Q4 2025 Earnings Call — February 18, 2026
Arjun Bhatia (William Blair): Perfect. Thank you so much, and congrats on a very strong end to the year here. Dylan, if I can ask one just kind of philosophical question if we just step back a little bit. You know, we've had, I think, a lot of noise made in the market about agentic layer offerings like PlotCowork and even OpenPla. And I'm curious... your perspective on what that means just for UI UX broadly? Like, does it make it more of a differentiator? Do you think like user interface gets pushed to the back as this new agentic layer emerges? Like what are sort of the puts and takes and the dynamics that you're thinking about as these new tools emerge?
Dylan (Executive): Yeah, absolutely. Thank you for the question for joining us today. So, yeah, I think right now, if you're willing to hand off mission critical work to agents and just let them do it unsupervised, you know, you're a very brave person. But that joke aside, I think it is the case that humans will continue to use software and increasingly agents will too. And I'm excited about that. I think that this creates more surface for designers to work with and design and think through. I will say that I think that the discourse around UI and how agents will change UI or not change UI, it is a bit extrapolating from current state. Humans are really hardwired to think and process information visually. Even as agents take on more work, people still need to understand, audit, trust what's happening. And that requires visual interfaces that are human readable. Lastly, I would just say that we're going to see new interaction paradigms emerge here. and they'll have to be thoughtfully designed, adopted. For example, I think about Figma's multiplayer interface for Figma design in our canvas and how humans work alongside other humans.
And I think that we'll see agents also working alongside humans, both synchronously and asynchronously. And that again, will lead to more intentionality around how to design software and what the surfaces are you need to design in the first place. And in a world where coding is just no longer a constraint, design, craft, point of view, that's the differentiator. And I'm really excited for that future.
Arjun Bhatia (William Blair): Perfect. It's a very helpful color. Thank you. And then, Praveer, I had one for you. Obviously, it seems like the business is firing and also unders you've had growth acceleration in Q4 and are ticked up. This is all happening before your credit consumption monetization kicks in. And so I'm just curious, as you think about the 2026 guide, how are you benchmarking the range of outcomes from credit monetization post-March?
Praveer (Executive): Yeah, I appreciate the question, Arjun, and good to hear from you. You know, I think if I take a step back for a second, just think about what we've been doing as we've embedded AI across the entirety of our product suite. You know, everyone from a user who's a starter user on a free plan has access to credits that we've embedded within their seats. So, you know, for some time now, we've already started to see usage ramp. We shared in the prepared remarks about 75% of our 10K plus customers today are actually consuming credits on a weekly basis. And, you know, this is an evolving number because we continue to introduce new AI features and surfaces that continue to draw an ever increasing number of credits over time. You know, we based our guidance on an understanding of, you know, current observed seat adoption behavior and usage trends. You know, we expect that to be refined as we both introduce new surfaces, as well as really start to navigate that point after we've begun to enforce our seat limits. You know, there's an opportunity here to overperform as we build confidence in the observed use usage behaviors, but we'll continue that to add additional value to our users along the way. So, you know, we're excited here. I think we feel, you know, we've got some, you've got a whole bunch of irons in the fire here and, you know, we'll continue to refine our focus and story in the coming quarters.
Michael Turin (Wells Fargo): Hey, great. Thanks. Appreciate you making time, Dylan. I'd be remiss if I didn't start with another bigger picture question for you. The stats you're giving on make seem to be hinting at new user types. Can you just speak to what you're seeing from customers using make and the user types that you're seeing? I think it'd be interesting to hear you just articulate on if this could be actually seed expanding for Figma in a world where investors are concerned around seed compression in most places.
Dylan (Executive): Yeah, thank you for the question. And it's definitely something that we're excited about in tracking. As Praveer mentioned in his remarks earlier, we are seeing customers that are bringing, for example, product managers into the lifecycle. And certainly as we use Figma Make, not just internally, but also witness with some of our customers, internal tools, which can mean all sorts of different personas, are quite interesting. So I think that overall, there's a lot of opportunity to start to reach into use cases like UX researchers and other use cases around the team as well. And with that said, I think that there's much more to do here, and we're excited to go do that.
Michael Turin (Wells Fargo): And just as a follow-up, Praveer, I've gotten some questions on just the free cash flow comment you made in terms of the guide. Are you saying dollar amounts similar to operating income? And if so, that's, I think, a bit lower than we were forecasting. So just... Any comments, Aaron, if that's kind of make consumption-based or just what the drivers in that comment were? Thank you.
