FIGS(FIGS)2025-05-08 20:38Revenue Performance - Net revenues for Q1 2025 were $124.9 million, representing a year-over-year increase of 4.7% driven by higher orders from existing customers and an increase in average order value (AOV) to $119, up 2.6% year over year[4]. - Scrubwear net revenues reached $99.6 million, a 4.9% increase year over year, while non-scrubwear net revenues were $25.3 million, up 3.8% year over year[4]. - U.S. net revenues were $106.0 million, reflecting a 2.9% increase year over year, and international net revenues were $18.9 million, a significant increase of 16.4% year over year[4]. - Total net revenues for Q1 2025 were $124.9 million, a 4.7% increase from $119.3 million in Q1 2024[16]. - Revenue from the United States was $106.0 million, a 2.9% increase from $103.1 million in Q1 2024[25]. Profitability and Margins - Gross margin decreased to 67.6%, down 130 basis points year over year, primarily due to product mix shifts and higher freight expenses[4]. - Operating expenses increased to $84.7 million, a 3.6% rise year over year, but as a percentage of net revenues, they decreased to 67.8% from 68.5% in the same period last year[4]. - The company reported a net loss of $0.1 million, compared to a net income of $1.4 million in the same period last year, resulting in a net income margin of (0.1)%[4]. - Adjusted EBITDA was $9.0 million, down $4.0 million year over year, with an adjusted EBITDA margin of 7.2%, compared to 10.9% in the same period last year[4]. - Gross profit for Q1 2025 was $84.5 million, compared to $82.1 million in Q1 2024, reflecting a gross margin improvement[16]. - Adjusted EBITDA for Q1 2025 was $9.0 million, down from $13.0 million in Q1 2024, reflecting a margin of 7.2%[21]. Customer Metrics - Active customers as of March 31, 2025, increased by 3.8% year over year to 2.7 million, while net revenues per active customer decreased by 1.0% year over year to $208[4]. - Active customers increased to 2,696 as of March 31, 2025, up from 2,597 in the same period last year, representing a growth of 3.8%[23]. - Average order value rose to $119 in Q1 2025, compared to $116 in Q1 2024, indicating a positive trend in customer spending[23]. Cash Flow and Assets - Free cash flow for Q1 2025 was $7.9 million, down from $11.1 million in Q1 2024[21]. - Total current assets increased to $399.7 million as of March 31, 2025, compared to $382.8 million at the end of 2024[14]. - Total liabilities rose to $140.8 million as of March 31, 2025, up from $132.7 million at the end of 2024[14]. Future Outlook - The full year 2025 outlook projects net revenue growth to be down in low single digits, with an adjusted EBITDA margin expected to be between 7.5% and 8.5%[5]. - The company aims to navigate economic uncertainties and adapt to changes in U.S. trade policies while maintaining a focus on serving its community and investing in growth opportunities[3].