Figma Grew Fast Even as Executives Failed to Clinch Adobe Deal

The decision by Adobe and Figma to spike their $20 billion merger on Monday dented the imminent dream of startup riches for Figma investors and employees. But Figma’s business is still growing quicker than that of most mature startups, potentially putting it in position for an initial public offering in 2025 or later. And the billion-dollar breakup fee from Adobe will strengthen Figma’s already robust balance sheet.

The design software firm expects to finish this year with over $600 million in annual recurring revenue, an increase of more than 40% over the past year, people familiar with the matter said. The San Francisco–based company has also been generating cash for a few years, the people said. That financial picture likely makes it one of the best-performing late-stage private tech companies, particularly in a year when many firms have struggled with sagging growth rates as corporate clients have cut their software spending.