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Figs, Inc.: Q4 FY2025 earnings call

What management said about Q4 FY2025, from the documents filed with the SEC on 26 February 2026: press release. Guidance figures: 3 new. The quarter’s numbers.

Key takeaways

  • Q4 net revenues rose 33.0%: Net revenues were $201.9 million, up 33.0% from $151.8 million a year earlier. The company attributed the increase to more orders from new and existing customers and higher average order value. Source
  • Q4 adjusted EBITDA rose $5.7 million: Adjusted EBITDA was $26.7 million, up $5.7 million year over year. Source
  • Full-year revenue rose 13.6%: Full-year 2025 net revenues were $631.1 million, up 13.6%, primarily from more orders from new and existing customers and higher AOV. Source
  • Active customers reached 2.9 million: Active customers were 2,921 thousand at December 31, 2025, against 2,670 thousand a year earlier. Source
  • Q4 gross margin fell 440 basis points: Q4 gross margin was 62.9%. The company cited higher tariffs and lapping duty drawback claims from the prior year, partly offset by a lower discount rate and favorable freight rates. Source
  • Record cash on the balance sheet: At December 31, 2025, cash and cash equivalents were $82.0 million and short-term investments were $218.9 million. Source
  • Plans low double-digit growth in 2026: For 2026 the company plans net revenues growth of 10% to 12% and margin expansion, with guidance given for both. Source

“Our 33% surge in Q4 net revenues was driven by successes across virtually every part of the business, while also lowering our discount rate for the period.”

Trina Spear, Chief Executive Officer and Co-Founder

Guidance

AreaPeriodFigureAgainst last quarter
Net revenues growth Sourcefull year 202610% to 12%New
Net revenues growth Sourcefirst quarter 2026low-20% rangeNew
Adjusted EBITDA margin Sourcefull year 202612.7% to 12.9%New

What changed from last quarter

  • New guidance: Full-year 2026 guidance was given: net revenues growth of 10% to 12% and adjusted EBITDA margin of 12.7% to 12.9%. Source
  • New guidance: Guidance for Q1 2026 net revenues growth in the low-20% range was given. Source
  • New: Management referred to a latest announcement calling for 15% global tariffs. The prior-quarter release does not mention it. Source

Fourth quarter and full year results

  • Q4 net revenues rose 33.0%: Net revenues were $201.9 million, up 33.0% from $151.8 million a year earlier. The company attributed the increase to more orders from new and existing customers and higher average order value. Source
  • Q4 net income and EPS rose: Net income was $18.5 million, or $0.10 diluted EPS, against $1.9 million, or $0.01 a year earlier. Net income margin was 9.2%, against 1.2%. Source
  • Q4 adjusted EBITDA rose $5.7 million: Adjusted EBITDA was $26.7 million, up $5.7 million year over year. Source
  • Full-year revenue rose 13.6%: Full-year 2025 net revenues were $631.1 million, up 13.6%, primarily from more orders from new and existing customers and higher AOV. Source
  • Full-year net income reached $34.3 million: Full-year 2025 net income was $34.3 million, or $0.19 diluted EPS, against $2.7 million, or $0.02 in 2024. Source

Segment and regional growth

  • Scrubwear drove Q4 growth: Q4 scrubwear net revenues were $154.9 million, up 35.1%. Non-scrubwear net revenues were $47.0 million, up 26.4%. Source
  • International grew faster than U.S. in Q4: Q4 International net revenues were $37.7 million, up 55.1%. U.S. net revenues were $164.2 million, up 28.7%. Source
  • Full-year International up 27.5%: Full-year 2025 International net revenues were $103.6 million, up 27.5%. U.S. net revenues were $527.5 million, up 11.2%. Source
  • Full-year scrubwear grew 14.3%: Full-year 2025 scrubwear net revenues were $508.9 million, up 14.3%. Non-scrubwear net revenues were $122.2 million, up 10.6%. Source

“We exited 2025 with tremendous demand momentum, improving profitability and record cash on the balance sheet - each measure well ahead of expectations and a testament to the strength of our strategy and execution of our team.”

