FIGS, Inc. has recently released its 10-Q report, revealing a 5.8% increase in net revenues for the three months ended June 30, 2025, reaching $152.6 million. The company's gross margin decreased by 0.4 percentage points to 67.0% during the same period. Additionally, FIGS, Inc. reported a significant increase in net income, rising from $1.1 million in 2024 to $7.1 million in 2025 for the same three-month period. The company's adjusted EBITDA also saw an increase, reaching $19.7 million, compared to $12.9 million in 2024.
FIGS, Inc. attributes the increase in net revenues to a rise in orders from new and existing customers, as well as an increase in average order value (AOV). However, the company experienced a 7.3% increase in cost of goods sold, reaching $50.4 million for the three months ended June 30, 2025. Despite the rise in costs, FIGS, Inc. managed to increase its net income margin from 0.8% to 4.7% for the same period.
The company also highlighted potential challenges in its report, particularly concerning global trade policy and logistics. FIGS, Inc. is closely monitoring changes in global trade policy, including tariffs, which have been dynamic and unpredictable. The company's production of finished goods is divided approximately evenly between Vietnam and Jordan, and limited production also occurs in China and Peru. The 10% baseline tariffs have increased the company's product costs, and it expects to see a significant additional increase in product costs if the additional tariffs on goods manufactured in Vietnam and Jordan remain in effect.
In addition to trade policy, FIGS, Inc. is also proactively seeking alternative ways to ship raw materials and receive inventory due to disruptions in commercial shipping transiting the Red Sea and surrounding waterways, as well as volatility in freight costs, capacity, and transit times.
Despite these challenges, FIGS, Inc. remains committed to its mission of celebrating, empowering, and serving healthcare professionals. The company's direct-to-consumer digital platform has been successful in expanding its community of active customers by 4.1% from approximately 2.6 million at June 30, 2024, to approximately 2.7 million at June 30, 2025. Today the company's shares have moved 1.95% to a price of $6.525. For the full picture, make sure to review FIGS's 10-Q report.
