Canva plans to IPO next year: The Information
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The news: Canva plans to go public next year, having delayed its initial public offering amid challenging market conditions for software stocks, according to The Information.
The numbers: Canva’s valuation of $66 billion represents about 10 times the company’s $6.3 billion annualised revenue at the end of 2025. The company’s revenue rose by more than 40% last year to over $4.7 billion, growing at roughly the same rate as Figma despite having four times the revenue.
Canva ended 2025 with 265 million monthly active users, up 20% year-on-year, though only around 12% pay for the service. The company generated $236 million in earnings before interest, taxes, depreciation and amortisation, as well as free cashflow of about $275 million in the first quarter. This marks the company’s eighth consecutive year of profitability on a free cashflow basis.
The context: Canva faces growing concerns about artificial intelligence disruption, as AI tools from companies like OpenAI could potentially replace traditional design software.
However, analysts suggest Canva’s focus on individual consumers and small businesses may insulate it from AI competition compared to enterprise-focused competitor Figma.
The company has responded by developing its own AI capabilities, including a vibe coding tool developed with Anthropic that has more than 10 million monthly users. Canva has also acquired AI companies, including Kaleido in 2021 and Leonardo in 2024.
Market conditions remain challenging for software IPOs, with giant offerings from SpaceX, OpenAI and Anthropic expected to overshadow the IPO market.
What they said: “This is our eighth consecutive year of profitability on a free cashflow basis,” Canva co-founder Cliff Obrecht told The Information.
Gregor Feige, co-head of equity capital markets in the Americas at investment bank UBS, said: “With this uncertainty, you’re unlikely to see a significant number of software companies go forward with IPOs in this environment. I don’t think many of them need to. I think they see Figma, and they see Navan, and they see others further back, and the current trading levels and the kinds of challenges they’ve had in the public markets.”
The source: The Information
