express our confidence and excitement to further invest here ultimately with the goal of driving growth and ubiquity of many of our solutions and durable growth over the long term.

If I sneak one more.

I was going to add like if there's ever a time to put your foot on the gas and make sure that we are lean into the future, this is the time. So I just want to be clear about that. We can intend to invest here, do so responsibly, but make sure that we are setting ourselves up to capture the opportunity in front of us, which we think is very sizable.

And maybe on -- super helpful and maybe just on OpEx, like a lot of companies this, call it, earnings season are talking about expected AI-related efficiencies on the R&D line or the potential to increase product velocity there. How are you guys just thinking about that in terms of 2026?

Yes. I mean there's definitely opportunity there for us. I think what we're experimenting with is a whole bunch of different types of tools. We're iterating on different ideas and then observing overall efficiency of the team. We don't see that -- we don't see it as a tool that replaces our talent, but rather how can we augment the team that we already have? So we will continue to hire, but we will also be able to complement that with efficiency gained by some of the tools out there as well.

The next question today comes from Parker Lane, Stifel.

This is Jack McShane on for Parker. Dylan, I'd love to hear you compare and contrast the benefits of your new Claude Code integration and Figma Make. Do you have any early indication on how customers are going to leverage all these tools that take you from 0 to 1 in the design process? And when will a customer be using the Claude Code integration versus Make? Is it usually -- is it going to be a user preference thing? Or will some projects be more relevant to one or the other?

Yes. I mean, I think it's -- there's plenty of times where I hypothesize, but it's probably not the format for hypothesis. And I would say that overall, this is very much in the too early to tell camp. We just launched this yesterday. And so I am excited to learn more. But right now, we're still at a very early place here. I think though that if you look at the workflow overall, it used to be the case like even for sure, a year ago, perhaps even 6, 9 months ago, that a lot of people saw the workflow of product development is very linear. And you would do stuff like brainstorming and then design and then you'd code. And right now, we're seeing it in a place where people might start anywhere, and they won't be able to go everywhere. And so I think this plays directly to our strengths, making it so that you can really go into the Figma Design canvas and with -- in the case of Make, really couple up Figma Make with Figma Design and make it so that you can go and explore divergently and really have that bird's eye view, zoom out and understand what's possible. The way I think about it is you're sampling these infinite possibilities space. And you're trying to determine what are the right options to go explore in that space and then push them forward with design. And I think that you can do that through code. You can do that through design, but code is more linear. It's more -- you're really advancing in one direction. And so you might be moving fast, but make sure you're going to the right place before you go too far. Whereas design, you're really thinking about what are the range of possibilities I should explore and you're weighing them and figuring out the trade-offs. And I also think the opportunity for polish and craft and design is quite high. And that gets me very excited because we've really tried to make sure that direct manipulation works so well in Figma design and the opportunity to use your hands and just being a state of flow, I think, is a big opportunity for our customers, and it's so much more efficient than prompting a lot of examples. Overall, I would say Figma has the opportunity to be the place where all this comes together, the round trip, the direct manipulation, the divergence of different possibilities as well as picking a solution and then saying, okay, I want to go [indiscernible] this up. Maybe that goes back into the agent development environment or IDE of your choice or maybe in the future with longer running agents and increasing model capabilities, you can just do that from Figma Design. So we'll see how the future evolves. Hard to predict when these capabilities come online, but we're really excited about our position here.

Yes. That was really insightful. And then just one more quick one from me. Obviously, of the 4 products you launched last year, rightfully so, Make is getting the bulk of the attention. But I'd be curious to get an update on Draw, Buzz and Sites. What's the usage been like, the feedback? And has there been any key -- any big surprises since they've gone to market?

Well, I would say for Make, obviously, getting tons of attention. You noticed that. And then as it comes to Draw, Buzz and Sites, I would say that Draw, I mean, definitely, the engagement with some of the features we mentioned in the prepared remarks has been really encouraging. And then I would -- around Buzz and Sites, I would say these products are still early in their life cycle. And so we are definitely learning a lot here from our users as we always do. And we're seeing promising early traction. And while I don't have numbers to share, I think that there are definitely customer examples. For example, one is from a MAG-7 customer where with their creative team, they've been able to -- really been able to run a global holiday campaign through Figma Buzz and produced just an incredible amount of assets, I think, over 5,000 across 30 countries. And for -- the amount of scale you can get from Buzz and also in some ways from Weavy too, which is a different use case, but has shared properties. We are really excited about how you can actually go create workflows for people. When it comes to sites, I would just say that there is a real need on the workflow side of going from a design and Figma Design to something that is published on the web. And that workflow need is incredibly important. And we're excited to help people go from design to production in general, but this is a very particular path. And whether it's Figma sites or Figma Make, we're really watching closely how customers are completing that journey in Figma. And more broadly, across all these products, we're watching the way that people use them, making sure they have what they need and also paying attention to the constantly changing environment and landscape that we're in, in that way we can plan and build accordingly.

Up next, we'll take a question from Alex Zukin, Wolfe Research.

I've got Dylan, maybe one for you and then one for Praveer. Kind of building on some of the earlier questions that are at a high level. You have had the labs as customers, or you have them as customers. They're deep partners. You're watching from the front row in terms of how the entire software supply chain is changing. What products or what usage maybe that surprised you, Dylan, to the upside? I mean, maybe specifically on Dev Mode and Make. And holistically, how are you thinking about tailwinds to growth from these products in fiscal '26? And a quick follow-up.

I'll actually punt that one to Praveer.

I mean there's a bunch of them that I'm excited about. I think we called out some of the momentum on Make there. We grow our weekly active users 70% quarter-over-quarter. And we start to see the adoption across our larger customers, the 100,000 customers going from 30% creating a Make -- up to about 50% by the end of the year there. When I stare at Dev Mode, I think Dev Mode continues to be a very, very important part of the overall workflow. We see excitement not just from our -- from folks that are upgrading for the seat, but for folks that want to make use of Dev Mode MCP. It's an emerging trend that we found is really resonating with our customers. We now have this opportunity to really round trip given the integration partnership we launched with the Canvas -- with Claude Code to the Canvas yesterday. And our hope here is that what we're taking to our customers is a full product platform and suite. And as we do so, it gives us an infinite number of ways to position how these things kind of come together.

Got it. And then, Praveer, maybe just for you specifically on Figma Make. What's in the guidance? Is Make -- is it possible to think about Make or compare and contrast that contribution to growth relative to pricing in fiscal '25? Is it -- do you think it's going to be more or less? And are there any pricing tailwinds still contemplated in fiscal '26 in the guide?

Yes. Maybe I'll start with the back half of your question there. We're still going through the last set of renewals here that are folks that are renewing under the new pricing and packaging that we launched in March of last year. So we'll anniversary that in March of this year, which just so happens to coincide with the launch of our Make add-ons and credits. The way that we framed how Make shows up and broadly, our AI features show up in our guide is we baked it based off current utilization and adoption trends, both on seat adoption trends in addition to credit utilization patterns and trends. What we expect to see is as we introduce more surfaces for folks to be able to draw down credits that we'll start to see more and more folks that would potentially land in the camp of needing an add-on. So what I would expect over time is that it's not necessarily going to be a fire out of the gate, but a slow build here with us wanting to make sure that we're really serving our users and meeting their needs. And then the onus is on us to continue to deliver value over the long term.

And everyone, unfortunately, that is all the time we have for questions today. This does conclude our conference. We would like to thank you all for joining. You may now disconnect.