FIGS, Inc. Earnings Call Transcripts
Fiscal Year 2026
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Q3 revenue grew 26% to $190.7M and adjusted EBITDA margin rose 410 bps to 16.5%, with growth across product categories and regions. FY26 revenue growth guidance increased to ~23.5%; supplier constraints remain a near-term risk.
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FIGS is achieving strong, profitable growth by innovating in healthcare apparel, expanding its global reach, and deepening community engagement. With a growing customer base, robust repeat business, and new product categories, the brand is widening its competitive moat and targeting long-term, sustainable expansion.
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Net revenues rose 29% year-over-year to $196.6 million, with strong growth across all segments and geographies. Adjusted EBITDA margin reached 18.6%, and full-year revenue growth guidance was raised to 20%. International and non-scrub wear segments delivered standout performance.
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Sales growth has re-accelerated across all categories and regions, driven by product innovation and marketing. Profitability is improving despite tariff headwinds, with ongoing investments in B2B, retail expansion, and product layering. Strong cash flow supports both growth and shareholder returns.
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The meeting, held virtually, covered director elections, auditor ratification, and executive compensation approval. All proposals passed, with final results to be filed on Form 8-K. No shareholder questions were received.
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Net revenues rose 28% year-over-year to $159.9 million, with active customers surpassing three million and strong growth across all segments. Full-year guidance was raised, reflecting confidence in continued momentum despite tariff and freight headwinds.
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Premium healthcare apparel brand reported 33% Q4 revenue growth, driven by product innovation, viral marketing, and global expansion. Despite tariff headwinds, expects margin improvement and continued investment in omni-channel and B2B growth.
Fiscal Year 2025
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Q4 net revenues grew 33% year-over-year to $201.9 million, with full year revenues up 14% to $631.1 million and adjusted EBITDA margin rising to 11.8%. International sales surged 55%, and 2026 guidance calls for 10%-12% revenue growth despite tariff headwinds.
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Q3 saw 8% revenue growth and a 900 bps improvement in Adjusted EBITDA margin, driven by strong core business, product innovation, and disciplined execution. Full-year guidance was raised, with tariff headwinds managed through efficiency and strategic investments.
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Expansion is underway in both U.S. and international markets, with new stores, B2B growth, and product innovation driving momentum. Tariff headwinds are being managed through cost efficiencies, while marketing and reduced promotions support brand strength and customer acquisition.
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Record Q2 revenue and margin expansion were driven by strong scrubwear growth, disciplined expense management, and successful international expansion. Guidance for 2025 was raised, with ongoing tariff mitigation and reduced promotional activity expected to impact the second half.
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Healthcare professionals are returning to normalized buying patterns, driving growth through product innovation, new store openings, and international expansion. Investments in distribution and a strong cash position support operational efficiency and resilience.
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The meeting covered director elections, auditor ratification, and executive compensation, with all proposals approved by stakeholders. No additional matters or questions were raised, and final voting results will be filed with the SEC.
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Q1 2025 revenue grew 5% year-over-year to $124.9M, with record AOV and strong U.S. and international growth. Adjusted EBITDA margin was 7.2%, above guidance, despite tariff and macro headwinds. Full-year outlook remains cautious, with ongoing investments in growth and supply chain mitigation.
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The company is expanding globally and innovating in medical apparel, with international revenue now 15% of the mix and strong growth in new product categories and geographies. Financially, it remains highly cash generative, investing in growth and maintaining robust margins.
Fiscal Year 2024
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Q4 revenue grew 5% year-over-year, driven by repeat customers and strong international growth, but 2025 guidance anticipates a low single-digit revenue decline due to reduced promotions and potential customer churn. Gross margin is expected to remain flat, with continued investment in product innovation and global expansion.
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Q3 revenue declined 2% year-over-year, missing expectations due to footwear and promotional timing issues, while scrubwear grew and international mix reached a new high. Gross margin contracted but beat outlook; adjusted EBITDA margin fell sharply. FY24 guidance was lowered, with expense normalization and growth initiatives expected to benefit FY25.
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Healthcare apparel demand is normalizing post-COVID, with strong repeat business and significant growth potential in both US and international markets. Innovation, omni-channel expansion, and disciplined financial management are driving margin recovery and long-term profitability.
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Q2 delivered revenue and adjusted EBITDA above guidance, with U.S. and international growth, strong product innovation, and a successful Olympics campaign. Gross margin declined due to product mix, but inventory and cash remain robust. 2024 outlook was raised, and a $15M share repurchase was announced.
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Healthcare sector growth and consumerization are driving demand, with product innovation and global expansion fueling sales. New leadership and partnerships, such as outfitting Team USA's medical team, support brand growth, while strong cash flow enables continued investment.
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The meeting covered director elections, auditor ratification, and executive compensation approval, with all proposals passing. The event was held virtually, ensuring broad participation, and final voting results will be filed with the SEC.
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Innovation and operational excellence drive growth, with a focus on healthcare professionals and advocacy. Expansion into wellness, students, and international markets, plus strong financials and data-driven marketing, support the goal of becoming a $1 billion global brand.