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FIGS (FIGS) Q2 FY26 earnings call: guidance and Q&A

Earnings call· Jun 2026 (Q2 FY26)· Consumer Discretionary· Aug 6, 2026

Source: earnings call transcript

Executive summary

FIGS Q2 FY26 — Strong Revenue Growth and Profitability with Raised Outlook

FIGS delivered robust Q2 FY26 results, driven by strong product differentiation and effective marketing, leading to accelerated customer growth and record revenue per active customer. The company successfully navigated supply chain challenges, raising both top and bottom-line guidance for the full year, while strategically expanding into new categories and geographies. Management expressed confidence in continued momentum across all growth drivers.

Highlights

5

  • Net revenues grew 29% to $197 million, beating outlook and marking the third straight quarter with 25%+ growth.

  • Active customer growth surged 13% to 3.1 million.

  • Net revenues per active customer hit an all-time high of $229, surpassing the COVID era peak.

  • Adjusted EBITDA margin surged to 18.6% (excluding prior year tariff refunds).

  • A new $100 million share repurchase authorization was announced, bringing total capacity to $119 million.

Concerns

1

  • U.S. Customs and Border Protection issued a withhold release order preventing product imports from a partner in Jordan, requiring supply chain adaptation and airfreight use.

Guidance & targets

CategoryTargetConfidence
Full-year 2026 Net Revenues Growth
approximately 20%
high materiality
High
Q3 Net Revenue Growth
approximately 20% year-over-year
medium materiality
High
Q4 Net Revenue Growth
approximately 10% year-over-year
medium materiality
High
Full-year GAAP Gross Margin
approximately 69.5%
high materiality
High
Full-year Operating Margin
approximately 10.8%
high materiality
High
Full-year Adjusted EBITDA Margin
between 14.8% and 15%
high materiality
High
Q3 Adjusted EBITDA Margin
approximately 14%
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
U.S.
Strong gains registered across search and traffic, with added stickiness through social following, e-mail sign-ups, and engagement rates. New customers are coming in at high values, and returning customer strength reflects high purchase frequency.
$158.7 million22%——
International
Growth reflects a strong balance between new and returning customers, with exceptional growth in Europe, Latin America, and Mexico, and better performance in Canada, Australia, and the Middle East.
Growth from existing comp markets: over 50 pointsNew markets opened year-to-date: 27Total international markets: 85
$37.9 million67%——
Scrubwear
Strong growth across both core franchises and limited edition offerings, with color being particularly impactful.
Percentage of net revenues: 82%
—27%——
Non-scrubwear
Broad-based growth, highlighted by underscrubs (improved assortment) and outerwear (core product family extensions). Expected to mix even higher over time.
Percentage of net revenues: 18%
—40%——

Product announcements

ProductTypeDetails
V Coterieexpansion
Spider-Man Collaborationlaunch
Espresso Colorupdate
FIBREx Fabricationlaunch

Deals & partnerships

V Coterie Acquisition of a company specializing in pins, jewelry, charms, and accessories for the healthcare community. immaterial from a purchase standpoint

V Coterie's founder, Lynna Van Merkey, a former dentist and entrepreneur, joined FIGS as Head of Pins, Charms and Jewelry.

Bupa Dental Care Onboarding Bupa Dental Care, a division of British United Provident Association, to outfit their dental centers.

Initial work will focus on outfitting nearly 400 dental centers across the U.K.

Risks & headwinds

Withhold Release Order (WRO) on Jordan imports Second half of the year

Not explicitly quantified in dollars, but impacts supply chain for second half of the year.

Mitigation:Leveraging capacity with other existing partners, expediting production, adapting planning. Already in process of derisking certain products due to Middle East conflict.

Higher non-IEEPA tariffs (Section 301) FY26

New rate assumption of 12.5% (compared to prior global tariff assumption of 15%). Minimal benefit for the fiscal year due to average costing and timing of shipments.

