FIGS Releases Third Quarter 2026 Financial Results
FIGS, Inc. (FIGS) filed an SEC Form 8-K — Results of Operations and Financial Condition. FIGS Releases Third Quarter 2026 Financial Results Exceeded Top and Bottom Line Expectations Grew Net Revenues 25.7% Achieved Net Income Margin of 10.1% and Adjusted EBITDA Margin of 16.5% Increasing Full Year 2026 Outlook SANTA MONICA, Calif., November 5, 2026 — FIGS, Inc. (NYSE
How this was made
The 30-second read
Why it matters
The earnings beat and raised guidance provide a fresh catalyst for price movement.
Market read
First‑report earnings release with material beat and guidance raise, offering a clear trading opportunity.
What to watch
Higher inventory reserves and return costs could pressure margins if growth slows.
FIGS reported third-quarter net revenue growth of 25.7%, net income of $19.3 million, adjusted EBITDA margin of 16.5%, and increased its full-year 2026 outlook.
Revenue growth accelerated across scrubwear, non-scrubwear and international markets, while net income, adjusted EBITDA margin and free cash flow increased materially year over year. The company increased its full-year revenue growth and adjusted EBITDA margin outlooks.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 net revenuesGAAP | $190.7M | – | 25.7 % |
| Q3 2026 cost of goods soldGAAP | 58,607 | – | – |
| Q3 2026 gross profitGAAP | 132,082 | – | – |
| Q3 2026 gross marginGAAP | 69.3% | – | a decrease of 60 basis points year over year |
| Q3 2026 selling expensesGAAP | 44,391 | – | – |
| Q3 2026 marketing expensesGAAP | 25,486 | – | – |
| Q3 2026 general and administrative expensesGAAP | 39,996 | – | – |
| Q3 2026 total operating expensesGAAP | $109.9M | – | 13.9% |
| Q3 2026 operating expenses as a percentage of net revenuesGAAP | 57.6% | – | – |
| Q3 2026 net income from operationsGAAP | 22,209 | – | – |
| Q3 2026 total other income, netGAAP | 2,349 | – | – |
| Q3 2026 provision for income taxesGAAP | 5,277 | – | – |
| Q3 2026 net incomeGAAP | $19.28M | – | – |
| Q3 2026 net income marginGAAP | 10.1 % | – | – |
| Q3 2026 basic earnings per shareGAAP | $ 0.12 | – | – |
| Q3 2026 diluted earnings per shareGAAP | $ 0.10 | – | – |
| Q3 2026 adjusted EBITDAnon-GAAP | $31.52M | – | an increase of $12.7 million year over year |
| Q3 2026 adjusted EBITDA marginnon-GAAP | 16.5 % | – | expanded 410 basis points |
| Active customers as of September 30, 2026other | 3,179 | – | 14.3% |
| Net revenues per active customer as of September 30, 2026other | $ 236 | – | 12.9% |
| Q3 2026 average order valueother | $ 126 | – | 10.5% |
| Nine months ended September 30, 2026 net revenuesGAAP | $547.2M | – | 27.5 % |
| Nine months ended September 30, 2026 gross profitGAAP | 388,235 | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $53.95M | – | – |
| Nine months ended September 30, 2026 diluted earnings per shareGAAP | $ 0.28 | – | – |
| Nine months ended September 30, 2026 adjusted EBITDAnon-GAAP | $81.99M | – | – |
| Nine months ended September 30, 2026 adjusted EBITDA marginnon-GAAP | 15.0 % | – | – |
| Nine months ended September 30, 2026 net cash provided by operating activitiesGAAP | $100.5M | – | – |
| Nine months ended September 30, 2026 capital expendituresGAAP | (10,719) | – | – |
| Nine months ended September 30, 2026 free cash flownon-GAAP | $89.80M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Q3 2026 United States net revenuesNo segment-specific driver was provided. | $153.9M | – | 20.8 % |
| Q3 2026 Rest of the world net revenuesNo segment-specific driver was provided. | $36.83M | – | 51.4 % |
| Q3 2026 Scrubwear net revenuesNo segment-specific driver was provided. | $157.5M | – | 24.0 % |
| Q3 2026 Non-Scrubwear net revenuesNo segment-specific driver was provided. | $33.18M | – | 34.6 % |
| Nine months ended September 30, 2026 United States net revenuesNo segment-specific driver was provided. | $444.2M | – | 22.3 % |
| Nine months ended September 30, 2026 Rest of the world net revenuesNo segment-specific driver was provided. | $103.0M | – | 56.4 % |
| Nine months ended September 30, 2026 Scrubwear net revenuesNo segment-specific driver was provided. | $445.4M | – | 25.8 % |
| Nine months ended September 30, 2026 Non-Scrubwear net revenuesNo segment-specific driver was provided. | $101.8M | – | 35.4 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
Q4 2026 and FY 2026 outlook
- RevenueQ4 up ~15%; FY up ~23.5%
- NoteFY 2026 Adjusted EBITDA Margin: Approximately 15.8%
Capital returns
- Repurchases of Class A Common Stock of (46,647) for the nine months ended September 30, 2026.
