Activist hedge fund Findell Capital Management has initiated a formal push for wide-ranging changes at Figma Inc (NYSE:FIG), telling the company's board in a letter on Thursday that the design software platform is substantially undervalued and unfairly penalized by market concerns over artificial intelligence.
Findell highlighted that Figma now trades at roughly half the $20 billion price Adobe Systems Incorporated (NASDAQ:ADBE) had agreed to pay in 2022, even though current trailing revenue is running at about three times the level observed at the time of that proposed acquisition. The investor said management should take immediate steps to sharpen the company's product strategy and reduce operating costs to align Figma with more mature software peers.
Product rationalization proposal
To unlock shareholder value, Findell urged Figma to pare back an expanded product organization, recommending a cut from eight offerings to four core applications. The fund specified that the company should concentrate on Design, Dev Mode, FigJam and Make. It proposed either sunsetting or repackaging lower-performing tools such as Slides and Sites to curb engineering expense bloat.
Findell argued that a narrowed product focus would permit Figma to reduce research and development spending without eroding its central competitive advantages, allowing the company to trim overhead while preserving its core moat.
Cost structure and compensation concerns
The activist also singled out what it described as excessive corporate spending. In particular, Findell pointed to projected stock-based compensation in 2026 that it estimates will equal 27% of revenues, a figure the fund contrasted with 8% at Adobe. The implication in Findell's letter is that such compensation levels materially compress margins and should be addressed as part of any efficiency program.
Governance questions tied to Anthropic
Beyond operational and financial recommendations, Findell raised governance alarms, urging an independent board inquiry into whether Anthropic improperly used Figma confidential information before launching its Claude Design tool in April. The activist called for the probe amid concerns about conflicts of interest related to the AI startup.
The campaign noted the abrupt resignation of Anthropic Chief Product Officer Mike Krieger from Figma's board just days prior to the April release of Claude Design. Findell further observed that two remaining Figma directors - those representing Kleiner Perkins and Sequoia Capital - have material economic exposure to Anthropic through their respective venture firms, a point the activist flagged as a potential conflict.
Market reaction and stock performance
Findell launched its proxy push as Figma shares remain well below earlier highs. The stock sits 74.9% below its initial market debut peak and has fallen 27.4% over the past three months, declines the activist attributes largely to heightened AI anxieties that it argues are misplaced. Findell contended that Anthropic's Claude Design is targeted at design tools such as Sketch rather than at Figma itself.
Despite the activist campaign, Findell did not disclose a current equity holding in Figma. The firm's latest 13F filing on May 15 reported $341.43 million in long equity assets, anchored by a $132.17 million position in Liquidia Technologies Inc (NASDAQ:LQDA), but listed no Figma holdings in that filing.
Findell nonetheless published a bullish standalone 12-month price target of $40 per share on Figma, which it said implies roughly an 80% upside based on fundamental analysis. The activist added that if the board does not implement the recommended operational changes, it has outlined a strategic buyout floor of $50 per share from likely suitors such as Microsoft or Alphabet.
In premarket trading on Thursday, Figma stock was up about 1%, a move that the letter noted was supported by a JPMorgan analyst initiating coverage at Neutral with a $42 per share target.
What Findell disclosed about itself
While the firm did not indicate its current ownership position in Figma, Findell's public filing details show the firm holds a concentrated portfolio, with its May 15 13F listing a total of $341.43 million in long equity assets, and a $132.17 million stake in Liquidia Technologies (NASDAQ:LQDA).
Findell presented its recommendations against the backdrop of these holdings and the activist framed its proposals as steps to realize shareholder value, including product consolidation, cost reduction and an independent review of governance links to Anthropic.
Questions raised by the campaign touch on product strategy, compensation levels and board independence - issues that could affect Figma's operating model and investor perception going forward.