Figs FIGS

NYSE FIGS

$13.27 -0.41 (-3.00%)

As of: Sep 9, 2026 · 3:59 PM EDT

Key Stats

Market Cap2.21 Bn

P/E35.75

P/S3.12

Div. Yield0.00

Revenue Growth (1y) (Qtr)28.81

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About

FIGS, Inc. is a founder led direct to consumer healthcare apparel and lifestyle brand that designs, markets and sells technically advanced apparel and products for healthcare professionals. The company’s mission is to celebrate, empower and serve those who serve others, a goal it pursues by creating premium scrubs and related gear that combine comfort, durability, function and style at an affordable price. FIGS operates primarily through its direct to consumer digital platform, which includes its website and mobile application, and through its business to business TEAMS platform, complemented by five physical Community Hub stores. Its product portfolio encompasses scrubwear and non scrubwear items such as outerwear, underscrubs, footwear, compression socks, lab coats, loungewear and various accessories. By designing in house and leveraging third party manufacturers, FIGS maintains tight control over quality while using data driven repurchasing to manage inventory risk.

FIGS generates revenue primarily from the sale of its apparel and lifestyle products to healthcare professionals across its direct to consumer and business to business channels. The direct to consumer channel, which includes the website, mobile app and Community Hub stores, accounts for the majority of sales, with core scrubwear styles representing over sixty percent of net revenues in 2025. The TEAMS business to business platform provides institutional sales to hospitals, medical offices, concierge clinics and other healthcare organizations seeking standardized uniform programs. FIGS also earns revenue from limited edition product launches and seasonal collections that drive repeat traffic to its digital platform. The company’s efficient merchandising approach, characterized by shallow initial buys and data driven replenishment, contributes to a low return rate of approximately ten percent, well below the broader online apparel average.

The company operates through the following segments.

DTC segment: This segment comprises the company’s direct to consumer digital platform, including its website, mobile application and five Community Hub stores, through which it sells scrubwear and non scrubwear products directly to individual healthcare professionals. It also leverages customer data and feedback to inform product design, inventory planning and marketing efforts.
TEAMS segment: This segment consists of the business to business platform that enables healthcare administrators and institutions to procure FIGS products for their organizations, offering customized ordering, inventory management and uniform standardization services. The TEAMS channel supports long term contracts and volume pricing for institutional customers.

FIGS holds a category defining position in the highly fragmented healthcare apparel market, competing against established uniform wholesalers such as Barco Uniforms, Landau Uniforms and Superior Group of Companies. It also faces competition from aggregated retailers like Scrubs & Beyond and Uniform Advantage, as well as other direct to consumer brands including Jaanuu, Mandala and Fabletics. The company’s competitive advantages stem from its proprietary FIONx fabric technology, which delivers four way stretch, anti odor, anti wrinkle and moisture wicking properties, and from its purpose driven brand narrative that resonates with healthcare professionals. FIGS benefits from a strong digitally native direct to consumer model, supported by its Community Hub stores and an extensive data analytics capability that informs product innovation, inventory optimization and personalized marketing. Additionally, its commitment to ethical manufacturing, including WRAP Gold or Platinum certification for all tier one suppliers, and its community centric marketing through the Ambassador Program further differentiate it from traditional incumbents.

FIGS serves a broad and diverse base of healthcare professionals, including registered nurses, nurse practitioners, doctors, surgeons, pharmacists, physical therapists, occupational therapists, veterinarians, medical technicians, healthcare administrators and students. As of December 31, 2025, the company reported approximately 2.9 million active customers who demonstrate strong loyalty to the brand. The FIGS Ambassador Program consists of Awesome Humans from around the world who represent a wide range of specialties and experience levels, helping to engage the broader community through authentic storytelling. Social media engagement is robust, with over 1.4 million followers on Instagram and more than three million followers across all platforms. This engaged customer base underpins the company’s repeat purchase behavior and supports its mission to celebrate, empower and serve those who serve others.

