Core Insights - FIGS reported a strong fourth quarter with net revenue of $201.9 million, representing a 33% year-over-year increase, significantly exceeding company expectations [3][7] - Active customer growth accelerated to 9% year-over-year, reaching a record of over 2.9 million active customers, with improvements in retention and growth across customer cohorts [1][7] - The company expects revenue growth of 10%–12% for fiscal 2026, alongside higher operating and adjusted EBITDA margins, while navigating tariff pressures and investing in international expansion [5][20] Financial Performance - Q4 net revenue was $201.9 million, up 33% year-over-year, with fiscal 2025 net revenue reaching $631.1 million, a 14% increase [3][7] - Q4 gross margin fell to 62.9%, down 440 basis points year-over-year, primarily due to tariffs and a $5.6 million inventory write-off [6][11] - Adjusted EBITDA for Q4 was $26.7 million, with an adjusted EBITDA margin of 13.2%, compared to 13.9% in the previous year [12] Customer Metrics - The trailing 12-month net revenue per active customer increased by 4% to $216 [1] - Average order value rose by 9% to $126, attributed to increases in average unit retail and units per transaction [2] Product Performance - Scrub wear revenue increased by 35% in Q4, accounting for 77% of net revenue, driven by merchandising efforts and inventory investments [8] - Non-scrub wear grew by 26%, making up 23% of net revenue, with notable growth in underscrubs and outerwear [9] International Expansion - U.S. net revenue increased by 29% to $164.2 million, while international net revenue rose by 55% to $37.7 million, indicating strong engagement in markets like Mexico, Canada, Europe, and Australia [9][10] - The company added China and South Korea to its international markets, with most growth coming from existing markets [10] Capital Allocation and Retail Strategy - FIGS ended the year with $300.8 million in cash and short-term investments, with inventory up 11% year-over-year [14] - The company expanded its retail footprint to five community hubs, with plans for additional openings and expectations for profitability within the first year [16][21] Strategic Outlook - FIGS aims to surpass 80 total markets by 2026, up from 58 at the end of 2025, and plans to open four additional community hubs in the second half of 2026 [22][23] - The company is focused on product innovation, community engagement, and market expansion, including new fabric technologies and expanded layering systems [22]