The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our unaudited condensed consolidated financial statements and related notes appearing elsewhere in this Quarterly Report on Form 10-Q and our audited consolidated financial statements and the related notes and the discussion under the heading “Management's Discussion and Analysis of Financial Condition and Results of Operations” for the fiscal year ended December 31, 2025 included in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the Securities and Exchange Commission (the “SEC”) on February 18, 2026. This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements. The matters discussed in these forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those made, projected or implied in the forward-looking statements. Please see the sections titled “Risk Factors” and “Special Note Regarding Forward-Looking Statements” appearing elsewhere in this Quarterly Report on Form 10-Q for a discussion of the uncertainties, risks, and assumptions associated with these statements. Overview Figma is where teams come together to turn ideas into the world’s best digital products and experiences. We launched Figma Design in 2015 using WebGL technology to bring design into the browser for the first time, making it easier and more efficient for designers to work alongside developers, product managers, researchers, and other participants in the product development process. Since then, we have added products and features to support the process of going from idea to product. In 2021, we launched our second product: FigJam, an online whiteboarding tool. Then, in 2023 we launched Dev Mode, a product tailored for developers. In 2024, we introduced Figma Slides to give teams a new tool to drive strategy and alignment along the way. In 2025, we doubled our product portfolio with the launch of four new products: Figma Make, Figma Sites, Figma Buzz, and Figma Draw. Figma Make lets users go directly from prompt to working prototype, at which point they can immediately validate an idea and choose to iterate on it. Users can improve the design of their product via further prompting, editing code directly, or through visual manipulation. Figma Sites is a product that lets you design a website and directly publish it to the web, with a URL of your choice. Figma Buzz is a product for easily creating marketing assets, like social media assets and digital ads, at scale. Figma Draw provides a dedicated space for finer vector editing required when drawing detailed iconography and product illustrations. We have also added our own Model Context Protocol (“MCP”) server, which allows developers to connect an agent in their code editor directly to designs in Figma. Developers can ask the agent to inspect the design and use this context to convert it into working code in their codebase. With the addition of these new products and increasing AI functionality across our platform, Figma has expanded to help teams go from idea to shipped product all in one place. We believe AI will continue to accelerate this journey by helping users of all skill levels to ideate, iterate, and build faster. Over the last few years we have integrated generative AI and code-related capabilities across our platform, including 34 through AI-powered design generation, agentic workflows, and native code layers. We are continuing to invest in AI so our customers can continue to innovate and push what is possible on our platform. We have also made acquisitions that expand Figma’s capabilities, such as Payload CMS, Inc., a leading open-source headless content management system, and Weavy Inc., now Figma Weave, which brings the world’s leading AI models together with professional editing tools on a single, browser-based canvas. As we have grown our platform, we have also grown our community of both free and paying users, in part by offering enhanced features and functionality based on user and organizational needs. Our free Starter plan makes it easy for anyone to quickly get started with Figma and experience the benefits of our platform. More advanced functionality is available on our paid plans, including our Professional, Organization, and Enterprise plans, each of which are designed to meet the specific and sometimes complex needs of teams. In 2025, we introduced AI credits across all Figma seats. In March 2026, we began enforcing AI credit limits and introduced flexible options for incremental usage, including monthly AI credit add‑ons to existing subscriptions or usage billed under a pay‑as‑you‑go model. Key Business Metrics We review a number of operating and financial metrics, including the following key metrics to evaluate our business, measure our performance, identify trends affecting our business, formulate business plans, and make strategic decisions. The calculation of the key metrics discussed below may differ from other similarly titled metrics used by other companies, securities analysts, or investors. As of June 30, 2026 June 30, 2025 Paid Customers with more than $10,000 in ARR 15,964 11,906 Paid Customers with more than $100,000 in ARR 1,635 1,119 Net Dollar Retention Rate 136 % 129 % We define a Paid Customer as a customer account that is billed separately for which we have an active paid subscription as of the last day of the applicable period of measurement.1 A single organization with multiple divisions, segments, subsidiaries, or subscribing teams that are each billed separately are counted as multiple Paid Customers. We calculate annual recurring revenue (“ARR”) as the annualized value of our active customer agreements as of the measurement date, assuming any agreement that expires during the next twelve months following the measurement date is renewed on existing terms.2 ARR is not a forecast of future revenue, which can be impacted by contract start and end dates and renewal rates. Paid Customers with more than $10,000 in ARR We believe that the number of Paid Customers with more than $10,000 in ARR on our platform is an important indication of the value that our products deliver. We define a Paid