FIGS Delivers Record Q4 Revenue and Eyes Double-Digit Growth in 2026
Q4 Revenue Hits All-Time High, Driven by Broad-Based Demand
FIGS, the healthcare apparel leader, reported standout results for the fourth quarter of 2025, topping expectations on both revenue and earnings. Net revenues rose to a record $201.9 million, representing 33% year-over-year growth—a clear signal of continued momentum in the business. This performance stemmed from both new and returning customer demand, as well as an increase in average order value.
International expansion remains a standout story: revenues outside the U.S. jumped 55.1%, while domestic sales climbed 28.7%. Scrubwear—FIGS’ core category—delivered $154.9 million in sales, up 35.1%. Non-scrubwear products also maintained growth, with a 26.4% year-over-year increase.
| Key Q4 2025 Metrics | Q4 2025 | Q4 2024 | % Change |
|---|---|---|---|
| Net Revenues ($M) | 201.90 | 151.83 | 33.0% |
| International Revenues ($M) | 37.74 | 24.33 | 55.1% |
| Scrubwear Revenues ($M) | 154.90 | 114.65 | 35.1% |
| Non-Scrubwear Revenues ($M) | 46.99 | 37.18 | 26.4% |
| Net Income Margin | 9.2% | 1.2% | Up 800 bps |
| Adjusted EBITDA Margin | 13.2% | 13.9% | — |
Profitability and Operating Leverage Show Strong Improvement
Profitability marked a turning point: Net income margin improved to 9.2% in Q4, up from 1.2% in the prior year. The company achieved an adjusted EBITDA of $26.7 million, as disciplined cost controls lowered operating expenses to 53.6% of revenue from 61.4% last year.
The company navigated higher tariffs and an inventory write-off, but offset these headwinds through lower discounting and improved freight rates. While gross margin dipped slightly to 62.9%, the underlying picture reflects strategic pricing and cost initiatives.
Active Customer Base Expands With Higher Average Value
At the end of 2025, FIGS reached 2.92 million active customers—a robust 9.4% increase. Key customer metrics highlight strengthened engagement: net revenues per active customer climbed to $216, and average order value reached $120, both higher than a year ago.
| Key Customer Metrics | 2025 | 2024 | % Change |
|---|---|---|---|
| Active Customers (M) | 2.92 | 2.67 | 9.4% |
| Net Revenue per Customer ($) | 216 | 208 | 3.8% |
| Average Order Value ($) | 120 | 113 | 6.2% |
Full-Year 2025: Double-Digit Sales Expansion and Solid Cash Generation
For the full year 2025, net revenues grew 13.6% to $631.1 million, with both core and new product categories contributing. Scrubwear grew 14.3%, non-scrubwear 10.6%, and international operations posted a 27.5% increase.
Operating discipline delivered results: Net income for the year surged to $34.3 million from $2.7 million, and adjusted EBITDA margin improved to 11.8%. The company generated $53 million in free cash flow, reinforcing a healthy balance sheet with $81.99 million in cash and $218.86 million in short-term investments at year-end.
2026 Outlook: Continued Growth and Margin Expansion Despite Tariff Headwinds
Looking ahead, FIGS projects net revenue growth of 10–12% in 2026, and adjusted EBITDA margin expansion to between 12.7% and 12.9%. International and B2B (TEAMS) growth are set to drive incremental gains, while the company is taking a prudent approach in light of newly announced 15% global tariffs.
CFO Sarah Oughtred emphasized the company’s "tremendous demand momentum, improving profitability and record cash on the balance sheet"—underlining FIGS’ flexibility to navigate macro headwinds and invest in shareholder value.
Key Takeaways: Execution on All Fronts Positions FIGS for 2026
FIGS demonstrated strong operational leverage and delivered double-digit growth, while expanding its global footprint and customer engagement. As the company charts its course for low double-digit revenue growth and margin expansion in 2026, investors may want to watch how effectively FIGS continues to capitalize on its structural advantages, even as it manages new cost pressures from tariffs. The company’s growing international presence and ability to grow average customer value set a constructive tone for the coming year.
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