FIGS Revenue Jumps 25.7% to $190.7 Million in Third Quarter
Key Facts
FIGS reported revenue of $190.7 million in the third quarter of 2026, up 25.7% year over year, according to the transcript of the company's earnings call. The company attributed the growth to an increase in orders and a higher average order value. Net income was $19.3 million, or $0.10 per diluted share. That compared with net income of $8.7 million and diluted earnings of $0.05 per share in the same quarter of 2025. The earnings call confirmed that revenue and earnings per share exceeded analysts' expectations, while results showed a divergence between sales growth and improved profitability on one hand, and pressure on gross margin on the other.
Medical apparel led revenue, with sales of $157.5 million, up 24% from a year earlier. Non-medical products generated revenue of $33.2 million, growing faster at 34.6%. The two categories totaled $190.7 million, showing that medical apparel remained the largest component of sales while the non-medical category grew at a faster pace. The figures show that expansion during the quarter covered both of the company's core businesses, with a clear difference in their growth rates. The available figures did not provide a detailed comparison of each category's contribution to overall revenue growth.
Geographically, U.S. revenue rose 20.8% to $153.9 million, while international revenue increased 51.4% to $36.8 million. The United States remained the largest market by revenue, but international growth exceeded the U.S. market's pace by more than double. Combined revenue in the two markets was $190.7 million. This divergence highlights the expansion of activity outside the United States during the quarter, alongside continued year-over-year growth in the domestic market. The figures offer an indication of geographic revenue diversification without breaking out the performance of individual international markets.
Active customers totaled 3.2 million as of September 30, 2026, up 14.3% year over year. Average order value rose to $126, a gain of 10.5%, while net revenue per active customer reached $236, up 12.9% from the same period and a company record. These indicators combine growth in the customer base with an increase in the value customers spend or generate in revenue for the company. The company said increased orders and a higher average order value contributed to revenue growth. Customer metrics add context to sales growth, showing that the recorded change was not limited to the revenue line alone.
Adjusted EBITDA margin improved to 16.5%, up 410 basis points year over year. By contrast, gross margin was 69.3%, down 60 basis points from a year earlier. The company attributed the decline in gross margin to higher inventory reserves, as well as a comparison with the prior year's returns processing. The different directions of the two margins reflect improvement in the adjusted measure alongside pressure on overall product profitability. The margin picture was therefore more mixed than revenue and net income growth during the quarter.
In the second quarter of 2026, FIGS reported revenue of $196.6 million, annual growth of 28.8%, and a gross margin of 75.2% that included the effect of tariff refunds. Co-CEO Trina Spear said at the time that the company had achieved "its third consecutive quarter of 25% or more net revenue growth." The new third-quarter results put that annual growth figure at 25.7%, down from the 28.8% growth pace in the previous quarter. The current gross margin of 69.3% differs from the second-quarter level, which was affected by tariff refunds. The comparison provides context for how growth and margins developed across the two periods, with each figure tied to its specified quarter.
FIGS raised its 2026 full-year adjusted earnings margin estimate to about 15.8%, compared with a previous range of 14.8% to 15%, according to the earnings call transcript. The new estimate is above the upper end of the previous range, without including a new full-year revenue forecast here. In EL7 data, the company's shares closed at $20.21 on November 5, 2026. That is the closing price for that day and does not, by itself, establish the direction or cause of the stock's movement. The annual estimate update follows the third-quarter results, with the next outlook figure being the expected adjusted earnings margin for 2026.