Core Insights - Figs reported strong Q2 2025 results, exceeding revenue and earnings expectations, with GAAP revenue at $152.6 million and GAAP EPS at $0.04, marking the highest quarterly revenue in the company's history [1][5] - The company experienced significant international growth, with revenue outside the U.S. increasing by 19.8% to $22.7 million, while U.S. market growth was at 3.7% [7][12] - Despite record sales and profitability, margins faced pressure from tariffs and inventory build, with gross margin slightly contracting to 67.0% [8][14] Financial Performance - GAAP revenue for Q2 2025 was $152.6 million, surpassing the estimate of $144.2 million, reflecting a year-over-year increase of 5.8% [2] - GAAP EPS reached $0.04, more than double the analyst estimate of $0.01881, representing a 300% increase year-over-year [2][5] - Adjusted EBITDA rose to $19.7 million, a 52.7% increase from $12.9 million in Q2 2024, with an adjusted EBITDA margin of 12.9%, up 3.9 percentage points from the previous year [2][5] Product and Market Strategy - Figs specializes in healthcare apparel, particularly scrubs, utilizing premium materials like proprietary FIONx fabric to differentiate from lower-quality competitors [3] - The company focuses on continuous product innovation, direct online engagement, and expanding international reach, with plans to enter Japan and South Korea later in 2025 [4][12] - Scrubwear sales were a key growth driver, totaling $127.4 million, up 7.7%, while non-scrubwear revenue declined by 2.5% to $25.2 million [6] Operational Developments - Active customers increased to 2.74 million, with an average order value of $117, indicating strong customer engagement [2][11] - International sales now account for a growing share of overall revenue, with management highlighting momentum in markets such as Mexico, Europe, and the Middle East [7][12] - Inventory levels rose to $135.5 million as the company made advance purchases to manage tariff risks, although management noted limited markdown risk due to the nature of the inventory [13] Outlook - Figs raised its full-year guidance, expecting net revenue growth in the low-single-digit percentage range and adjusted EBITDA margin guidance increased to between 8.5% and 9.0% [14] - Management acknowledged ongoing margin pressure from tariffs and challenges in non-scrubwear growth, which saw a year-over-year decline of 2.5% [14]