Customer with more than (1) A customer account is considered active when seats are provisioned to the customer at the start of their subscription. In cases where contracts are signed but not provisioned as of the last date of the applicable period of measurement, the customer account is counted as active if provisioning takes place no more than 15 days after the last day of the applicable period of measurement. (2) A customer agreement is considered active when seats are provisioned to the customer at the start of their subscription. In cases where contracts are signed but not provisioned prior to the measurement date, the customer agreement is counted as active if provisioning takes place no more than 15 days after the measurement date. 35 $10,000 in ARR as a Paid Customer with a total of $10,000 or more of ARR as of the last day of the applicable period of measurement. We believe that $10,000 in ARR is an important threshold, as it is a strong indicator of significant paid usage of our products. Paid Customers with more than $100,000 in ARR We believe that the number of Paid Customers with $100,000 or more in ARR on our platform is indicative of our ability to scale our platform with our customers as well as our ability to support larger organizations. We define a Paid Customer with more than $100,000 in ARR as a Paid Customer with $100,000 or more of ARR as of the last day of the applicable period of measurement. Net Dollar Retention Rate We believe that Net Dollar Retention Rate is an important metric as it measures our ability to both retain our existing customers and grow within our customer base. We calculate Net Dollar Retention Rate as of the applicable period of measurement by starting with the ARR of Paid Customers with more than $10,000 in ARR as of twelve months prior to such date of measurement (“Prior Period ARR”). We then calculate the ARR for those same customers as of the applicable period of measurement (“Current Period ARR”). We then divide Current Period ARR by Prior Period ARR to calculate our Net Dollar Retention Rate for the applicable date of measurement. Our Net Dollar Retention Rate reflects customer expansion, contraction, and churn. We calculate Net Dollar Retention Rate using ARR from Paid Customers with more than $10,000 in ARR because we believe that $10,000 in ARR is an important threshold, as it is a strong indicator of significant paid usage of our products. Non-GAAP Financial Measures In addition to our results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), we believe the below non-GAAP financial measures are useful in evaluating our operating performance. We use the below non-GAAP financial information, collectively, to evaluate our ongoing operations and for internal planning and forecasting purposes. We believe that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. The non-GAAP financial information is presented for supplemental informational purposes only, and should not be considered a substitute for financial information presented in accordance with GAAP, and may be different from similarly-titled non-GAAP measures used by other companies. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures. Non-GAAP Operating Income and Non-GAAP Operating Margin We define non-GAAP operating income and non-GAAP operating margin as income (loss) from operations and operating margin, respectively, excluding stock-based compensation expense, amortization of stock-based compensation expense included in capitalized internal use software development costs, employer payroll taxes on employee stock transactions, and amortization of acquired intangibles from acquisitions. Additionally, we exclude certain non-recurring charges, such as impairment losses on long-lived assets. Non-GAAP operating margin represents non-GAAP operating income as a percentage of revenue. 36 The following table reflects the reconciliation of income (loss) from operations to non-GAAP operating income and non-GAAP operating margin for the periods presented: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands, except percentages) Income (loss) from operations $ (117,289) $ 2,076 $ (254,687) $ 41,825 Plus: Stock-based compensation expense 147,554 7,310 316,552 7,507 Plus: Amortization of stock-based compensation included in capitalized internal use software development costs 308 188 566 274 Plus: Employer payroll taxes on employee stock transactions 3,486 — 17,379 — Plus: Amortization of acquired intangibles from acquisitions 2,034 1,898 6,045 1,898 Plus: Impairment losses on long-lived assets — — 2,371 — Non-GAAP operating income $ 36,093 $ 11,472 $ 88,226 $ 51,504 Operating margin (32) % 1 % (36) % 9 % Non-GAAP operating margin 10 % 5 % 13 % 11 % Free Cash Flow and Adjusted Free Cash Flow We define Free Cash Flow as GAAP net cash provided by operating activities, less capital expenditures and capitalized internal use software development costs, if any. Adjusted Free Cash Flow is a non-GAAP financial measure that we have calculated historically as Free Cash Flow plus transaction costs and other related expenses associated with our abandoned merger with Adobe, Inc. (“Adobe”) and estimated income taxes related to the abandoned merger with Adobe (refer to our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 18, 2026, for additional information on our abandoned merger with Adobe). We did not incur any transaction costs and other related expenses or income taxes associated with the abandoned merger with Adobe for the periods presented in this Quarterly Report on Form 10-Q and therefore, we note that Adjusted Free Cash Flow and Free Cash Flow are equivalent for the periods that are presented herein. Free Cash Flow Margin represents Free Cash Flow divided by revenue. We believe that Free Cash Flow is a useful indicator of liquidity that provides information to management and investors about the amount of cash generated from our core operations that, after the purchases of property and equipment and capitalized internal use software development costs, can be used for strategic initiatives, including investing in our business, making strategic acquisitions, and strengthening our balance sheet. Free Cash Flow has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by operating activities. Some of the limitations of Free Cash Flow are that it does not reflect our future contractual commitments and may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure. We expect our Free Cash Flow to fluctuate in future periods as we invest in our business to support our plans for growth. These activities, along with certain increased operating expenses as described below, may result in a decrease in Free Cash Flow as a percentage of revenue in future periods. 