FIGS, Inc. closed the third quarter of 2025 with its strongest growth in two years, lifting its full‑year outlook as net revenues climbed to $151.7 million, up 8.2% year over year, and profitability improved sharply. The healthcare apparel brand is benefiting from higher average order values, more full‑price selling, and a growing base of 2.8 million active customers.
Q3 2025 headline numbers
For the quarter ended September 30, 2025, FIGS generated $151.7 million in net revenues, up 8.2% from $140.2 million a year earlier, driven by more orders from both new and existing customers and higher AOV. Net income reached $8.7 million, versus a $1.7 million net loss in the prior‑year period, translating to a 5.8% net margin compared with a negative 1.2% margin last year.
Adjusted EBITDA rose to $18.9 million, up $14.1 million year over year, with adjusted EBITDA margin expanding to 12.4% from 3.4%. Gross margin improved by 280 basis points to 69.9%, helped by fewer discounts, better returns processing, lower duties and freight, partly offset by higher tariffs.
Scrubwear, non‑scrubwear, and geography mix
Scrubwear’s net revenues were $127.0 million, an 8.4% increase year over year, and remain the core of the business. Non scrubwear net revenues reached $24.6 million, up 7.2%, reflecting continued traction in categories like outerwear, loungewear, and accessories.
In the United States, net revenues rose 7.5% to $127.3 million, while international net revenues climbed 11.7% to $24.3 million, showing broad‑based demand outside the home market. Management highlighted that both scrubwear growth and U.S. growth reached two‑year highs, supported by strong “business‑as‑usual” selling periods rather than heavy promotions.
Customer metrics and order behavior
Active customers as of September 30, 2025, increased 4.0% year over year to about 2.8 million, a new company record. Net revenues per active customer rose 2.0% to $209, the first positive inflection in three years on this metric.
Average order value reached $114, up 5.6%, driven by higher average unit retail, a richer mix, and a greater share of full‑price sales. Executives said the brand is seeing momentum both in acquiring new shoppers and re‑engaging lapsed customers, while carefully resetting promotions to protect margins.
Costs, cash, and inventory position
Selling expenses were $35.8 million, or 23.6% of net revenues, down from 27.5% a year ago as FIGS lapped one‑time costs from opening its Arizona fulfillment center and optimized logistics and carriers. Marketing spend was $23.5 million, 15.5% of net revenues versus 20.3% last year, reflecting lower big‑event investments and better efficiency.
The company ended the quarter with $241.5 million in cash, cash equivalents, and short‑term investments, maintaining a net cash position. Inventory increased 23% year over year to $151.2 million (up 20% on a unit basis), reflecting earlier receipts, mix shifts, and higher in‑stock levels, which management framed as intentional to support demand.
Upgraded 2025 outlook
On the back of Q3 outperformance, FIGS raised its full‑year 2025 guidance, now expecting approximately 7% net revenue growth versus prior expectations of around 6%. The company also lifted its target adjusted EBITDA margin to above its initial outlook, pointing to ongoing benefits from pricing discipline, lower promotions, and cost‑efficiency initiatives.
Co‑founder and CEO Trina Spear said, “FIGS’ third quarter was highlighted by top and bottom line results that exceeded our internal expectations, including the strongest revenue growth over the past two years.” With a larger, more engaged customer base and improved profitability, the company is positioning itself for sustained growth in 2026 and beyond.
