Aug 6, 2026, 4:12 PM ETConsumer Cyclical

FIGS — Second Quarter 2026 Earnings Summary

FIGSFIGS INC

Financial Performance

Net revenues reached $196.6 million for Q2 2026, a 28.8% year-over-year increase.
Net income was $28.4 million ($0.15 diluted EPS), compared to $7.1 million ($0.04 diluted EPS) in the prior year period.
Net income margin improved to 14.4% from 4.7% year-over-year.
Adjusted EBITDA was $36.6 million, an increase of $16.9 million year-over-year, with an Adjusted EBITDA margin of 18.6% compared to 12.9% in the prior year.
Gross margin was 75.2%, an increase of 820 basis points year-over-year, driven by IEEPA tariff refunds, pricing, and efficiency efforts, partially offset by higher tariffs.
Operating expenses were $112.6 million (up 21.9% year-over-year), decreasing to 57.3% of net revenues from 60.5% in the prior year period due to fixed cost leverage and lower stock-based compensation.
Free cash flow for the six months ended June 30, 2026, was $38.6 million, compared to negative $5.6 million in the prior year period.
Cash and cash equivalents stood at $108.5 million as of June 30, 2026, up from $82.0 million at the end of 2025.
Deferred revenue decreased to $1.7 million as of June 30, 2026, from $4.0 million at the end of 2025.

Full Year 2026 net revenue growth versus 2025 is expected to be approximately 20%.
Full Year 2026 Adjusted EBITDA margin is guided to be between 14.8% and 15.0%.
Management expects to pass through the upside of Q2 results and layer in increased expectations for the second half of 2026.

Scrubwear net revenues were $161.2 million, up 26.5% year-over-year.
Non-scrubwear net revenues were $35.4 million, up 40.3% year-over-year.
U.S. net revenues were $158.7 million, up 22.2% year-over-year.
International net revenues were $37.9 million, up 67.0% year-over-year.
Average Order Value (AOV) was $127, up 8.5% year-over-year, driven by higher average unit retail and favorable product mix.
Net revenues per active customer were $229, an increase of 10.1% year-over-year.

Active customers increased 13.2% year-over-year to 3.1 million as of June 30, 2026.
Management noted that net revenues per active customer exceeded COVID-era highs.
The company stated it is still serving a tiny percentage of the world's healthcare professionals.

Forward-looking statements cite risks including potential changes in consumer confidence, shopping behavior, and macroeconomic trends.
Risks include reliance on a limited number of third-party suppliers and the impact of global trade policy on sourcing and distribution.
Potential impacts from fluctuating raw material costs and changes in shipping arrangements are noted.
Risks related to international expansion, including currency exchange rate changes, are acknowledged.

CEO Trina Spear described Q2 performance as "exceptional," powered by strong traction across the business with outperformance on both top and bottom lines.
Management highlighted the third straight quarter of 25%-plus net revenue growth and broad-based success across categories, geographies, and channels.
CFO Sarah Oughtred emphasized the business model's ability to combine growth and profitability, citing strong expense leverage and ongoing efficiency efforts.
Management expressed confidence in the company's momentum and unique opportunity ahead.

The Board of Directors authorized a $100.0 million increase to the share repurchase program on August 6, 2026.
Approximately $19.2 million was available for future repurchases as of June 30, 2026.
The company recognized $7.9 million in refunds for IEEPA tariffs incurred on goods sold in the prior fiscal year, which impacted Adjusted EBITDA results.
Stock-based compensation expense decreased, contributing to the reduction in operating expenses as a percentage of revenue.
The company serves healthcare professionals in the U.S. and internationally, including through its TEAMS platform for healthcare institutions.