37 The following table presents our cash flows for the periods presented and a reconciliation of Free Cash Flow to net cash provided by operating activities, the most directly comparable financial measure calculated in accordance with GAAP: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands, except percentages) Net cash provided by operating activities(1) $ 60,893 $ 62,455 $ 158,201 $ 159,632 Less: Capital expenditures (6,688) (1,134) (14,500) (2,008) Less: Capitalized internal use software development costs (995) (718) (1,883) (2,439) Free Cash Flow $ 53,210 $ 60,603 $ 141,818 $ 155,185 Net cash provided by (used in) investing activities $ (6,251) $ (74,826) $ (13,700) $ (33,575) Net cash provided by (used in) financing activities $ (13,719) $ 15,445 $ (101,255) $ 15,784 Operating Cash Flow Margin(2) 16 % 25 % 22 % 33 % Free Cash Flow Margin(3) 14 % 24 % 20 % 33 % __________________ (1)Net cash provided by operating activities for the six months ended June 30, 2026 includes the impact of a $56.1 million payment under our annual corporate bonus program, accrued during the year ended December 31, 2025, with no comparable payment in the prior year period. (2)Operating Cash Flow Margin is calculated as net cash provided by operating activities divided by revenue. (3)Free Cash Flow Margin is a non-GAAP financial measure that is calculated as Free Cash Flow divided by revenue. Key Components of Results of Operations Revenue We primarily generate revenue from sales of subscriptions to our platform. Our subscription agreements generally have monthly or annual contractual terms. Our agreements are generally non-cancelable and we typically invoice our customers in advance. At the end of each monthly or quarterly period of the contract, we invoice customers for additional purchases made during the respective month or quarter, inclusive of amounts due for services delivered and amounts due for the remaining term of the subscription. We record deferred revenues when cash payments are received or due in advance of our performance and revenue is typically recognized ratably over the related contractual term. Our revenue is driven primarily by the number of paying customers and the price we charge for access to our platform, which varies based on the type of plan and products to which a customer subscribes. In March 2026, we began enforcing AI credit limits and introduced flexible options for incremental usage, including monthly AI credit add‑ons to existing subscriptions or usage billed under a pay‑as‑you‑go model. Costs That May Impact Multiple Line Items Employee-Related Costs and Overhead Allocation. Employee-related costs include salaries, bonuses, benefits, and stock-based compensation and related employer payroll taxes for cost of revenue and each 38 operating expense category. Overhead costs represent shared costs that are not specific to a functional group and are allocated based on headcount. Such costs include costs associated with office facilities, workplace and IT-related personnel expenses, depreciation of property and equipment, and other expenses, such as software subscription fees. As such, allocated shared costs are reflected in cost of revenue and each operating expense category. AI and Related Costs. As a part of our product innovation, we have made and will continue to make significant investments to integrate AI, including generative AI, into our platform. We expect that the use of AI technologies and our investments to integrate AI into our platform will impact our business, operating results, and financial condition. For example, in the short-term, we expect that our AI investments and use of AI technologies, including spend on AI inference and model training, will impact our cost of revenue, research and development expenses, and sales and marketing expenses, which we expect to negatively impact our gross margins and operating margins. These costs may also fluctuate from period to period as we implement operational and platform changes intended to manage usage and optimize the efficiency of our AI-related spend. Given the newness and rapid development of these technologies, the impacts on our gross margins and operating margins, and our business, operating results, financial condition, and future prospects over the longer term are currently unknown. Cost of Revenue Cost of revenue consists primarily of technical infrastructure and hosting costs, including AI inference, employee-related costs, including stock-based compensation and related employer payroll taxes, for infrastructure and product support teams for paid users of Figma, payment processing fees, amortization of capitalized internal-use software development costs, amortization of acquired developed technologies, and allocated overhead. Depending on the timing of investments in our platform, including those related to our AI initiatives, we expect that our cost of revenue will increase in absolute dollars as our business grows and will fluctuate as a percentage of our revenue from period-to-period depending on the timing of these investments. Gross Profit and Gross Margin Gross profit represents revenue less cost of revenue. Gross margin is gross profit expressed as a percentage of revenue. Our gross margin may fluctuate from period to period as our revenue fluctuates, and as a result of the timing and amount of technical infrastructure and hosting costs, AI and related efforts, and other investments