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    FIGS
    Earnings call· Jun 2026(Q2 FY26)

    FIGS Q2 FY26 earnings call FIGS

    Aug 6, 2026 Source

    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

    7
    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

    4
    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%——

    Operational metrics

    22
    Net Revenues
    $196.6 million29% year-over-year
    Q2 FY26

    Outpacing outlook for low 20% range growth.

    Active Customers
    3.1 million13% year-over-year
    Q2 FY26

    Led by particular strength with customers coming back to the brand.

    Average Order Value (AOV)
    $1279%
    Q2 FY26

    Hit a record high.

    Net Revenues per Active Customer
    $22910% higher
    TTM

    All-time high for the brand, surpassing COVID era peak of $227.

    Gross Margin
    75.2%820 basis point improvement
    Q2 FY26

    Includes the cumulative impact from tariff refunds.

    Selling Expense
    $43.7 million
    Q2 FY26

    Lower expense rate driven by efficiencies and leverage.

    Marketing Expense
    $28.5 million
    Q2 FY26

    Reflected net revenue leverage and digital CAC efficiencies.

    General & Administrative Expense (G&A)
    $40.4 million
    Q2 FY26

    Lower G&A rate primarily due to net revenue leverage.

    Operating Margin
    17.9%compared to 6.5% last year
    Q2 FY26

    Inclusive of the tariff refund benefit.

    Net Income
    $28.4 millioncompared to $7.1 million last year
    Q2 FY26

    Totaled for the quarter.

    Diluted EPS
    $0.15compared to $0.04 last year
    Q2 FY26

    Diluted earnings per share.

    Adjusted EBITDA Margin
    18.6%compared to 12.9% in the same period last year
    Q2 FY26

    While Q2 adjusted EBITDA includes the benefit of the portion of the tariff refund attributable to goods sold in the year-to-date period, it aligns with how future performance will be accounted for.

    Cash, Cash Equivalents and Short-Term Investments
    $296.3 million
    Q2 FY26

    Balance sheet position at quarter end.

    Inventory
    $119.6 milliondecreased 12% year-over-year
    Q2 FY26

    Company expects Q3 inventory to remain down double digits year-over-year due to supplier transitions.

    Share Repurchases (Q2)
    $24 million
    Q2 FY26

    Executed under the ongoing repurchase program.

    Cumulative Share Repurchases
    $81 million
    Since program initiation

    Total repurchased since program inception.

    Capital Expenditures
    $2.6 million
    Q2 FY26

    Larger community hub-related outlays still planned later in the year.

    IEEPA Tariff Refund
    $20.5 million
    Total

    Initial receipts in Q2 led to assessment of probable recovery for remaining claims, included full benefit in GAAP results. Full amount received in Q3.

    Section 301 Tariffs Rate
    12.5%compared to prior global tariff assumption of 15%
    As of July 24

    New rate assumption, but minimal benefit for FY26 due to average costing and timing of shipments.

    Non-scrubwear as % of Net Revenues
    18%
    Q2 FY26

    Management believes it can mix even higher over time.

    Healthcare Industry Job Growth
    over 50,000
    per month this year

    Healthcare and social assistance projected to have largest job growth and be fastest-growing industry over next decade.

    Brand Awareness Improvement
    several point improvement
    year-to-date

    Attributed to effective brand storytelling and campaigns.

    Industry KPIs

    7
    MetricValueDetails
    Inventory position$119.6 millionUSD
    Revenue by channel—
    Operating margin sg a17.9%%
    Store fleet door investment4new leases
    Share buyback capital return$24 millionUSD
    Tariff cost exposure recovery$20.5 millionUSD
    Franchise product cycle performance—

    Product announcements

    4
    ProductTypeDetails
    V Coterieexpansion
    Spider-Man Collaborationlaunch
    Espresso Colorupdate
    FIBREx Fabricationlaunch

    Deals & partnerships

    2
    V CoterieAcquisition 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 CareOnboarding 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

    3
    Withhold Release Order (WRO) on Jordan importsSecond 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 usageSecond 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

    5

    Supply Chain Resilience (Jordan WRO)

    Q3 FY26
    CurrentWRO in effect, company leveraging other partners and airfreight.
    TargetContinued 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.

    Q&A highlights

    7

    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 read5 chapters

    Detailed Narrative

    01

    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.

    02

    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.

    03

    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.

    04

    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.

    05

    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.

    AI-generated summary of the company’s earnings call. Not investment advice.