Investment Thesis

▲ Bull case

FIGS is uniquely positioned to capitalize on the structural growth of the healthcare industry, which is projected to be the largest and fastest-growing sector of the U.S. economy, with healthcare professionals representing a replenishment-driven, nondiscretionary customer base that consistently returns for uniform needs, providing a durable foundation for sustainable revenue expansion even amid macroeconomic uncertainty, as evidenced by the company’s 28% year-over-year net revenue growth in Q1 FY26 and the surpassing of 3 million active customers, a milestone reflecting deepening brand resonance and loyalty within the core demographic.
The company’s international expansion strategy is demonstrating accelerating traction, with international net revenue growing 50% year-over-year in Q1 FY26 and presence now established in 85 markets—up from 32 at the end of 2024—driven by strong double-digit gains across all regions, particularly in established markets like Canada, France, and Germany, where localized storytelling and targeted investments under the “Go Deep” strategy are yielding measurable returns, while the “Go Broad” rollout into new markets, though currently minimal in financial impact, is laying the groundwork for meaningful contribution to revenue by 2027 and beyond, signaling a scalable, long-term growth engine beyond the U.S. base.
FIGS is leveraging its proprietary fabric innovations—FORMx and FIBREx—to drive higher average order value and product differentiation, with FORMx fabric mix nearly doubling year-over-year and FIBREx gaining traction as a durable, lightweight solution featured in limited editions, enabling the company to expand beyond core scrubwear into a full layering system (underscrubs, outerwear, accessories) that increases customer lifetime value, as reflected in the 6% year-over-year growth in trailing 12-month net revenues per active customer to $220, the highest level since Q4 2022, indicating successful upselling and retention among high-spend quintiles.
The company’s advocacy initiatives, including the Austin Humans Foundation and the Healthcare Human Act—which proposes a federal tax credit of up to $6,000 annually for healthcare professionals—are not only strengthening brand affinity and community trust but also creating a durable competitive moat by aligning FIGS with the evolving socio-political needs of its customer base, thereby enhancing customer acquisition through word-of-mouth and reducing long-term customer acquisition costs, as management noted the continuous CAC gains in mature markets fueled by organic advocacy and engagement.
Despite tariff and freight headwinds, FIGS delivered gross margin expansion of 10 basis points to 67.7% in Q1 FY26, with adjusted EBITDA margin exceeding guidance by 170 basis points to 8.7% and operating margin reversing from a -0.2% loss to 2.8% profit, demonstrating operational resilience and pricing power, as management successfully offset cost pressures through strategic pricing actions, supply chain efficiencies (including dual sourcing from Vietnam and Jordan), and inventory discipline, with inventory days on track to reach approximately 200 by year-end, supporting improved working capital efficiency without sacrificing growth initiatives.

