Second Quarter 2026
Filed Aug 6, 2026FIGS Releases Second Quarter 2026 Financial Results Exceeded Top and Bottom Line Expectations Grew Net Revenues 28.8% Achieved Net Income Margin of 14.4% and Adjusted EBITDA Margin of 18.6% Increasing Share Repurchase Authorization by $100 Million Increasing Full Year 2026 Outlook
Net revenues grew 28.8% year over year, with growth across scrubwear, non-scrubwear, U.S. and international revenue. Gross margin increased 820 basis points, net income rose to $28.4 million from $7.1 million, and adjusted EBITDA margin reached 18.6%.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net revenuesGAAP | $196.6 million | – | 28.8% |
| Gross marginGAAP | 75.2% | – | an increase of 820 basis points year over year |
| Operating expensesGAAP | $112.6 million | – | 21.9% |
| Operating expenses as a percentage of net revenuesGAAP | 57.3% | – | – |
| Net incomeGAAP | $28.4 million | – | – |
| Diluted earnings per shareGAAP | $0.15 in diluted earnings per share | – | – |
| Net income marginGAAP | 14.4% | – | – |
| Adjusted EBITDAnon-GAAP | $36.6 million | – | an increase of $16.9 million year over year |
| Adjusted EBITDA marginnon-GAAP | 18.6% | – | – |
| Refunds recognized for IEEPA tariffs incurred on goods sold in the prior fiscal yearother | $7.9 million | – | – |
| Active customers as of June 30, 2026other | 3.1 million | – | 13.2% year over year |
| Net revenues per active customerother | $229 | – | 10.1% year over year |
| AOVother | $127 | – | 8.5% year over year |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Scrubwear net revenuesNot specified in the provided filing text. | $161.2 million | – | 26.5% year over year |
| Non-scrubwear net revenuesNot specified in the provided filing text. | $35.4 million | – | 40.3% year over year |
| U.S. net revenuesNot specified in the provided filing text. | $158.7 million | – | 22.2% year over year |
| International net revenuesNot specified in the provided filing text. | $37.9 million | – | 67.0% year over year |
Full Year 2026 outlook
- Revenuegrowth vs. 2025 up approximately 20%
- NoteAdjusted EBITDA Margin (2)(4) 14.8% to 15.0%
Capital returns
- As of June 30, 2026, the Company had approximately $19.2 million available for future repurchases under the Company’s ongoing share repurchase program for its outstanding Class A common stock.
- On August 6, 2026, the Company’s Board of Directors authorized a $100.0 million increase to the share repurchase program.
- The share repurchase program has no expiration date.
What drove it
- Net revenue growth was primarily due to an increase in orders and higher average order value (“AOV”).
- AOV increased primarily driven by higher average unit retail due to pricing and favorable product mix.
- Gross margin expansion was primarily due to a 780 basis point positive impact from IEEPA tariff refunds recognized, favorable impacts from pricing and ongoing efficiency efforts.
- Operating expenses as a percentage of net revenues decreased primarily due to fixed cost leverage and lower stock-based compensation expense.
Concerns
- Higher tariffs partially offset favorable impacts on gross margin.
- Adjusted EBITDA excludes $7.9 million in refunds recognized for IEEPA tariffs incurred on goods sold in the prior fiscal year.
- The Company has not provided a quantitative reconciliation of its adjusted EBITDA margin outlook to a GAAP net income margin outlook.
What to watch
- Delivery of full year 2026 net revenues growth vs. 2025 of up approximately 20%.
- Delivery of full year 2026 Adjusted EBITDA Margin of 14.8% to 15.0%.
- Sustainability of international net revenue growth and non-scrubwear net revenue growth.
- The effects of tariffs, pricing, product mix and ongoing efficiency efforts on gross margin.
Analysis
FIGS reported $196.6 million of net revenues in the second quarter of 2026, up 28.8% year over year. Growth was broad-based in the reported revenue categories and geographies: scrubwear net revenues increased 26.5%, non-scrubwear net revenues increased 40.3%, U.S. net revenues increased 22.2%, and international net revenues increased 67.0%. Management attributed total revenue growth primarily to increased orders and higher AOV.
Customer and order metrics point to both a larger active base and higher revenue per customer. Active customers as of June 30, 2026 increased 13.2% year over year to 3.1 million, net revenues per active customer increased 10.1% to $229, and AOV increased 8.5% to $127. The stated AOV drivers were higher average unit retail from pricing and favorable product mix.
Profitability improved materially. Gross margin was 75.2%, an increase of 820 basis points year over year, with a 780 basis point positive impact from IEEPA tariff refunds recognized, alongside favorable pricing and efficiency effects. Higher tariffs partly offset those benefits. Operating expenses rose 21.9% to $112.6 million, but declined as a percentage of net revenues to 57.3% from 60.5%, reflecting fixed-cost leverage and lower stock-based compensation expense. Net income was $28.4 million, or $0.15 in diluted earnings per share, compared with $7.1 million, or $0.04 in diluted earnings per share, in the same period last year.
Adjusted EBITDA was $36.6 million, an increase of $16.9 million year over year, and adjusted EBITDA margin was 18.6% versus 12.9% in the same period last year. The adjusted result excludes $7.9 million of refunds recognized for IEEPA tariffs incurred on goods sold in the prior fiscal year, while the gross-margin discussion identifies tariff refunds as a major reported gross-margin benefit. This distinction is important when assessing the underlying operating-margin improvement.
For full year 2026, FIGS guided to net revenues growth versus 2025 of up approximately 20% and Adjusted EBITDA Margin of 14.8% to 15.0%. The company also increased its share repurchase authorization by $100.0 million on August 6, 2026, after having approximately $19.2 million available for future repurchases as of June 30, 2026. The filing does not provide the prior outlook, so the magnitude of the outlook increase cannot be assessed from the provided documents.
Management, verbatim
FIGS’ exceptional Q2 performance was powered by strong, ongoing traction across the business, with outperformance on both the top and bottom lines.
Trina Spear, Chief Executive Officer and Co-Founder
We are once again demonstrating the power of our business model to combine growth and profitability.
Sarah Oughtred, Chief Financial Officer
Not in the filing
stated, not guessed- Prior-quarter revenue, margin, earnings, EPS, segment, operating-metric and cash-flow comparisons.
- Reported prior-year dollar amount for net revenues.
- Reported prior-year gross margin percentage.
- GAAP operating income or loss.
- Operating cash flow, capital expenditures and free cash flow figures.
- Cash, cash equivalents, marketable securities, debt and other balance-sheet figures.
- Share repurchases executed during the period, share count repurchased and dividend information.
- Prior full year 2026 outlook needed to compare actual results with prior guidance and quantify the outlook change.
- Guidance for gross margin, operating expenses and tax rate.
- Detailed financial statements, GAAP-to-non-GAAP reconciliation tables and key operating metric tables are not included in the provided filing text.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.