The SaaS-Pocalypse’s Biggest Losers: Figma, Duolingo, and Monday.com Suffer Brutal Meltdowns

Figma (FIG) posted $1.06B in full-year 2025 revenue, up 41% year-over-year with $237M in free cash flow, but trades at 9.5x sales versus Adobe’s 5x despite growing nearly four times faster. Duolingo (DUOL) reported $1.038B in revenue, up 39%, with 52.7 million daily active users and net income of $414.1M, though 2026 bookings guidance slowed to 10-12% growth. Monday.com (MNDY) generated $1.23B in trailing 12-month revenue with $309.9M in free cash flow and a 111% net dollar retention rate, guiding to 18-19% growth in 2026.

AI tools that automate design, language learning, and workflow management have triggered a SaaS-pocalypse, eroding investors’ confidence in the competitive moats of Figma, Duolingo, and Monday.com despite their continued strong revenue and user growth.

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Software-as-a-service stocks powered portfolios for a decade on predictable revenue and fat margins. Then AI arrived. Tools that write code, design interfaces, and automate workflows triggered the so-called SaaS-pocalypse in early 2026. The iShares Expanded Tech-Software Sector ETF (CBOE:IGV) has fallen 35% from its October peak, with even companies posting double-digit growth watching investors flee.

However, three software application stocks stand amongst the hardest hit from their 52-week highs: Figma (NYSE:FIG), down 86.5%; Duolingo (NASDAQ:DUOL), off 83.3%; and Monday.com (NASDAQ:MNDY), lower by 80.2%. Here is why these three once high-flying names have been decimated.

Figma (FIG)

Figma's stock traded as high as $142.92 in the past 52 weeks, but now sits below $20 per share for an 86.5% drop. Even so, growth remains robust.

Figma's fourth-quarter and full-year 2025 results showed full-year revenue of $1.06 billion, up 41% year-over-year. Fourth-quarter revenue alone reached $303.8 million, also up 40%, while international revenue rose 45%. Adjusted free cash flow for the quarter hit $38.5 million, delivering a 13% margin, and full-year free cash flow totaled $237 million.

Yet the company stays unprofitable. Figma's trailing 12-month P/E stands at a loss-making negative 7.39, with net losses for the year exceeding $1.25 billion. Compare that to peer Adobe (NASDAQ:ADBE), which generated 10% revenue growth in its latest quarter and throws off roughly $10 billion in annual free cash flow. It trades at a P/E of 13.3 and 3.8 times sales. Figma, by contrast, grows nearly four times faster but commands 9.5 times sales.

Figma guided first-quarter 2026 revenue to $315 million to $317 million (38% growth at the midpoint) and full-year 2026 to $1.366 billion to $1.374 billion (30% growth). That is deceleration, but still triple Adobe's pace. It is clear investors are pricing in the risk that AI could erode Figma's moat faster than expected.

Duolingo (DUOL)

Duolingo peaked near $544.93, but shares now hover just below $90 a stub, an 83.3% decline. Its numbers, though, still impress. Duolingo reported full-year revenue of $1.038 billion, up 39%, and Q4 revenue rose 35% to $282.9 million. Total bookings climbed 33% to $1.158 billion, as daily active users reached 52.7 million, up 30%. Free cash flow for the year totaled $360.4 million and net income hit $414.1 million, though a $256.7 million one-time tax benefit boosted the figure. Adjusted EBITDA margin expanded to 29.8% in the quarter.

That said, 2026 guidance disappointed. The company forecast bookings growth of just 10% to 12%, well below the 24% posted in Q4. Duolingo's trailing P/E sits around 10.3.

In a sector where peers like Coursera (NYSE:COUR) trade at similar multiples but with slower user growth, Duolingo's valuation reset reflects investor skepticism that AI language tools will cap subscriber expansion. The stock's drop in value prices in that risk.

Monday.com (MNDY)

Monday.com reached $316.98 at its 52-week high and is now down 80.2%, trading near $62.50 per share, although its fundamentals hold steady. Trailing 12-month revenue stands at $1.23 billion, with net income of $118.74 million and EPS of $2.24. Free cash flow reached $309.9 million for the period ending Dec. 31, up 4.8% year-over-year, and the net dollar retention rate held at 111% in the quarter. Its P/E ratio equals 27.9x. The company set full-year 2026 revenue guidance at $1.452 billion to $1.462 billion, implying 18% to 19% growth.

That's slower than the triple-digit growth of prior years, but it outpaces many mature SaaS names. Compared to Asana (NYSE:ASAN), Monday.com's retention and cash generation look stronger, yet the market applied the same discount across the board.

No matter how you slice it, these three stocks illustrate the SaaS-pocalypse in action. Strong revenue, user gains, and cash flow failed to protect them from AI-driven repricing. It seems unlikely these stocks will regain their former highs anytime soon -- if ever -- but the fear discount baked into their stocks looks overdone for patient risk-tolerant investors.

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