FIGS (FIGS) Raymond James & Associates’ 46th Annual Institutional Investors Conference 2025 summary

Business overview and market opportunity

• Focuses on transforming the $80B global medical apparel market with comfort, function, and design, expanding beyond scrubs into new categories and geographies.

• Operates in 32 countries outside the U.S., with international now 15% of revenue and growing rapidly.

• U.S. remains 85% of business, but significant growth potential exists in B2B (TEAMS), retail stores, and product innovation.

• Maintains a strong brand connection with healthcare professionals, leveraging data and community engagement.

• Plans to widen its competitive moat through innovation, partnerships, and expanding distribution.

Growth strategy and innovation

• Growth pillars: product innovation (fit transition, new categories, fabric expansion), deeper community connection, and expanded distribution (B2B, retail hubs).

• International growth driven by localization, ambassador programs, and word-of-mouth, supported by digital marketing and high-profile campaigns like the Olympics partnership.

• Asia is a key future market, with launches in Japan and Korea planned; China is a major opportunity yet to be entered.

• Lifestyle and off-shift products (outerwear, underscrubs, compression socks) are expanding the addressable market.

• Proprietary fabrics (FIONEX, FormX, Indestructible) drive differentiation and high margins, with ongoing innovation for various healthcare environments.

Financial performance and outlook

• Q4 revenue was $151.8M (5% growth), with full-year revenue at $555.6M (2% growth); Adjusted EBITDA for the year was 9.3%.

• International revenue grew 31% and now represents 15% of the business.

• Strong cash generation: $82M in cash generated last year, $245M cash on hand, and $100M in share buybacks announced.

• 2025 guidance: revenue expected to be down low single digits due to a strategic shift away from promotions, with 9.3% Adjusted EBITDA margin targeted.

• Capital allocation prioritizes investment in growth, product, and new markets, with continued share repurchases and disciplined expense management.