"SaaS-pocalypse. SaaS-mageddon. Those are just a few of the clever software-as-a-service portmanteaus being tossed around as investors debate a massive selloff in the sector that has vaporized roughly $1 trillion in valuations from recent highs, with more than $285 billion in market value wiped out in February alone. On Wednesday, it was cloud-based design platform Figma's turn to announce its fourth quarter 2025 earnings results to a market primed to search for signs of a continuing SaaS-nado."
"Investors were ready to pummel the stock after Figma saw a more than 80% tumble since an IPO last year that saw its price surge above $140 before sinking about $23. The Q4 headline numbers told a positive story with revenue of $303.8 million, up 40% year-over-year and an acceleration from the 38% posted in the third quarter. Net dollar retention rate-a measure of how much existing clients are spending- hit 136%, the highest it's been in 10 quarters."
The SaaS sector experienced a massive selloff that erased roughly $1 trillion in valuations, including more than $285 billion in February alone. Figma reported fourth-quarter 2025 revenue of $303.8 million, a 40% year-over-year increase and an acceleration from 38% growth in the third quarter. Net dollar retention reached 136%, the highest in 10 quarters, and annual revenue crossed roughly $1.1 billion, surpassing the $1 billion threshold. The fourth quarter produced Figma's best-ever net new revenue. The company carried a roughly $12 billion valuation and its stock rose about 15% in after-hours trading following the results.
Read at Fortune
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