Figma investors cheer 40% growth, ties to Anthropic and OpenAI—but concerns remain about letting the ‘fox into the hen house’

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 to 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. Plus, the $12 billion design company crossed the $1 billion annual...