to expand our products and geographical coverage. Operating Expenses Research and development. Our research and development expenses consist primarily of employee-related costs, including stock-based compensation and related employer payroll taxes, technical infrastructure and hosting costs, professional services fees, software subscription fees, impairment of long-lived assets, and allocated overhead. We expense our research and development costs as they are incurred, other than capitalized internal-use software development costs. Over time, we expect that our research and development expenses will increase in absolute dollars relative to our research and development expenses prior to 2025, as we continue to invest in our platform. However, depending on the timing of our investments, including those related to our AI initiatives, we anticipate that research and development expenses may fluctuate as a percentage of our revenue from period-to-period. Sales and marketing. Our sales and marketing expenses consist primarily of employee-related costs, including stock-based compensation and related employer payroll taxes, expenses associated with our 39 marketing and brand advertising campaigns, events, such as annual user conferences, including Config, amortization of sales commissions, amortization of acquired customer relationships, professional services fees, software subscription fees, and allocated overhead. Additionally, we classify within sales and marketing technical infrastructure and hosting costs, including AI inference, as well as overhead costs for our infrastructure and product support teams related to the users of our free version of Figma. We capitalize and subsequently amortize sales commissions and related expenses, including associated payroll taxes and 401(k) contributions, over the estimated period of benefit, which we have determined to be four years. Over time, we expect that our sales and marketing expenses will increase in absolute dollars relative to our sales and marketing expenses prior to 2025, as our business grows and we continue to scale our go-to-market organization. However, depending on the timing of our investments, including those related to our AI initiatives, we anticipate that sales and marketing expenses will fluctuate as a percentage of revenue from period-to-period. In addition, historically, we have experienced seasonal fluctuations in our sales and marketing expenses incurred in connection with our annual user conferences, including Config, which we typically host in the second quarter of each year, as well as in connection with other advertising efforts. General and administrative. Our general and administrative expenses consist primarily of employee-related costs, including stock-based compensation and related employer payroll taxes, for our legal, finance, human resources, and other administrative teams, as well as certain executives. In addition, general and administrative expenses include general business expenses, professional services fees, software subscription fees, and allocated overhead. We expect to continue to incur additional expenses as a result of operating as a newly public company, including costs to comply with the rules and regulations applicable to companies listed on a national securities exchange, costs related to compliance and reporting obligations, and increased expenses for insurance, investor relations, and professional services. Over time, we expect that our general and administrative expenses will increase in absolute dollars relative to our general and administrative expenses prior to 2025, as our business grows. However, we anticipate that general and administrative expenses will decrease as a percentage of revenue over time, although these expenses may fluctuate as a percentage of our revenue from period-to-period depending on the timing of these expenses. Other Income (Expense), Net Other income (expense), net consists primarily of interest income earned on our cash, cash equivalents, and marketable securities, income from digital assets, current, unrealized and realized gains or losses on equity securities, which includes our investment in a Bitcoin exchange traded fund and strategic investments, remeasurement gains or losses on our investment in Bitcoin, which is included within digital assets, non-current on the condensed consolidated balance sheets, gains or losses on foreign currency exchange, amortization of deferred financing costs, interest, and commitments expense on our Revolving Credit Facility (as defined below), and miscellaneous other expenses. Provision for Income Taxes Provision for income taxes consists of U.S. federal and state income taxes and income taxes in certain foreign jurisdictions in which we conduct business. We maintain a full valuation allowance on our federal, state and foreign deferred tax assets as we have concluded that it is not more likely than not that the deferred tax assets will be realized. 40 Results of Operations The following tables set forth our condensed consolidated statements of operations data for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands) Revenue $ 370,083 $ 249,640 $ 703,522 $ 477,839 Cost of revenue(1) 60,472 27,889 129,138 47,341 Gross profit 309,611 221,751 574,384 430,498 Operating expenses(1): Research and development 167,329 83,052 340,303 152,977 Sales and marketing 154,856 97,701 280,424 166,541 General and administrative 104,715 38,922 208,344 69,155 Total operating expenses 426,900 219,675 829,071 388,673 Income (loss) from operations (117,289) 2,076 (254,687) 41,825 Other income, net 7,614 36,978 3,289 44,252 Income (loss) before income taxes (109,675) 39,054 (251,398) 86,077 Provision for income taxes 2,477 10,827 3,155 12,968 Net income (loss) $ (112,152) $ 28,227 $ (254,553) $ 73,109 __________________ (1)Includes stock-based compensation, net of amounts capitalized, as follows: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (In thousands) Cost of revenue $ 2,036 $ 218 $ 7,117 $ 218 Research and development 61,777 5,939 140,802 6,136 Sales and marketing 