FIGS Posts Strongest Revenue Growth in Two Years, Lifts 2025 Outlook on Higher Margins and Expanding Customer Base
Q3 Sees 8.2% Revenue Growth and Highest Quarterly Increase Since 2023
FIGS delivered its strongest quarterly performance in two years during the third quarter of 2025, notching an 8.2% year-over-year increase in net revenues to $151.7 million. The company’s robust results, announced this morning, were driven by both new and existing customers as well as a higher average order value (AOV). Core scrubwear sales rose 8.4%, and international revenues surged 11.7%, outpacing domestic growth of 7.5%. For a healthcare apparel company already regarded as a market leader, this pace of expansion highlights strong underlying demand and successful execution in key growth initiatives.
| Q3 2025 | Q3 2024 | Change (%) | |
|---|---|---|---|
| Net Revenues ($M) | 151.66 | 140.21 | 8.2% |
| Gross Margin | 69.9% | 67.1% | +2.8 pts |
| Net Income Margin | 5.8% | (1.2%) | +7.0 pts |
| Adjusted EBITDA Margin | 12.4% | 3.4% | +9.0 pts |
Profit Margins and Cost Controls Reach New Highs
The third quarter wasn’t just about sales gains. Gross margin rose to 69.9%, up 280 basis points, primarily thanks to fewer promotional sales, lower return and fulfillment costs, and reduced shipping expenses. On the expense side, operating costs dropped 6.1% year over year—even as revenues climbed—showcasing a major operational improvement. Operating expenses as a share of revenue fell nearly 10 percentage points to 63.6%. This combination pushed FIGS back to meaningful profitability, reporting net income of $8.7 million (5.8% margin) versus a loss a year earlier. Adjusted EBITDA surged by $14.1 million, with the margin more than tripling to 12.4%.
Active Customers Grow to 2.8 Million with Higher Order Value
Engagement with the brand continues to climb. FIGS’ active customer count reached 2.78 million, up 4% from last year. Each customer is spending more as well—net revenue per active customer rose 2% to $209, while the average order value increased 5.6% to $114. This points to successful efforts in retaining existing shoppers and drawing bigger baskets per purchase, important factors for ongoing growth.
| Metric | Q3 2025 | Q3 2024 | Change (%) |
|---|---|---|---|
| Active Customers (M) | 2.78 | 2.67 | +4.0% |
| Net Revenue/Active Customer ($) | 209 | 205 | +2.0% |
| Average Order Value ($) | 114 | 108 | +5.6% |
Expense Management and Balance Sheet Strength Bolster Outlook
Management highlighted the success of cost containment and improved operational consistency as key drivers behind the earnings beat. With these improvements, FIGS raised its full-year guidance: Net revenues are now expected to grow about 7% in 2025, and the company expects to maintain an adjusted EBITDA margin of around 10.3%, even amid tariff headwinds. The balance sheet remains solid, with $241.5 million in cash and short-term investments and only modest liabilities. This provides flexibility to invest in growth while keeping risk in check.
Investor Takeaway: Fundamentals and Brand Momentum Improve Further
The latest results from FIGS demonstrate that targeted investments in product and brand, combined with discipline on costs, are delivering measurable financial results. Rising customer engagement and stronger margins support the upgraded guidance and long-term optimism voiced by leadership. For investors, the message is clear: while risks around tariffs and broader market volatility remain, the fundamentals at FIGS have rarely looked more robust.
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