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FIGS (FIGS)
NYSE:FIGS
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FIGS (FIGS) AI Stock Analysis

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FIGS

FIGS

(NYSE:FIGS)

Rating:68Neutral
Price Target:
$7.50
▲(5.93% Upside)
FIGS' strong technical momentum and positive earnings call sentiment are significant strengths, but these are offset by high valuation concerns and moderate financial performance. The stock's overvaluation and cash flow challenges are key risks.
Positive Factors
Financial Performance
FIGS raised its 2025 revenue and EBITDA outlook, reflecting confidence in future growth.
International Growth
International accelerated to +20% growth from +16% in Q1, reaching 15% of the mix.
Sales Performance
Sales trends have remained positive with an increase in both new and reactivated customers.
Negative Factors
Margin Pressure
Declining sales and margin pressure will prohibit multiple expansion and retain the Underperform rating.
Promotional Activity
A slowdown in sales is expected in the second half of the year due to a reduction in promotions.
Tariffs Impact
The fiscal year margin outlook has been lowered due to the impact of current tariffs.

FIGS (FIGS) vs. SPDR S&P 500 ETF (SPY)

FIGS Business Overview & Revenue Model

Company DescriptionFIGS, Inc. operates as a direct-to-consumer healthcare apparel and lifestyle company in the United States. It designs and sells healthcare apparel and other non-scrub offerings, such as lab coats, under scrubs, outerwear, activewear, loungewear, compression socks footwear, and masks. It also offers sports bras, performance leggings, tops, super-soft pima cotton tops, vests, and jackets. The company markets and sells its products through its digital platform comprising website and mobile app. FIGS, Inc. was founded in 2013 and is headquartered in Santa Monica, California.
How the Company Makes MoneyFIGS makes money primarily through the direct-to-consumer sales of its medical apparel products, such as scrubs, lab coats, underscrubs, outerwear, activewear, loungewear, and accessories. The company operates an e-commerce platform, which is its main channel for reaching customers, allowing it to bypass traditional retail markups and offer competitive pricing. FIGS focuses on building brand loyalty through high-quality products and community engagement with healthcare professionals. Additionally, the company benefits from customer word-of-mouth and targeted marketing strategies, which contribute to its growing customer base and revenue. While FIGS does not currently report significant partnerships as a major revenue factor, its innovative product offerings and strong consumer base are key contributors to its financial success.

FIGS Key Performance Indicators (KPIs)

Any
Any
Active Customers
Active Customers
Counts the number of unique customers making purchases within a certain period, reflecting FIGS' market reach, brand appeal, and potential for expanding its customer base.
Chart InsightsFIGS' active customer base has plateaued at 2.6 million since late 2023, with a slight uptick to 2.7 million in late 2024. This stabilization aligns with the company's strategic focus on international expansion and B2B growth, as highlighted in the earnings call. Despite challenges like tariff impacts and a softening Canadian market, FIGS' efforts in diversifying its market presence and enhancing customer engagement through full-price sales and product mix adjustments are beginning to show results, as evidenced by the recent 4% year-over-year growth in active customers.
Data provided by:Main Street Data

FIGS Earnings Call Summary

Earnings Call Date:Aug 07, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 06, 2025
Earnings Call Sentiment Positive
The earnings call highlighted significant achievements such as record revenue, strong scrubwear growth, and international expansion. However, challenges such as tariffs, softness in non-scrubwear, and reduced promotional activity were also noted. Overall, the positives and strategic initiatives seem to outweigh the negatives.
Q2-2025 Updates
Positive Updates
Record Revenue Quarter
FIGS achieved their largest revenue quarter in history, with net revenues increasing 6% year-over-year to $152.6 million, surpassing expectations.
Strong Growth in Core Scrubwear
The scrubwear category posted an 8% gain, marking the highest growth in the past 7 quarters, driven by integrated merchandising efforts.
Adjusted EBITDA Margin Improvement
Adjusted EBITDA margin improved by 390 basis points year-over-year to 12.9%, showcasing the power of matching top-line gains with disciplined expense management.
International Expansion
FIGS drove impressive gains across Mexico, Europe, Latin America, and the Middle East, with a 20% increase in international net revenues.
Increased Customer Engagement
Active customers increased 4% year-over-year to 2.7 million, with strong acquisition and returning customer trends.
Community Engagement and Advocacy
FIGS hosted multiple successful events, including Nurses Week and Advocacy efforts in Washington, D.C., generating significant media impressions and engagement.
Negative Updates
Impact of Tariffs
The company expects a 150 basis point impact on gross margins due to tariffs, with ongoing efforts to mitigate through supplier negotiations and cost management.
Softness in Non-Scrubwear
Non-scrubwear decreased by 3%, impacted by a higher negative impact from a pullback in promotional strategy and intentional marketing shifts.
Challenges in Canadian Market
FIGS experienced some softness in Canada, attributed to an outsized impact of promotional pullback, though full price periods performed positively.
Lower Promotional Activity Impact
While strategic, the reduction in promotional days is expected to limit second-half performance, impacting customer acquisition and order value.
Company Guidance
In the second quarter of fiscal 2025, FIGS demonstrated strong financial performance, with net revenues increasing by 6% year-over-year to $152.6 million, surpassing expectations. The company's scrubwear category led this growth with an 8% increase, marking the highest gain in seven quarters. Active customers rose by 4% to 2.7 million, while the average order value (AOV) grew by 4% to $117. Adjusted EBITDA margin improved by 390 basis points to 12.9%, reflecting successful cost management and strategic investments. Despite facing tariff-related challenges, FIGS maintained its guidance for low single-digit revenue growth for the full fiscal year, with an adjusted EBITDA margin range of 8.5% to 9%. The company noted sustained momentum in its core U.S. market, as well as impressive international growth, particularly in Mexico, Europe, and Latin America.