- Repurchases of Class A Common Stock of (2,688) for the nine months ended September 30, 2025.
- The company stated that it continued to return value to shareholders through its recently expanded share repurchase program.
What drove it
- Net revenues increased primarily due to an increase in orders and higher average order value.
- Average order value increased primarily due to higher average unit retail from pricing and favorable product mix, as well as lower discount and return rates.
- Operating expenses as a percentage of net revenues decreased primarily due to fixed cost leverage across general and administrative, marketing, and selling expenses.
- Pricing increases and ongoing efficiency efforts partially offset gross-margin pressure.
- Management cited consistent strength across categories, channels and geographies.
Concerns
- Gross margin decreased 60 basis points year over year, primarily due to outsized improvements in returns processing in the prior year and higher inventory reserves.
- The company identified risks around customer demand, consumer spending, global trade policy, supply-chain reliance, international expansion, fulfillment, inventory management, marketing, competition and B2B and retail execution.
- The company did not provide a quantitative reconciliation of its adjusted EBITDA margin outlook to a GAAP net income margin outlook.
What to watch
- Q4 2026 net revenue growth outlook of up ~15%.
- FY 2026 net revenue growth outlook of up ~23.5%.
- FY 2026 adjusted EBITDA margin outlook of approximately 15.8%.
- Whether gross-margin pressure from inventory reserves and the prior-year returns-processing comparison persists.
- The pace of active customer growth, net revenues per active customer and average order value.
- International and non-scrubwear revenue growth, which exceeded U.S. and scrubwear growth in Q3.
Balance sheet and cash flow
- Cash and cash equivalents were $ 76,470 as of September 30, 2026, compared with $ 81,985 as of December 31, 2025.
- Short-term investments were 254,696 as of September 30, 2026, compared with 218,863 as of December 31, 2025.
- Inventory, net was 121,335 as of September 30, 2026, compared with 127,966 as of December 31, 2025.
- Total assets were $ 617,919 as of September 30, 2026, compared with $ 579,996 as of December 31, 2025.
- Total liabilities were 166,301 as of September 30, 2026, compared with 142,534 as of December 31, 2025.
- Net cash used in financing activities was (58,776) for the nine months ended September 30, 2026, compared with (1,370) for the nine months ended September 30, 2025.
- Cash and cash equivalents, end of period were $ 76,470 for the nine months ended September 30, 2026, compared with $ 46,454 for the nine months ended September 30, 2025.
Analysis
FIGS delivered $ 190,689 of Q3 2026 net revenues, up 25.7 % from $ 151,661 in the prior-year quarter. Growth was broad based: scrubwear revenue increased 24.0 %, non-scrubwear increased 34.6 %, U.S. revenue increased 20.8 %, and Rest of the world revenue increased 51.4 %. Management attributed the overall revenue increase primarily to increased orders and higher average order value. Active customers increased 14.3% to 3,179, while net revenues per active customer increased 12.9% to $ 236 and average order value increased 10.5% to $ 126.
