FIGS delivered a standout fourth quarter for fiscal 2025, with net revenue soaring 33% year-over-year to a record $201.9 million, surpassing expectations significantly. The company achieved robust profitability improvements, including a net income margin of 9.2% and adjusted EBITDA margin of 13.2%. Active customers reached an all-time high of over 2.9 million, up 9%, while international revenue grew 55%. Management highlighted strong execution in product innovation, marketing, and holiday performance, setting the stage for low double-digit revenue growth and margin expansion in 2026 despite ongoing tariff challenges.
FIGS Q4 2025 Earnings Call Highlights
FIGS closed out fiscal 2025 with a powerful fourth quarter that management described as remarkable, marking the strongest quarterly revenue growth in over four years and pushing the company past key milestones in both top-line performance and profitability.
Net revenue for the quarter reached $201.9 million , representing a 33% increase from the prior year’s $151.8 million. This figure significantly exceeded the company’s own outlook and analyst expectations, which hovered around $165 million. The surge was driven by higher orders from both new and existing customers, coupled with an improved average order value. Scrubwear, the core category, contributed $154.9 million , up 35.1% year-over-year, underscoring the enduring demand for FIGS’ specialized healthcare apparel.
Profitability showed substantial gains amid disciplined cost management and operational efficiencies. Net income attributable to common shareholders climbed to $18.5 million , or $0.10 per diluted share, a dramatic improvement from $1.9 million and $0.01 per share in the prior-year period. This translated to a net income margin of 9.2% , compared to 1.2% last year. Adjusted EBITDA came in at $26.7 million , yielding a margin of 13.2% , reflecting effective expense control even as the company invested in growth initiatives.
Customer metrics reinforced the strength of the brand’s momentum. Active customers expanded to a record more than 2.9 million , accelerating to 9% year-over-year growth after several quarters of slower expansion around 4%. Improvements were evident across cohorts, with faster gains in new and resurrected customers alongside a meaningful uplift in retention rates. Trailing 12-month net revenue per active customer rose 4% to $216 , indicating deeper engagement and higher spending per user.
Geographic performance highlighted the success of international efforts. U.S. net revenue increased 29% to $164.2 million , while international markets delivered explosive 55% growth to $37.7 million . Leadership pointed to strong engagement in regions like Mexico, Canada, Europe, and Australia, crediting the “go deep, go broad” strategy for driving outsized results outside the domestic market.
The quarter benefited from several key drivers. Strong brand momentum carried into the holiday season, supported by strategic inventory positioning that ensured availability during peak demand periods. Fresh product launches in colors and styles resonated with the community, while marketing initiatives executed effectively to deliver exceptional results during Black Friday and Cyber Monday, far exceeding internal expectations.
Full-year 2025 results provided additional context for the quarter’s performance. Annual net revenue hit a record $631.1 million , up 14% from the previous year, reflecting a return to solid double-digit growth overall. The company navigated challenges including tariff pressures and an inventory write-off but still expanded margins through operational discipline.
Looking ahead, management expressed confidence in continued momentum. For fiscal 2026, FIGS guided to net revenue growth in the low double-digits, specifically 10% to 12% , with expectations for further margin expansion. Adjusted EBITDA margin is targeted at 12.7% to 12.9% , and operating margin is projected at 7.6% to 7.9% , which would represent the highest levels since going public. These projections account for ongoing investments in product innovation, international expansion, and marketing to sustain customer acquisition and loyalty.
Balance sheet strength remains a key asset. The company ended the year with record year-end net cash and investments of $300.8 million . Inventory increased 11% to $128 million , driven by deliberate investments to support future demand and new product introductions.
Overall, the earnings call underscored FIGS’ regained traction in a competitive landscape. Executives emphasized execution across merchandising, community engagement, and operational levers as foundational to the outperformance. The combination of record quarterly revenue, accelerated customer growth, and profitability gains positions the healthcare apparel leader for sustained progress in the coming year.
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