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Figs, Inc.: Q2 FY2026 earnings call

What management said about Q2 FY2026, from the documents filed with the SEC on 6 August 2026: press release. Guidance figures: 2 raised, 1 new. The quarter’s numbers.

Key takeaways

  • Net revenues up 28.8%: Net revenues were $196.6 million, up 28.8%, mainly from more orders and higher average order value. The figure compares with $152.6 million a year earlier. Source
  • Net income and diluted EPS rose: Net income was $28.4 million, or $0.15 diluted EPS, against $7.1 million, or $0.04, a year earlier. Net income margin was 14.4%, against 4.7%. Source
  • Gross margin rose on tariff refunds: Gross margin was 75.2%, up 820 basis points, with a 780 basis point effect from IEEPA tariff refunds recognized. Pricing and efficiency helped, partly offset by higher tariffs. Source
  • Adjusted EBITDA margin reached 18.6%: Adjusted EBITDA margin was 18.6%, up from 12.9%. Management said the increase reflects expense leverage and efficiency, excluding the prior-year tariff refund benefit. Source
  • Margin expectation raised for full year: Full-year adjusted EBITDA margin expectation was raised from the prior range. Source
  • Buyback authorization increased $100M: The Board added $100.0 million to the repurchase program on August 6. Source

“FIGS’ exceptional Q2 performance was powered by strong, ongoing traction across the business, with outperformance on both the top and bottom lines,”

Trina Spear, Chief Executive Officer and Co-Founder

Guidance

AreaPeriodFigureAgainst last quarter
Net revenues growth SourceFull year 2026 vs. 2025approximately 20%Raised from 14% to 16%
Adjusted EBITDA margin SourceFull year 202614.8% to 15.0%Raised from 13.0% to 13.2%
Share repurchase authorization SourceOngoing program, no expiration date$100.0 million increaseNew

What changed from last quarter

  • Guidance raised: Full-year net revenues growth expectation raised from 14% to 16% to approximately 20%. Source
  • Guidance raised: Full-year adjusted EBITDA margin expectation raised from 13.0% to 13.2% to 14.8% to 15.0%. Source
  • New: Share repurchase program increased by $100.0 million, authorized August 6, 2026. Source

Results and growth drivers

  • Net revenues up 28.8%: Net revenues were $196.6 million, up 28.8%, mainly from more orders and higher average order value. The figure compares with $152.6 million a year earlier. Source
  • Net income and diluted EPS rose: Net income was $28.4 million, or $0.15 diluted EPS, against $7.1 million, or $0.04, a year earlier. Net income margin was 14.4%, against 4.7%. Source
  • Third straight quarter above 25%: Management said this was the third consecutive quarter of net revenues growth of 25% or more. Source
  • Growth spread across the business: Management said growth was not confined to one area and was spread across categories, geographies and channels. Source

Segments and regions

  • Scrubwear revenue up 26.5%: Scrubwear reported $161.2 million of net revenues, up 26.5% from a year earlier. Source
  • Non-scrubwear grew faster: Non-scrubwear net revenues were $35.4 million, up 40.3%, growing faster than scrubwear in the quarter. Source
  • U.S. revenue up 22.2%: U.S. net revenues were $158.7 million, up 22.2% from a year earlier. Source
  • International revenue up 67.0%: International net revenues were $37.9 million, up 67.0%, the highest growth rate among the regions and products reported. Source

“We are once again demonstrating the power of our business model to combine growth and profitability.”

Sarah Oughtred, Chief Financial Officer

Products and customers

  • Revenue per active customer at highs: Management said net revenues per active customer exceeded COVID-era highs. Source
  • Pricing and mix lifted order value: Average order value rose on higher average unit retail, which the company attributed to pricing and favorable product mix. Source
  • Active customer base grew: The company reported year-over-year growth in active customers, which it describes as an indicator of growth. Source

Costs, margins and pricing

  • Gross margin rose on tariff refunds: Gross margin was 75.2%, up 820 basis points, with a 780 basis point effect from IEEPA tariff refunds recognized. Pricing and efficiency helped, partly offset by higher tariffs. Source
  • Operating expenses fell as share of sales: Operating expenses were 57.3% of net revenues, down from 60.5%, which management attributed to fixed cost leverage and lower stock-based compensation. Source
  • Adjusted EBITDA margin reached 18.6%: Adjusted EBITDA margin was 18.6%, up from 12.9%. Management said the increase reflects expense leverage and efficiency, excluding the prior-year tariff refund benefit. Source
  • Refund excluded from adjusted EBITDA: Adjusted EBITDA excludes $7.9 million of IEEPA tariff refunds on goods sold in the prior fiscal year. Source
  • Prior-period adjusted EBITDA corrected: A footnote says $171,000 of stock-based compensation and payroll taxes was inadvertently left out of previously disclosed adjusted EBITDA for first-quarter 2025. Source

“given that we are still only serving a tiny percentage of the world’s healthcare professionals, we believe we are just getting started.”

Trina Spear, Chief Executive Officer and Co-Founder

Full-year guidance and expectations

  • Margin expectation raised for full year: Full-year adjusted EBITDA margin expectation was raised from the prior range. Source
  • Q2 growth above earlier expectation: The company had expected second-quarter growth in the low 20% range; reported growth was 28.8%, which management described as outperformance.

Capital, cash and returns

  • First-half free cash flow positive: Free cash flow for the six months was $38.6 million, after operating cash flow of $43.7 million and capital expenditures of $5.0 million. A year earlier it was negative $5.6 million. Source
  • Buyback authorization increased $100M: The Board added $100.0 million to the repurchase program on August 6. Source
  • Remaining capacity before increase: About $19.2 million remained for repurchases as of June 30, 2026, before the August increase. Source
  • Cash and investments held: Cash and cash equivalents were $108.5 million and short-term investments were $187.8 million at June 30, 2026, against $82.0 million and $218.9 million at year-end 2025. Source

Strategy and investment

  • Product and community engine: Management said the combination of its product innovation engine and its connection with its community is creating long-lasting impact for healthcare professionals. Source
  • Institution channel through TEAMS: The company also serves healthcare institutions through its TEAMS platform, according to its business description. Source
  • Professional reach in U.S. and abroad: The company serves healthcare professionals both in the U.S. and internationally. Source

Coming up, as management said on 6 August 2026

  • Repurchases continue under expanded program: Repurchase timing, manner, price and amount remain at the company's discretion, and the program has no expiration date. Source
  • Second-half expectations layered in: Management said it is layering increased expectations for the second half of 2026 into its full-year view. Source

In management's words

“as we look to align this growing confidence with shareholder returns, we are pleased to announce a $100 million increase to our ongoing share repurchase program.”

Sarah Oughtred, Chief Financial Officer

Figures management reported

FigureReported
Active customers Source3.1 million
Net revenues per active customer Source$229
Average order value Source$127

Risks management discussed

  • External: Management said higher tariffs partly offset gross margin gains this quarter. 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.