18,815 544 39,765 544 General and administrative 64,926 609 128,868 609 Total $ 147,554 $ 7,310 $ 316,552 $ 7,507 41 The following tables set forth our condensed consolidated statements of operations data expressed as a percentage of revenue for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 (As a % of revenue(1)) Revenue 100 % 100 % 100% 100% Cost of revenue 16 11 18 10 Gross profit 84 89 82 90 Operating expenses: Research and development 45 33 48 32 Sales and marketing 42 39 40 35 General and administrative 28 16 30 14 Total operating expenses 115 88 118 81 Income (loss) from operations (32) 1 (36) 9 Other income, net 2 15 — 9 Income (loss) before income taxes (30) 16 (36) 18 Provision for income taxes 1 4 — 3 Net income (loss) (30) % 11 % (36)% 15% __________________ (1)Percentages may not foot due to rounding. Comparison of the Three Months Ended June 30, 2026 and 2025 Revenue and Cost of Revenue Three Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) Revenue $ 370,083 $ 249,640 $ 120,443 48 % Cost of revenue 60,472 27,889 32,583 117 % Gross profit $ 309,611 $ 221,751 $ 87,860 40 % Revenue increased by $120.4 million, or 48%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase in revenue was primarily driven by growth and expansion in total Paid Customers, as the number of Paid Customers with more than $10,000 in ARR and Paid Customers with more than $100,000 in ARR increased by 34% and 46%, respectively, as of June 30, 2026 compared to the prior year. Cost of revenue increased by $32.6 million, or 117%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to a $27.1 million 42 increase in technical infrastructure and hosting costs relating to AI and increased usage of our platform by paid users, and a $2.8 million increase in employee-related costs primarily driven by $2.0 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our initial public offering (our “IPO”) in July 2025. There was also an increase of $2.3 million in payment processing fees driven by the growth in Paid Customers. Research and Development Three Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) Research and development $ 167,329 $ 83,052 $ 84,277 101 % Research and development expenses increased by $84.3 million, or 101%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to a $70.8 million increase in employee-related costs primarily driven by $58.1 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our IPO in July 2025 and increased headcount due to the growth of our business, and a $10.1 million increase in technical infrastructure and hosting costs, primarily driven by AI-related costs as we improved and extended our product offerings and developed new technologies. Sales and Marketing Three Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) Sales and marketing $ 154,856 $ 97,701 $ 57,155 58 % Sales and marketing expenses increased by $57.2 million, or 58%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to a $32.4 million increase in employee-related costs primarily driven by $19.0 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our IPO in July 2025 and increased headcount due to the growth of our business, $13.5 million of higher technical infrastructure and hosting costs for users of our free version of Figma due to continuing growth in our user base and AI-related costs as we continued to roll out our AI offerings to free users during the period, and $5.0 million of higher spend related to marketing and advertising expenses, including due to our annual user conference. General and Administrative Three Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) General and administrative $ 104,715 $ 38,922 $ 65,793 169 % 43 General and administrative expenses increased by $65.8 million, or 169%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The increase was primarily due to a $68.2 million increase in employee-related costs primarily driven by $64.7 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our IPO in July 2025. Other income, net Three Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) Other income, net $ 7,614 $ 36,978 $ (29,364) (79) % Other income, net decreased by $29.4 million, or 79%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The decrease was due to a $26.5 million unfavorable change in the fair value of equity securities, primarily due to a shift from an unrealized gain on our investment in a Bitcoin exchange traded fund during the three months ended June 30, 2025 to an unrealized loss during the three months ended June 30, 2026. Provision for Income Taxes Three Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) Provision for income taxes $ 2,477 $ 10,827 $ (8,350) (77) % The provision for income taxes decreased by $8.4 million, or 77%, for the three months ended June 30, 2026 compared to the three months ended June 30, 2025. The provision for income taxes recorded for the three months ended June 30, 2026 was primarily due to taxes in foreign jurisdictions. The provision for income taxes recorded in the three months ended June 30, 2025 was primarily due to our estimated U.S. federal taxable income position as of June 30, 2025. 44 Comparison of the Six Months Ended June 30, 2026 and 2025 Revenue and Cost of Revenue Six Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) Revenue $ 703,522 $ 477,839 $ 225,683 47 % Cost of revenue 129,138 47,341 81,797 173 % Gross profit $ 574,384 $ 430,498 $ 143,886 33 % Revenue increased by $225.7 million, or 47%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase in revenue was primarily due to the addition of new Paid Customers, as our number of Paid Customers with more than $10,000 in ARR and Paid Customers with more than $100,000 in ARR increased by 34% and 46%, respectively, as of June 30, 2026 compared to the prior year. Cost of revenue increased by $81.8 million, or 173%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily due to $60.8 million of higher technical infrastructure and hosting costs relating to AI and increased usage of our platform by paid users, and an $11.5 million increase in employee-related costs driven by $7.6 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our IPO in July 2025. There was also an increase of $4.7 million in payment processing fees driven by the growth in Paid Customers. Research and Development Six Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) Research and development $ 340,303 $ 152,977 $ 187,326 122 % Research and development expenses increased by $187.3 million, or 122%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily due to a $164.1 million increase in employee-related costs driven by $142.9 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our IPO in July 2025 and increased headcount due to the growth of our business, and a $14.6 million increase in technical infrastructure and hosting costs, primarily driven by AI-related costs as we improved and extended our product offerings and developed new technologies. 