FIGS Q2 Earnings: Revenue Up 5.8% YoY, Stock Jumps 12%

Figs (FIGS) reported Q2 CY2025 results, beating Wall Street's revenue expectations with sales up 5.8% YoY to $152.6 million. GAAP profit was $0.04 per share, $0.03 above analyst estimates. The company's active customers reached 2.74 million, with revenue growth slowing significantly from its five-year trend. Analysts expect revenue to grow 5% over the next 12 months, which is below the sector average.

Figs, Inc. (NYSE: FIGS), a leading healthcare apparel company, has reported its Q2 2025 financial results, which exceeded Wall Street's revenue expectations. The company's sales grew by 5.8% year-over-year (YoY) to $152.6 million, surpassing analysts' estimates of $144.7 million. The GAAP profit of $0.04 per share was $0.03 above consensus estimates, indicating robust financial performance [1].

The company's adjusted EBITDA margin reached 12.9%, up from 10.2% in the same quarter last year, demonstrating improved operational efficiency. The operating margin increased to 6.5%, up from 1.1% in the same quarter last year, reflecting a significant improvement in profitability. The active customer base grew to 2.74 million, indicating strong demand for the company's products [1].

Figs' long-term performance has been impressive, with a compounded annual growth rate (CAGR) of 30.3% over the last five years. However, the company's revenue growth has slowed significantly in recent quarters, with an annualized revenue growth of 3.5% over the last two years. This trend is expected to continue, with analysts forecasting a 5% revenue growth over the next 12 months, which is below the sector average [2].

The company's operating margin has been shrinking over the last 12 months, averaging 3.2% over the last two years. This decrease can be attributed to the company's strategy of investing to capture market share. However, the recent increase in the operating margin to 6.5% indicates that the company's efforts to improve efficiency are paying off [2].

Figs' stock market capitalization stands at $1.06 billion, reflecting the company's strong financial position. The company's cash balance of $50.8 million supports its plans for buybacks and international expansion. The company's raised full-year 2025 outlook, with net revenue growth in the low-single digits and adjusted EBITDA margins of 8.5%–9.0%, reflects confidence in its execution [1].

Investors should consider FIGS as a potential long-term investment, given its strong historical performance and strategic initiatives. The company's focus on profitability, customer engagement, and institutional expansion makes it a strong candidate for long-term investors. However, investors should be aware of the potential risks, such as the decline in non-scrubwear sales and potential trade policy shifts [1].

References:

[1] https://www.ainvest.com/news/assessing-figs-q2-2025-earnings-call-strategic-implications-investors-shifting-market-landscape-2508/

[2] https://finance.yahoo.com/news/figs-nyse-figs-delivers-impressive-084418172.html