FIGS, Inc. Q4 FY2025 earnings call

Product innovation: In 2025, built a repeatable and scalable product foundation. In 2026, plan to elevate core through fabric innovation, continue building layering system, and develop new categories. Community engagement: 2025 had meaningful top of funnel moments, 2026 to expand reach and deepen connections, invest in personalization and app. Market expansion: 2025 international net revenue growth accelerated, 2026 plan to surpass 80 total markets,推进 team business and community hubs.

In 2025, net revenues reached a record $631.1 million, an increase of 14% year-over-year. In Q4, net revenues increased 33% year over year to $201.9 million. By category, scrubware surged 35%, representing 77% of net revenues for the period. Non-scrub wear increased 26%, representing 23% of net revenues. By geography, US net revenues increased 29% to $164.2 million, while international net revenues increased 55% to $37.7 million.

Expect net revenues for fiscal 2026 to be at 10% to 12% year over year. Full-year gross margins to be up modestly. Full-year 2026 operating margin between 7.6% and 7.9%, adjusted EBITDA margin between 12.7% and 12.9%. Anticipate step up in capital expenditures and continue share repurchase.

Uncertain tariff environment may impact gross margin; inventory aging and quality issues; challenges in international market expansion.

Q: Talk about flow through from Olympics, community hubs.

A: Supported Team USA medical team at Olympics, product FiberX successful. Community hubs: Opening four in 2026, exceeding top line expectations, targeting profitable year one.

Q: Progression of 4Q into Jan, int'l markets.

A: Continued strong momentum, leading indicators positive.

Q: Orders per active, driving frequent purchase.

A: Growth from new, resurrected customers and retention improvement.

Q: Sales acceleration drivers.

A: Execution, product, marketing, industry normalization.

Q: Gross margin normalization.

A: Tariffs fluid, expect offset through GNA improvement.

Q: Int'l new country launches, price adjustments.

A: New markets exceeded expectations, early price response shows inelasticity.

Q: Customer acquisition in US.

A: Growth from new, reactivated customers and retention.

Q: US growth momentum drivers, selling expense.

A: Balanced growth, selling expense leverage through shipping and fulfillment center improvements.

Q: Marketing int'l composition, AI.

A: Top of funnel and storytelling, AI for personalization.

Q: Sourcing diversification, tariff clarification.

A: Sourcing from Vietnam, Jordan, assuming 15% tariff.

Q: Mix in non-scrubs, teams pipeline.

A: Non-scrubs driven by under-scrubs, outerwear; teams still single-digit penetration, higher profitability overall.