45 Sales and Marketing Six Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) Sales and marketing $ 280,424 $ 166,541 $ 113,883 68 % Sales and marketing expenses increased by $113.9 million, or 68%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily due to a $70.7 million increase in employee-related costs primarily driven by $44.0 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our IPO in July 2025 and increased headcount due to the growth of our business, $21.5 million of higher technical infrastructure and hosting costs for users of our free version of Figma due to continuing growth in our user base and AI-related costs as we continued to roll out our AI offerings to free users during the period, and $10.4 million of higher spend related to marketing and advertising expenses, including due to our annual user conference. General and Administrative Six Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) General and administrative $ 208,344 $ 69,155 $ 139,189 201 % General and administrative expenses increased by $139.2 million, or 201%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The increase was primarily due to a $138.4 million increase in employee-related costs primarily driven by $132.1 million of stock-based compensation expense and related employer payroll taxes we recognized after and as a result of the completion of our IPO in July 2025. Other income, net Six Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) Other income, net $ 3,289 $ 44,252 $ (40,963) (93) % Other income, net decreased by $41.0 million, or 93%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The decrease was due to a $33.9 million unfavorable change in the fair value of equity securities, primarily due to a shift from an unrealized gain on our investment in a Bitcoin exchange traded fund during the six months ended June 30, 2025 to an unrealized loss during the six months ended June 30, 2026, and a $5.0 million remeasurement loss on our Bitcoin investment. 46 Provision for Income Taxes Six Months Ended June 30, $ Change % Change 2026 2025 (In thousands, except percentages) Provision for income taxes $ 3,155 $ 12,968 $ (9,813) (76) % The provision for income taxes decreased by $9.8 million, or 76%, for the six months ended June 30, 2026 compared to the six months ended June 30, 2025. The provision for income taxes recorded in the six months ended June 30, 2026 was primarily due to taxes in foreign jurisdictions. The provision for income taxes recorded in the six months ended June 30, 2025 was primarily due to our estimated U.S. federal taxable income position as of June 30, 2025. Liquidity and Capital Resources As of June 30, 2026, our principal sources of liquidity were cash and cash equivalents of $445.8 million, digital assets, current of $15.8 million, which is comprised of holdings in USDC, a stablecoin redeemable on a one-to-one basis for U.S. dollars, and marketable securities of $1.2 billion. Our Revolving Credit Facility also serves as a source of liquidity. Cash and cash equivalents are comprised of bank deposits, money market funds, U.S. agency securities, U.S. treasury securities, corporate bonds, and commercial paper. Digital assets, current on the condensed consolidated balance sheets is comprised of USDC. Marketable securities are comprised of commercial paper, U.S. agency securities, U.S. treasury securities, corporate bonds, and a Bitcoin exchange traded fund. The majority of our cash and cash equivalents are held in the United States, with the remainder held in international regions to support our foreign operations. Since our inception, we have financed our operations primarily through proceeds from the issuance of our convertible preferred stock and common stock and cash generated from the sale of our products. During the third quarter of 2025, we completed our IPO, in which we issued and sold an aggregate of 12.5 million shares of Class A common stock at a public offering price of $33.00 per share, resulting in net proceeds to us of approximately $393.1 million after deducting underwriting discounts and commissions, but before deducting offering expenses payable by us. As of June 30, 2026, we held approximately 173 Bitcoins for investment purposes with a fair value of $10.1 million based on observable market prices, which is included within digital assets, non-current on the consolidated balance sheets. We expect to hold these Bitcoins for the long term, but will continue to reassess our Bitcoin investment relative to our balance sheet. We believe that our current cash, cash equivalents, digital assets, current, and marketable securities, in addition to amounts available for borrowing under our Revolving Credit Facility, will be sufficient to fund our operations for at least the next twelve months. Our future capital requirements, however, will depend on many factors, including our subscription growth rate, the timing and extent of spending to support our research and development efforts, our investments in and usage of AI, the expansion of sales and marketing activities, the introduction of new and enhanced products and features, particularly for large organizations, and the continuing market adoption of Figma. We have historically, and