Figma's financials show shrinking margins and a large operating loss due to increased spending; the speaker views the company as failing and advises against owning its stock.

If you look at the latest Cloud design software, knowing that they partnered with Figma, I think that was a mistake on Figma's part. Why would you want to deal with a company like Figma anymore?

We looked at Figma's profits and said, brother, those margins are shrinking. These people increased their revenue. Their revenues increased by 48%. Their total profit increased by 39%.

So there was a bit of shrinkage in the margins here. It's not that bad. Their overall profit margins are still at 83.7%, which is great.

But here's what the problem is, what the real dilemma is. They had an income from operations at the end of this period, the three months ending June 30, of $2 million. They won $2 million.

They were actually profitable for the first time in years. They were profitable in June 2025 in that quarter ending. Then in June of this year they apparently decided to give up on everything.

Because they literally incurred a loss of $117 million. Because what did they do? They doubled down on their research and development because they realized they were in a bind.

They increased their marketing expenses by 59%, which is more than their revenue, and doubled their administrative and general expenses 2.7 times.

I think salaries should go up for executives because this ship is sinking, and it's better to get as much pay as possible before it sinks. I think this is one way to sink with the ship.

Going down with the ship with huge golden privileges and big salaries, right?

Sorry, I didn't actually have many good things to say about Figma. I had very few positive things to say about Figma, and I mean, based on what I see with "Cloud," why would you use them?

I'm sorry. I feel they are dishonest. I sincerely apologize to anyone who owns their shares, but these three companies here, I cannot convince myself to go near them because there is no justification for dealing with them.