Figma raised its full-year revenue forecast on Thursday after first-quarter results beat expectations, with growth in AI tool adoption helping convert users to paid plans and expand usage across large enterprise customers.
The design software company now expects 2026 revenue of between $1.422 billion and $1.428 billion, a $55 million increase from its prior guidance, the company said. For the second quarter, Figma guided for revenue of $348 million to $350 million. First-quarter revenue came in at $333.4 million, up 46% year over year, accelerating from 40% growth in the prior quarter. That beat analyst expectations of $313.2 million, according to Reuters.
The central question heading into the quarter was whether customers would pay for AI features once Figma began enforcing credit limits. The monetization shift came into effect on March 18, when customers who consumed more AI features than their subscription tier covered were required to purchase additional credits. Among the Organization and Enterprise customers who had been using AI features beyond their included allotment, over three-quarters kept buying credits once billing began, and as of April 30, roughly 95% were still using the platform, according to the company.
"Our outperformance in Q1 was fueled by stronger than expected seat expansion across entire organizations, driven by design's growing importance and adoption of our AI products including Figma Make, MCP, and Figma Weave," CFO Praveer Melwani said in a statement.
Other customer metrics also strengthened. The company's net dollar retention rate climbed to 139% by March 31, a three-point sequential gain that pushed the metric to its strongest reading in over two years. The number of paid customers grew 54% year over year to about 690,000. The count of accounts generating over $100,000 in annual recurring revenue rose 48% year over year to 1,525, and sign-ups at the entry-level Pro tier more than doubled and a half — up over 150% year over year — a gain Figma tied directly to its expanding AI toolset.
Weekly active users of Figma's Model Context Protocol, a feature that lets AI coding agents interact directly with Figma files, quintupled compared with the previous quarter. Among large accounts, those that adopted the MCP server added seats at roughly 70% the pace of comparable customers who had not yet used the feature.
Stock-based compensation of $169 million pushed Figma's GAAP net loss for the quarter to $142.4 million. Stripping out that and other non-cash items, the company generated $52.1 million in operating income, a 16% non-GAAP margin, and converted $88.6 million into free cash flow.
Figma also faces competitive pressure from AI-powered design tools. Asked about Anthropic's Claude Design, CFO Praveer Melwani did not downplay the risk in comments to Reuters: "When you talk about a Claude design... you can't dismiss them, their ability to train first party models and couple those with their own products is something that we definitely are paying attention to."
CEO Dylan Field framed the company's positioning around the value of design work in an AI environment. "When code is a commodity, design is the competitive edge — the craft, point of view, and human judgment that make a great product rise above the rest," Field said in a statement.