Figma (FIG) Stock Today - AI Lawsuit, Insider Sales, and a Fall Below IPO Price
Figma's first months as a public company are testing investor conviction. After peaking near $143 in August, FIG now trades just above its $33 IPO price and is carrying fresh legal and sentiment overhangs.
Here's what matters on November 23, 2025-and how to think about the setup from here.
Where FIG stands now
- Last close (Fri, Nov 21): $34.31 (+2.20% day move)
- Intraday range (Fri): $32.83 - $34.56; 52-week range: $32.83 - $142.92
- Market cap: ~$17.0B
- TTM revenue: ~$969M; trading at ~17-18× trailing sales
- GAAP TTM net income: about -$926M (distorted by IPO-related SBC)
- Non-GAAP Q3 operating margin: 12% with positive non-GAAP net income
- Analyst consensus: Hold; avg 12-mo target ~$65-68 (about 90-100% upside vs. Friday close)
- Performance: -37% month, -60% year, ~-76% from August peak
What's new today
- Valuation reset coverage: A fresh look at FIG's multiples after the drop concludes the stock is now cheaper but still not "cheap" versus SaaS peers. Growth in the high-30% range and strong gross margins support the case, but multiple compression risk remains.
- "Mispriced or time bomb?" debate: Another note frames FIG as a tug-of-war. Bulls point to Q3 beats, rapid AI-driven adoption, and multi-product usage. Bears focus on premium sales multiples that demand near-perfect execution.
- AI data-use lawsuit headlines: A proposed class action alleges Figma used customer designs to train AI. Figma says it does not train on customer content without explicit authorization and de-identifies data when training is approved.
The AI data-training lawsuit: what investors should weigh
The complaint, filed Friday in California federal court, claims Figma used customer IP to train its AI tools and benefited via faster growth and a richer valuation around the July IPO. The company strongly denies training on customer content without consent and says guardrails exist for any opted-in training sets.
At this stage, it's an allegation. The real impact is headline risk and uncertainty around three fronts: potential legal costs or product changes, trust with design teams, and a regulatory backdrop still forming for AI training data.
From Adobe's abandoned deal to a sub-IPO share price
Adobe agreed to acquire Figma for ~$20B in 2022 but dropped the deal in December 2023 after antitrust pushback, paying a $1B breakup fee. That cleared the path for an IPO.
Figma priced at $33 on July 30, 2025, raised about $1.2B, and briefly traded near $142.92 on day one. Since then, it has lost roughly $11B in market value from the peak and, on Friday, dipped below the IPO price before rebounding to $34.31.
Under the hood: the business is strong
Q2 2025: Revenue $249.6M (+41% Y/Y), GAAP operating income $2.1M, non-GAAP operating margin 5%, net income $28.2M, operating cash flow $62.5M with a 24% adjusted FCF margin. NDR for $10k+ ARR customers was 129%, with 11,906 customers over $10k ARR and 1,119 over $100k.
Figma expanded aggressively: launched Make, Draw, Sites, Buzz; acquired Modyfi and Payload; and saw a majority of customers using multiple products.
Q3 2025: Revenue $274.2M (+38% Y/Y), non-GAAP operating income $34.0M (12% margin), non-GAAP net income $62.4M (~$0.10-$0.11 EPS). GAAP net loss was ~-$1.1B on a one-time ~$975.7M SBC expense tied to the IPO. On an adjusted basis, operations were solid with record revenue and accelerating AI product adoption.
Why the stock is weak: supply and sentiment
Lock-ups: Figma structured staggered lock-ups with early releases if price triggers were met. A large tranche became sellable after Q3 earnings, with additional releases slated after FY 2025 and Q1 2026. More supply hit just as enthusiasm cooled.
Insider sales: CFO and CRO filed notable sales around early November, with the CRO reducing his stake by nearly 20% but still holding over 1.6M shares. The CEO reported ~3.0M Class A shares sold on Nov 17 (~$113M), described as primarily for RSU tax withholding, alongside a Class B to A conversion-typical of post-IPO mechanics.
Optics matter. Heavy C-suite selling into weakness, even if planned or tax-related, tends to weigh on confidence until the market finds a new equilibrium.
The valuation debate
At ~$17B market cap on ~$969M TTM revenue, FIG trades around 17-18× trailing sales and a triple-digit forward P/E. That's still a premium to many software peers.
Bulls argue premium growth, ~85% gross margins, and a durable product moat justify it-especially with non-GAAP profitability and expanding AI-native workflows. Bears worry that any growth wobble, legal drag, or macro shock could force another leg of multiple compression.
Bull vs. bear: what each side is watching
- Bull case: Sustain 30-40%+ revenue growth; maintain strong NDR; keep expanding non-GAAP margins; prove AI features (Make, Dev Mode MCP, etc.) deepen product stickiness; cash war chest (~$1.6B) supports R&D and M&A; and the current market cap sits below Adobe's prior private offer.
- Bear case: Premium multiples leave little room for error; continued lock-up releases and insider optics pressure sentiment; lawsuit adds regulatory and brand risk; competition in collaborative design and AI tools intensifies; path to durable GAAP profitability remains the core question.
What to watch next
- Next earnings (expected mid-March 2026): Q4 and full-year 2025 clarity on growth durability, margins, and a more concrete GAAP profitability path.
- Lawsuit progress: Early motions and any settlement chatter will influence how investors handicap legal and product-level risk.
- Lock-up calendar and insider activity: Additional sellable tranches after FY 2025 and Q1 2026 could be another supply wave if sentiment remains soft.
- Analyst revisions and AI traction: Watch target changes and any fresh metrics on AI feature adoption to see if Street conviction stabilizes.
Practical take for investors
If you're bullish, your thesis is simple: Figma compounds at 30-40%+, keeps expanding margins, and turns AI features into deeper wallet share. In that case, today's multiple can work.
If you're cautious, you're waiting for one of three signals: multiple compression closer to peers, a clean legal outlook, or proof of consistent GAAP profitability. Absent those, volatility and supply overhang could keep the stock range-bound.
Bottom line
Figma is a strong business wrapped in a fragile stock. Growth, margins, and product momentum are real; so are valuation risk, lock-up supply, insider optics, and a new AI lawsuit. Expect headlines to drive the next moves until the company delivers a few steady quarters and clears the legal fog.
Disclaimer: This article is for information and news analysis only. It is not financial advice, an investment recommendation, or a solicitation to buy or sell any security.
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