Figs’s (NYSE:FIGS) Q3: Strong Sales, Stock Jumps 16.2%

Company Overview - Figs is a healthcare apparel company founded in 2013 by Heather Hasson and Trina Spear, gaining popularity through TikTok for its stylish medical attire and uniforms [3]. Q3 CY2025 Financial Performance - Figs reported Q3 CY2025 revenue of $151.7 million, exceeding analyst estimates of $142.5 million, representing an 8.2% year-on-year growth [6]. - The non-GAAP profit was $0.05 per share, significantly above the consensus estimate of $0.02 [6]. - Adjusted EBITDA was $18.85 million, surpassing analyst expectations of $12.38 million, with a margin of 12.4% [6]. - Operating margin improved to 6.4%, up from -6.2% in the same quarter last year [6]. - Free cash flow margin decreased to 0.4%, down from 13.1% in the same quarter last year [6]. - Active customers reached 2.78 million, an increase of 108,000 year-on-year [6]. Revenue Growth Analysis - Figs has demonstrated impressive annualized revenue growth of 23.7% over the last five years, outperforming the average consumer discretionary company [4]. - However, the annualized revenue growth over the last two years has slowed to 3.2%, indicating a decline compared to the five-year trend [5]. - The number of active customers has shown an average year-on-year growth of 5.8% over the last two years, but this growth is not translating into revenue growth, suggesting a decline in monetization [7]. Future Outlook - Analysts project that Figs's revenue will remain flat over the next 12 months, indicating a slight deceleration in growth compared to the previous two years [8].