Figma, Inc. 2026 Q2 Earnings Call

Kate, please go ahead. Good afternoon and thank you for joining us on today's conference call to discuss Figma's results for the second quarter of 2026.

On the call, we have Dylan Field, Figma's Co-founder and Chief Executive Officer, and Praveer Melwani, our Chief Financial Officer. During the course of today's call, we may make forward-looking statements including but not limited to statements regarding our guidance and future financial performance, market demand, product development, growth prospects, business strategies and plans, partnerships, ability to attract and retain customers, and ability to compete effectively. These forward-looking statements are based on management's current views and assumptions and should not be relied upon as of any subsequent date. We disclaim any obligation to update any forward-looking statements. Actual results may vary materially from today's statements.

Information concerning our risks, uncertainties, and other factors that could cause results to differ from these forward-looking statements are included in our filings with the SEC, including our quarterly report on Form 10-Q for the quarter ended June 30th, 2026. Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute or an isolation from, GAAP measures. Our non-GAAP measures exclude the effect of our GAAP results of stock-based compensation and certain other items. Reconciliations of non-GAAP financial measures to comparable GAAP measures can be found in our press release accompanying this call, which is posted to the investor relations page on our website. I would now like to turn the conference call over to Dylan.

Hi, everyone, and thanks for joining. I'm excited to share the results of another strong quarter for Figma. In Q2, we delivered $370 million in revenue, representing a year-over-year growth rate of 48% in our third consecutive quarter of accelerated growth. Q2 was also our first full quarter of AI monetization. What we're seeing follows a pattern that is familiar to Figma, a core group of users driving outsized usage, paving the way for broader adoption across the organization. This gives us confidence in the AI consumption opportunity ahead. On the P&L front, net dollar retention rate was 136%. Non-GAAP gross profit dollars grew by 40% year-over-year, an acceleration on the previous quarter. Non-GAAP operating margin was 10%, reflecting the typical seasonal impact of Config. Free cash flow margin was 14%. We ended Q2 with $1.7 billion in cash equivalents, and marketable securities.

These numbers reflect incredible execution from the Figma team. They also show that as companies reimagine how they build products with AI, they are doubling down on Figma. This is because what Figma offers is unique. A performant professional-grade canvas where humans as well as agents can work side by side. Deep product context that makes agents actually useful and full creative control through a combination of AI and direct manipulation. These differentiators are even more valuable in a world where code is a commodity and value is moving up the stack. We see a big opportunity for Figma as we make code a primitive on our platform and become the canvas for full stack creation. Let me explain. In June at Config, we announced Code Layers, which we plan to roll out in early access soon. AI has made individuals more productive than ever.

Everyone's working with their own agent, exploring their own path in their own tool. Teams are moving faster, they're often pointed in completely different directions. Collaboration takes a back seat as tunnel vision takes over. Individuals grow more attached to the direction they've explored and less open to ideas from their team. Code Layers is designed to address these challenges. With Code Layers, interactive code lives directly on the Figma canvas. Teams can edit designs and code or manipulate them visually. They can also compare different variations of code back prototypes on the canvas side by side, this makes iteration fast and collaboration the default. Code Layers is built on the same technical foundations as Figma Make. Simply put, it's Figma Make on the canvas. Figma Make itself is getting more powerful.

For example, in May, we started rolling out the ability for teams to start working directly in their production code base with Make. Teams can go from idea to shipped product without leaving Figma. 1Password uses Figma from prototype all the way to code that ships to production. Their design systems team has built a full AI-assisted prototyping pipeline with Figma Make, complete with a custom MCP and AI-powered skills, that lets them scaffold and publish new prototypes automatically. They've also opened Figma Make access to licensed engineers. When that process starts outside of Figma, we've also made it easier to bring your work into Figma with our MCP server. At Clay, designer Alex Fortney was tasked with redesigning the company's tools panel, a surface undergoing its fourth redesign in the last five years.

Using MCP, Alex was able to expedite what would've been a tedious process by pulling all the existing components out of legacy code base and into Figma. That way, she could audit the entire surface visually and altogether. As she put it, "The Figma MCP has saved me countless hours of manual labor on all the design system files, and it's made it a lot easier for Clay's engineers to translate design into production-ready code." MCP is what makes this possible at scale. Write-back support lets teams push work into Figma, not just pull from it. In Q2, MCP write to Figma usage grew 75% quarter-over-quarter. Code Layers pushing to production with Figma Make and the Figma MCP server together will all drive more usage and credit consumption by expanding what you can do with code in Figma.

As AI makes code easier to write, everything, though, is starting to look the same. These models are trained on what already exists, so what you get back is in distribution. It's the expected answer. The teams that will stand out are the ones with a bold point of view that are willing to push past obvious solutions. At Config, we launched Motion and Shaders, two new expressive capabilities that used to require leaving Figma, but now are native to our canvas. With Figma Motion, teams can build custom animations from scratch, layer those onto existing designs, or ask the agent to even generate a starting point. This is all in the same canvas that their team already works in. Atlassian is a great example.

Their design systems team is building Motion directly into the Atlassian design system, giving anyone on the team the ability to design with and generate Motion themselves. This is important because Motion is something teams almost always want but rarely get, because it's time consuming and it's expensive to build. As Senior Product Designer Alexandra Pereira put it, "Figma Motion turns animated illustrations from a specialist handoff into a system capability." Like Motion, Shaders make products feel alive in new ways. With Shaders, anyone can describe a texture or effect, like liquid glass, and the Figma agent will build it for you. Then you can manipulate the output directly with fine grain controls that give you ways to customize your result. Figma Weave brings a similar approach to AI generated media.

Instead of stopping at the first prompt, you can sculpt generated outputs like clay, connecting models and refining results until what's on the canvas is exactly what you had in your head. Weave tools can now run inside Figma, which means teams can generate images and other visual assets without switching tools. This matters more as visual assets become a bigger part of how software gets made. In addition, this also opens up Figma to new audiences we haven't served historically: in-house brand designers, creative agencies doing complex hands-on work. Taxi Studio, a U.K.-based brand design agency, set up a Weave workflow to generate 3D renders for a design presentation with their client, Carlsberg. Using three simple inputs, a beer glass, a hop leaf, and also a background, they created a starting point for brand imagery and then further refined lighting, camera angle, and texture.

As Designer Jack Goos put it, "All this took one day, whereas it would have taken a 3D specialist weeks and tens of thousands of GBP to ideate through these elements. It is such a great way to elevate and add richness to the work while staying very much in control." It's this control that sets Weave apart, the ability to express your creative vision exactly as you imagine it. Together, Motion, Shaders, and Weave give teams the tools to make work that's genuinely distinctive, not just AI generated. The market this can serve is significant, and overall, it points to a larger shift. The line between building software and making creative work is dissolving. This opens up new mediums, new possibilities, and new audiences for Figma. The third opportunity is agents. The Figma agent is built natively for design.

It's fluent in Figma and increasingly powered by our own proprietary models. Because it works on the same canvas as your team, it has access to all the same tools that you do, including our new expressive capabilities like Motion and Shaders. One way to think of the agent is as a capable design intern you can hand work off to. Everything from time consuming tasks like documenting your design system to generating design variations that your team can build on. Because it works directly on the Figma canvas, you can have multiple agents running in parallel while you and your team focus on higher level work. The agent can do more than complete tasks. It can also build custom tools, and that's what generative plugins are for.