FIGS Q2 2025 slides: revenue growth accelerates, profitability surges as guidance raised

Introduction & Market Context

FIGS Inc. (NYSE:FIGS) presented its second quarter 2025 earnings results on August 7, 2025, showcasing accelerating growth and significant profitability improvements. The healthcare apparel company’s stock responded positively, jumping 9.77% in premarket trading to $7.19 following the release, building on the previous day’s 2.34% gain.

The company, which specializes in premium scrubwear and healthcare apparel, reported stronger-than-expected results across multiple metrics and raised its full-year guidance, signaling confidence in its growth strategy despite ongoing market challenges.

Quarterly Performance Highlights

FIGS reported Q2 2025 net revenues of $152.6 million, representing a 6% year-over-year increase, an acceleration from the 5% growth seen in Q1. This growth was primarily driven by an 8% increase in scrubwear sales, which constitute 83% of total revenue, while non-scrubwear products declined by 3%.

As shown in the following chart of quarterly revenue performance:

The company’s active customer base grew by 4% year-over-year to 2.74 million, while average order value (AOV) increased by 4% to $117, demonstrating the company’s pricing power and customer loyalty.

The following chart illustrates FIGS’ consistent growth in active customers:

Average order value has shown steady improvement, reaching a new high in Q2 2025:

Detailed Financial Analysis

FIGS achieved substantial profitability improvements in Q2 2025, with net income margin reaching 4.7%, a dramatic increase from 0.8% in the same period last year. Adjusted EBITDA margin expanded to 12.9% from 9.0% in Q2 2024, reflecting improved operational efficiency and cost management.

The following chart highlights the company’s profitability metrics:

Gross margin was 67.0%, slightly down from 67.4% in Q2 2024, primarily due to higher inventory reserves and increased tariffs, partially offset by higher duty drawback and lower return rates. Operating expenses as a percentage of revenue decreased significantly to 60.5% from 66.4% in Q2 2024, driven by efficiency improvements across selling, marketing, and G&A expenses.

The company maintained a strong balance sheet with $238.8 million in cash, cash equivalents, and short-term investments, providing substantial financial flexibility for future investments and expansion.

Strategic Initiatives

International expansion remains a key growth driver for FIGS, with international revenue increasing by 20% year-over-year and now representing 15% of total revenue. The company entered the Japanese market in June 2025 and plans to launch in South Korea later in Q3. Additionally, FIGS deployed its regional strategy in Latin America in early Q3, opening 12 new markets across the region.

The company highlighted that over 80% of global healthcare professionals are outside the U.S., yet international sales represented only 15% of net revenues in both FY 2024 and Q2 2025, indicating substantial growth potential.

FIGS is also expanding its retail presence through "Community Hubs," with two existing locations and three additional hubs planned to open in Q4 2025 in Houston, New York City, and Chicago. These physical locations aim to address the fact that over 60% of non-FIGS customers want to try products before purchasing.

The company’s B2B strategy, branded as TEAMS, focuses on serving hospitals, medical offices, and concierge clinics. FIGS noted that approximately 15% of the U.S. scrubs industry has historically been driven by institutional purchases, representing another growth opportunity.

Forward-Looking Statements

In a significant development, FIGS raised its full-year 2025 outlook, now projecting low-single-digit revenue growth compared to its previous guidance of a low-single-digit decline. The company also increased its Adjusted EBITDA margin guidance to 8.5% to 9.0%, up from the previous range of 7.5% to 8.5%.

The following slide details the company’s updated outlook:

CEO Trina Spear expressed confidence in the company’s trajectory, stating, "Our second quarter results reflect the strength of our brand and the effectiveness of our growth strategies." CFO Sarah Oughtred added, "The improved outlook demonstrates our ability to drive growth while maintaining financial discipline."

This upward revision comes after FIGS reported a net loss in Q1 2025, indicating a significant turnaround in the company’s performance. The strong Q2 results and improved guidance suggest that FIGS’ strategic initiatives, particularly in international markets and product innovation, are gaining traction despite ongoing macroeconomic challenges.

The comprehensive Q2 2025 performance summary is captured in the following slide:

With its strengthened financial position and clear strategic direction, FIGS appears well-positioned to capitalize on growth opportunities in the healthcare apparel market while navigating potential headwinds from global economic uncertainty and supply chain challenges.

Full presentation:

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