may in the future, enter into arrangements to acquire or invest in complementary businesses, services, and technologies, including intellectual property rights. In the event that additional financing is required from outside sources, we may seek to raise additional funds at any time through equity, equity-linked arrangements, and debt. If we are unable to raise additional capital when desired and at reasonable rates, our business, results of operations, and financial condition would be adversely affected. See the section titled “Risk 47 Factors—Risks Related to Financial and Accounting Matters—We may require additional capital to fund our business and support our growth, and any inability to generate or obtain such capital may adversely affect our business, operating results, and financial condition” included in Part II, Item 1A of this Quarterly Report on Form 10-Q. Commitments and Contingencies Our principal commitments consist of our operating lease commitments, future purchase commitments for cloud hosting services, and other commitments consisting of future minimum payments under non-cancelable purchase commitments. Our significant non-cancelable commitments are disclosed in Note 7 “Commitments and Contingencies” to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q. We did not have during the periods presented, nor do we currently have, any off-balance sheet financing arrangements or any relationships with unconsolidated entities or financial partnerships. This includes entities sometimes referred to as structured finance or special purpose entities, that may be established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. Revolving Credit Facility On June 27, 2025, we entered into a credit agreement (the “Revolving Credit Agreement”) with Morgan Stanley Senior Funding, Inc., as administrative agent and collateral agent, Bank of America, N.A., JPMorgan Chase Bank, N.A., Goldman Sachs Bank USA, Wells Fargo Securities, LLC and RBC Capital Markets, LLC as joint lead arrangers and bookrunners, the letter of credit issuers from time to time party thereto, and the lenders from time to time party thereto. The Revolving Credit Agreement provides for a revolving credit facility of up to $500.0 million and a subfacility of up to $150.0 million for letters of credit (the “Revolving Credit Facility”). The Revolving Credit Agreement provides us with the right to increase the Revolving Credit Facility and/or to add one or more tranches of term loans or to increase the amount of any existing term loans in an aggregate principal amount not to exceed (a) $2.0 billion, plus (b) the amount of any voluntary prepayments of term loans and/or the Revolving Credit Facility (to the extent accompanied by a permanent reduction of commitments under the Revolving Credit Facility), plus (c) an additional amount, if after giving effect to the incurrence of such additional amount, we do not exceed a maximum debt to EBITDA ratio in accordance with the Revolving Credit Agreement. Loans under the Revolving Credit Facility will incur interest, at our option at a rate per annum equal to either (i) a base rate determined by reference to the highest of (x) the prime rate, (y) the federal funds effective rate plus 0.5% and (z) the one-month term Secured Overnight Financing Rate (“SOFR”) plus 1.0% or (ii) term SOFR plus 1.0%. Additionally, we will be required to pay commitment fees of 0.15% per annum on the undrawn portion of the commitments under the Revolving Credit Facility, which decreases to 0.1% per annum upon achievement of an enhanced debt to EBITDA ratio. The Revolving Credit Agreement contains a financial covenant requiring that Liquidity (defined as unrestricted cash and cash equivalents, plus the undrawn revolver commitments) is not less than $100.0 million as of the last day of each fiscal quarter. Additionally, the Revolving Credit Agreement contains customary affirmative and negative covenants (including restrictions on indebtedness, liens, investments, asset dispositions and affiliate transactions, each subject to customary exceptions and baskets) and customary events of default (including, among other things, non-payment of principal, interest or fees, inaccuracy of representations and warranties, violation of certain covenants, cross-default to certain other indebtedness, bankruptcy and insolvency events, material judgments, change of control and certain 48 material ERISA events). The obligations under the Revolving Credit Agreement are secured by liens on substantially all of our assets. The Revolving Credit Facility matures on June 27, 2030. As of June 30, 2026, we had no outstanding balance under the Revolving Credit Facility and our total available borrowing capacity under the Revolving Credit Facility was $500.0 million. We were in compliance with all applicable covenants as of June 30, 2026. Cash Flows The following table summarizes our cash flows for the periods indicated: Six Months Ended June 30, 2026 2025 (In thousands) Net cash provided by operating activities $ 158,201 $ 159,632 Net cash used in investing activities (13,700) (33,575) Net cash provided by (used in) financing activities (101,255) 15,784 Net increase in cash, cash equivalents, and restricted cash $ 43,246 $ 141,841 Cash Provided by Operating Activities Our largest source of operating cash is cash collections from organizations on a paid subscription plan. Our primary uses of cash from operating activities are for employee-related expenditures, sales and marketing expenses, and technical infrastructure and hosting costs. During the six months ended June 30, 2026, operating activities provided $158.2 million in cash. The primary factors affecting our cash flows during this period were our net loss of $254.6 million, adjusted for $373.3 million from non-cash charges, and net cash inflows of $39.4 million from changes in our operating assets and liabilities. The non-cash charges primarily consisted of $316.6 million of stock-based compensation expense, net of amounts capitalized and $20.0 million in unrealized losses from the remeasurement of