Highlights

  • Second quarter net revenues rose 28.8% to $196.6 million, and net income reached $28.4 million, up from $7.1 million.
  • Gross margin widened to 75.2% from 67.0%, with the company citing IEEPA tariff refunds, price increases and efficiency efforts.
  • A June customs withhold release order blocks imports from a Jordanian partner that made about one-third of finished goods.
  • Management now expects 2026 net revenue growth of about 20%, up from a prior outlook of 14% to 16%.

FIGS (NYSE:FIGS) shares were trading near their 52-week high at USD 20.07 on October 21, 2026, up 1.06%. The healthcare apparel brand received a U.S. customs withhold release order against one of its suppliers in June, reported second quarter 2026 results in August with a higher full-year outlook, and added $100 million to its share repurchase program.

Based in Santa Monica, California, the Delaware corporation describes itself as a founder-led, direct-to-consumer healthcare apparel and lifestyle brand. It designs scrubwear and non-scrubwear, such as outerwear, footwear, compression socks and lab coats, selling mainly through its website, mobile app and TEAMS business-to-business channel, plus physical stores called Community Hubs. It reports a single segment, had about 3.1 million active customers at June 30, 2026, and has a December 31 fiscal year end.

Revenue Up 29% With Profit Boosted by Tariff Refunds

Net revenues for the three months ended June 30, 2026 reached $196.6 million, compared with $152.6 million a year earlier. The company attributed the increase mainly to more orders and a higher average order value. Active customers grew 13.2% from about 2.7 million. Rest-of-world revenue was $37.9 million versus $22.7 million a year ago, and non-scrubwear contributed $35.4 million.

Gross profit rose 44.6% to $147.9 million. The 10-Q says the gross margin gain was primarily due to refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA), alongside price increases and efficiency efforts, partly offset by other tariffs. On the call, management put the refund at $15.4 million, or about 780 basis points of the margin gain. Operating expenses grew 21.9% to $112.6 million. Income from operations was $35.3 million against $9.9 million, GAAP diluted earnings per share were $0.15 versus $0.04, and non-GAAP adjusted EBITDA was $36.6 million, an 18.6% margin.

For the six months, net revenues were $356.5 million, up 28.5%, and operating cash flow was $43.7 million against an outflow of $3.2 million a year earlier.

Supply Chain Order, Refunds and Capital Returns

On June 23, 2026, U.S. Customs and Border Protection issued a withhold release order against certain garments made by the company's Jordanian manufacturing partner, which produced roughly one-third of finished goods in the quarter. Products from that partner cannot currently be imported into the United States. The company is moving raw materials and future production to other partners, and it expects the order to hurt net revenues, gross margin and inventory levels in the second half of 2026.

The company estimates it paid about $20.6 million of IEEPA tariffs. Customs accepted Phase I refund claims totaling $20.5 million including interest, and the company received the remaining $16.0 million receivable after June 30. Timing for any later refund phases is uncertain.

Cash and cash equivalents were $108.5 million at June 30, 2026, up from $82.0 million at December 31, 2025, with no borrowings under its $100 million revolving credit facility, which now matures in November 2030. Repurchases totaled about $24.0 million in the quarter. On August 6, 2026, the board raised the program's authorization by $100 million to $200 million, leaving about $119.2 million available.

Raised Full-Year Outlook and Business Updates

On the call, management raised its 2026 outlook. Net revenue is now expected to grow about 20%, up from 14% to 16%, with third quarter growth near 20% and fourth quarter growth near 10%. It projects GAAP gross margin near 69.5% and non-GAAP adjusted EBITDA margin of 14.8% to 15.0%. Management expects a year-over-year gross margin decline in the third quarter. These are company estimates.

Management also said it acquired V Coterie, a healthcare jewelry and accessories brand it described as immaterial in purchase price, and onboarded Bupa Dental Care, covering nearly 400 U.K. dental centers, through TEAMS.