Citi maintained its **Buy** rating on Figma and raised its price target from **$35 to $37** following the company’s Q2 earnings report.
Figma reported:
• Revenue of **$370.1M, +48% YoY**
• Net Dollar Retention of **136%**
• $100K+ ARR customers up **46% YoY**
• Free cash flow of **$53.2M**
• More than **80% of $10K+ ARR customers consuming AI credits weekly**
• Full-year revenue guidance raised to **$1.463B–$1.467B**
The stock sold off heavily following the report, with investors appearing to focus on increased AI infrastructure/inference costs, lower free-cash-flow margins, and the Q3 outlook implying approximately 36% YoY revenue growth.
Figma also had its final extended lockup release Friday, making approximately **77.7M previously restricted shares eligible to trade**.
Despite those concerns, Citi’s post-earnings response was to maintain its Buy rating and increase its target to $37.