Figma, the design software company, is leaning harder into artificial intelligence as a revenue driver, and investors are starting to see both the upside and the cost. The company raised its revenue and operating margin outlook for 2026, citing strong adoption of its AI credits among its biggest customers. But its latest gross margin came in slightly below expectations, a reminder that AI features don't come cheap.
AI credits are becoming a core business
Figma's model works like this: customers get a set amount of AI usage included in their subscription plan, and once they use that up, they pay extra. It's a familiar approach in the software world, similar to how cloud providers charge for data or how some apps sell premium tiers. The idea is to make AI a habit for users, then convert that habit into recurring revenue.
The strategy appears to be working. Figma told Reuters that over 80% of its large paid customers were using AI credits weekly through October. That's a strong signal that AI isn't just a gimmick for the company's biggest clients—it's becoming part of their daily workflow.
In the third quarter, revenue climbed 43% to $391.4 million, a pace that would make many public software companies envious. Figma also said utilization of repriced AI add-ons is up 40%, suggesting that customers are not only using the included credits but also paying for more when they run out.
The margin story: a one-point miss that matters
But here's where the story gets more complicated. Figma's gross margin—the percentage of revenue left after direct costs like computing and hosting—was 80% in the quarter. Analysts had expected 81%. That one-point gap might sound small, but in the software world, gross margin is a key measure of a company's fundamental economics. A miss can spook investors who worry that AI expansion is eating into profitability.
Why does gross margin matter so much? It's the cleanest read on whether a company's core product is becoming more or less profitable. For Figma, the shift toward its own proprietary, post-trained design model is meant to improve speed and lower per-task costs over time. If that works, gross margin should eventually climb. If not, the cost line could keep expanding faster than revenue.
Figma's own guidance suggests it sees the path to better margins. The company lifted its 2026 operating margin outlook to 11% from 9%. That's a meaningful upgrade, and it signals that management expects the AI investments to pay off in the form of higher profitability down the road.
What it means for everyday investors
For investors, Figma's situation is a case study in how AI is reshaping software economics. A credits model can pull AI usage forward before it pulls revenue forward. By bundling more credits into plans, Figma can drive adoption and retention, but more "included" usage means more computing costs hit the income statement right away. The revenue uplift may only show up later, when customers exceed their allotment and start paying extra.
That timing mismatch is why a gross margin miss can matter more in the near term than a higher long-term operating margin guide. Investors are essentially betting on whether Figma's AI bet will eventually translate into fatter profits or just a bigger cost base.
This isn't unique to Figma. Across the tech sector, companies are grappling with the same tension: AI features can attract and retain customers, but they also require significant computing power, which costs money. The AI boom is even showing up in copper demand, as data centers and AI infrastructure require more physical resources.
For shareholders, the key metric to watch is gross margin. If Figma's shift toward its own model is improving unit economics, margins should trend upward. If not, the company could find itself in a situation similar to MercadoLibre's recent profit miss, where heavy investment in growth squeezed profitability.
Figma's raised outlook is a positive sign, but the gross margin miss is a caution flag. As the company continues to push AI credits, investors will be watching closely to see whether the cost of AI becomes a permanent drag or a temporary investment that pays off.
The broader lesson: in the AI era, revenue growth and profitability don't always move in lockstep. Companies that can manage the cost side while growing usage will be the winners. Figma's next few quarters will show whether it's one of them.
