FIGS Reports Strong 2025 Net Income & Revenue Growth, Warns of 400 BPS Tariff Impact in 2026

summarizeSummary

FIGS reported a substantial increase in 2025 net income and revenue, alongside an extended credit facility and dismissed litigation, but cautioned about a significant 400 basis point gross margin impact from new tariffs in 2026.

check_boxKey Events

• Strong 2025 Financial Performance

  Net revenues increased 13.6% to $631.1 million, and net income surged from $2.7 million in 2024 to $34.3 million in 2025. Adjusted EBITDA also grew 43.8% to $74.5 million.

• Significant 2026 Tariff Headwinds Projected

  The company estimates new global tariffs will negatively impact 2026 gross margin by approximately 400 basis points, following a 120 basis point impact in 2025. This follows a February 2026 Supreme Court ruling on tariffs.

• Credit Facility Maturity Extended

  The $100.0 million revolving credit facility's maturity date was extended from September 2026 to November 2030, enhancing liquidity and financial flexibility.

• Class Action Lawsuit Dismissed

  A putative securities class action lawsuit against the company and its officers was dismissed in January 2025, with judgment entered in February 2025, though plaintiffs have filed an appeal.

auto_awesomeAnalysis

FIGS, Inc. delivered a strong financial performance in 2025 with significant increases in net income and revenue. The company also enhanced its financial flexibility by extending its credit facility and saw a class action lawsuit dismissed. However, gross margin was negatively impacted by tariffs and inventory write-offs, and management anticipates a substantial 400 basis point negative impact on gross margin in 2026 due to new global tariffs. Investors should weigh the strong past performance against these significant forward-looking tariff headwinds.