FIGS Q4 revenue up 33%, beats expectations

Overview

• Healthcare apparel brand's Q4 2025 revenue grew 33%, beating analyst expectations

• Adjusted EBITDA for Q4 2025 beat analyst expectations

• Revenue growth driven by increased orders and higher average order value

Outlook

• FIGS expects FY 2026 net revenues growth of 10% to 12%

• Company anticipates FY 2026 adjusted EBITDA margin between 12.7% and 12.9%

• FIGS sees Q1 2026 revenue growth in the low-20% range

Result Drivers

• INCREASED ORDERS - Q4 net revenues rose 33% due to more orders from new and existing customers and higher average order value

• GROSS MARGIN PRESSURE - Gross margin fell 440 basis points due to higher tariffs and an inventory write-off, partially offset by lower discount rates and favorable freight rates

• OPERATING EXPENSES - Operating expenses increased 16% but fell as a percentage of net revenues due to lower stock-based compensation and fulfillment costs

Company press release: ID:nBw7125hDa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the apparel & accessories peer group is "buy."

• Wall Street's median 12-month price target for Figs Inc is $10.00, about 8.8% below its February 25 closing price of $10.96

• The stock recently traded at 91 times the next 12-month earnings vs. a P/E of 91 three months ago

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