Praveer (Executive): Yeah, I mean, I think there's a few things that will occur this year that are different from last year. And as we transition and as we continue to invest in the business, that was the spirit of the comment. So, you know, this will be a full year of us serving our AI features. We GA'd them in the summer of last year. And as we start to see the continued ramp there, you know, the expectation on what it does to margins is what we folded through the guide. So I think what is starting to get interesting here is as we start to introduce yet another monetization lever for us in the introduction of our AI credits, it starts to create a little bit more of a natural offset there over time. So I think we'll share more with you guys as we start to observe it. But right now, I think that's the best way to model it today.
Keith Weiss (Morgan Stanley): Excellent. This is Keith Weiss sitting in for Elizabeth Porter. Thank you guys for taking the question. And congratulations on a spectacular end to what was a great year for Figma in 2025. Two questions, one for Dylan, one for Praveer. For Dylan, you announced an exciting new integration with Claude and Anthropix doing a lot of great innovation. But investors are somewhat worried about kind of letting the fox into the hen house, if you will, and trying to figure out where the dividing lines are of what is part of the equation that are going to remain solely within kind of the Figma context and what is anthropic going to be able to do. Do you guys, like, how do you guys see that question? Like, how do you see the dividing lines between what is in the wheel well of Figma and is always going to be in the wheel well of Figma versus what cloth or what entropic brings to the equation?
Dylan (Executive): Yeah, thank you for the questions, and I'll start off with the first one. I would just say first that one thing that is interesting is how virtually every Frontier lab is using Figma to design how they bring their models to users and shape their product surfaces. And they are also been great partners with us. So, you know, that has been just interesting to see firsthand. I think zooming out, our AI strategy is pretty simple. We always want to be in a place where as models get better, Figma gets better. And, you know, easy to say, but you have to make sure that that is the case for everything we do. And also that we can have an edge. And I think that one thing that answers your questions directly is around sort of where are the lines between is I would focus on tasks which are more verifiable versus nonverifiable. Design is inherently non-verifiable. And I think that's why you're going to see humans in the loop and even more focus on design as well. Because as code becomes something that more people can do with the assistance of models, the value will move up the stack. And with the value moving up the stack, I believe we're going to see an even greater focus on design. And we're already seeing it, I think, with the hires people are making and the ways that non-designers are getting involved in the design process.
Praveer (Executive): Yeah, and I'll answer your question on pricing and packaging there. So, you know, just
as a reminder, we're about three quarters out of the initial rollout of the changes that we implemented in March of last year.
So, you know, the way that this is going to track to revenue as folks are filtering in through the renewals, you have a growing benefit there over the course of the year. We lapsed that anniversary in March of this year, and then you'll start to see a waning benefit towards the backup of this year. So it's a little bit like a bell curve there where it grows over the first four quarters, and then it'll wane over the next four.
Gabriella Borges (Goldman Sachs): Hi, good afternoon. Thank you. I want to follow up on the conversation on Figma Make and ask specifically about some of the competition that you're seeing in the prototyping space. Give us a sense of what you're seeing in terms of perhaps consolidating budget within your customers away from other prototyping solutions. But I'm still seeing fragmentation in that world where customers maybe use multiple tools for prototyping and then pull them into Figma when they're ready to go to the next phase of the design process. Thank you.
Dylan (Executive): Yeah, thanks for the question. I think that some of the broad strokes we're seeing are really around the power of using Figma make alongside Figma design. And, you know, one stat that we shared in the earnings call is how over 80% of full seat users of make are also using design. So I think that is an area that as we look ahead, we're really excited to lean into more is to really try to unite these surfaces better. We've seen it already with things like copy layers from Figma make into Figma design or taking embeds from Figma make and putting them into Figma design. But this is just the start. And I think that there's so much more we can do here. And a big part of the platform differentiation we'll have will come from the unification of the surfaces. I also think that it's really important to remember that the round tripping between code and design can really set us apart here. And I am just very bullish on the opportunity that could exist with that round trip.
