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FIGS Sales Climb 25.7% As Expenses Grow More Slowly — Company Raises Annual Forecasts

International sales grew 51.4%, while quarterly net profit reached $19.3 million, compared with $8.7 million a year earlier.

Matteo Parrino Jonathan Ponciano

Matteo Parrino, Jonathan Ponciano

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FIGS Sales Climb 25.7% As Expenses Grow More Slowly — Company Raises Annual Forecasts

FIGS, which designs and sells scrubs and other apparel for healthcare professionals, raised its annual sales and profitability forecasts Thursday as third-quarter sales climbed 25.7% to $190.7 million and expenses grew more slowly. The results announcement accompanied an 8-K filed Thursday.

More Sales Per Expense Dollar

Quarterly net profit reached $19.3 million, compared with $8.7 million a year earlier. Diluted earnings were $0.10 per share, versus $0.05, and the share of sales retained as net profit rose to 10.1% from 5.8%.

Operating expenses grew 13.9% to $109.9 million. Revenue growth outpaced that increase, bringing expenses down to 57.6% of sales from 63.6%. FIGS attributed the improvement to spreading fixed costs across more revenue in administration, marketing and selling.

The improvement came despite a lower gross margin—the share of revenue left after product costs—which slipped 0.6 percentage points to 69.3%. Higher inventory reserves and unusually large improvements in returns processing a year earlier hurt the comparison; price increases and efficiency efforts partly offset those effects.

Adjusted earnings before interest, taxes, depreciation and amortization reached $31.5 million, up $12.7 million year over year. That measure, which also excludes stock-based pay and related expenses, represented 16.5% of revenue, versus 12.4% a year earlier.

International Sales Outpace U.S. Growth

International revenue grew 51.4% to $36.8 million. The larger U.S. business generated $153.9 million, up 20.8%. Scrubs contributed $157.5 million, an increase of 24.0%, while other products brought in $33.2 million, up 34.6%.

FIGS sells primarily through its website and app, with physical stores called Community Hubs and a TEAMS business serving healthcare institutions, medical offices and clinics. Its range includes lab coats, outerwear, footwear, compression socks and loungewear.

More orders and higher spending per order drove the quarterly sales increase. Average order value rose 10.5% to $126.00, helped by pricing, product mix and lower discount and return rates. The active customer base—accounts that bought within the preceding 12 months—grew 14.3% year over year to 3.2 million as of September 30, 2026. Revenue per active customer over that period rose 12.9% to $236.00.

Trina Spear, FIGS chief executive officer and co-founder, called the period “our fourth straight quarter of greater than 25% net revenues growth” in the earnings release.

Higher Forecasts And Cash Returns

FIGS now forecasts approximately 23.5% sales growth for the full year and approximately 15% for the fourth quarter. Management also raised its full-year adjusted earnings margin outlook to approximately 15.8%.

Sarah Oughtred, FIGS chief financial officer, attributed the forecast increases to the quarterly results and management’s greater conviction about the fourth quarter. She said cash, cash equivalents and short-term investments reached a record of just over $330 million, and the company continued buying back shares under its recently expanded program.

For the first nine months, share repurchases totaled $46.647 million, compared with $2.688 million a year earlier. Free cash flow—operating cash flow less capital spending—was $89.803 million, versus negative $5.063 million.

FIGS shares rose about 4% to $21.06 in Friday trading. The company’s market value was $3.4 billion in Friday trading.

The fourth-quarter forecast calls for approximately 15% sales growth, a slower pace than the third quarter’s 25.7%.

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