Figma (NYSE: FIG) delivered a quarter that validated the AI monetization thesis investors have been watching. Revenue hit $370.1 million, beating the $351.6 million consensus by 5.3% and climbing 48% year-over-year. This marked the third consecutive quarter of accelerating top-line growth. Non-GAAP diluted EPS of $0.08 doubled the $0.04 estimate. GAAP net loss per share, however, was $(0.21) as stock-based compensation of $147.6 million weighed on the statutory bottom line.
The beat was broad-based. Net Dollar Retention Rate held steady at 136%. Customers generating over $100,000 in annual recurring revenue reached 1,635, a 46% increase year-over-year. More telling: over 80% of customers with more than $10,000 in ARR are now consuming AI credits weekly. That usage data is the clearest signal yet that Figma's AI features are moving from novelty to habit within its installed base.
Non-GAAP gross margin fell to 85%, down 500 basis points from 90% a year ago. A compression that bears watching. The decline is partly structural. AI inference costs and the shift toward credit-based consumption carry lower gross margins than pure seat subscriptions. But the company's operating leverage story is intact. Non-GAAP operating margin hit 10%, double the 5% in Q2 2025, as revenue growth outpaced the pace of cost addition even with the annual Config conference inflating sales and marketing spend.
The guidance raise was the headline. Figma lifted full-year revenue guidance by $40 million to $1.463 billion to $1.467 billion, implying roughly 39% year-over-year growth at the midpoint. Q3 guidance of $373 million to $375 million implies 36% growth. That's a deceleration from Q2's 48% but still well above the 30% range many software peers are printing. Management also initiated full-year non-GAAP operating income guidance of $125 million to $135 million, or about 9% operating margin at the midpoint.
What the guidance signals is durability. Figma sees the AI credit monetization as lasting, not a one-time pull-forward. The company launched Code Layers and the Figma agent at Config. By July 31, over 50% of large customers were already using the agent weekly. That adoption velocity is unusual for enterprise software and suggests the agent is solving real workflow friction rather than being a feature toggle.
The GAAP picture remains messy. Stock-based compensation of $147.6 million in the quarter alone drove a GAAP operating loss of $(117.3) million and a GAAP net loss of $(112.2) million. Free cash flow of $53.2 million, while healthy at a 14% margin, was down from $60.6 million a year ago, partly due to higher capital expenditures and the timing of bonus payments. The company holds $1.7 billion in cash and marketable securities, giving it ample runway to keep investing.
The real story here is execution. Figma is managing the transition from a seat-based design tool to a platform where AI consumption drives incremental revenue. The 136% net dollar retention rate, combined with weekly AI usage by the vast majority of enterprise customers, suggests that the AI credits are expanding wallet share rather than cannibalizing seat revenue. For a company trading at roughly 10x trailing revenue with accelerating growth and expanding operating margins, the Q2 print makes the bull case easier to defend.