FIGS Financial Statement Overview

Summary
FIGS maintains a strong balance sheet with low leverage and high equity ratios, providing a stable financial foundation. Cash flow management is generally strong, but there is a need to address the negative free cash flow growth. Profitability margins are slim, indicating areas for improvement despite revenue growth.
Income Statement
78
Positive
FIGS shows a strong gross profit margin of 67.1% TTM, reflecting efficient cost management. However, the company faces challenges in net profit margin, which is only 0.2% TTM, indicating slim overall profitability despite revenue growth of 1% TTM. EBIT and EBITDA margins remain low at 0.3% and 1.1% respectively, suggesting pressure in operational efficiency.
Balance Sheet
85
Very Positive
FIGS maintains a robust balance sheet with a debt-to-equity ratio of 0.13, indicating low leverage. The equity ratio is strong at 73%, showcasing financial stability. Return on equity stands at 0.3% TTM, which is modest but shows potential for improvement.
Cash Flow
82
Very Positive
FIGS demonstrates positive cash flow management with an operating cash flow to net income ratio of 66.6 TTM, reflecting effective cash generation relative to earnings. Free cash flow to net income is high at 51.5 TTM, although free cash flow growth is negative at -5% TTM, suggesting challenges in sustaining cash flow momentum.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue569.58M555.56M545.65M505.83M419.59M263.11M
Gross Profit382.93M375.62M376.96M354.46M301.22M190.22M
EBITDA18.09M8.96M36.99M39.59M11.52M58.89M
Net Income7.18M2.72M22.64M21.19M-9.56M49.76M
Balance Sheet
Total Assets517.12M509.79M473.21M395.06M311.75M133.85M
Cash, Cash Equivalents and Short-Term Investments238.84M245.11M246.69M159.78M195.37M58.13M
Total Debt51.70M53.03M47.11M19.16M0.000.00
Total Liabilities120.59M132.66M96.36M87.33M66.18M36.18M
Stockholders Equity396.53M377.13M376.85M307.74M245.57M97.68M
Cash Flow
Free Cash Flow39.88M64.14M84.57M-40.68M63.73M19.49M
Operating Cash Flow49.81M81.16M100.92M-35.33M66.44M21.75M
Investing Cash Flow-83.24M-94.92M-117.19M-5.85M-2.71M-2.26M
Financing Cash Flow-47.53M-44.77M670.00K3.52M75.57M294.00K

FIGS Technical Analysis

Technical Analysis Sentiment
Positive
Last Price7.08
Price Trends
50DMA
6.25
Positive
100DMA
5.36
Positive
200DMA
5.34
Positive
Market Momentum
MACD
0.25
Positive
RSI
62.00
Neutral
STOCH
45.64
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FIGS, the sentiment is Positive. The current price of 7.08 is above the 20-day moving average (MA) of 6.71, above the 50-day MA of 6.25, and above the 200-day MA of 5.34, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 62.00 is Neutral, neither overbought nor oversold. The STOCH value of 45.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FIGS.

FIGS Risk Analysis

FIGS disclosed 74 risk factors in its most recent earnings report. FIGS reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

FIGS Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$1.15B6.1512.21%1.72%13.75%
68
Neutral
$1.14B170.731.80%3.41%-59.78%
67
Neutral
$683.29M8.9113.63%6.04%-2.47%99.50%
67
Neutral
$1.89B32.436.71%1.67%-5.16%-42.62%
61
Neutral
$17.75B12.56-5.49%3.02%1.43%-14.12%
47
Neutral
$2.12B21.295.50%-8.02%
42
Neutral
$81.89M-7.94%-1.87%57.41%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
FIGS
FIGS
7.08
1.10
18.39%
AIN
Albany International
63.93
-27.87
-30.36%
GIII
G-III Apparel Group
27.00
0.69
2.62%
OXM
Oxford Industries
45.01
-36.78
-44.97%
UA
Under Armour
4.95
-2.52
-33.73%
UFI
Unifi
4.45
-2.58
-36.70%

FIGS Corporate Events

Business Operations and StrategyFinancial Disclosures
FIGS Reports Strong Q2 2025 Financial Results
Positive
Aug 7, 2025

On August 7, 2025, FIGS, Inc. released its second quarter 2025 financial results, reporting a 5.8% increase in net revenues to $152.6 million, driven by higher order values and increased customer orders. The company achieved a net income margin of 4.7% and an adjusted EBITDA margin of 12.9%, surpassing expectations on both top and bottom lines. Despite a slight decrease in gross margin due to higher inventory reserves and tariffs, FIGS reduced operating expenses by 3.5% year over year. The company also saw a 4.1% increase in active customers, reflecting strong demand and strategic marketing efforts. FIGS raised its full-year 2025 financial outlook, citing confidence in its core business growth and cost mitigation strategies.

Executive/Board ChangesShareholder Meetings
FIGS Holds Annual Stockholders Meeting via Webcast
Neutral
Jun 9, 2025

On June 4, 2025, FIGS, Inc. held its annual meeting of stockholders via live webcast, where a quorum was established with over 95% of the combined voting power of its Class A and Class B common stock. During the meeting, stockholders elected three Class I directors to serve until 2028, ratified the appointment of Ernst & Young LLP as the independent registered public accounting firm for 2025, and approved the compensation of the company’s named executive officers on a non-binding basis.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025