Mitigation:Minimal benefit for FY26 due to average costing and timing of shipments.

Increased airfreight usage Second half of the year

Not explicitly quantified in dollars, but impacts gross margin.

Mitigation:Partially offset by other gross margin improvements and net revenue leverage.

What to watch in Q3 FY26

Supply Chain Resilience (Jordan WRO)

Q3 FY26
Current WRO in effect, company leveraging other partners and airfreight.
Target Continued mitigation of disruption, core styles remaining in stock, no material impact on Q3/Q4 revenue.

Why it matters

Verifies the effectiveness of supply chain diversification and mitigation strategies in maintaining product availability and achieving raised guidance.

Our team is cross-functionally adapting our planning to mitigate disruption in the second half of the year. This includes leveraging capacity with our other strong existing partners and expediting their production.

Find out whether FIGS delivers this. Inve re-checks your case every morning.

Q&A highlights

What factors are driving the strong new and returning customer growth?

Growth is attributed to continuous product innovation (fit, function, comfort) and effective marketing campaigns like 'Never Change'. Word-of-mouth in healthcare settings is a unique driver for new customers, while returning customers are driven by the replenishment-based nature of the industry and expanded product offerings.

“I mean I think it goes back to our 2 North Stars, which is product and marketing. We have continued to deliver the best product that meets every need of a health care professional, and we're doing that head to toe across our layering system.”

asked by Robert Drbul · answered by Catherine Spear

2 min read 5 chapters

Detailed narrative

Supply Chain Resilience Amidst Challenges

FIGS faced a challenge with a U.S. Customs and Border Protection withhold release order (WRO) preventing imports from a partner in Jordan. Despite this, the company leveraged its flexible supply chain, expediting production with other existing partners and adapting planning to mitigate disruption in the second half. Management emphasized that their high-volume, low-SKU count business makes them an attractive partner to suppliers, enabling agility. This resilience allowed them to raise both top and bottom-line targets for the full year, demonstrating confidence in their operational foundation.

Product Innovation and Expansion

The company continues to innovate across style, color, fabrication, and fit. New wider-leg scrub pants and waistband options resonated strongly, while color drops like 'Espresso' and collaborations (Star Wars, Marvel's Spider-Man) drove excitement. Fabrication advancements include FIONx, FORMx, and the new FIBREx. Improvements in fit have led to lower returns and positive customer feedback. Non-scrubwear grew 40%, now representing nearly 20% of net revenues, with plans to expand the layering system to include underscrubs, lab coats, outerwear, footwear, compression socks, and jewelry.

Brand Advocacy and Community Engagement

FIGS actively supports the healthcare community through various initiatives. During Nurses Week, they highlighted challenges and celebrated commitment. The company hosted a Healthcare Human Rally in Washington D.C., advocating for the FIGS-Created Healthcare Human Act (federal tax credit), funding for the Dr. Lorna Breen Act (mental health services), and the Speak FREE Act (protecting healthcare professionals' right to speak up). They also held a FIGS retreat for nearly 80 healthcare professionals to recharge and connect, emphasizing these touchpoints as a priority.

Strategic Market Expansion

All three key growth drivers—International, TEAMS, and Community Hubs—achieved record net revenues. International sales grew 67%, with over 50 points from existing markets, and the company expanded into 27 new markets year-to-date, now operating in 85 countries. The TEAMS business gained momentum, onboarding large institutions like Bupa Dental Care for their 400 dental centers across the U.K. Community Hubs delivered strong comparable store performance and new store contributions, with four new leases signed for openings later this year in key healthcare communities.

Leading Indicators and Future Engagement

Management highlighted the continued growth of leading indicators such as search, website traffic, and social followers, which create a strong pipeline for future engagement. Year-to-date improvements were observed across the entire brand funnel, from awareness to consideration to preference. This indicates that the brand is increasingly cutting through the market, positioning FIGS to expand its leadership and redefine expectations within the healthcare community, with significant long-term opportunities ahead.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.