FIGS: 3 Key Takeaways for Long-Term Investors
On its third-quarter 2026 earnings call, held on Nov. 5, 2026, FIGS (FIGS -1.93%) announced net revenues grew 26% year over year to approximately $191 million. The apparel maker is expanding gross margins and accelerating customer spend while navigating supply chain friction in Asia. Three things management said stand out.
1. International Expansion Is Driving Fast Top-Line Growth
International net revenue surged 51% year over year to $36.8 million, accounting for nearly 20% of total sales. Management is localizing digital marketing across Europe, Latin America, and the Middle East to capture a global total addressable market, or TAM, of over 100 million healthcare workers.
Third-quarter net revenue growth surged 51% as our international mix approaches 20% of our total business. Our broad-based strength was particularly notable across Latin America, Mexico, the Middle East, and Europe, where we are seeing the benefits from our increased localization and community-building efforts.
— Trina Spear, Co-Founder and Chief Executive Officer
2. Supply Disruption Forces Manufacturing Shift to Southeast Asia
A Withhold Release Order, or WRO, an import restriction issued by U.S. customs, restricted supply from the company’s Jordan manufacturer and dropped inventory 20% year over year to $121.3 million. Management is mitigating stockouts by expanding production capacity across Vietnam and Indonesia.
While the WRO is still in effect, our own efforts are progressing. … We have secured additional capacity in Vietnam. Production is ramping, goods are being expedited, and inventory is improving real-time.
— Trina Spear, Co-Founder and Chief Executive Officer
3. Institutional B2B Sales via TEAMS Are Accelerating Scale
Through TEAMS, the company’s business-to-business enterprise sales platform, management is securing institutional accounts to drive recurring orders. New partnerships with corporate healthcare providers are expanding distribution beyond direct sales to individual medical professionals.
In TEAMS, we are showcasing our strategy to build a pipeline of larger opportunities. As examples, we are rolling out our recent partnerships with Bupa Dental Care, with nearly 400 dental centers in the U.K., and European Wax Center, with just over 1,000 aesthetic locations across the U.S.
— Trina Spear, Co-Founder and Chief Executive Officer
Looking Ahead
Revenue momentum is building into the fourth quarter. The company relies on replenishment demand from medical professionals, strong customer retention, and expanding operating margins to navigate near-term inventory constraints.
We have increased our Q4 expectations for net revenues and now expect approximately 15% year-over-year growth for the period.
— Sarah Oughtred, Chief Financial Officer
Operating leverage is expanding as average order values rise and marketing expenses stabilize. Long-term gains depend on maintaining gross margin discipline while scaling international and institutional channels.
Along with top line, we are firmly focused on driving our adjusted EBITDA margin even higher. While we will not sacrifice investments to support the long-term aspirations of our brand, we do expect our discipline around profitability to continue in 2027.
— Trina Spear, Co-Founder and Chief Executive Officer
The Motley Fool has positions in and recommends Figs. The Motley Fool has a disclosure policy.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.