Healthcare apparel company Figs (NYSE: FIGS) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 33% year on year to $201.9 million. Its GAAP profit of $0.10 per share was significantly above analysts’ consensus estimates.
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Figs (FIGS) Q4 CY2025 Highlights:
- Revenue: $201.9 million vs analyst estimates of $165.8 million (33% year-on-year growth, 21.8% beat)
- EPS (GAAP): $0.10 vs analyst estimates of $0.02 (significant beat)
- Adjusted EBITDA: $26.73 million vs analyst estimates of $13.65 million (13.2% margin, 95.8% beat)
- Operating Margin: 9.3%, up from 5.9% in the same quarter last year
- Free Cash Flow Margin: 28.8%, up from 17.8% in the same quarter last year
- Active Customers: 2.92 million, up 251,000 year on year
- Market Capitalization: $1.80 billion
“FIGS’ fourth quarter performance capped off a remarkable 2025, driven by execution that gained steady momentum throughout the year,” said Trina Spear, Chief Executive Officer and Co-Founder.
Company Overview
Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE: FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.
Revenue Growth
Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Figs grew its sales at a 19.1% annual rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the consumer discretionary sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.
Long-term growth is the most important, but within consumer discretionary, product cycles are short and revenue can be hit-driven due to rapidly changing trends and consumer preferences. Figs’s recent performance shows its demand has slowed as its annualized revenue growth of 7.5% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
We can dig further into the company’s revenue dynamics by analyzing its number of active customers, which reached 2.92 million in the latest quarter. Over the last two years, Figs’s active customers averaged 5% year-on-year growth. Because this number is lower than its revenue growth during the same period, we can see the company’s monetization has risen. 
This quarter, Figs reported wonderful year-on-year revenue growth of 33%, and its $201.9 million of revenue exceeded Wall Street’s estimates by 21.8%.
Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months, a deceleration versus the last two years. This projection doesn't excite us and implies its products and services will see some demand headwinds.
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Operating Margin
Figs’s operating margin has been trending up over the last 12 months and averaged 3.4% over the last two years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports inadequate profitability for a consumer discretionary business.
This quarter, Figs generated an operating margin profit margin of 9.3%, up 3.5 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.
Sadly for Figs, its EPS declined by 18.3% annually over the last five years while its revenue grew by 19.1%. This tells us the company became less profitable on a per-share basis as it expanded.
In Q4, Figs reported EPS of $0.10, up from $0.01 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Figs’s full-year EPS of $0.19 to shrink by 39.3%.
Key Takeaways from Figs’s Q4 Results
It was good to see Figs beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this quarter featured some important positives. The stock traded up 6.2% to $13.25 immediately following the results.
Figs may have had a good quarter, but does that mean you should invest right now? What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).
