GICS Sector : Consumer Cyclical
FIGS, Inc.operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States.It designs and sells healthcare apparel and other non-scrub offerings, such as lab coats, under scrubs, outerwear, activewear, loungewear, compression socks footwear, and masks.
FIGS reported net revenues of $151.7 million for Q3 2025, representing an 8% year-over-year increase, driven by growth across its core business, particularly in scrubwear, which grew 8% and accounted for 84% of net revenues. Gross margin remained healthy at 69.8% despite growing tariff headwinds. Adjusted EBITDA for Q3 was $18.9 million, with an adjusted EBITDA margin of 12.4%, significantly higher than the 3.4% reported last year. Earnings per share (EPS) came in at $0.05, beating analyst estimates of $0.02.
Publication Date: Nov -23
The company's revenue growth was driven by a combination of factors, including a strong performance in the U.S. market, where sales increased 8% to $127.3 million, and international growth of 12%, led by new customer acquisitions. The company's product strategy, focused on delivering a great product assortment and impactful connections, resonated with healthcare professionals, contributing to the revenue growth.
FIGS continued to expand its international footprint, opening 12 new markets in Q3 and planning to enter China through Tmall later in the quarter. The company also made progress in its Teams business, investing in upgraded technology to provide more flexibility and functionality for healthcare teams. As Trina Spear noted, "We are excited to share the overall economics of this business, which presents a promising opportunity."
With a P/E Ratio of 89.87 and an EV/EBITDA of 43.83, FIGS' valuation suggests that the market has high expectations for the company's future growth. Analysts estimate revenue growth of 5.2% for next year, which may be challenging to achieve given the current valuation. However, the company's strong Q3 results and improved full-year outlook, with expected net revenue growth of 7%, provide a positive outlook for the company's future performance.
FIGS is expected to face continued tariff headwinds, with a 330-basis-point impact to be offset by efficiency improvements. The company's adjusted EBITDA margin is expected to remain healthy, around 10.3% for the full year, ahead of the original outlook. The Teams business has an accretive bottom-line margin profile, despite a lower gross margin profile due to higher discount offerings.
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FIGS' Scrubwear growth is driven by increasing demand for comfortable, functional, and fashionable medical apparel. The brand's focus on quality, durability, and style resonates with healthcare professionals. Additionally, the shift towards online shopping and subscription-based services contributes to the growth. Furthermore, FIGS' strategic partnerships with hospitals and medical institutions expand its customer base, fueling the 3.5% growth.
FIGS' Non-Scrubwear segment growth of 2.5% is driven by increasing demand for comfortable, fashion-forward apparel among healthcare professionals. Expansion into new product categories, such as lab coats and outerwear, also contributes to growth. Additionally, the company's strong e-commerce platform and strategic partnerships with healthcare organizations support sales growth.
High-quality, comfortable, and durable scrub tops designed for medical professionals
Stylish, comfortable, and functional scrub pants designed for medical professionals
High-quality, professional, and durable lab coats designed for medical professionals
Water-resistant and warm outerwear designed for medical professionals
High-quality accessories such as hats, bags, and socks designed for medical professionals
FIGS, Inc. faces moderate threat from substitutes due to the presence of alternative fashion brands and online marketplaces.
FIGS, Inc. has a high bargaining power of customers due to the presence of online reviews and social media, which gives customers the power to influence the market.
FIGS, Inc. has a low bargaining power of suppliers due to the presence of multiple suppliers and the company's strong brand reputation.
FIGS, Inc. faces a moderate threat of new entrants due to the presence of low barriers to entry and the growing demand for online fashion.
FIGS, Inc. operates in a highly competitive market with many established players, leading to a high intensity of rivalry.
| Value | |
|---|---|
| Debt Weight | 11.11% |
| Debt Cost | 11.01% |
| Equity Weight | 88.89% |
| Equity Cost | 11.01% |
| WACC | 11.01% |
| Leverage | 12.50% |
Value: 9.6
Growth: 2.7
Quality: 4.0
Yield: 0.0
Momentum: 9.5
Volatility: 0.0
1-Year Total Return ->
Value: 9.8
Growth: 1.2
Quality: 5.0
Yield: 1.0
Momentum: 2.0
Volatility: 5.3
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Value: 1.7
Growth: 8.8
Quality: 5.8
Yield: 0.0
Momentum: 5.0
Volatility: 3.0
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Value: 9.0
Growth: 2.1
Quality: 3.7
Yield: 1.0
Momentum: 2.0
Volatility: 3.3
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Value: 8.3
Growth: 1.3
Quality: 3.2
Yield: 0.0
Momentum: 0.5
Volatility: 4.7
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Value: 3.5
Growth: 0.9
Quality: 4.5
Yield: 2.0
Momentum: 4.0
Volatility: 3.0
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