Gabriella Borges (Goldman Sachs): Yeah, that'll make sense. Thank you. And the follow-up, either for yourself, Dylan, or for Praveer. I'm curious the budget implications. When you see a customer go all in on Figma, what does that mean for how they're thinking about labor resourcing versus software resourcing? One of the things we've noticed as well, you put more powerful engineering-type design tools into the hands of designers who may not know how to code. So how does the mix change between design-focused designers versus engineering-focused designers, if that makes sense? We'd just love to hear observations broadly on implications of Figma adoption for a customer design and labor budget.
Dylan (Executive): Yeah, I'll start first. I think that, you know, some people are starting to call themselves design engineers. We've seen that in the past as well. You know, there's been sort of surges around even eight, nine years ago, people getting really excited about calling themselves design engineers and then kind of went back to product design. And now that term is coming up again. But I would say overall, we're not really seeing the roles blurring, more the responsibilities blurring between roles, not just between design engineering and design, but the roles more broadly. As you go out to the product design and lifecycle, PM, engineering, design, research, and marketing even, responsibilities are starting to blur. People are feeling the need to be more generalist. So I think that it's hard to split in a very accurate way because so many people that are non-designers by title are starting to really engage with design tasks. But I'll hand it to Praveer to speak more.
Praveer (Executive): Yeah, and then I think, you know, as it relates to the sales process and who we're having conversations with, I think we've, you know, over time elevated the conversations to, you know, to IT that gives us access to broader budget. You know, and when you then kind of look at the types of users that we're bringing in, there was a few that we spoke about in the prepared remarks that, you know, the ones that stand out, or rather the one that stands out to me is the hyperscaler that doubled their footprint with about a quarter of their new seats going to product managers. And this is not a, you know, unique instance. We're starting to see this happen more and more so throughout the customer base. And so our expectation is that, you know, we're pitching wider, we're pitching broader, and it's the overall platform that's ultimately winning here.
Rishi Jaluria (RBC): Oh, wonderful. Thanks so much for taking my question. Maybe two, if I may. First for Dylan, you know, just kind of expanding on some of the dialogue that, you know, you have mentioned that a lot of kind of next-gen AI companies and AI labs are working with you, and you've talked about some of the NCP integrations you have with Anthropic and others. How do we think about the opportunity for you to, over time, start building out more formal partnerships with them, having, you know, maybe even deeper integrations or, you know, kind of joint product development, maybe if that's getting a little far. Maybe just help us understand what does that potential partnership opportunity between you and some of these other AI natives look like in terms of enabling success in your customer base? And then I've got a quick follow-up for Praveer.
Dylan (Executive): Sure. So I think that right now, as we think about our core with design, and just the opportunities that models provide as they advance with code, that is a big part of our focus. And the opportunity to partner deeply and to really make sure that we are thinking the right ways about how models will continue to have new capabilities in the future, and then to make sure that we are accounting for that in our product roadmap, as well as working closely and integrating well with various model providers is something that we paid a lot of attention to. I think going forward, as we think about some of the things we've seen with, you know, for example, Figma's apps on ChatGPT, as well as Claude, there is definitely stuff that we'll explore there as well. But I think it is maybe secondary to the primary objective of just having that amazing ability to work and go from code to Canvas and Canvas to code and back again. That round trip is what we're really focused on and making sure that we are always meeting the criteria of as models get better, we're getting better.
Rishi Jaluria (RBC): All right, very helpful. And then, Praveer, in your prepared remarks, you closed out by talking about March is kind of when we're going to start seeing this more mix between subscription and consumption, more of a hybrid approach. It's very consistent with what you've talked about before and how the landscape seems to be shifting. Maybe as we think about that mix, two pieces. Number one, how do you expect, given some of the early traction you're having, with your AI-native SKUs? How do you expect that mix to shape over time? And then alongside that, what tools in your arsenal do you have to at least have visibility and predictability into future revenue so the model itself doesn't become overly volatile as we navigate through this change? Thanks so much.
Praveer (Executive): Yeah, no, I appreciate the question, Rishi. You know, I think the way that I'd frame it is, you know, we've already started studying this usage and utilization behavior, you know, and, you know, we've been prepping for this hybrid model for some time. You know, we basically have telemetry into, you know, the overall seat, rather the overall credit consumption on a per seat basis. And what we've observed is it tends to be, you know, a power law distribution where, A subset of users within an organization are receiving outsized value and as such are going over the projected limits that we intend to enforce. Now, our expectation is that that will continue to evolve as we introduce more services for folks to be able to draw down credits. We'll create more opportunities for us to continue to shift that distribution further and further right. The way that our AI add-ons are structured, they're structured as additional consumption packs, in addition to providing folks the opportunity to pay as you go. So in the instance that you're purchasing an add-on pack, it co-terms with your subscription and we have more predictability in that scenario. And on the pay-as-you-go side, you know, that is more meant to be for birth-type activity. So ultimately, it'll be a mix. We're studying it very closely. And I think, you know, as we get post the actual modernization date is when we'll be able to further refine our assumptions.
