FIG 1Q26 - Figma Wears Prada

Research evidence excerpt

FIG 1Q26 - Figma Wears Prada

surprise in the quarter,

mgmt. flagged MCP strength. Users are building meaningfully on top of it, and it is acting as a seat upgrade catalyst

as customers move up plans to access higher rate limits.

Credit monetization. On customer reception to overage charges, management pointed to the disclosed 75% Org/Ent

continued usage stat as evidence that customers are embracing the model rather than experiencing sticker shock. They

expect credit consumption to continue trending higher. To ease friction, management is leaning into pay as you go

contracting. They also reiterated that credit monetization largely tracking ahead of internal expectations.

Outlook. Management explained that main unknown in the guide is the maturation of new product surface areas, where

COGS drag could be acceptable if it is driving conversion. They want to maintain flexibility to keep investing across

surfaces (Figma Make, Weave, etc.) and pointed to the operating margin guide as the accountability metric. Mgmt also

noted they have demonstrated levers to manage GMs (for example last quarter they grew usage materially while

keeping GM acceptable) and can pull efficiency levers when needed. On Revenue guide, mgmt. noted that raise are based

on early indications, with confidence grounded in various metrics and strength they've shown (e.g. 55% Y/Y customer

growth, 10k+ customers adding licenses at renewal.)

FCF. Mgmt. noted that top line beat flowed through to FCF faster than to operating margin, with billings and collections

running ahead.

Exhibit 1: Results vs. Consensus

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