Figma, Inc (NYSE: FIG) shares slid 18% to $55.75 in midday trading on Thursday even as the design software seller reported slightly better than expected financial results for its second quarter 2025.
Figma’s revenue for the period rose 41% year over year to $249.6 million, narrowly exceeding the $248.8 million consensus analyst forecast, according to LSEG.
Its adjusted earnings per share for the quarter, meanwhile, came in at $0.09, edging past the $0.08 per share estimate.
Figma also reported a 129% net customer retention rate, down from 132% in its first quarter.
"The combination of lofty expectations that are not handily exceeded, a very high valuation in absolute and relative terms and worries over an increase in the free float upon expiry of a post-IPO lock-up would be a challenge for any company's share price, and Figma's seems to be no different," AJ Bell investment director Russ Mould told Reuters.
Figma shares have lost more than half their market value since closing at $115.50 on their first day of trading in July.