FIGS(US:FIGS)2025-11-06 21:24Customer Metrics - Active customers increased by 4.0% from approximately 2.7 million at September 30, 2024, to approximately 2.8 million at September 30, 2025[111] - Active customers grew to 2,781 thousand as of September 30, 2025, up from 2,673 thousand in the prior year[152] - Net revenues per active customer increased to $209 for the nine months ended September 30, 2025, compared to $205 in the previous year[153] Financial Performance - Net revenues rose from $140.2 million to $151.7 million, representing an increase of 8.2% for the three months ended September 30, 2025, and from $403.7 million to $429.2 million, or 6.3%, for the nine months ended September 30, 2025[111] - Net income increased from $(1.7) million to $8.7 million for the three months ended September 30, 2025, and from $0.8 million to $15.7 million for the nine months ended September 30, 2025[117] - Adjusted EBITDA increased from $4.8 million to $18.9 million for the three months ended September 30, 2025, and from $30.7 million to $47.8 million for the nine months ended September 30, 2025[117] - Net revenues for the nine months ended September 30, 2025, reached $429.202 million, compared to $403.726 million in 2024, indicating a year-over-year growth of approximately 6.3%[157] - Adjusted EBITDA for the nine months ended September 30, 2025, was $47.752 million, up from $30.719 million in 2024, reflecting a significant increase in operational performance[157] - The adjusted EBITDA margin improved to 11.1% for the nine months ended September 30, 2025, compared to 7.6% in the same period of 2024[157] Cost and Margin Analysis - Gross margin improved by 2.8 percentage points from 67.1% to 69.9% for the three months ended September 30, 2025[111] - Gross margin increased by 0.5 percentage points to 68.2% for the nine months ended September 30, 2025, due to fewer discounts and improved return rates[143] - Tariffs have increased product costs, negatively impacting gross margin by 120 basis points for the three months ended September 30, 2025[114] - Estimated negative impact on gross margin due to current tariff regime is approximately 110 basis points for 2025 and 440 basis points for 2026[114] Operating Expenses - Total operating expenses decreased from 73.2% to 63.6% of net revenues for the three months ended September 30, 2025[129] - Operating expenses decreased by $6.2 million, or 6.1%, for the three months ended September 30, 2025, compared to the same period last year[132] - Total operating expenses for the nine months ended September 30, 2025, decreased by $6.6 million, or 2.4%, compared to the same period last year[144] - General and administrative expenses decreased by $1.6 million, or 1.5%, for the nine months ended September 30, 2025, compared to the same period last year[147] Cash Flow and Liquidity - Cash flows from operating activities decreased from $50.7 million to $0.2 million for the nine months ended September 30, 2025[117] - Free cash flow decreased from $37.1 million to $(5.1) million for the nine months ended September 30, 2025[117] - Cash flows from operating activities decreased by $50.5 million for the nine months ended September 30, 2025, compared to the same period last year, primarily due to higher inventory purchases and timing of payments[170] - Cash flows from investing activities increased by $25.7 million for the nine months ended September 30, 2025, mainly due to an increase in maturities of available-for-sale securities[173] - As of September 30, 2025, the company had $46.5 million in cash and cash equivalents, down from $85.6 million at the end of 2024[161] - The company has a revolving credit facility of up to $100.0 million, with $95.1 million available for borrowings as of September 30, 2025[163] Shareholder Actions - The company authorized a share repurchase program totaling $100.0 million, with approximately $52.0 million available for future repurchases as of September 30, 2025[165] Taxation - Provision for income taxes increased by $7.2 million, or 180.3%, for the three months ended September 30, 2025, primarily due to an increase in pre-tax income[138] Other Income - Other income, net decreased by 20.6% for the three months ended September 30, 2025, primarily due to lower interest income[136] Average Order Value - Average order value (AOV) for the three months ended September 30, 2025, was $114, up from $108 in the same period last year[153]