NYSE:FIGS
FIGS, Inc.
A premium activewear brand driving double-digit revenue growth and expanding margins through direct-to-consumer channels and sustainable innovation.
Key Metrics
Investment Thesis
Bull Case
Investors should consider FIGS for its impressive 14% year-over-year revenue acceleration and the substantial expansion in net income from $2.7M to $34.2M over the last two years. The return on capital appears efficient given the strong operating cash flow relative to total assets, suggesting the business can fund growth without excessive dilution. Its direct-to-consumer model provides a scalable pathway to capture higher margins as brand equity and customer retention rates improve.
Bear Case
The stock carries elevated risk due to high inventory levels at $128.0M which could become obsolete if consumer demand softens or trends shift rapidly in the fashion sector. Recent capital outflows of $64.0M from investing activities, including large marketable security purchases, may signal a lack of profitable organic growth opportunities or aggressive balance sheet management that warrants scrutiny. The company's reliance on a single product category within a volatile discretionary spending environment exposes it to macroeconomic headwinds that could compress demand.
About FIGS, Inc.
FIGS, Inc. (NYSE: FIGS) is a leading designer and retailer of premium activewear, primarily serving the athletic and wellness markets with its distinctive graphic-heavy apparel line. The company focuses on direct-to-consumer sales through its own e-commerce platform while maintaining a selective wholesale presence in specialty retail stores globally. With a strong emphasis on sustainability and innovative fabric technology, FIGS has recently demonstrated robust revenue growth and improved profitability.
Analysis
Management Discussion
FIGS delivered exceptional financial performance in 2025, posting a net profit of $34.2M and revenue growth to $631.1M, marking a significant turnaround from the modest earnings seen in 2024. Operating cash flow surged to $61.2M, reflecting strong collection efforts aided by a reduction in accounts receivable and strategic management of inventory levels despite a $12.2M increase in stock. The company successfully navigated capital expenditures of $8.2M while maintaining a healthy cash balance of $82.0M, indicating disciplined financial stewardship during this growth phase.
Industry Overview
The global activewear industry is experiencing robust expansion fueled by the convergence of fitness culture, wellness trends, and post-pandemic lifestyle shifts toward at-home activity. Major players are investing heavily in sustainability and digital experiences to differentiate their brands in a market increasingly dominated by lifestyle-focused consumers. FIGS operates within this high-growth segment, competing on brand distinctiveness rather than price leadership.
Financial Statements
Income Statement
Balance Sheet
Cash Flow
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue | $505.8M | $545.6M | $555.6M | $631.1M |
| Cost of Revenue | $151.4M | $168.7M | $179.9M | $211.3M |
| Gross Profit | $354.5M | $377.0M | $375.6M | $419.8M |
| Operating Expenses | $316.8M | $342.9M | $373.4M | $381.7M |
| Operating Income | $37.7M | $34.0M | $2.3M | $38.1M |
| G&A | $120.7M | $140.7M | $142.9M | $142.7M |
| Stock-Based Comp | $37.5M | $45.8M | $42.7M | $26.9M |
| D&A | $1.9M | $2.9M | $6.7M | $9.0M |
| Depreciation | $1.9M | $2.9M | $6.7M | $9.0M |
| Other OpEx | $196.1M | $202.2M | $230.5M | $239.0M |
| Non-Operating Income | $1.1M | $6.8M | $12.1M | $9.1M |
| Pre-Tax Income | $38.7M | $40.8M | $14.3M | $47.2M |
| Income Tax | $17.5M | $18.2M | $11.6M | $13.0M |
| Continuing Ops | $21.2M | $22.6M | $2.7M | $34.2M |
| Discontinued Ops | $0 | $0 | $0 | $0 |
| Net Income | $21.2M | $22.6M | $2.7M | $34.2M |
| Minority Interest | $0 | $0 | $0 | $0 |