Sarah Oughtred, Chief Financial Officer

Customers and order metrics

  • Active customers reached 2.9 million: Active customers were 2,921 thousand at December 31, 2025, against 2,670 thousand a year earlier. Source
  • Revenue per active customer rose 3.8%: Net revenues per active customer were $216 for 2025, against $208 for 2024. Source
  • Average order value rose 6.2%: Full-year AOV was $120, against $113 for 2024. The company attributed the increase to product mix, units per transaction, and discount and return rates. Source

Gross margin, costs and profitability

  • Q4 gross margin fell 440 basis points: Q4 gross margin was 62.9%. The company cited higher tariffs and lapping duty drawback claims from the prior year, partly offset by a lower discount rate and favorable freight rates. Source
  • Full-year gross margin fell 110 basis points: Full-year 2025 gross margin was 66.5%, down 110 basis points, with higher tariffs cited as the primary driver and a lower discount rate as an offset. Source
  • Q4 operating expense ratio fell: Q4 operating expenses were $108.3 million, up 16.0%, or 53.6% of net revenues against 61.4% a year earlier. The company cited lower stock-based compensation, lower fulfillment and shipping expenses, and fixed cost leverage. Source
  • Full-year operating expenses rose 2.2%: Full-year 2025 operating expenses were $381.7 million, or 60.5% of net revenues, against 67.2% in 2024. Source
  • Q4 adjusted EBITDA margin slipped: Q4 adjusted EBITDA margin was 13.2%, against 13.9%. Full-year adjusted EBITDA margin was 11.8%, up from 9.3%. Source
  • Q1 2025 adjusted EBITDA corrected: Full-year adjusted EBITDA includes $171,000 of stock-based compensation and payroll taxes that were inadvertently not reflected in the Q1 2025 results previously disclosed. Source

“Given our momentum and while still adopting a prudent mindset, we expect top line growth in 2026 of 10-12%, including growth in the low-20% range for Q1.”

Sarah Oughtred, Chief Financial Officer

Cash, balance sheet and returns

  • Record cash on the balance sheet: At December 31, 2025, cash and cash equivalents were $82.0 million and short-term investments were $218.9 million. Source
  • Free cash flow was $53.0 million: Full-year 2025 free cash flow was $53.0 million, from operating cash flow of $61.2 million less capital expenditures of $8.2 million. The prior year was $64.1 million. Source
  • Share repurchases fell sharply: Full-year 2025 repurchases of Class A common stock were $2.7 million, against $45.5 million in 2024. Source
  • Capital expenditures declined: Full-year 2025 purchases of property and equipment were $8.2 million, against $17.0 million in 2024. Source

2026 plans and growth drivers

  • Plans low double-digit growth in 2026: For 2026 the company plans net revenues growth of 10% to 12% and margin expansion, with guidance given for both. Source
  • Growth expected from four areas: Management expects 2026 growth from the core business as well as from International, TEAMS and Community Hubs. Source
  • COVID overhang seen as past: Management said the end of the COVID overhang and the industry's structural advantages are tailwinds for continued success into 2026. Source

Coming up, as management said on 26 February 2026

  • Q1 2026 growth in low-20% range: Management expects Q1 2026 net revenues growth in the low-20% range. Source
  • Profitability expected to rise despite tariffs: Management expects increased profitability in 2026 even with the latest 15% global tariff announcement. Source
  • Balance sheet expected to improve further: Management expects the balance sheet to improve further as strong cash flow drives expanded shareholder value. Source

Figures management reported

FigureReported
Active customers Source2.9 million at December 31, 2025, up 9.4% (2,921 thousand)
Net revenues per active customer Source$216, up 3.8%
Average order value Source$120, up 6.2% (full year 2025)

Risks management discussed

  • Regulatory: Management flagged a new 15% global tariff announcement as a factor in its 2026 profitability expectation. Source
  • Operational: Q4 results include a $5.6 million inventory write-off recorded during the period. Source

Earlier plans management reported on

  • Ahead: Management said results exceeded top and bottom line expectations for the full year 2025. Source

Other quarters

Summarised with AI from the documents the company filed with the SEC. Every point is checked against the filing before it is shown: management’s own words word for word, figures against the line or table row they come from. A point that fails the check is left out. Source opens the filing at that line.