Shares of FIGS, Inc. (FIGS) tumbled 10.10% in after-hours trading on Thursday following the release of the company's first-quarter 2025 financial results and updated full-year outlook. The global healthcare apparel brand faced headwinds due to changes in U.S. trade policies, prompting a revision of its 2025 projections.

While FIGS reported a 4.7% year-over-year increase in net revenues to $124.9 million for Q1 2025, exceeding expectations, the company's bottom line showed signs of pressure. Net income turned to a slight loss of $(0.1) million, compared to a profit of $1.4 million in the same period last year. The adjusted EBITDA margin also declined to 7.2% from 10.9% in the previous year.

The most significant factor driving the stock's after-hours plunge was FIGS' updated 2025 outlook. Chief Financial Officer Sarah Oughtred stated, "While 2025 started on a strong note, changes in U.S. trade policies have added greater variability to our planning, particularly in the second half of the year." As a result, FIGS now expects full-year 2025 net revenue growth to be down in the low-single-digits compared to 2024, with an adjusted EBITDA margin between 7.5% and 8.5%. This cautious outlook reflects the projected impact of the current tariff structure, excluding the currently-paused reciprocal tariffs, and has clearly unsettled investors.