FIGS (FIGS) Q1 2026 earnings summary

Executive summary

• Net revenues grew 28% year-over-year to $159.9 million, driven by a 12.2% increase in active customers surpassing three million and higher average order value.

• Net income improved to $6.3 million from a loss of $0.1 million, with net income margin rising to 3.9%.

• Adjusted EBITDA rose to $13.9 million, with margin improving to 8.7% from 7.3% year-over-year.

• Broad-based strength was seen across categories, styles, and geographies, with both core and new product launches performing well.

• Community Hubs and TEAMS channels scaled, with five Community Hub locations performing well and four more planned.

Financial highlights

• Gross margin was 67.7%, up 10 basis points year-over-year, reflecting pricing and efficiency gains, partially offset by tariffs.

• Adjusted EBITDA was $13.9 million, up from $9.2 million year-over-year.

• Free cash flow was negative $5.6 million, compared to positive $7.9 million in the prior year period.

• Share repurchases totaled $8.8 million, with $43 million remaining authorized.

• Ended Q1 with $277 million in cash, cash equivalents, and short-term investments; $74.3 million in cash and equivalents.

Outlook and guidance

• Full-year 2026 net revenue growth expected at 14%-16%, up from prior 10%-12% outlook; Q2 growth projected in the low 20% range.

• Adjusted EBITDA margin guidance raised to 13%-13.2%; operating margin outlook increased to 7.8%-8%.

• Gross margin expected to improve modestly for the year, with Q2 showing a slight year-over-year decline due to tariff impacts.

• Effective tax rate for the year now expected at 20%, down from 25%.

• Management expects existing cash, cash flows, and credit facility to be sufficient for at least the next 12 months.