FIGS(FIGS) - 2025 Q2 - Quarterly Results

Executive Summary Second Quarter 2025 Financial Highlights FIGS achieved its largest revenue quarter in Q2 2025, with 5.8% net revenue growth and significant improvements in net income and Adjusted EBITDA margins Second Quarter 2025 Financial Highlights (YoY Changes) | Metric | Q2 2025 Value (in thousands) | Q2 2024 Value (in thousands) | Change (YoY) (in thousands) | | :-------------------------------- | :------------ | :------------ | :----------- | | Net Revenues | $152,640 | $144,225 | +$8,415 | | Scrubwear Net Revenues | $127,415 | $118,345 | +$9,070 | | Non-scrubwear Net Revenues | $25,225 | $25,880 | -$655 | | U.S. Net Revenues | $129,948 | $125,291 | +$4,657 | | International Net Revenues | $22,692 | $18,934 | +$3,758 | | Gross Margin (%) | 67.0% | 67.4% | -40 bps | | Operating Expenses (in thousands) | $92,331 | $95,711 | -$3,380 | | Net Income (in thousands) | $7,099 | $1,100 | +$5,999 | | Diluted EPS ($) | $0.04 | $0.01 | +$0.03 | | Net Income Margin (%) | 4.7% | 0.8% | +390 bps | | Adjusted EBITDA (in thousands) | $19,727 | $12,932 | +$6,795 | | Adjusted EBITDA Margin (%) | 12.9% | 9.0% | +390 bps | | Active Customers (in thousands) | 2,736 | 2,628 | +108 | | Net Revenues per Active Customer ($) | $208 | $210 | -$2 | | Average Order Value (AOV) ($) | $117 | $113 | +$4 | - CEO Trina Spear noted that strong execution drove the largest revenue quarter in company history, exceeding expectations and demonstrating the power of their model[4] - The company believes it is moving further past the COVID overhang towards a more normalized purchasing and replenishment backdrop[4] Full Year 2025 Financial Outlook FIGS increased its full-year 2025 financial outlook for revenue growth and Adjusted EBITDA margin, driven by customer funnel reinvigoration and cost mitigation Full Year 2025 Financial Outlook | Metric | Outlook | | :---------------------- | :------------------- | | Net Revenues growth vs. 2024 (%) | up low-single-digits | | Adjusted EBITDA Margin (%) | 8.5% to 9.0% | - CFO Sarah Oughtred stated that growing confidence is supported by a heightened focus on reinvigorating the customer funnel and accelerating growth in the core business[6] Company Overview About FIGS FIGS is a founder-led, direct-to-consumer healthcare apparel and lifestyle brand serving global healthcare professionals with technically advanced products - FIGS is a founder-led, direct-to-consumer healthcare apparel and lifestyle brand[10] - The company creates technically advanced apparel and products that feature an unmatched combination of comfort, durability, function, and style[10] - FIGS serves healthcare professionals in North America, Europe, the Asia Pacific region, and the Middle East, and also serves healthcare institutions through its TEAMS platform[11] Forward-Looking Statements & Risk Factors This section outlines forward-looking statements and warns that actual results may differ materially due to substantial risks and uncertainties detailed in SEC filings - Forward-looking statements address matters such as moving past the COVID overhang, reinvigorating the customer funnel, accelerating core business growth, and the full year 2025 financial outlook[12] - Key factors and uncertainties that could cause actual results to differ include the company's ability to maintain growth, profitability, brand value, attract and retain customers, marketing success, product development, market competitiveness, employee retention, international expansion risks, supply chain disruptions, inventory management, macroeconomic trends, reliance on third-party suppliers, trade policy, raw material costs, B2B/retail growth strategies, data security, and intellectual property protection[13] Financial Statements Consolidated Balance Sheets As of June 30, 2025, FIGS reported total assets of $517.1 million, an increase from year-end 2024, with higher short-term investments and inventory Consolidated Balance Sheet Highlights | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | | :-------------------------------- | :------------ | :---------------- | :----- | | Total Assets | $517,124 | $509,787 | +$7,337 | | Cash and cash equivalents | $50,849 | $85,645 | -$34,796 | | Short-term investments | $187,991 | $159,469 | +$28,522 | | Inventory, net | $135,528 | $115,759 | +$19,769 | | Total Current Assets | $393,612 | $382,766 | +$10,846 | | Total Liabilities | $120,593 | $132,655 | -$12,062 | | Total Stockholders' Equity | $396,531 | $377,132 | +$19,399 | Consolidated Statements of Operations For Q2 2025, FIGS reported net income of $7.1 million, a significant increase driven by 5.8% net revenue growth and a 3.5% decrease in operating expenses Consolidated Statements of Operations (Three Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | Net revenues | $152,640 | $144,225 | +5.8% | | Gross profit | $102,246 | $97,264 | +5.1% | | Total operating expenses | $92,331 | $95,711 | -3.5% | | Net income from operations | $9,915 | $1,553 | +538.4% | | Net income | $7,099 | $1,100 | +545.4% | | Diluted earnings per share ($) | $0.04 | $0.01 | +$0.03 | Consolidated Statements of Operations (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (YoY) | | :-------------------------------- | :------- | :------- | :----------- | | Net revenues | $277,541 | $263,518 | +5.3% | | Gross profit | $186,705 | $179,400 | +4.1% | | Total operating expenses | $177,001 | $177,404 | -0.2% | | Net income from operations | $9,704 | $1,996 | +386.2% | | Net income | $6,997 | $2,535 | +176.0% | | Diluted earnings per share ($) | $0.04 | $0.01 | +$0.03 | Consolidated Statements of Cash Flows For the six months ended June 30, 2025, net