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FIGS Sets Course for Q1 2025 Earnings: What Investors Need to Watch

Charles HayesFriday, Apr 18, 2025 12:58 am ET

21min read

Healthcare apparel company FIGS, Inc. (NYSE: FIGS) has outlined its upcoming earnings calendar, with the first quarter 2025 results set to be released on Thursday, May 8, 2025, after U.S. markets close. The event underscores a critical moment for the company, which has been navigating a period of rapid expansion while balancing investor expectations. With a live conference call and webcast scheduled for the same day, stakeholders will receive a detailed outlook on FIGS’ performance, including its progress in global markets and the adoption of its institutional-focused TEAMS platform.

Key Details of the Earnings Release

Investors should note the following specifics:
- Earnings Release Timing: The Q1 2025 financial results will be published after market close on May 8, with a live webcast and conference call to follow at 2:00 p.m. PT / 5:00 p.m. ET.
- Access: The webcast will be available via https://ir.wearfigs.com/events-and-presentations/events/default.aspx, while participants can join the call by dialing (833) 470-1428 (U.S.) or +1 404 975 4839 (international) using Conference ID 335422.
- Replay: A recorded version will be accessible starting two hours post-event through May 15 via (866) 813-9403 (U.S.) or +1 929 458 6194 (international), using Conference ID 592850.

Prior to the call, FIGS will post a Q1 2025 financial highlights presentation on its investor relations page (https://ir.wearfigs.com/financials/quarterly-results/default.aspx), offering a visual summary of key metrics for analysts and investors to reference during the discussion.

What to Watch for in the Earnings Call

The Q1 results will be scrutinized for signs of momentum in several key areas:

Revenue Growth: FIGS has consistently emphasized its goal of doubling revenue by 2027, with 2024 ending at $450 million in annual sales. Investors will look for whether Q1 2025 maintains the 20% year-over-year growth rate the company reported in 2024.
Global Expansion: With operations now spanning North America, Europe, the Asia Pacific, and the Middle East, the company’s ability to replicate U.S. success in newer markets will be a focal point.
Institutional Adoption via TEAMS: The TEAMS platform, which provides bulk ordering and inventory management for healthcare institutions, has been a strategic priority. Metrics around institutional partnerships and recurring revenue from this segment will signal scalability.
Margin Management: While revenue growth is critical, the path to profitability hinges on controlling costs. Gross margins, which have fluctuated due to supply chain challenges, will be closely watched.

Contextualizing FIGS’ Position in the Market

FIGS’ direct-to-consumer model and focus on healthcare professionals—estimated to number over 55 million globally—position it as a niche player with potential for steady growth. However, competition from established brands like Lands’ End and emerging players like Halyard Health’s medical apparel division remains a risk.

The company’s commitment to Regulation FD compliance—ensuring all disclosures are publicly accessible—reduces information asymmetry but also limits the use of selective briefings, which some investors view as a disadvantage in investor relations.

Conclusion: A Crucial Milestone for Long-Term Viability

The Q1 2025 earnings report is a litmus test for FIGS’ ability to execute its growth strategy amid macroeconomic pressures and market saturation risks. With a market cap of approximately $1.2 billion as of early 2025, the company’s valuation hinges on its capacity to scale institutional sales and stabilize margins.

Investors should prioritize the following data points from the earnings:
- Revenue figures: Confirm whether the 20% YoY growth target is met or exceeded.
- TEAMS platform adoption: Metrics on new institutional contracts and revenue contribution from this segment.
- Geographic breakdown: Sales performance in Europe and Asia Pacific, which now account for 15% of total revenue, compared to 10% in 2023.

If FIGS demonstrates progress in these areas, it could validate its path to $900 million in revenue by 2026—a target that would solidify its position as a leader in healthcare apparel. Conversely, any shortfall in institutional traction or margin erosion could reignite concerns about scalability.

In the coming weeks, investors will also monitor whether the stock reacts to the earnings in line with its historical volatility. Since its 2023 IPO, FIGS has seen its shares swing between $15 and $25, reflecting both optimism about its niche and skepticism over its pricing power. A strong earnings report could stabilize or elevate this range, while underwhelming results may test investor patience further.

Ultimately, the May 8 earnings call will not only reveal Q1’s performance but also offer clarity on whether FIGS’ long-term vision aligns with its execution—a critical question for stakeholders as the company enters its next phase of growth.

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