FIGS, Inc.

What they do

FIGS designs technically advanced scrubwear and non-scrubwear (outerwear, underscrubs, footwear, compression socks, lab coats, loungewear) for healthcare professionals, whom it calls Awesome Humans. It sells primarily direct-to-consumer through its website, mobile app and TEAMS B2B business, plus physical retail stores called Community Hubs. Products are designed in-house and produced by third-party suppliers and manufacturers, using shallow initial buys and data-driven replenishment. The company reported approximately 3.1 million active customers at June 30, 2026.

Revenue drivers

• Scrubwear — Core product category and the largest revenue line; Q2 2026 net revenues were $161.2 million, up 26.5% year over year, versus total net revenues of $196.6 million.
• Non-scrubwear — Outerwear, underscrubs, footwear, compression socks, lab coats, loungewear and other apparel; Q2 2026 net revenues were $35.4 million, up 40.3% year over year.
• International — Non-U.S. sales; Q2 2026 net revenues were $37.9 million, up 67.0% year over year, versus U.S. net revenues of $158.7 million, up 22.2%.
• DTC digital and TEAMS B2B — Products are sold primarily through the company's website, mobile app and its B2B business (TEAMS), with physical Community Hub stores also contributing.

Recent performance

Q2 2026 net revenues were $196.6 million, up 28.8% year over year, with scrubwear up 26.5% and non-scrubwear up 40.3%. Gross margin was 75.2%, up 820 basis points, primarily due to a 780 basis point positive impact from IEEPA tariff refunds, favorable pricing and efficiency efforts, partly offset by higher tariffs. Net income was $28.4 million, or $0.15 diluted EPS, versus $7.1 million, or $0.04, a year earlier, and net income margin rose to 14.4% from 4.7%. Adjusted EBITDA was $36.6 million, or 18.6% margin, versus $19.7 million and 12.9% a year earlier. Active customers grew 13.2% to approximately 3.1 million, net revenues per active customer rose 10.1% to $229, and AOV rose 8.5% to $127.

Strategy

Management describes a product innovation engine paired with community connection, and points to broad-based growth across categories, geographies and channels. FIGS continues to operate and expand physical Community Hubs and pursue international expansion and its TEAMS B2B business. The company also invests in brand and performance marketing to grow its active customer base. On August 6, 2026, the Board authorized a $100.0 million increase to the share repurchase program, leaving approximately $19.2 million available as of June 30, 2026 before the increase. The company raised its full year 2026 outlook.

Risks

• Unsustainable historical growth — FIGS states its historical growth rate may not be sustainable or indicative of future results, and that revenue growth could slow or decline due to factors including increased competition or reduced market growth.
• Tariffs and global trade policy — The company cites tariffs and changing trade policy as dynamic and unpredictable, with higher tariffs partly offsetting the Q2 2026 gross margin benefit from IEEPA tariff refunds.
• Margin and profitability pressure — Management says its ability to improve or maintain margins and profitability depends on managing challenges including competition and demand trends, and failure to do so would adversely affect results.
• Expansion execution — FIGS states that if it fails to manage the expansion of its business effectively, its financial condition and results of operations may be adversely affected.

Outlook

For full year 2026, management guides net revenues growth of up approximately 20% versus 2025 and an adjusted EBITDA margin of 14.8% to 15.0%. The outlook follows Q2 2026 results that exceeded top and bottom line expectations. Management also increased the share repurchase authorization by $100.0 million.