| Net to Common | $21.2M | $22.6M | $2.7M | $34.2M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Current Assets | $356.5M | $385.7M | $382.8M | $447.3M |
| Cash & Equivalents | $159.8M | $144.2M | $85.6M | $82.0M |
| Accounts Receivable | $6.3M | $6.5M | $6.6M | $5.4M |
| Inventory | $178.0M | $119.0M | $115.8M | $128.0M |
| Prepaid Expenses | $11.9M | $12.5M | $13.3M | $12.2M |
| Other Current Assets | $578.0K | $103.4M | $161.5M | $219.8M |
| Long-Term Assets | $38.6M | $87.5M | $127.0M | $132.7M |
| PP&E (Net) | $11.0M | $24.9M | $35.3M | $33.9M |
| Operating Leases | $15.3M | $43.1M | $50.5M | $57.1M |
| Other LT Assets | $12.2M | $19.6M | $41.2M | $41.6M |
| Total Assets | $395.1M | $473.2M | $509.8M | $580.0M |
| Current Liabilities | $71.4M | $57.3M | $90.1M | $90.5M |
| Accounts Payable | $20.9M | $14.7M | $9.4M | $18.2M |
| Current Leases | $3.4M | $8.2M | $10.6M | $8.2M |
| Taxes Payable | $0 | $2.6M | $346.0K | $1.9M |
| Other Current Liab | $20.9M | $23.9M | $27.5M | $41.7M |
| Long-Term Liabilities | $15.9M | $39.1M | $42.5M | $52.0M |
| LT Operating Leases | $15.8M | $38.9M | $42.4M | $51.8M |
| Other LT Liab | $176.0K | $183.0K | $83.0K | $182.0K |
| Total Liabilities | $87.3M | $96.4M | $132.7M | $142.5M |
| Shareholders' Equity | $307.7M | $376.9M | $377.1M | $437.5M |
| Retained Earnings | $39.1M | $61.8M | $64.5M | $98.7M |
| AOCI | — | $5.0K | $21.0K | $196.0K |
| Total L&E | $395.1M | $473.2M | $509.8M | $580.0M |
| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Net Income (CFO) | $21.2M | $22.6M | $2.7M | $34.2M |
| Non-Cash Adjustments | $-158.4M | $160.3M | $56.4M | $28.2M |
| Working Capital Changes | $101.8M | $-82.0M | $22.0M | $-1.3M |
| Cash from Operations | $-35.3M | $100.9M | $81.2M | $61.2M |
| Capital Expenditures | $5.3M | $16.3M | $17.0M | $8.2M |
| Cash from Investing | $-5.8M | $-117.2M | $-94.9M | $-64.0M |
| Share Buybacks | — | — | $45.5M | $2.7M |
| Cash from Financing | $3.5M | $670.0K | $-44.8M | $-969.0K |
| FX Effect | $0 | $0 | $0 | $100.0K |
| Net Change in Cash | $-37.7M | $-15.6M | $-58.5M | $-3.7M |
| Beginning Cash | $197.4M | $159.8M | $144.2M | $85.6M |
| Ending Cash | $159.8M | $144.2M | $85.6M | $82.0M |
Frequently Asked Questions
How does FIGS, Inc. make money?
The company's revenue is driven by its core activewear apparel line featuring graphic designs sold via e-commerce and wholesale partnerships, complemented by emerging categories such as performance outerwear and accessories that contribute to diversifying its product mix.
What are the main risks for FIGS?
Intense competition from established giants like Nike and Lululemon as well as fast-fashion activewear brands threatens market share and pricing power. A significant portion of cash flow is tied up in inventory, creating exposure to supply chain disruptions or shifts in consumer trends that could lead to write-downs. The company faces margin pressure from rising raw material costs and potential increases in logistics expenses impacting the bottom line. Dependence on digital sales makes it vulnerable to changing consumer spending habits and platform algorithm updates.
What is FIGS's competitive advantage?
FIGS leverages a strong brand identity rooted in community engagement and distinctive aesthetic appeal to maintain high customer loyalty in the crowded activewear space. The company benefits from direct control over its digital sales channels, allowing for higher gross margins and valuable first-party consumer data compared to traditional wholesale competitors. Its focus on sustainable materials and ethical manufacturing resonates with modern consumers willing to pay a premium for aligned values.
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Not financial advice. All content is for informational purposes only. Data may contain errors. Consult a qualified financial advisor before making investment decisions.