FIGS, Inc. reported fourth‑quarter 2025 results that surpassed Wall Street expectations, with revenue of $201.9 million—up 33% year‑over‑year—and earnings per share of $0.10, a $0.08 beat over the $0.02 consensus estimate. Net income margin rose to 9.2% and adjusted EBITDA margin climbed to 13.2%, reflecting disciplined cost management amid a 440‑basis‑point gross‑margin decline to 62.9% caused by higher tariffs and a $5.6 million inventory write‑off.
The quarter’s revenue growth was driven by strong performance across all segments. Scrubwear net revenues reached $154.9 million, up 35.1% YoY, while non‑scrubwear grew 26.4% to $47.0 million. International net revenues surged 55.1% to $37.7 million, underscoring the company’s expanding global footprint. These gains offset the impact of tariffs and inventory write‑offs, allowing the company to maintain profitability.
Gross margin compression was largely a result of tariff increases and the inventory write‑off, but the company mitigated the effect through a lower discount rate and favorable freight rates. The lower discount rate reduced the present‑value impact of the write‑off, while improved freight rates helped keep shipping costs in check, supporting the company’s ability to preserve margins.
"FIGS' fourth quarter performance capped off a remarkable 2025, driven by execution that gained steady momentum throughout the year," said CEO Trina Spear. She added, "Our 33% surge in Q4 net revenues was driven by successes across virtually every part of the business, while also lowering our discount rate for the period." Spear also noted plans to open four new community hubs in 2026, clarifying that most new locations will not materially impact top‑line until late in the year, and that the FIGS app will continue to evolve as the company’s most elevated digital experience. CFO Sarah Oughtred highlighted the company’s "tremendous demand momentum, improving profitability and record cash on the balance sheet."
Guidance for fiscal 2026 reflects management’s confidence in sustaining growth: revenue growth is projected at 10%‑12%, and adjusted EBITDA margin is expected to be 12.7%‑12.9%. The company also projects a 7.6%‑7.9% operating margin for 2026, the highest since its public debut. These targets signal that FIGS believes it can continue to scale its business while navigating tariff headwinds and inventory challenges.
The results, combined with a record cash balance of $300.8 million and a 9.4% year‑over‑year increase in active customers to 2.9 million, position FIGS to capitalize on international expansion and digital engagement. The strong earnings beat, robust guidance, and strategic focus on the FIGS app and community hubs suggest a resilient business model capable of sustaining momentum in a competitive healthcare apparel market.
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