Nov 5, 2026, 4:08 PM ETConsumer Cyclical

FIGS — Third Quarter 2026 Earnings Summary

FIGSFIGS INC

Financial Performance

Net revenues reached $190.7 million for the quarter, a 25.7% year-over-year increase, driven by higher order volumes and average order value.
Net income was $19.3 million ($0.10 diluted EPS), compared to $8.7 million ($0.05 diluted EPS) in the prior year period.
Net income margin improved to 10.1% from 5.8% year-over-year.
Adjusted EBITDA was $31.5 million, an increase of $12.7 million year-over-year, with an Adjusted EBITDA margin of 16.5% compared to 12.4% in the prior year.
Gross margin was 69.3%, a decrease of 60 basis points year-over-year, attributed to prior-year returns processing improvements and higher inventory reserves, partially offset by pricing increases and efficiency efforts.
Operating expenses totaled $109.9 million, a 13.9% year-over-year increase, though as a percentage of net revenues, they decreased to 57.6% from 63.6%.
Cash and cash equivalents were $76.5 million, with short-term investments of $254.7 million, totaling just over $330 million in liquid assets.
Free cash flow for the nine months ended September 30, 2026, was $89.8 million, compared to a negative $5.1 million in the prior year period.

The company raised its full-year 2026 outlook, projecting net revenue growth of approximately 23.5% for the full year.
Q4 2026 net revenue growth is expected to be approximately 15%.
Full-year 2026 Adjusted EBITDA margin is now expected to be approximately 15.8%.
Management expressed confidence in a foundation for sustainable top- and bottom-line momentum heading into 2027.

Scrubwear net revenues were $157.5 million, up 24.0% year-over-year.
Non-scrubwear net revenues were $33.2 million, up 34.6% year-over-year.
U.S. net revenues were $153.9 million, an increase of 20.8% year-over-year.
International net revenues were $36.8 million, a significant increase of 51.4% year-over-year.

Active customers increased 14.3% year-over-year to 3.2 million as of September 30, 2026.
Net revenues per active customer grew 12.9% year-over-year to a record $236.
Average order value (AOV) increased 10.5% year-over-year to $126, driven by higher average unit retail from pricing and favorable product mix, alongside lower discount and return rates.
The company noted consistent strength across categories, channels, and geographies, marking the fourth straight quarter of greater than 25% net revenue growth.

Forward-looking statements highlight risks including the ability to maintain historical growth and profitability, brand value, and customer retention.
Potential challenges include competition in the healthcare apparel market, reliance on limited third-party suppliers, and exposure to global trade policy and raw material cost fluctuations.
Risks also encompass international expansion, supply chain disruptions, cyberattacks, and the ability to accurately forecast demand and manage inventory.

CEO Trina Spear described Q3 as a "landmark year" with momentum powered by product strength, resonant marketing, and a passionate community.
CFO Sarah Oughtred highlighted the "high level" performance, noting record cash levels and the ability to drive expense leverage.
Management emphasized an "unrelenting focus on our mission" and expressed pride in the team's execution.

The company expanded its share repurchase program, returning value to shareholders while holding record cash levels.
For the nine months ended September 30, 2026, the company repurchased Class A Common Stock for $46.6 million.
The company serves healthcare professionals in the U.S. and internationally, including institutions through its TEAMS platform.
A conference call and webcast were held on November 5, 2026, to discuss results and outlook.
The balance sheet shows total assets of $617.9 million as of September 30, 2026, with total stockholders' equity of $451.6 million.