• FIGS, Inc. announced second quarter 2025 earnings, reporting US$152.64 million in sales and US$7.1 million in net income, both higher than the same period last year, and also updated its full-year 2025 guidance to reflect low-single-digit revenue growth compared to 2024.
• While recent performance indicators showed stronger quarterly results, the company’s more reserved outlook for annual growth has caught attention given ongoing business expansion initiatives.
• As FIGS tempers its full-year revenue outlook after reporting higher earnings, we’ll consider what this means for its future growth narrative.

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FIGS Investment Narrative Recap

To be a shareholder in FIGS, an investor typically needs to believe in the company’s ability to expand its healthcare apparel brand through new categories, omnichannel retail, and international markets. The latest earnings showed robust momentum, but FIGS’s cautious guidance for full-year revenue growth means near-term performance may remain sensitive to customer acquisition trends, the key catalyst, and challenges in growing its active customer base, the primary risk. The overall impact of this guidance on the company’s growth story is material for the short term.

The most relevant recent announcement to these results is FIGS’s updated 2025 revenue guidance, which continues to point to low-single-digit growth. While FIGS’s quarterly results improved, the sustained conservative annual outlook highlights that even with ongoing efforts in new products and geographic expansion, management remains cautious about immediate demand recovery. This keeps the spotlight on whether customer base expansion and active engagement will accelerate as hoped.

Yet in contrast, investors should be aware of the risks that persist around FIGS’s ability to sustain active customer growth at a pace...

Read the full narrative on FIGS (it's free!)

FIGS' outlook anticipates $600.5 million in revenue and $28.6 million in earnings by 2028. This is based on a 2.6% annual revenue growth rate and an increase in earnings of $25.9 million from the current $2.7 million.

Uncover how FIGS' forecasts yield a $4.86 fair value, a 22% downside to its current price.

Exploring Other Perspectives

Four distinct fair value estimates from the Simply Wall St Community span US$0.83 to US$7.21 per share. While opinions run the full spectrum, many participants continue to focus on the importance of FIGS’s customer acquisition and retention as a critical influence on future returns.

Explore 4 other fair value estimates on FIGS - why the stock might be worth as much as 16% more than the current price!

Build Your Own FIGS Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your FIGS research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.
• Our free FIGS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FIGS' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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