cash used in operating activities was $3.2 million, a significant decrease from the prior year, primarily due to changes in inventory Consolidated Statements of Cash Flows (Six Months Ended June 30) | Metric | 2025 (in thousands) | 2024 (in thousands) | Change (in thousands) | | :------------------------------------------ | :------- | :------- | :------- | | Net cash (used in) provided by operating activities | $(3,195) | $28,158 | -$31,353 | | Net cash used in investing activities | $(29,098) | $(40,784) | +$11,686 | | Net cash (used in) provided by financing activities | $(2,503) | $264 | -$2,767 | | Net change in cash and cash equivalents | $(34,796) | $(12,362) | -$22,434 | | Cash and cash equivalents end of period | $50,849 | $131,811 | -$80,962 | Non-GAAP Measures & Key Metrics Non-GAAP Financial Measures and Key Operating Metrics Definitions This section defines non-GAAP financial measures like Adjusted EBITDA and free cash flow, and key operating metrics such as active customers and average order value - Adjusted EBITDA is calculated as net income adjusted to exclude other income, net; gain/loss on disposal of assets; provision for income taxes; depreciation and amortization expense; stock-based compensation and related expense; transaction costs; and expenses related to non-ordinary course disputes[8] - Free cash flow is defined as net cash (used in) provided by operating activities reduced by capital expenditures[8] - An active customer is a unique customer account that has made at least one purchase in the preceding 12-month period[9] - Average order value (AOV) is the sum of total net revenues in a given period divided by the total orders placed in that period[9] Reconciliations of GAAP to Non-GAAP Measures This section provides detailed reconciliations of Adjusted EBITDA to net income and free cash flow to net cash from operating activities Adjusted EBITDA Reconciliation | Metric | Three months ended June 30, 2025 (in thousands) | Three months ended June 30, 2024 (in thousands) | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------------------------ | :------------------------------- | :------------------------------- | :------------------------------- | :------------------------------- | | Net income | $7,099 | $1,100 | $6,997 | $2,535 | | Add (deduct): | | | | | | Other income, net | $(2,116) | $(2,830) | $(4,191) | $(5,667) | | Provision for income taxes | $4,932 | $3,283 | $6,898 | $5,128 | | Depreciation and amortization expense | $2,153 | $1,113 | $4,152 | $1,963 | | Stock-based compensation and related expense | $7,659 | $10,266 | $15,046 | $21,963 | | Adjusted EBITDA | $19,727 | $12,932 | $28,902 | $25,922 | | Net revenues | $152,640 | $144,225 | $277,541 | $263,518 | | Net income margin (%) | 4.7% | 0.8% | 2.5% | 1.0% | | Adjusted EBITDA Margin (%) | 12.9% | 9.0% | 10.4% | 9.8% | Free Cash Flow Reconciliation | Metric | Six months ended June 30, 2025 (in thousands) | Six months ended June 30, 2024 (in thousands) | | :------------------------------------------ | :------------------------------- | :------------------------------- | | Net cash (used in) provided by operating activities | $(3,195) | $28,158 | | Less: capital expenditures | $(2,399) | $(9,489) | | Free cash flow | $(5,594) | $18,669 | Key Operating Metrics As of June 30, 2025, FIGS reported increased active customers and average order value, with a slight decrease in net revenues per active customer Key Operating Metrics | Metric | As of June 30, 2025 (in thousands) | As of June 30, 2024 (in thousands) | Change (YoY) | | :-------------------------- | :------------------ | :------------------ | :----------- | | Active customers | 2,736 | 2,628 | +4.1% | | Net revenues per active customer ($) | $208 | $210 | -1.0% | | Average order value (Q2) ($) | $117 | $113 | +3.5% | | Average order value (YTD) ($) | $118 | $115 | +2.6% | Disaggregated Net Revenues FIGS' Q2 2025 net revenues increased by 5.8% year-over-year, driven by strong international growth and a 7.7% increase in scrubwear sales Disaggregated Net Revenues (Three Months Ended June 30) | Category | 2025 (in thousands) | 2024 (in thousands) | Change % | | :---------------- | :------- | :------- | :------- | | By geography: | | | | | United States | $129,948 | $125,291 | 3.7% | | Rest of the world | $22,692 | $18,934 | 19.8% | | Total Net Revenues | $152,640 | $144,225 | 5.8% | | By product: | | | | | Scrubwear | $127,415 | $118,345 | 7.7% | | Non-Scrubwear | $25,225 | $25,880 | (2.5)% | | Total Net Revenues | $152,640 | $144,225 | 5.8% | Disaggregated Net Revenues (Six Months Ended June 30) | Category | 2025 (in thousands) | 2024 (in thousands) | Change % | | :---------------- | :------- | :------- | :------- | | By geography: | | | | | United States | $235,967 | $228,361 | 3.3% | | Rest of the world | $41,574 | $35,157 | 18.3% | | Total Net Revenues | $277,541 | $263,518 | 5.3% | | By product: | | | | | Scrubwear | $226,984 | $213,241 | 6.4% | | Non-Scrubwear | $50,557 | $50,277 | 0.6% | | Total Net Revenues | $277,541 | $263,518 | 5.3% | Additional Information Conference Call Details FIGS will host a conference call and webcast on August 7, 2025, to discuss financial results and outlook, with participation and replay details available - Conference call and webcast scheduled for August 7, 2025, at 2:00 p.m. PT / 5:00 p.m. ET[7] - Dial-in and webcast access information, along with replay details, are available for interested parties[7] Contacts Contact information for investor relations and media inquiries is provided for external communication - Investors can contact Tom Shaw at IR@wearfigs.com[27] - Media can contact Todd Maron at press@wearfigs.com[27]