Figma Stock In Duress After Earnings Guidance Disappoints

One of the biggest tech stock IPO's in history in Figma FIG has had a a forgettable stock market run as investors looked past another strong quarter and focused instead on a cautious outlook.

The design software maker reported Q2 revenue of $249.64 million, up 41% year-over-year and just above estimates. While the beat was solid, guidance for the coming quarter left little room for upside.

Figma expects Q3 revenue of $263 million$265 million, implying 33% growth, right in line with Wall Street's forecast. For the full year, the company guided sales of $1.021 billion$1.025 billion, or 37% growth at the midpoint, with non-GAAP operating income projected between $88 million and $98 million.

The reaction shows how unforgiving the market has become. In today's environment, steady growth isn't enough to move the needle when investors are chasing flashier stories. Despite delivering strong results and healthy profitability, sentiment turned negative fast.

All eyes now shift to Q3, where Figma will have to prove momentum can steady its stock.