FIGS (FIGS) Q4 2025 earnings summary

Executive summary

• Q4 net revenues surged 33% year-over-year to $201.9 million, surpassing $200 million in a quarter for the first time, driven by growth in both new and existing customers and higher average order value.

• Full year net revenues reached $631.1 million, up 14% year-over-year, with strong contributions from both U.S. and international markets, returning to double-digit growth for the first time since 2022.

• Active customers grew 9% year-over-year to a record 2.9 million, with improvements in new, resurrected, and retained customers.

• Ended the year with record cash, cash equivalents, and short-term investments of $301 million.

• Launched the Awesome Humans Foundation to expand impact initiatives for healthcare professionals.

Financial highlights

• Q4 net income was $18.5 million (EPS $0.10), up from $1.9 million (EPS $0.01) last year; full year net income was $34.3 million (EPS $0.19), both significantly higher than prior year.

• Q4 adjusted EBITDA was $26.7 million (13.2% margin); full year adjusted EBITDA was $74.5 million (11.8% margin), exceeding the original target by over 200 basis points.

• Q4 gross margin was 62.9%, down 440 bps year-over-year due to higher tariffs and a $5.6 million inventory write-off.

• Full year gross margin was 66.5%, down 110 bps, mainly from a 120 bps tariff headwind.

• Free cash flow for FY 2025 was $53 million.

Outlook and guidance

• Fiscal 2026 net revenues expected to grow 10–12% year-over-year, with Q1 growth projected in the low 20% range.

• Adjusted EBITDA margin guidance for FY 2026 is 12.7%–12.9%, with profitability expected to increase despite new 15% global tariffs.

• Full year gross margin expected to rise modestly from 66.5%, despite a 280 bps tariff impact.

• Operating margin guidance for 2026 is 7.6%–7.9% (vs. 6% in 2025).

• CapEx to increase to ~$17 million in 2026 for community hubs, system upgrades, and HQ investments.