Billy Fitzsimmons (Piper Sandler): Hey, guys. Thanks for taking my question. The FY25, or the FY26, I should say, revenue starting point was well above expectations. If I look at the operating income guidance, midpoint implies, I think, 7.7% non-GAAP operating margins compared to, I think, 12.3% in 2025. Just as we think about the drivers of this, what's kind of the breakdown between expected gross margin compression from AI investments and the AI product frame versus maybe some incremental investments you plan on making on the OPEX line. And I know you don't guide to it, but any directional commentary on kind of gross margins in 2026.
Praveer (Executive): Yeah, I think your point on us continuing to invest on the AI side is what's showing up flowing through both through gross margin and ultimately will hit our op-inc and op-margin there. At this moment, we're not sharing more specifics on the gross margin side, but it is meant to signal that we do see that there's a pretty large opportunity for us to take more AI features to a broader set of our users. And so that's what we've used in our guide to express our confidence and excitement to further invest here, ultimately with the goal of driving, you know, growth and ubiquity of many of our solutions and durable growth over the long term.
Dylan (Executive): Yeah. I was going to add, like, if there's ever a time to put your foot on the gas and make sure that we are leaning into the future, this is the time. So I just want to be clear about that. We can intend to invest here, do so responsibly, but make sure that we are setting ourselves up to capture the opportunity in front of us, which we think is very sizable.
Jack McShane (Stiefel): Yeah, hi, this is Jack McShane on for Parker. Thanks for taking my question. Dylan, I'd love to hear you, you know, compare and contrast the benefits of your new quad code integration and Figma Make. Do you, you know, have any early indication on how customers are going to leverage all these tools that take you from zero to one in the design process? And what when will a customer be using you know the quad code integration versus make is it usually is it going to be a user preference thing or you know will some projects be more relevant to one or the other?
Dylan (Executive): Yeah, I mean I think it's... there's plenty of times where I hypothesize but it's probably not the format for a hypothesis. And I would say that overall, you know, this is very much in the too early to tell camp. We just launched this yesterday. And so I am excited to learn more, but right now we're still at a very early place here. I think though that if you look at the workflow overall, it used to be the case, for sure a year ago, perhaps even six, nine months ago, that a lot of people saw the workflow of product development as very linear. And you would do stuff like brainstorming and then design and then you'd code. And right now we're seeing it in a place where people might start anywhere and they wouldn't be able to go everywhere. And so I think this plays directly to our strengths, right? making it so that you can really go into the Figma design canvas. And in the case of Make, really couple up Figma Make with Figma design and make it so that you can go and explore divergently and really have that bird's eye view, zoom out and understand what's possible. The way I think about it is you're sampling this infinite possibility space.
And you're trying to determine what are the right options to go explore in that space and then push them forward with design. And I think that you can do that through code. You can do that through design. But code is more linear. It's more you're really advancing one direction. And so you might be moving fast, but make sure you go into the right place before you go too far. Whereas design, you're really thinking about what are the range of possibilities I should explore and you're weighing them and figuring out the trade-offs. And I also think the opportunity for polish and craft and design is quite high. And that gets me very excited because we've really tried to make sure that direct manipulation works so well in Figma design. And the opportunity to use your hands and just be in a state of flow, I think, is a big opportunity for our customers. And it's so much more efficient than prompting a lot of examples. Overall, I would say Figma has the opportunity to be the place where all this comes together. The round trip, the direct manipulation, the divergence of different possibilities, as well as picking a solution and then saying, okay, I want to go code this up.
Maybe that goes back into the, you know, agentic development environment or IDE of your choice, or maybe in the future with longer running agents and increasing model capabilities, you can just do that from Figma design. So we'll see how the future evolves. Hard to predict when these capabilities come online, but we're really excited about our position here.
