FIGS (FIGS) Q4 2025 earnings summary

Executive summary

• Q4 2025 net revenues surged 33% year-over-year to $201.9 million, marking the strongest quarterly growth in over four years and surpassing $200 million in a quarter for the first time.

• Full year 2025 net revenues reached a record $631.1 million, up 14% year-over-year, with scrubwear crossing $500 million and international business exceeding $100 million.

• Adjusted EBITDA margin for the year was 11.8%, up from 9.3% last year, and net income for Q4 was $18.5 million, or $0.10 per diluted share.

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

• Strong brand momentum was driven by product innovation, impactful marketing campaigns, and expansion in international and B2B markets.

Financial highlights

• Q4 2025 average order value increased 6%–9% to $120–$126, driven by higher average unit retail and units per transaction.

• Q4 2025 gross margin was 62.9%, down 440 basis points year-over-year due to higher tariffs and a $5.6 million inventory write-off.

• Adjusted EBITDA for Q4 2025 was $26.7 million (13.2% margin); full year adjusted EBITDA margin was 11.8%.

• Operating expenses leveraged to 60.5% of net revenues for the year, down from 67.2% last year, aided by a $16 million reduction in stock-based compensation.

• Ended the year with $300.8–$301 million in net cash, cash equivalents, and investments.

Outlook and guidance

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

• Full year gross margin expected to rise modestly from 2025’s 66.5%, despite a 280 basis point tariff headwind.

• Operating margin forecasted at 7.6%–7.9% (up from 6% in 2025); adjusted EBITDA margin expected at 12.7%–12.9%.

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

• Profitability expected to increase despite new 15% global tariffs.