Figs Stock Earnings Reports

FIGS delivered a strong start to fiscal 2026 with Q1 net revenue up 28% year-over-year to $159.9M, driven by accelerating active customer growth (active customers >3 million, +12% YoY) and broad-based strength across categories, colors, geographies and channels. Scrubwear remained dominant (79% of revenue, +27% YoY) while non-scrubwear showed its strongest growth in three years (+31%). U.S. revenue grew 24% and international revenue grew 50% as the company expanded into new markets and scaled localized efforts. Gross margin was 67.7% (up 10 bps YoY); operating margin improved to 2.8% and adjusted EBITDA margin to 8.7%. Management absorbed unplanned fuel surcharges, opportunistically increased marketing (notably the Winter Olympics investment) and continued share repurchases ($8.8M in Q1). Balance sheet remains strong with ~$277M net cash. FIGS raised its FY26 revenue growth guidance to +14% to +16% (from 10–12%) and increased operating margin and adjusted EBITDA margin guidance modestly. Key risks and near-term headwinds include tariff uncertainty, higher inbound/outbound freight from rising fuel prices, and regional softness tied to geopolitical events, but management expects to offset pressures with pricing, product mix, and operational efficiencies. Strategic priorities highlighted: product innovation (FORMx, FIBREx, new silhouettes, maternity), brand storytelling and advocacy (Never Change campaign, Austin Humans Foundation, Healthcare Human Act), market expansion (85 international markets, Community Hubs scaling), and growth of Teams (new Team store integrated into e-commerce).