FIGS, Inc.

Q2 net revenues increased 29% year over year to $196.6 million. Active customers grew 13% to 3.1 million, average order value rose 9% to $127, and trailing 12-month net revenues per active customer increased 10% to a record $229. Gross margin improved 820 basis points to 75.2%, including a 780 basis point benefit from a $15.4 million tariff refund; excluding the prior-year portion of tariff refunds, adjusted EBITDA margin was 18.6% versus 12.9% last year. Operating margin was 17.9% versus 6.5% last year, net income was $28.4 million versus $7.1 million last year, and diluted EPS was $0.15 versus $0.04. Cash, cash equivalents and short-term investments were $296.3 million, inventory was $119.6 million, and the company repurchased about $24 million of stock in the quarter. For FY2026, net revenue is now expected to grow approximately 20% versus prior guidance of 14% to 16%; Q3 revenue growth is expected at approximately 20% and Q4 at approximately 10%. Full-year GAAP gross margin is expected to be about 69.5%, operating margin about 10.8% inclusive of refunds, and adjusted EBITDA margin 14.8% to 15% inclusive of refunds.

Trina Spear said the quarter reflected broad-based momentum across channels, product, geographies, and customer cohorts, with records in scrubwear, international, TEAMS, and community hubs. She emphasized FIGS’ brand differentiation, product/storytelling combination, and the company’s ability to drive connection in health care through campaigns, advocacy, and community moments like Nurses Week and the Healthcare Human Rally. Her tone was confident and expansionary, repeatedly framing the business as still early in its growth runway.

Sarah Oughtred highlighted that the quarter outperformed expectations across revenue and profitability, with growth driven by customer gains, higher purchase frequency, and improved AOV from pricing, lower discounts, and lower returns. She walked through the tariff refund accounting, noting $4.5 million received in Q2, a $15.4 million reduction to COGS tied to tariffs expensed since February 2025, and an additional $5.1 million inventory adjustment, with the full refund later received in Q3. She also noted net cash of $296.3 million, inventory down 12% year over year, $24 million of buybacks in the quarter, and a new $100 million authorization, while explaining that margin expansion will be helped by leverage but partially offset by airfreight and non-scrubwear mix.

Analysts focused on what is driving new and returning customers, and management said the mix is coming from better product, stronger marketing, word of mouth, and replenishment behavior, including lapsed customers coming back at a steady pace. Questions also centered on the Jordan supply disruption and tariff refunds; management said the company has mitigated most of the issue by shifting capacity to other partners and expediting production, and that the refund does not change strategy beyond providing more cash to invest and return to shareholders. Analysts pressed on V Coterie, AOV, promo strategy, and TEAMS, and management described V Coterie as a TAM-creation opportunity, said promo cadence will broadly resemble last year, and suggested TEAMS is benefiting from larger institutional wins like Bupa Dental Care.