FIGS (NYSE:FIGS) closed fiscal 2025 with what management called a “remarkable” fourth quarter, highlighted by a return to double-digit annual growth, record quarterly revenue above $200 million, and expanded profitability despite tariff pressure and an inventory write-off.
Fourth-quarter results: revenue above $200 million, active customers hit a record
For the fourth quarter, FIGS reported net revenue of $201.9 million, up 33% year-over-year and “significantly ahead” of the company’s outlook. CEO Trina Spear said the quarter benefited from strong brand momentum heading into the holidays, aided by inventory positioning, newness in colors and styles, and marketing execution that drove results “that dramatically exceeded expectations” during Black Friday and Cyber Monday.
Active customer growth also accelerated to 9% year-over-year after several quarters of roughly 4% growth, bringing active customers to a company record of more than 2.9 million. Oughtred said FIGS saw improvements across customer cohorts, including faster growth in new and resurrected customers and “a meaningful increase in retention.” Trailing 12-month net revenue per active customer increased 4% to $216.
Category and geographic trends: scrub wear surged; international growth accelerated
Scrub wear revenue increased 35% in Q4 and represented 77% of net revenue. Oughtred cited merchandising efforts and inventory investments, seasonal palettes aligned to key calendar moments, and strength in both carryover and limited-edition colors. She also pointed to success in wider-leg options including the Isabel style, along with growing momentum in the FORMx fabric introduced earlier in 2025.
Non-scrub wear grew 26% and made up 23% of net revenue. Management highlighted underscrubs (including Salta, Mikado, and Rib styles), outerwear growth led by high-pile bombers, and emerging categories such as bags, loungewear, and ArchTek compression socks.
By geography, U.S. net revenue increased 29% to $164.2 million, while international net revenue rose 55% to $37.7 million. Spear said international engagement has been “incredible” across markets including Mexico, Canada, Europe, and Australia, and said the company’s “go deep, go broad” international strategy is working.
Oughtred noted that while FIGS added China and South Korea during the quarter, most international growth came from existing markets, including a return to growth in Canada, triple-digit growth in Mexico, and continued success across the Middle East, Latin America, and Europe. She added that new-market entry in 2025 contributed only 500 basis points to Q4 international growth.
Margins, tariffs, and inventory: write-off weighed on Q4 gross margin
FIGS’ Q4 gross margin was 62.9%, down 440 basis points year-over-year. Oughtred attributed the decline to two planned headwinds—higher tariff pressure and lapping a one-time duty drawback benefit in the prior-year quarter—partially offset by a lower discount rate and favorable freight costs. The company also recorded a $5.6 million inventory write-off related to “broken and aged inventory” that had accumulated over a number of years.
On profitability, Q4 adjusted EBITDA was $26.7 million for an adjusted EBITDA margin of 13.2%, compared with 13.9% a year earlier. Net income was $18.5 million, or $0.10 per diluted share, versus $1.9 million, or $0.01, in the year-ago quarter.
For fiscal 2025, net revenue reached a record $631.1 million, up 14% year-over-year. Full-year gross margin was 66.5%, down 110 basis points, which Oughtred said was largely driven by a 120 basis point headwind from tariffs. Adjusted EBITDA margin improved to 11.8% from 9.3% in the prior year, while operating expenses leveraged to 60.5% of revenue from 67.2%.
Balance sheet, capital allocation, and retail hubs
FIGS ended the year with net cash equivalents and short-term investments of $300.8 million. Inventory was $128 million, up 11% year-over-year (and up 7% on a unit basis). Oughtred said inventory was supported by investments in product introductions and deeper positions in key styles and colors, and also reflected normalization of in-transit inventory after Q3. She said the write-off, combined with improved supply-and-demand process rigor, leaves FIGS in its “best inventory position” from an aging and quality perspective, with an expectation to move inventory days closer to 200 days over time.
On capital allocation, FIGS did not repurchase shares during the quarter and had $52 million remaining under its current repurchase authorization. Full-year capital expenditures were $8.2 million, primarily tied to three community hub openings.
FIGS expanded its retail footprint to five community hubs by the end of 2025 after opening stores in New York, Houston, and Chicago in Q4. In the Q&A, Spear said the hubs have been strong and suggested they have been “too small,” while Oughtred said the new locations are exceeding top-line expectations and FIGS plans to move to roughly 2,500 square feet stores. She said FIGS is targeting paybacks of 24 months or fewer and expects hubs to be profitable in year one and accretive to operating margin and adjusted EBITDA.
2026 outlook: 10%–12% revenue growth, higher operating and adjusted EBITDA margins
For fiscal 2026, FIGS expects net revenue to increase 10%–12% year-over-year, with sustained active customer momentum as a key driver. The company said it implemented pricing actions in early January and, based on early elasticity reads, assumes only a “modest” net revenue benefit for the full year—higher AURs largely offset by UPTs and order frequency. FIGS also expects promotional cadence to be relatively consistent year-over-year after resetting promotions in 2025.
For the cadence of 2026, management expects a strong first half and projects Q1 revenue growth in the low 20% range year-over-year.
On tariffs, Oughtred said the company incorporated the U.S. administration’s latest announcement calling for 15% global tariffs and is not assuming any relief from previously paid tariffs. FIGS expects 2026 gross margin to be up modestly year-over-year from 2025’s 66.5%, despite an “unmitigated” tariff impact of approximately 280 basis points on top of the 120 basis points incurred in 2025, with offsets including pricing, improved product costing, favorable returns, and lapping the Q4 inventory write-off.
FIGS guided to a 2026 operating margin of 7.6%–7.9% (versus 6% in 2025) and an adjusted EBITDA margin of 12.7%–12.9% (versus 11.8% in 2025). For Q1, the company expects adjusted EBITDA margin of approximately 7%, reflecting higher marketing spend tied to the Olympics and market expansion initiatives.
The company also expects 2026 capital expenditures of approximately $17 million as it invests in community hubs, system upgrades, and its headquarters. Oughtred said FIGS plans to use its repurchase program opportunistically to help offset stock dilution.
Strategically, Spear reiterated FIGS’ priorities—product innovation, community engagement, and market expansion—including fabric innovation in scrub wear (FIONx, FORMx, and the new FIBREx fabric introduced in conjunction with the Winter Olympics), expanded layering systems, and continued international expansion. FIGS said it expects to surpass 80 total markets in 2026, up from 58 at the end of 2025, and plans to open four additional community hubs in the second half of 2026, closer to Q4.
About FIGS (NYSE:FIGS)
FIGS, Inc operates as a direct-to-consumer designer and retailer of medical apparel and accessories. The company offers a range of products tailored to the needs of healthcare professionals, including scrub sets, lab coats, tops, bottoms, outerwear, footwear, and performance fabrics designed for comfort, durability, and antimicrobial protection. Through its e-commerce platform and a growing network of retail stores, FIGS provides customizable uniforms and accessories with a focus on innovative materials and functional design features such as four-way stretch fabrics, moisture-wicking technology, and multiple secure pockets.
Founded in 2013 by Heather Hasson and Trina Spear, FIGS set out to disrupt the traditional medical uniform market by emphasizing both form and function.