Profitability strengthened despite a gross-margin headwind. Gross margin was 69.3%, a decrease of 60 basis points year over year, which the company attributed to outsized improvements in returns processing in the prior year and higher inventory reserves. Pricing increases and ongoing efficiency efforts were partial offsets. Total operating expenses increased 13.9% to $ 109,873, but declined to 57.6% of net revenues from 63.6% in the prior-year period because of fixed-cost leverage across general and administrative, marketing and selling expenses.
The resulting earnings leverage was substantial. Net income rose to $ 19,281 from $ 8,746, diluted earnings per share were $ 0.10 versus $ 0.05, and net income margin reached 10.1 % versus 5.8 %. Adjusted EBITDA increased to $ 31,518 from $ 18,851, with adjusted EBITDA margin expanding to 16.5 % from 12.4 %. For the nine months ended September 30, 2026, net revenues were $ 547,210, net income was $ 53,948, and adjusted EBITDA was $ 81,986.
Cash generation also improved. Net cash provided by operating activities for the nine months ended September 30, 2026 was $ 100,522, compared with $ 242 in the prior-year period, while free cash flow was $ 89,803 compared with $ (5,063). The company reported $ 76,470 of cash and cash equivalents and 254,696 of short-term investments as of September 30, 2026. It used (46,647) for repurchases of Class A Common Stock during the nine-month period.
Management increased its outlook, guiding to Q4 net revenue growth of up ~15%, FY 2026 net revenue growth of up ~23.5%, and FY 2026 adjusted EBITDA margin of approximately 15.8%. The key issues for the remainder of the year are execution against that Q4 growth outlook, the durability of customer and order-value gains, the continuation of international and non-scrubwear growth, and the degree to which inventory reserves and returns-processing comparisons continue to affect gross margin.
Management, verbatim
Our momentum continued in Q3, which marked our fourth straight quarter of greater than 25% net revenues growth, powered by consistent strength across our categories, channels and geographies.
Trina Spear, Chief Executive Officer and Co-Founder
Our adjusted EBITDA margin expanded 410 basis points to 16.5%, further demonstrating the power of our model and the ability to drive leverage across our expense lines.
Sarah Oughtred, Chief Financial Officer
The overall strength of these results, together with our increased conviction in Q4, leads us to raise our full year net revenues and adjusted EBITDA margin outlooks.
Sarah Oughtred, Chief Financial Officer
Not in the filing
stated, not guessed- Previous-quarter values and sequential comparisons for Q3 2026 revenue, earnings, margins, operating metrics and segments.
- Q3 2026 operating cash flow, capital expenditures and free cash flow.
- A separately reported debt balance as of September 30, 2026.
- Quantitative gross-margin, operating-expense or tax-rate guidance.
- Quantitative GAAP net income margin guidance or a reconciliation from FY 2026 adjusted EBITDA margin outlook to GAAP net income margin outlook.
- Prior outlook figures for comparison with actual results and current guidance.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
FIGS is a leading healthcare apparel brand that filed an 8‑K with its Q3 2026 results.
Ticker impact
FIGS reported Q3 2026 net revenues of $190.7M, up 25.7% YoY, and raised its full‑year 2026 outlook.
likely upward pressure as investors price in the beat and raised outlook
Revenue and margin expansion exceed expectations, and the company increased its FY guidance, which typically supports a price rally.
Market effects
Healthcare apparel sector may see renewed interest as FIGS demonstrates scalable growth.
U.S. consumer discretionary sentiment could improve on the back of the beat.
Limited to U.S. markets; no immediate global macro effect.
Counterpoint
If the market has already priced in the strong growth, the stock may face a short‑term pullback.
Key entities
- companyFIGS, Inc.
Healthcare apparel retailer reporting Q3 2026 results.
