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Figma files for $1.5 billion IPO on NYSE after Adobe acquisition collapse

Design platform targets public listing with 46% quarterly revenue growth amid competitive AI landscape.

Luis Rijo

• 5 min read
Figma collaborative design platform showing multi-user interface with Netflix streaming app design workflow
Figma collaborative design platform showing multi-user interface with Netflix streaming app design workflow

Collaborative design software company Figma filed registration paperwork with the Securities and Exchange Commission on July 1, 2025, for an initial public offering on the New York Stock Exchange under ticker symbol "FIG." The San Francisco-based company disclosed plans to go public following the collapse of its $20 billion acquisition by Adobe in December 2023.

According to the S-1 filing, Figma generated $749 million in revenue during 2024, representing 48% year-over-year growth. The company's first quarter 2025 revenue reached $228.2 million, marking a 46% increase from $156.2 million in the same period of 2024. Figma reported net income of $44.9 million for the first quarter, compared to $13.5 million in the prior year.

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Summary

Who: Figma, a collaborative design software company founded in 2012 by Dylan Field and Evan Wallace, backed by venture firms including Index Ventures, Greylock Partners, Kleiner Perkins, and Sequoia Capital.

What: Filing for initial public offering on New York Stock Exchange under ticker "FIG" with potential to raise $1.5 billion, making it one of 2025's largest technology IPOs.

When: S-1 registration filed July 1, 2025, following confidential submission in April 2025; timing for actual IPO depends on SEC review and market conditions.

Where: New York Stock Exchange listing targeting global public markets, with Morgan Stanley, Goldman Sachs, Allen & Company, and J.P. Morgan as lead underwriters.

Why: Company pursues public offering after $20 billion Adobe acquisition collapsed in December 2023 due to regulatory concerns, providing liquidity for employees and investors while maintaining independence in competitive design software market.

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The filing reveals Figma's rolling 12-month revenue as $821 million with a 91% gross margin. IPO experts from Renaissance Capital estimate the offering could raise up to $1.5 billion, potentially making it one of the largest technology public debuts of 2025. Morgan Stanley, Goldman Sachs, Allen & Company, and J.P. Morgan serve as lead underwriters for the transaction.

Figma's customer base includes approximately 450,000 organizations, with 1,031 customers spending $100,000 or more annually. The platform claims 13 million monthly active users across its design and collaboration tools. Notable enterprise clients include Amazon, Google parent Alphabet, Oracle, and Netflix.

The company operates through multiple product offerings targeting different aspects of digital design workflows. Figma Design provides interface creation capabilities with features like Auto Layout for responsive designs. FigJam offers collaborative whiteboarding functionality for team brainstorming and planning sessions. The platform introduced Figma Slides for presentation creation and announced upcoming products including Figma Sites for website building.

Dylan Field, co-founder and CEO of Figma, maintains approximately 75% of voting control through Class B shares carrying 15 votes each. Co-founder Evan Wallace, who departed the company in 2021, transferred voting rights to Field while retaining ownership through a family trust holding roughly one-third of super-voting shares.

The IPO filing follows Adobe's terminated acquisition attempt, which faced regulatory scrutiny from competition authorities in the United Kingdom and Europe. Officials expressed concerns the merger would reduce competition in the design software market. Adobe paid Figma a $1 billion termination fee when the companies abandoned the deal in December 2023.

Following the acquisition collapse, Figma raised funding in July 2024 at a $12.5 billion valuation through a tender offer that allowed employees and early investors to liquidate portions of their holdings. The valuation represented a significant discount from Adobe's $20 billion offer. Venture capital firms Index Ventures, Greylock Partners, Kleiner Perkins, and Sequoia Capital back the company.

Figma's business model centers on subscription-based software-as-a-service offerings. The company provides tiered pricing from free accounts to enterprise plans customized for large organizations. Recent changes to pricing and packaging structures introduced in March 2025 created new seat types tailored to specific user workflows within product development teams.

The design software market faces increasing competition from artificial intelligence-powered tools that automate interface creation processes. Figma acknowledges this competitive threat in its filing, noting AI technologies evolve rapidly and could impact demand for traditional design platforms. The company has invested in AI capabilities, including generative features powered by Adobe Firefly technology and third-party language models.

Figma's financial position includes $1.54 billion in cash, cash equivalents, and marketable securities as of March 2025. The company reports negligible debt levels and maintains a revolving credit facility. Additionally, Figma invested $55 million in Bitcoin through a Bitwise exchange-traded fund, with holdings valued at $69.5 million as of March 31.

The filing indicates Figma completed multiple acquisitions during 2025, including purchasing technology assets for $14 million and acquiring a content management software company for $35.5 million. Design software startup Modyfi joined Figma in April, while content management platform Payload was acquired in June.

For marketing professionals, Figma's IPO represents a significant milestone in design tool consolidation. Adobe's failed acquisition attempt highlighted concerns about market concentration among creative software providers. PPC Land previously covered Adobe's competitive positioning as the company expanded its AI-powered marketing solutions.

The timing of Figma's public offering aligns with renewed IPO market activity. Recent technology debuts including Circle Internet Group and Chime Financial demonstrated investor appetite for growth-stage technology companies. However, Figma enters public markets amid uncertainty about AI's impact on traditional software categories.

Industry observers note Figma's collaborative approach differentiates it from single-user design applications. The platform enables real-time collaboration among designers, developers, and stakeholders throughout product development cycles. This positioning becomes increasingly relevant as marketing teams adopt more collaborative workflows for content creation and campaign development.

Figma's revenue growth trajectory reflects broader demand for design tools supporting digital transformation initiatives. Companies increasingly prioritize user experience design as competitive differentiation, driving adoption of collaborative design platforms. The shift toward remote work accelerated demand for cloud-based design tools that enable distributed team collaboration.

The competitive landscape includes established players like Adobe's Creative Cloud suite alongside emerging AI-powered design assistants. Startups such as Lovable target Figma's market with automated interface generation capabilities. Figma responds by integrating AI features while maintaining its collaborative workflow focus.

Regulatory scrutiny of technology mergers continues influencing market dynamics. The blocked Adobe-Figma transaction signals increased antitrust enforcement in software acquisitions. This environment may encourage more companies to pursue independent public listings rather than strategic sales to larger platforms.

Figma's financial metrics demonstrate the scalability of subscription-based design software. The company's 132% net dollar retention rate indicates existing customers expand usage over time. This metric reflects Figma's ability to grow revenue within its customer base as organizations adopt additional features and seats.

The IPO timing coincides with broader technology market recovery from pandemic-era volatility. Public investors show renewed interest in profitable growth companies with strong market positions. Figma's positive cash flow and minimal debt structure appeal to investors seeking sustainable business models amid economic uncertainty.

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