FIGS Rides a Tariff Refund Tailwind and a Resurgent Brand to a Raised Outlook
Strong Q2 beat, record customer metrics, and a new $100M buyback offset a Jordan supply chain snag
FIGS · Earnings Call · 2026-08-06
An Unmistakable Acceleration
FIGS, Inc. posted another standout quarter, with net revenues up 29% to $196.6 million and active customers up 13% to 3.1 million. The company’s customer growth is now firing on all cylinders—new, returning, and reactivated segments—while purchase frequency continues to climb. CEO Trina Spear opened the call with a confident tone: “FIGS strong broad-based momentum continued in Q2, highlighting the sustainability of our success and our truly unique positioning.” — Catherine Spear, CEO · 2026-08-06 The numbers back it up: average order value hit a record $127, and net revenues per active customer reached $229, surpassing the COVID-era peak. Management attributes the strength to a relentless focus on product and marketing, as well as the structurally attractive healthcare apparel industry, where word of mouth amplifies brand reach. Prior quarters had already signaled the inflection, as Spear noted in the May 2026 call: “We are going to keep executing, but really excited to see that it's the core business.” — Catherine Spear, Chief Executive Officer · 2026-05-08 The momentum has only grown since, with the company consistently delivering 25%+ growth over three consecutive quarters.Tariffs, Supply Chain, and Confidence
A major driver of the Q2 earnings beat was a $20.5 million IEEPA tariff refund, which CFO Sarah Oughtred detailed on the call: “We did get back $20.5 million, and we are in a very significant cash position.” — Sarah Oughtred, CFO · 2026-08-06 The tariff refund contributed 780 basis points to gross margin, which expanded 820 basis points to 75.2%. Offsetting the tailwind, the company revealed a withhold release order from U.S. Customs affecting imports from its Jordan partner. Yet management remained resolute, with Spear emphasizing: “Even with this challenge, we are able to raise our top and bottom line targets.” — Catherine Spear, CEO · 2026-08-06 The company’s dual-sourcing strategy and low-SKU, high-volume model give it the agility to reroute production, and it expects to mitigate the vast majority of the disruption while still delivering stronger guidance. This resilience is a recurring theme; in the February call, CFO Sarah Oughtred laid out the long-term financial ambition: “we are setting it up so that our earnings will grow at a faster rate than sales growth.” — Sarah Oughtred, Chief Financial Officer · 2026-02-27 The latest guidance reinforces that, with adjusted EBITDA margin raised to 14.8–15%.Strategic Expansion and a Raised Bar
Beyond the core, FIGS is investing aggressively in new growth vectors. The acquisition of V Coterie—a maker of medical-themed jewelry and pins—represents a new category opportunity. Spear explained: “We are inventing TAM where this wasn't really part of the industry.” — Catherine Spear, CEO · 2026-08-06 International revenues surged 67%, led by existing markets like Mexico and the EU, while the Bupa Dental Care TEAMS win highlights the institutional channel’s traction. Community Hubs are also scaling, with four new leases signed. The financial outlook has been dramatically upgraded. Oughtred stated: “Our full year 2026 net revenues are now expected to grow approximately 20%, ahead of our prior outlook of 14% to 16% growth.” — Sarah Oughtred, CFO · 2026-08-06 The company also announced a fresh $100 million buyback, underscoring confidence in cash generation. Revenue trends are unmistakably positive: Revenue has shifted from pandemic-era volatility to a sustained up-trend, driven by replenishment demand and successful new-category expansion. The second-half plan assumes a sequential slowdown—Q3 growth ~20% and Q4 ~10%—but the raised full-year targets reflect strong visibility. As Spear closed the call with a memorable statement:there are now more searches for FIGS than there are for scrubs, and that's when you know that you are on your way to owning a category like Kleenex, like Band-Aid, like Jacuzzi.