Jack McShane (Stiefel): Yeah, thanks. That was really insightful. And then just one more quick one from me. Obviously, you know, the four products you launched last year, rightfully so, you know, make is getting the bulk of the attention. But I'd be curious to get an update on draw, buzz and sites. You know, what's the usage been like, the feedback? And, you know, has there been any key, any big surprises, you know, since they've gone to market?
Dylan (Executive): Well, I would say for Make, obviously, you know, getting tons of attention, you notice that. And then as it comes to Draw, Buzz, and Sights, I would say that Draw, I mean, definitely the engagement with some of the features we mentioned in the prepared remarks has been really encouraging. And then I would, around Buzz and Sights, I would say these products are still early in their life cycle. And so we are definitely learning a lot here from our users, as we always do. And we're seeing promising early traction. And while I don't have numbers to share, I think that there are definitely customer examples. For example, one is from a Mag7 customer where with their creative team, they've really been able to run a global holiday campaign through Figma Buzz and produce just an incredible amount of assets, I think over 5,000 across 30 countries. And for the amount of scale you can get from Buzz, and also in some ways from Weevy too, which is a different use case but has shared properties, we are really excited about how you can actually go create workflows for people.
When it comes to sites, I would just say that there is a real need on the workflow side of going from a design in Figma design to something that is published on the web. And that workflow need is incredibly important. And we're excited to help people go from design to production in general, but this is a very particular path. And whether it's Figma Sites or Figma Make, we're really watching closely how customers are completing that journey in Figma. And more broadly, across all these products, we're watching the way that people use them, making sure they have what they need, and also paying attention to the constantly changing environment and landscape that we're in, and so that way we can plan and build accordingly.
Alex Zukin (Wolf Research): Hey, guys. Thanks for taking my question. I've got, Dylan, maybe one for you and then one for Pravir. Building on some of the earlier questions that are at a high level, you have had the labs as customers, or you have them as customers. They're deep partners. You're watching from the front row in terms of how the entire software supply chain is changing. What products or what usage maybe has surprised you, Dylan, to the upside? I mean, maybe specifically on dev mode and make. And holistically, how are you thinking about tailwinds to growth from these products in fiscal 26?
Dylan (Executive): I'm going to quick follow. I'll actually punt that one to Purveyor. I mean, there's a bunch of them that I'm excited about. You know, I think we called out some of the momentum on make there. We grow our weekly active users 70% quarter over quarter. And, you know, we start to see the adoption across our larger customers. So, you know, the 100K plus customers going from 30% creating a make up to about 50% by the end of the year there. You know, when I stare at DevMode, I think DevMode continues to be a very, very important part of the overall workflow. We see excitement, not just from our, you know, from folks that are upgrading for the seat, but for folks that want to make use of DevMode MCP. It's an emerging trend that we found is really resonating with our customers. We now have this opportunity, a really round trip, given the integration partnership we launched with Cloud Code to the Canvas yesterday. And our hope here is that what we're taking to our customers is a full product platform and suite. And as we do so, it gives us an infinite number of ways to position how these things kind of come together.
Praveer (Executive): Got it. And then Praveer, maybe just for you specifically on Figma Make, what's in the guidance? Is it possible to think about, make, or compare and contrast that contribution to growth relative to pricing in fiscal 25? Do you think it's going to be more or less? And are there any pricing tailwinds still contemplated in fiscal 26 in the guide?
Praveer (Executive): Yeah, maybe I'll start with the backup of your question there. You know, we're still going through the last set of renewals here that are folks that are renewing onto the new pricing and packaging that we launched in March of last year. So, you know, we'll anniversary that in March of this year, which just so happens to coincide with the launch of our make add-ons and credits. The way that we framed how make shows up and broadly our AI features show up in our guide is we baked it based off current utilization and adoption trends, both on seed adoption trends, in addition to credit utilization patterns and trends. What we expect to see is as we introduce more surfaces for folks to be able to draw down credits, that we'll start to see more and more folks that would potentially land in the camp of needing an add-on. So what I would expect over time is that, you know, it's not necessarily going to be a fire out of the gate, but a slow build here with us wanting to make sure that we're really serving our users and meeting their needs. And then, you know, the onus is on us to continue to deliver value over the long term.
Management: And everyone, unfortunately, that is all the time we have for questions today. This does conclude our conference. We would like to thank you all for joining. You may now disconnect.