FIGS, Inc. 2026 Q2 Earnings Call

Thank you for joining us to discuss FIGS's second quarter 2026 results, which we released this afternoon and can be found in our earnings press release and in the shareholder presentation posted to our investor relations website at ir.wearfigs.com. Presenting on today's call are Trina Spear, our Co-founder and Chief Executive Officer, and Sarah Oughtred, our Chief Financial Officer. As a reminder, remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations, or estimates, including about future financial performance, market opportunity, or business plans. Forward-looking statements involve risk and uncertainties, and actual results could differ materially. These and other risks are discussed in our SEC filings, including in the 10-Q we filed today. Do not place undue reliance on forward-looking statements, which speak only as of today and which we undertake no obligation to update.

Finally, we will discuss certain non-GAAP metrics and key performance indicators which we believe are useful supplemental measures for understanding our business. Definitions and reconciliations of these non-GAAP measures to their most comparable GAAP measures are included in our shareholder presentation. Now, I would like to turn the call over to Trina.

Thanks, Tom. Good afternoon, everyone. Thank you for joining us today. FIGS's strong, broad-based momentum continued in Q2, highlighting the sustainability of our success and our truly unique positioning. Net revenues grew 29% to $197 million, beating our outlook and marking our third straight quarter with 25%+ growth. Notably, this is the strongest sustained stretch of growth we have seen since 2021. What is most exciting is that our growth is coming from across our business rather than from just one part of it. We are seeing tremendous traction across the board, our channels, product categories, geographies, and customer cohorts, driving a number of record highs for the brand. As examples, we have never sold more scrub wear in a single quarter than we did in Q2, and our three market expansion opportunities, international teams, and community hubs each achieved new highs.

I used the word resilience earlier in my remarks. It applies here, too. U.S. Customs and Border Protection recently issued a Withhold Release Order that currently prevents us from importing product into the United States from our partner in Jordan. Through COVID and the disruption in the Middle East, facing supply chain challenges is not new to us. We have always been able to manage through them due to the strength and flexibility of the supply chain we've built. That remains true today. Our team is cross-functionally adapting our planning to mitigate disruption in the second half of the year. This includes leveraging capacity with our other strong existing partners and expediting their production. As a reminder, our high volume, low SKU count footprint is a powerful differentiator that makes us highly attractive to the world's best suppliers.

Most importantly, even with this challenge, we are able to raise our top and bottom line targets. We have not only passed through the upside of our Q2 results, we've also layered in increased expectations for the balance of the year. This is exactly the kind of agility that spotlights the strength of the foundation we have built. It positions us for long-term execution in delivering great product to our community. Let me share some of the progress we are most excited about across product, brand, and market expansion. Starting with product, we are winning at the intersection of style, color, fabric, and fit. On style, we are evolving choice for healthcare professionals, complementing our successful core styles with modern looks that combine functionality, design, and comfort. Our scrub pants are a great example.

Wider leg solutions continue to resonate strongly. We're continuing to bring newness in this area, including new waistband options that debut this quarter. This strategy reflects our unique merchandising flywheel in action. We launch limited edition options that generate excitement and a quick sell-through while driving in greater interest in the core that represents the majority of our business. Color is always important at FIGS. It is woven into the DNA of our brand across both core and limited edition styles. We are always listening to feedback, analyzing trends, and responding quickly. Espresso is a great example. To say that our community was clamoring for this color was an understatement. We heard them. We responded with two separate launch moments this year, including a product drop just last week that sold out quickly.

We have used color to tap into cultural moments, incorporating it into our Star Wars collaboration in Q2, and into our new collaboration with Marvel's Spider-Man, which launched this quarter timed with the movie's release, and was a huge hit. On fabrication, we remain focused on delivering across the full spectrum of use cases, complementing our hallmark FIONx with FORMx, and now our new FiberX. FORMx continues to resonate and grow as a complement to our core offering, and we're super excited to build on the FiberX story in the weeks ahead. Wrapping all of this together is fit. All new products are aligned with the fit work we have been driving the past few years, and we continue to be encouraged by the gains we are seeing through lower returns and positive customer feedback. On non-scrub wear, we remain focused on building out our layering system.

We are winning here. 40% growth in the quarter was the highest we've seen in nearly 4 years. Non-scrub wear now represents nearly 20% of our business, and we believe it can mix even higher over time as we build out key areas, including under scrubs, lab coats, outerwear, footwear, medical grade compression socks, and jewelry. Healthcare professionals may wear a uniform, but they're looking for ways to personalize and accessorize their look. This brings me to something we're incredibly excited to announce. As you may have seen from our recent social posts, we have acquired V Coterie. A longtime partner of ours on pins, V Coterie brings a broad range of pins, jewelry, charms, and accessories dedicated to the healthcare community. These are not just any kinds of accessories.