Figma's IPO popped 250% on day one, then fell ~81% from its peak

Figma went public on the NYSE on July 31, 2025 under the ticker FIG at $33, raising $1.22 billion for a software company that had been a $20 billion takeover target when Adobe's 2022 acquisition fell through. Demand was enormous — the offering was 40 times oversubscribed — and the stock opened at $85 and closed its first day at $115.50, up 250%.

The bill came later. Shares peaked at $143 on August 1, 2025, then decayed to roughly $22 by February 2026, down about 81% from the peak and about a third below the IPO price. TechStartups measured the lost paper value at more than $50 billion, as the market capitalization fell from over $60 billion at the peak to roughly $10.5 billion.

Several mechanics explain the fall. First, underpricing: at $33 despite 40x demand, Figma handed retail a first-day pop to chase. Second, an early lockup clause set to trigger at $41.25 fired immediately because the stock opened at $85, releasing 25% of locked shares after 36 days instead of 180, followed by insider sales including ~$35M of executive stock in November 2025. Third, the fundamentals slowed: Q3 revenue growth fell from 41% to 33%, gross margins from 91% to 83%, and AI tools like Claude Code began substituting for the design canvas.