FIGS (NYSE:FIGS) reported second-quarter fiscal 2026 revenue growth of 29% as demand increased across scrub wear, non-scrub apparel, international markets, institutional sales and retail community hubs. The healthcare apparel company also raised its full-year revenue and profitability outlook, despite a new restriction affecting imports from a manufacturing partner in Jordan.
Net revenue rose to $196.6 million from the prior-year period, exceeding the company’s outlook for growth in the low-20% range. CEO and Co-founder Trina Spear said the quarter marked FIGS’ third consecutive period of revenue growth above 25%, its strongest sustained growth stretch since 2021.
Customer Metrics and Category Growth
Active customers increased 13% year over year to 3.1 million. Average order value rose 9% to a record $127, supported by pricing actions taken earlier in 2026, lower discounting and improved return rates. FIGS also reported higher purchase frequency, helping trailing 12-month net revenue per active customer increase 10% to a company record of $229.
Scrub wear revenue grew 27% and represented 82% of total net revenue during the quarter. Non-scrub wear revenue increased 40% and accounted for 18% of sales, with particular strength in under scrubs and outerwear. Spear said the company is continuing to build a broader “layering system” for healthcare professionals, including lab coats, footwear, compression socks and accessories.
The company also announced it acquired V Coterie, a healthcare-focused maker of pins, jewelry, charms and accessories. Spear said V Coterie founder Lynna Van Mierlo, a former dentist, joined FIGS as part of the transaction. FIGS characterized the acquisition as immaterial from a purchase-price perspective but said the products could support longer-term category growth and customer engagement.
During the quarter, FIGS also launched collaborations and product drops tied to Star Wars and Spider-Man, while its Espresso color release sold out quickly, according to management.
International, Teams and Retail Expansion
International revenue increased 67% to $37.9 million, while U.S. revenue grew 22% to $158.7 million. FIGS now operates in 85 international markets after opening 27 markets year to date.
The company said growth was particularly strong in Europe, Latin America and Mexico, with improved performance in Canada, Australia and the Middle East. FIGS is increasing localized marketing and brand-building efforts in selected markets, including use of LINE in Japan, Kakao in South Korea and Douyin in China.
FIGS’ teams business, which outfits healthcare organizations, added Bupa Dental Care as a customer. The initial engagement will focus on nearly 400 dental centers in the United Kingdom. Spear said the agreement illustrates the potential reach of the institutional channel.
Community hubs, FIGS’ retail-store format, also produced record results from both comparable-store sales and new locations. The company currently has five stores and has signed four leases for stores expected to open later this year:
- Fashion Square in Scottsdale, Arizona
- Tysons Corner outside Washington, D.C.
- Valley Fair near San Jose, California
- Aventura Mall in Miami
Management said it is also working to secure locations for 2027 and beyond.
Margins, Tariff Refund and Capital Returns
Second-quarter gross margin rose 820 basis points year over year to 75.2%. The result included a 780-basis-point cumulative benefit from a $15.4 million refund tied to tariffs imposed under the International Emergency Economic Powers Act, or IEEPA.
CFO Sarah Oughtred said the company initially received $4.5 million in the second quarter and determined recovery of the remaining claims was probable, resulting in the recognition of the full benefit in its GAAP results. The $15.4 million reduction in cost of goods sold included $7.9 million related to tariffs expensed in fiscal 2025 and $7.5 million related to the first half of fiscal 2026.
FIGS also recognized a roughly $5.1 million reduction in inventory carrying value for tariffs previously capitalized into inventory. Oughtred said the company received the full $20.5 million refund in the third quarter.
Excluding the prior-year portion of the tariff refund, adjusted EBITDA margin was 18.6%, compared with 12.9% a year earlier. GAAP operating margin was 17.9%, up from 6.5%, while net income totaled $28.4 million, or $0.15 per diluted share, compared with $7.1 million, or $0.04 per share, in the prior-year quarter.
FIGS ended the quarter with $296.3 million in cash equivalents and short-term investments. Inventory declined 12% year over year to $119.6 million. The company repurchased about $24 million of shares during the quarter at a weighted average price of $11.94 per share. Its board approved an additional $100 million for the ongoing repurchase program, bringing remaining repurchase capacity to $119 million.
Jordan Supply Constraint and Raised Outlook
Spear said U.S. Customs and Border Protection issued a Withhold Release Order that currently prevents FIGS from importing products from its partner in Jordan. The company is shifting production and expediting output through other existing suppliers to mitigate the disruption.
Oughtred said FIGS expects to use air freight for certain products, which will partly offset other margin benefits. The company expects third-quarter inventory to remain down double digits year over year because of supplier transitions, but said it remains confident it can support its raised revenue targets.
For fiscal 2026, FIGS now expects revenue to increase approximately 20%, up from prior guidance for 14% to 16% growth. The outlook assumes approximately 20% revenue growth in the third quarter and about 10% growth in the fourth quarter.
The company raised its full-year operating-margin outlook to approximately 10.8% from a prior range of 7.8% to 8%. It increased adjusted EBITDA margin guidance to between 14.8% and 15%, from 13% to 13.2%, including tariff-refund effects. FIGS expects third-quarter adjusted EBITDA margin of about 14%, compared with 12.4% in the prior-year period.
About FIGS (NYSE:FIGS)
FIGS, Inc operates as a direct-to-consumer designer and retailer of medical apparel and accessories. The company offers a range of products tailored to the needs of healthcare professionals, including scrub sets, lab coats, tops, bottoms, outerwear, footwear, and performance fabrics designed for comfort, durability, and antimicrobial protection. Through its e-commerce platform and a growing network of retail stores, FIGS provides customizable uniforms and accessories with a focus on innovative materials and functional design features such as four-way stretch fabrics, moisture-wicking technology, and multiple secure pockets.
Founded in 2013 by Heather Hasson and Trina Spear, FIGS set out to disrupt the traditional medical uniform market by emphasizing both form and function.
