FIGS (FIGS) Q2 2026 earnings summary

Executive summary

• Net revenues grew 29% year-over-year to $196.6 million in Q2 2026, marking the third consecutive quarter of 25%+ growth and surpassing outlook expectations, with broad-based strength across channels, product categories, geographies, and customer cohorts.

• Adjusted EBITDA margin surged to 18.6%, up from 12.9% last year, driven by margin expansion from full price selling, improved returns, and expense leverage.

• Net income reached $28.4 million, with net income margin improving to 14.4%, up from 4.7% a year ago.

• Active customers increased 13% year-over-year to 3.1 million, with record average order value of $127 and net revenues per active customer reaching $229.

• Growth was driven by product innovation, community engagement, international expansion, and retail presence.

Financial highlights

• Q2 2026 net revenues: $196.6 million, up 29% year-over-year.

• Gross margin improved 820 basis points to 75.2%, including a benefit from IEEPA/tariff refunds.

• Net income: $28.4 million (EPS $0.15), up from $7.1 million (EPS $0.04) last year; net income margin: 14.4%.

• Adjusted EBITDA: $36.6 million (margin 18.6%), up from $19.7 million (margin 12.9%) last year.

• Free cash flow for the first half of 2026 was $38.6 million, compared to negative $5.6 million in the prior year.

Outlook and guidance

• Full-year 2026 net revenues expected to grow approximately 20%, up from prior 14%-16% guidance.

• Adjusted EBITDA margin guidance for 2026 raised to 14.8%-15.0%.

• Tariffs and a CBP withhold release order against a key supplier are expected to impact gross margin and inventory in the second half of 2026, but mitigation strategies are being implemented.