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In what appears to be the most extensive public offering in the history of design software, collaborative design software Figma is poised to open its IPO for a potential listing on the New York Stock Exchange (NYSE).

The platform, which was previously planned for acquisition by rival software giant Adobe, is set to challenge what lies ahead for the future of the design software industry amid the rise of other collaborative platforms, such as Canva.

What We Know of this Planned IPO?

Figma has officially filed its Form S‑1 registration statement with the US Securities and Exchange Commission, signalling its long‑planned move toward an initial public offering on the New York Stock Exchange under the ticker 'FIG'.

The S‑1 discloses robust financials: $749 million (£549.71 million) in 2024 revenue (a 48% year-over-year increase) and $228 million (£167.33 million) in Q1 2025 (up 46%), with Q1 net income reaching $44.9 million (£32.95 million) after a net loss of $732 million (£537.23 million) in 2024.

With underwriters including Morgan Stanley, Goldman Sachs, Allen & Company, and JPMorgan, Figma's IPO sets the stage for one of 2025's most anticipated tech debuts, even as key offering details remain pending SEC review.

More on Figma's Q1 Performance

In its Q1 Form S-1 filing, Figma also reported annual recurring revenue (ARR) of $913 million (£670.07 million) and trailing-twelve-month (LTM) revenue of $821 million (£602.55 million), reflecting robust, subscription-driven growth.

Impressively, over 1,000 customers now generate at least $100,000 (£73,392.50) in ARR, marking a 47% year-over-year increase, according to the company.

Moreover, enterprise adoption remains strong: 78% of Fortune 500 companies now use Figma, and two-thirds of its 13 million monthly active users are non-designers, signalling deep cross-functional integration.

Net dollar retention stands at 132%, and gross retention hits 96%, underscoring exceptional customer loyalty and successful upselling across its expanding product suite.

Background on Previous Acquisition Offer from Adobe

It is worth noting that in September 2022, Adobe announced a blockbuster $20 billion (£14.68 billion) offer to acquire Figma, aiming to integrate Figma's collaborative design tools into its Creative Cloud suite.

However, strong objections from the European Commission and UK Competition and Markets Authority, which warned the deal could significantly diminish competition in design software, ultimately halted the merger.

By December 2023, both companies mutually agreed to terminate the deal, with Adobe paying a $1 billion (£733 million) breakup fee. The fallout reinforced Figma's independence and signalled regulatory vigilance, while Adobe shifted focus toward AI innovation rather than acquisition.

Figma's Rising Market Share

Figma has positioned itself as one of the leaders in the design software industry, commanding approximately 40.7% of the market share, outpacing competitors such as Adobe XD and InVision.

In 2023, approximately 90% of UI/UX designers used Figma, while legacy tools, such as Sketch, accounted for roughly 4.5%.

This dominance highlights a significant shift in the design landscape—Figma's browser-based, real-time collaboration capabilities have become the go-to choice for both teams and individuals. It has secured its place as the top design platform, illustrating a clear departure from traditional desktop tools.

For anyone evaluating design software today, these numbers make one thing clear: Figma isn't just popular—it's setting the standard. Its market leadership reflects not only widespread adoption but also a deep integration into the workflows of modern designers and organisations.

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