Hello followers! Today, I’m excited to share the latest scoop on Figma’s journey towards a big debut on the stock market.

Figma, a popular design software firm, recently submitted its financial details to regulators, bringing it closer to launching its initial public offering (IPO). While some specifics like the number of shares and price are not yet disclosed, experts believe Figma could raise approximately $1.5 billion through this move.

The confidentiality filing reveals impressive financial growth. In 2024, Figma earned $749 million, marking a 48% increase from the previous year. Early 2025 shows continued strength with a 46% year-over-year revenue growth. Its latest 12-month revenue stands at $821 million with a gross margin of 91%. Despite hitting a big loss of $732 million in 2023, largely due to employee stock compensation costs, the company returned to profitability in late 2024 and early 2025.

Figma’s debt situation is nearly non-existent, with the company indicating it has no significant borrowings. Key insiders, including co-founder and CEO Dylan Field, control around 75% of voting rights, with familial trusts holding significant voting power as well. Some executives, including Dylan Field, have liquidated shares recently, with cash-outs reaching $20 million last year.

On the competitive side, AI advancements pose risks, as new upstarts targeting design and coding with AI tools grow rapidly. Figma is developing its own AI features, but acknowledges that rapid technological changes could impact its market position. Major investors backing Figma include renowned firms like Index, Greylock, Kleiner Perkins, and Sequoia. Together, these factors paint a picture of a fast-growing company with massive potential, yet with some industry challenges ahead.