FIGS (FIGS) Q3 2026 earnings summary

Executive summary

• Q3 net revenue rose 25.7% YoY to $190.7M, exceeding outlook; growth spanned product categories, channels and geographies, marking a fourth consecutive quarter above 25% growth.

• Adjusted EBITDA was $31.5M, with margin up 410 bps YoY to 16.5%; net income rose to $19.3M from $8.7M.

Financial highlights

• Q3 gross profit rose 24.5% to $132.1M; operating income was $22.2M versus $9.6M YoY.

• Gross margin was 69.3%, down 60 bps YoY; pricing and efficiency gains partly offset higher inventory reserves and prior-year returns-processing improvements.

• Operating expenses increased 13.9% to $109.9M, but fell to 57.6% of revenue from 63.6%; selling, marketing and G&A rates declined mainly on revenue leverage.

• Diluted EPS was $0.10 versus $0.05; adjusted EBITDA margin was 16.5% versus 12.4% a year earlier.

• 9M net revenue rose 27.5% to $547.2M and net income increased to $53.9M from $15.7M.

Outlook and guidance

• Q4 revenue growth is expected at ~15%; FY26 revenue growth outlook rose to ~23.5% from ~20%.

• FY26 adjusted EBITDA margin outlook increased to ~15.8% from 14.8%–15.0%; operating margin outlook rose to ~12% from ~10.8%.

• FY26 GAAP gross margin outlook is ~69.9%, including tariff-refund benefits; underlying expectations improved on full-price selling, product mix and lower air freight.

• Supplier-transition costs and outbound freight are expected to raise the Q4 selling expense rate YoY, while the marketing expense rate is expected to decline.

• Inventory is expected to remain down YoY in Q4 before rebuilding in 2027; supplier disruption may affect results through Q2 2027, with the greatest impact in Q4.