The last time I used it, it was like a slower, buggier version of a subset of Figma's feature set from 3 years ago. But Figma has come a long way in 3 years, so it's not a serious competitor now, if it ever was. If you just occasionally need to put some text on top of something, or make a couple wireframes, it would be fine. If you work on complex production designs as part of a team, it's far from ready for you to switch over. I believe Penpot has even acknowledged that some architectural choices they've made mean that it's unlikely that a Penpot document can ever scale to the size or complexity of a Figma document, which to me means it'll always be a toy, or, more generously, a tool for simpler use cases.
I tried for a while back in 2022 when Adobe announced acquiring Figma. I spent a week with Penpot. It's pretty good, but there were a number of issues that forced me going back to Figma... mainly random freezes and issues causing me to lose saved work.