FIGS is uniquely positioned to capitalize on the structural growth of the healthcare industry, which is projected to be the largest and fastest-growing sector of the U.S. economy, with healthcare professionals representing a replenishment-driven, nondiscretionary customer base that consistently returns for uniform needs, providing a durable foundation for sustainable revenue expansion even amid macroeconomic uncertainty, as evidenced by the company’s 28% year-over-year net revenue growth in Q1 FY26 and the surpassing of 3 million active customers, a milestone reflecting deepening brand resonance and loyalty within the core demographic.
The company’s international expansion strategy is demonstrating accelerating traction, with international net revenue growing 50% year-over-year in Q1 FY26 and presence now established in 85 markets—up from 32 at the end of 2024—driven by strong double-digit gains across all regions, particularly in established markets like Canada, France, and Germany, where localized storytelling and targeted investments under the “Go Deep” strategy are yielding measurable returns, while the “Go Broad” rollout into new markets, though currently minimal in financial impact, is laying the groundwork for meaningful contribution to revenue by 2027 and beyond, signaling a scalable, long-term growth engine beyond the U.S. base.
FIGS is leveraging its proprietary fabric innovations—FORMx and FIBREx—to drive higher average order value and product differentiation, with FORMx fabric mix nearly doubling year-over-year and FIBREx gaining traction as a durable, lightweight solution featured in limited editions, enabling the company to expand beyond core scrubwear into a full layering system (underscrubs, outerwear, accessories) that increases customer lifetime value, as reflected in the 6% year-over-year growth in trailing 12-month net revenues per active customer to $220, the highest level since Q4 2022, indicating successful upselling and retention among high-spend quintiles.
The company’s advocacy initiatives, including the Austin Humans Foundation and the Healthcare Human Act—which proposes a federal tax credit of up to $6,000 annually for healthcare professionals—are not only strengthening brand affinity and community trust but also creating a durable competitive moat by aligning FIGS with the evolving socio-political needs of its customer base, thereby enhancing customer acquisition through word-of-mouth and reducing long-term customer acquisition costs, as management noted the continuous CAC gains in mature markets fueled by organic advocacy and engagement.
Despite tariff and freight headwinds, FIGS delivered gross margin expansion of 10 basis points to 67.7% in Q1 FY26, with adjusted EBITDA margin exceeding guidance by 170 basis points to 8.7% and operating margin reversing from a -0.2% loss to 2.8% profit, demonstrating operational resilience and pricing power, as management successfully offset cost pressures through strategic pricing actions, supply chain efficiencies (including dual sourcing from Vietnam and Jordan), and inventory discipline, with inventory days on track to reach approximately 200 by year-end, supporting improved working capital efficiency without sacrificing growth initiatives.

▼ Bear case

FIGS faces significant and underappreciated margin pressure from rising inbound freight costs tied to surging oil prices and the tariff-related pause in its duty drawback program, which management acknowledged as new gross margin headwinds that offset tariff relief and contribute to ongoing margin uncertainty, with CFO Sarah Oughtred explicitly noting these factors require a flexible planning framework, suggesting that gross margin improvement may be more elusive than guided, especially if oil prices remain elevated or if duty drawback reinstatement is delayed beyond current expectations.
The company’s international expansion, while showing strong percentage growth, remains financially immaterial in the near term, with management admitting that the overall growth contribution from recent “Go Broad” market openings—15 new markets in Europe in March and 12 in Asia Pacific in April—was minimal for Q1 FY26, and that these markets are unlikely to become material to results until 2027 or beyond, meaning the current 50% international revenue growth is largely driven by maturation of existing markets (Canada, France, Germany), not true geographic diversification, limiting the scalability and near-term impact of this much-touted growth lever.
FIGS’ non-scrubwear category, despite posting 31% year-over-year growth in Q1 FY26—the strongest in three years—is being overstated as a sustainable driver, as management conceded that the Olympics-related FIBREx product launch was a small, short-lived assortment with no meaningful impact, and the growth is instead reliant on continued expansion in underscrubs and outerwear, which may face saturation or competitive pressures as larger apparel players enter the healthcare workwear space, potentially undermining the category’s ability to sustain above-average growth without significant reinvestment.
The company’s promotional cadence, while described as “measured” relative to last year, remains a potential risk to margin expansion, as marketing expense increased to 18.4% of net revenues in Q1 FY26 from 14.5% last year, driven by the Winter Olympics campaign and incremental investments like the Noah Wyle partnership, and while management aims to bring down promotional rates year-over-year, the continued reliance on high-impact, event-driven marketing to sustain engagement suggests that organic, word-of-mouth-driven growth may be less potent than claimed, necessitating ongoing elevated spend to maintain customer acquisition and retention rates.
FIGS’ inventory levels rose 6% year-over-year to $139.4 million in Q1 FY26, and while management targets reducing inventory days to approximately 200 by year-end, the increase in absolute inventory—coupled with ongoing strategic buys for core goods—suggests potential overstocking risks if demand growth slows, particularly given the company’s acknowledgment of sequentially slower growth in the Middle East due to ongoing regional conflicts, which could foreshadow broader softness in international markets if geopolitical instability spreads, leading to higher carrying costs and potential write-downs.

