EQUITY RESEARCH — DEEP DIVE

Figma, Inc. (FIG)

Sector: Information Technology / Application Software |
Published: 2026-07-01 |
Pages: 6

Price at publication: $18.09 | Market cap: ~$9.6 billion

Themes: Post-IPO busts Quality compounders AI disruption & adaptation Software (SaaS)

Executive Summary

Figma is the category-defining, browser-native collaborative design platform — a rare, high-quality software franchise growing revenue north of 40% at roughly 90% gross margins, with a 139% net-dollar-retention rate and positive free cash flow. It is also one of the most violent boom-and-bust stories of the current IPO class: priced at $33 in July 2025, it opened at $85, closed its first day above $115 (a ~250% pop that valued the company near $68 billion), and has since fallen roughly 85% to the high-teens — below both its IPO price and its 2024 private mark. This report works through the gap between a wonderful business and a still-demanding price: the financial history (and why the headline GAAP losses are almost entirely one-time IPO stock-compensation charges), the Adobe episode that anchors the asset’s scarcity value, the peer-relative valuation, the founder-controlled governance, and the central debate over whether AI ‘vibe-coding’ tools threaten Figma’s design workflow or become its next growth engine.

What’s Inside The Full Report

  • 15-year financial summary table — revenue, net income, GAAP & adjusted EPS
  • Valuation framework — current multiples vs. 5-year historical range
  • Peer comparison table — multiples, margins, balance-sheet metrics
  • Base case, bull case, bear case price targets with explicit math
  • Competitive position and economic moat analysis
  • Management and capital allocation track record
  • Balance sheet review — leverage, credit ratings, distribution coverage
  • Insider activity — recent open-market buys / sells with interpretation
  • Strategic acquisitions and divestitures history
  • Sell-side consensus and where TTCM differs
  • Detailed risk factors specific to the name
  • Bull case and forward catalysts to watch
  • TTCM rating with explicit ADD / TRIM price triggers

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T&T Capital Management LLC is a registered investment adviser. The research presented here reflects the firm’s opinions and is not personalized investment advice. Past performance is not indicative of future results. Form ADV available at adviserinfo.sec.gov.

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