GET DAILY SIGNALSFIGS (FIGS) Reports +25.7% Revenue Growth and Raises Full-Year Outlook
Key Takeaways
- Net revenues reached $190.7 million, up 25.7% year over year, topping consensus estimates of roughly $180.2 million.
- Diluted earnings per share (EPS) came in at $0.10, up from $0.05 a year earlier and above the $0.07 consensus estimate.
- Net income climbed to $19.3 million, lifting net income margin to 10.1% from 5.8% in the prior-year period.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to $31.5 million, with adjusted EBITDA margin expanding to 16.5% from 12.4%.
- Active customers grew 14.3% to 3.2 million, while average order value (AOV) rose 10.5% to $126.
- Management raised its full-year 2026 outlook, now guiding to roughly 23.5% net revenue growth and an adjusted EBITDA margin of approximately 15.8%.
Why This Quarter Matters
FIGS, the direct-to-consumer healthcare apparel brand, entered this report on a notable hot streak. The third quarter of 2026 marked the company's fourth consecutive quarter of greater than 25% net revenue growth, reinforcing its position in a competitive consumer discretionary market. For investors, the report served as a key test of whether FIGS could sustain that momentum while simultaneously converting top-line gains into stronger profitability through operating leverage. Results across scrubwear, non-scrubwear, U.S., and international channels all accelerated, and the company entered the fourth quarter with record cash, cash equivalents, and short-term investments of just over $330 million. That backdrop made this a closely watched checkpoint on FIGS's path into 2027.
Breaking Down the Reported Results
FIGS reported third quarter 2026 net revenues of $190.7 million, an increase of 25.7% year over year and above consensus estimates of approximately $180.2 million. Scrubwear net revenues grew 24.0% to $157.5 million, while non-scrubwear net revenues rose 34.6% to $33.2 million. U.S. net revenues increased 20.8% to $153.9 million, and international net revenues surged 51.4% to $36.8 million.
On the bottom line, net income was $19.3 million, or $0.10 in diluted EPS, compared with $8.7 million, or $0.05 in diluted EPS, in the prior-year period. Diluted EPS exceeded the $0.07 consensus estimate. Gross margin was 69.3%, down 60 basis points year over year, primarily due to outsized returns-processing improvements in the prior year and higher inventory reserves, partially offset by pricing increases and efficiency efforts.
Operating expenses totaled $109.9 million, up 13.9% year over year, but fell as a percentage of net revenues to 57.6% from 63.6%, reflecting fixed-cost leverage. Adjusted EBITDA was $31.5 million, up $12.7 million year over year, driving adjusted EBITDA margin to 16.5% from 12.4%. Active customers reached 3.2 million, net revenues per active customer rose 12.9% to a record $236, and AOV increased 10.5% to $126. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction and Investor Sentiment
FIGS delivered a quarter that beat on both revenue and EPS while raising its full-year outlook, a combination that historically supports investor confidence in the company's operating model. The expansion of adjusted EBITDA margin by 410 basis points underscored the leverage benefits of scaling a direct-to-consumer brand, while record net revenues per active customer pointed to healthy customer economics. Management noted the company is "off to a great start in Q4," signaling continued momentum into the holiday and year-end period. Sentiment around the stock has also been shaped by the company's recently expanded share repurchase program and its strengthened balance sheet. Still, the guidance for fourth-quarter net revenue growth of approximately 15% represents a deceleration from the 25.7% growth posted in the third quarter, a dynamic investors are likely to weigh as they assess the sustainability of the recent acceleration.
Forward Outlook and Key Factors to Monitor
Management raised its full-year 2026 guidance, now projecting net revenue growth of roughly 23.5% and an adjusted EBITDA margin of approximately 15.8%. For the fourth quarter specifically, the company expects net revenue growth of about 15%, a more moderate pace that partly reflects the tough comparison from strong prior-year performance.
Investors will want to monitor several factors in the quarters ahead. First, gross margin slipped 60 basis points in the third quarter, so pricing actions, returns processing, and inventory reserves will remain important swing factors. Second, international revenue growth of 51.4% suggests meaningful runway, but expansion into new markets carries execution risk and currency exposure.
Third, the durability of customer metrics—active customer growth, AOV, and net revenues per active customer—will be central to the growth narrative. Finally, global trade policy, including tariff-related dynamics, and the company's share repurchase activity could influence both costs and shareholder returns. As FIGS looks toward 2027, its ability to sustain profitable growth while managing these variables will be closely watched.
My Take on Research Tools
In my research process, I often rely on Tickeron’s AI Screener to quickly filter stocks by fundamentals, technical patterns, and performance metrics. It helps surface relevant ideas in the consumer discretionary space and keeps my analysis efficient without replacing deeper fundamental work. This kind of tool has become a regular part of how I cross-check opportunities like the one presented by FIGS.
Disclaimer
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
FIGS's RSI Oscillator driving into overbought territory
The RSI Oscillator for FIGS moved into overbought territory on November 04, 2026. Be on the watch for a price drop or consolidation in the future -- when this happens, think about selling the stock or exploring put options.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 46 of 61 cases where FIGS's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 75%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where FIGS declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 83%.
FIGS broke above its upper Bollinger Band on October 09, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Bullish Trend Analysis
The Moving Average Convergence Divergence (MACD) for FIGS just turned positive on September 30, 2026. Looking at past instances where FIGS's MACD turned positive, the stock continued to rise in 34 of 42 cases over the following month. The odds of a continued upward trend are 81%.
The 10-day moving average for FIGS crossed bullishly above the 50-day moving average on October 07, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 13 of 16 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 81%.
Following a +5.27% 3-day Advance, the price is estimated to grow further. Considering data from situations where FIGS advanced for three days, in 203 of 254 cases, the price rose further within the following month. The odds of a continued upward trend are 80%.
The Aroon Indicator entered an Uptrend today. In 177 of 218 cases where FIGS Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 81%.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. FIGS’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 57 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 89 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: FIGS's P/B Ratio (8.240) is slightly higher than the industry average of (2.951). FIGS has a moderately high P/E Ratio (57.737) as compared to the industry average of (15.092). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (0.686). Dividend Yield (0.000) settles around the average of (0.429) among similar stocks. FIGS's P/S Ratio (3.461) is very high in comparison to the industry average of (0.827).
The Tickeron PE Growth Rating for this company is 94 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. FIGS’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 91, placing this stock worse than average.
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Industry ApparelFootwear
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