Figma Soars 20% as AI Tool Gamble Pays Off

$303.8 million. That's how much Figma pulled in during Q4, crushing Wall Street's $293.15 million estimate. But here's the kicker: the design software company that's been bleeding money on AI tools is about to start charging for them.

The AI Bet That's Finally Paying Off

Figma's stock rocketed 20% in after-hours trading Wednesday, a dramatic reversal for shares that had tumbled 35% year-to-date. The catalyst? Figma Make, the company's AI tool that turns text prompts into app prototypes, is actually working.

More than half of Figma's biggest customers—those spending over $100,000 annually—had teams using Make every week last quarter. Weekly active users jumped 70% from Q3, yet the company managed to keep its gross margin steady at 86% by optimizing infrastructure costs.

But there's a catch coming in March.

The Free Lunch Ends

Figma will start enforcing monthly AI credit limits, ending the era of unlimited AI usage. Want more? You'll pay per use or subscribe to AI credit packages. It's a classic tech playbook: hook users with free tools, then monetize once they're dependent.

CEO Dylan Field struck a cautiously optimistic tone: "If you look at software, not only is it not going away. There's going to be way more of it than ever before." But he acknowledged the market is "potentially increasingly competitive."

The numbers back up his confidence. Figma projects $315-317 million in Q1 revenue (analysts expected $292 million) and sees $1.366-1.374 billion for 2026—implying 30% growth when many software stocks are struggling.

The Broader Software Reckoning

Figma's AI pivot comes as investors question whether generative AI will cannibalize traditional software companies. The iShares software ETF is down 22% this year, while Figma was among the worst performers until Wednesday's surge.

Yet Figma's partnership with ServiceNow to convert designs into enterprise applications suggests a different path: AI as enhancement, not replacement. The company is betting that designers will pay for tools that make them faster, not fear being replaced by them.

What This Means for Users

For the millions of designers who've grown accustomed to unlimited AI assistance, March will bring a reality check. Small teams and freelancers may find themselves rationing AI usage, while enterprise customers will likely absorb the costs.

The move also signals that the "free AI" era is ending across the industry. As infrastructure costs mount and venture funding tightens, expect more AI-powered tools to introduce usage caps and premium tiers.