Healthcare apparel company Figs delivered a well-received third quarter, with management attributing the results to consistent execution across core products and disciplined promotional strategies. CEO Trina Spear pointed to broad-based growth in scrubwear and the U.S. market, as well as the company’s shift toward fewer promotions, which helped drive higher average order values and customer engagement. Additionally, Spear highlighted improvements in product fit and returns processing, citing a “great sign of our brand health and support for sustainable growth.”
Is now the time to buy FIGS? Find out in our full research report (it’s free for active Edge members).
Figs (FIGS) Q3 CY2025 Highlights:
- Revenue: $151.7 million vs analyst estimates of $142.5 million (8.2% year-on-year growth, 6.4% beat)
- Adjusted EPS: $0.05 vs analyst estimates of $0.02 (significant beat)
- Adjusted EBITDA: $18.85 million vs analyst estimates of $12.38 million (12.4% margin, 52.3% beat)
- Operating Margin: 6.4%, up from -6.2% in the same quarter last year
- Active Customers: 2.78 million, up 108,000 year on year
- Market Capitalization: $1.65 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Figs’s Q3 Earnings Call
- Robert Drbul (BTIG): Asked how gross margin can be sustained given ongoing tariff headwinds. CFO Sarah Oughtred explained that efficiencies in returns processing and inbound shipping have helped, but tariffs will become a larger drag in the next year.
- Rakesh Patel (Raymond James): Queried about demand during non-promotional periods and the likelihood of price increases. CEO Trina Spear said core demand is strong and no price hikes are planned for 2025, citing healthcare professionals’ sensitivity to pricing.
- Brooke Roach (Goldman Sachs): Sought details on average order value trends and customer engagement. Spear noted increases in average order value and repeat purchases, with positive trends across income levels and demographics.
- Matt Koranda (ROTH Capital): Asked about drivers behind the Q4 growth outlook and the role of Community Hubs. Oughtred highlighted broad-based customer momentum and upcoming store openings in key medical markets to boost brand engagement.
- Ashley Owens (KeyBanc Capital Markets): Focused on international growth strategies and inventory management. Spear described a two-pronged approach: broad low-touch market entries and deeper investments in regions reaching critical mass.
Catalysts in Upcoming Quarters
Key upcoming catalysts include: (1) the effectiveness of international market launches and early traction in China, (2) the contribution of new product lines like FIBERx and expanded compression socks to overall sales, (3) the impact of Community Hub openings on customer acquisition and omnichannel engagement, and (4) continued progress on tariff mitigation and inventory optimization as indicators for sustained profitability.
Figs currently trades at $10.10, up from $7.53 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free for active Edge members).
Our Favorite Stocks Right Now
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). Find your next big winner with StockStory today.