Figs’ second quarter saw revenue growth and profitability that surpassed Wall Street’s expectations, yet the market responded negatively. Management attributed performance to a combination of strong core scrubwear demand, heightened customer engagement through impactful marketing campaigns, and a deliberate reduction in broad-based promotional activities. CEO Trina Spear emphasized the continued shift towards a more disciplined merchandising strategy, improved operational efficiencies, and a focus on serving healthcare professionals, noting that these efforts supported the company’s largest quarterly revenue to date.
Is now the time to buy FIGS? Find out in our full research report (it’s free).
Figs (FIGS) Q2 CY2025 Highlights:
- Revenue: $152.6 million vs analyst estimates of $144.7 million (5.8% year-on-year growth, 5.5% beat)
- Adjusted EPS: $0.04 vs analyst estimates of $0.02 ($0.02 beat)
- Adjusted EBITDA: $19.73 million vs analyst estimates of $12.6 million (12.9% margin, 56.5% beat)
- Operating Margin: 6.5%, up from 1.1% in the same quarter last year
- Active customers: 2.74 million
- Market Capitalization: $1.14 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Figs’s Q2 Earnings Call
- Angus Kelleher-Ferguson (Barclays) asked about the main contributors to average order value (AOV) growth. CEO Trina Spear cited product mix and innovation, while CFO Sarah Oughtred emphasized that product mix shift had the largest impact.
- Dana Telsey (Telsey Group) inquired about how pricing strategy would respond to tariffs. Spear stated that price increases would be a last resort, with efforts focused on sourcing, supplier negotiations, and operational efficiencies before considering price adjustments.
- Brooke Roach (Goldman Sachs) requested quantification of tariff impacts and timing of any potential price changes. Oughtred explained that tariffs would have a 150 basis point annualized impact for 2025, with mitigation strategies prioritized over immediate price increases.
- John David Kernan (TD Cowen) questioned the outlook for customer growth and selling expense leverage. Oughtred noted that promotional pullback would affect customer trends but expressed confidence in returning selling expense rates to 2023 levels by next year.
- Ashley Owens (KeyBanc Capital Markets, via Chris) sought details on non-scrubwear softness and future product plans. Spear attributed the decline to fewer product launches in Q2 and indicated plans to expand non-scrubwear categories, including underscrubs, footwear, and outerwear.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) Figs’ ability to offset escalating tariff costs through supplier negotiations and operational savings, (2) the impact of reduced promotional activity on customer acquisition and retention, and (3) the progress of international expansion—especially the early performance in Japan, upcoming launch in South Korea, and broader channel initiatives. Continued execution on new product launches and the scaling of community hubs will also be important measures of strategic success.
Figs currently trades at $6.98, up from $6.56 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
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