FIGS faces significant and underappreciated margin pressure from rising inbound freight costs tied to surging oil prices and the tariff-related pause in its duty drawback program, which management acknowledged as new gross margin headwinds that offset tariff relief and contribute to ongoing margin uncertainty, with CFO Sarah Oughtred explicitly noting these factors require a flexible planning framework, suggesting that gross margin improvement may be more elusive than guided, especially if oil prices remain elevated or if duty drawback reinstatement is delayed beyond current expectations.
The company’s international expansion, while showing strong percentage growth, remains financially immaterial in the near term, with management admitting that the overall growth contribution from recent “Go Broad” market openings—15 new markets in Europe in March and 12 in Asia Pacific in April—was minimal for Q1 FY26, and that these markets are unlikely to become material to results until 2027 or beyond, meaning the current 50% international revenue growth is largely driven by maturation of existing markets (Canada, France, Germany), not true geographic diversification, limiting the scalability and near-term impact of this much-touted growth lever.
FIGS’ non-scrubwear category, despite posting 31% year-over-year growth in Q1 FY26—the strongest in three years—is being overstated as a sustainable driver, as management conceded that the Olympics-related FIBREx product launch was a small, short-lived assortment with no meaningful impact, and the growth is instead reliant on continued expansion in underscrubs and outerwear, which may face saturation or competitive pressures as larger apparel players enter the healthcare workwear space, potentially undermining the category’s ability to sustain above-average growth without significant reinvestment.
The company’s promotional cadence, while described as “measured” relative to last year, remains a potential risk to margin expansion, as marketing expense increased to 18.4% of net revenues in Q1 FY26 from 14.5% last year, driven by the Winter Olympics campaign and incremental investments like the Noah Wyle partnership, and while management aims to bring down promotional rates year-over-year, the continued reliance on high-impact, event-driven marketing to sustain engagement suggests that organic, word-of-mouth-driven growth may be less potent than claimed, necessitating ongoing elevated spend to maintain customer acquisition and retention rates.
FIGS’ inventory levels rose 6% year-over-year to $139.4 million in Q1 FY26, and while management targets reducing inventory days to approximately 200 by year-end, the increase in absolute inventory—coupled with ongoing strategic buys for core goods—suggests potential overstocking risks if demand growth slows, particularly given the company’s acknowledgment of sequentially slower growth in the Middle East due to ongoing regional conflicts, which could foreshadow broader softness in international markets if geopolitical instability spreads, leading to higher carrying costs and potential write-downs.

Geographical Breakdown of Revenue (2025)

Peer group

Peer Comparison

Companies in the Apparel

S.No.	Ticker	Company	match	Market Cap	P/E	P/S	Total Debt (Qtr)
1	LULU	lululemon athletica inc.	primary	11.29 Bn	7.97	1.02	-
2	GIL	Gildan Activewear Inc.	primary	8.09 Bn	35.28	1.71	4.53 Bn
3	LEVI	Levi Strauss & Co	primary	7.83 Bn	12.26	1.18	1.04 Bn
4	VFC	V F Corp	primary	5.06 Bn	18.47	0.53	3.51 Bn
5	KTB	Kontoor Brands, Inc.	primary	3.70 Bn	15.31	1.25	1.16 Bn
6	PVH	Pvh Corp. /De/	primary	3.17 Bn	-18.78	0.36	2.26 Bn
7	WRBY	Warby Parker Inc.	primary	3.03 Bn	390.92	3.32	-
8	COLM	Columbia Sportswear Co	primary	2.88 Bn	13.98	0.85	-

Figs FIGS

About

Investment Thesis

Product and Service Breakdown of Revenue (2025)

Geographical Breakdown of Revenue (2025)

Peer Comparison

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