FIGS Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Net Revenues: Increased 29% year-over-year to $197 million, surpassing expectations for low 20% growth.

Active Customers: Grew 13% to 3.1 million.

Average Order Value (AOV): Reached a record $127, up 9% year-over-year.

Net Revenues per Active Customer: Hit an all-time high of $229.

Adjusted EBITDA Margin: Improved to 18.6%, up from 12.9% year-over-year.

Net Income: Totaled $28.4 million, or diluted EPS of $0.15, compared to $7.1 million (EPS of $0.04) last year.

Gross Margin: Increased by 820 basis points to 75.2%, aided by tariff refunds.

2Strategic Updates and Business Highlights

Product Expansion: Strong growth in both scrubwear (up 27%) and non-scrubwear (up 40%). The latter now represents nearly 20% of total sales.

Acquisition of V Coterie: This acquisition aims to enhance FIGS' accessory offerings, allowing health care professionals to personalize their uniforms.

Market Expansion: International revenues grew 67%, with significant contributions from Europe, Latin America, and Mexico. FIGS now operates in 85 international markets.

Community Engagement: Successful initiatives included a Healthcare Human Rally and various brand activations, enhancing brand loyalty and community connection.

3Forward Guidance and Outlook

Full-Year Revenue Growth: Revised upwards to approximately 20%, up from a prior estimate of 14%-16%.

Q3 and Q4 Guidance: Q3 expected to grow 20% year-over-year, while Q4 is projected at 10% growth.

Gross Margin Outlook: Full-year GAAP gross margin expected at 69.5%, with underlying improvements anticipated.

Operating Margin: Increased guidance from 7.8%-8% to approximately 10.8%.

4Challenges and Points of Concern

Supply Chain Issues: A U.S. Customs order is currently preventing imports from a partner in Jordan, which could impact product availability. However, FIGS has a resilient supply chain strategy in place to mitigate this.

Tariff Refunds: While the tariff refunds provided a significant boost, future margins may be impacted by air freight costs and ongoing tariff considerations.

Market Competition: Despite strong performance, FIGS faces competition in the health care apparel market, necessitating ongoing innovation and brand differentiation.

5Notable Q&A Insights

Customer Dynamics: Growth is attributed to new customers, returning customers, and increased purchase frequency. The replenishment-driven nature of the business supports ongoing customer loyalty.

Promotional Strategy: There is flexibility to reduce discounts due to strong demand during regular business days, but the company plans to maintain a similar promotional cadence to last year.

International Marketing Strategy: FIGS is focusing on localized marketing strategies in key markets while also testing broader campaigns in high-potential regions like China and Japan.

Future Growth Drivers: International expansion, community hubs, and the TEAMS business are seen as significant growth opportunities moving forward. Overall, FIGS demonstrated strong financial performance in Q2 2026, with robust growth across multiple metrics, strategic initiatives aimed at expanding product offerings and market presence, and an optimistic outlook for the remainder of the year despite some supply chain challenges.