equity securities. The cash provided from changes in our operating assets and liabilities was primarily due to a $56.6 million decrease in accounts receivable, reflecting an increase in collections and a $31.4 million increase in deferred revenue related to increased billings. These amounts were partially offset by a $43.6 million decrease in accrued compensation and benefits, which includes the impact of a $56.1 million payment under our annual corporate bonus program. During the six months ended June 30, 2025, operating activities provided $159.6 million in cash. The primary factors affecting our cash flows during this period were our net income of $73.1 million and net cash inflows of $77.0 million from changes in our operating assets and liabilities, adjusted for $9.5 million from non-cash charges. The non-cash charges primarily consisted of $9.7 million of amortization of deferred commissions, $8.7 million of non-cash operating lease costs, $7.5 million of stock-based compensation expense, net of amounts capitalized, and $5.1 million of depreciation and amortization, partially offset by $13.9 million in unrealized gains from the remeasurement of equity securities and $9.0 million in net accretion of discounts on marketable securities. The cash provided from changes in our operating assets and liabilities was primarily due to a $51.8 million increase in deferred revenue related to increased billings, a $19.8 million increase in accrued compensation and benefits as a result of our increased headcount associated with the growth of our business and implementation of a company-wide annual bonus program, and an $8.7 million increase in accrued and other current liabilities. These amounts were partially offset by a $10.3 million increase in other assets. 49 Cash Used in Investing Activities Net cash used in investing activities during the six months ended June 30, 2026 was $13.7 million, which was primarily due to the purchase of marketable securities of $420.6 million, capital expenditures of $14.5 million, and purchase of intangible assets of $2.8 million, partially offset by proceeds from sales and maturities of marketable securities of $426.3 million. Net cash used in investing activities during the six months ended June 30, 2025 was $33.6 million, which was primarily due to the purchase of marketable securities of $525.6 million, the purchase of digital assets of $30.0 million, $21.0 million of cash paid for business combinations, and the capitalization of internal-use software development costs of $2.4 million, partially offset by proceeds from sales and maturities of marketable securities of $548.3 million. Cash Provided by (Used in) Financing Activities Net cash used in financing activities during the six months ended June 30, 2026 was $101.3 million, which was primarily due to $161.6 million used to pay the employee portion of taxes related to the net share settlement of equity awards, partially offset by proceeds from option exercises of $47.3 million and proceeds from the issuance of shares of Class A common stock under our 2025 ESPP of $13.2 million. Net cash provided by financing activities during the six months ended June 30, 2025 was $15.8 million, which was primarily due to proceeds from option exercises of $20.7 million, partially offset by $3.5 million used to pay deferred offering costs and $1.4 million used to pay for issuance costs on the Revolving Credit Facility. Critical Accounting Estimates Management’s discussion and analysis of our financial condition and results of operations is based on our condensed consolidated financial statements and the related notes thereto, which have been prepared in accordance with GAAP. In preparing the condensed consolidated financial statements, we apply accounting policies and estimates that affect the reported amounts and related disclosures. Inherent in such policies are certain key assumptions and estimates made by management, which we believe best reflect our underlying business and economic conditions. Our estimates are based on historical experience and various other factors and assumptions that we believe are reasonable under the circumstances. We regularly re-evaluate our estimates used in the preparation of the condensed consolidated financial statements based on our latest assessment of the current and projected business and economic environment. By their nature, these estimates and judgments are subject to an inherent degree of uncertainty and actual results could differ materially from the amounts reported based on these estimates. There have been no material changes to our critical accounting policies and estimates as compared to those described in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” set forth in our Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the SEC on February 18, 2026. 50 Recent Accounting Pronouncements See the section titled “Description of the Business and Summary of Significant Accounting Policies” in Note 1 “Description of the Business and Summary of Significant Accounting Policies” of the notes to our condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information. JOBS Act Accounting Election We are an emerging growth company, as defined in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). Under the JOBS Act, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. The JOBS Act provides that an emerging growth company can take advantage of an extended transition period for complying with new or revised accounting standards. This provision allows an emerging growth company to delay the adoption of some accounting standards until those standards would otherwise apply to private companies. We have elected to use the extended transition period under the JOBS Act until the earlier of the date we (1) are no longer an emerging growth company or (2) affirmatively and irrevocably opt out of the extended transition period provided in the JOBS Act. As a result, our financial statements may not be comparable to companies that comply with new or revised accounting pronouncements as of public company effective dates.