Breaking Down FIGS, Inc. (FIGS) Financial Health: Key Insights for Investors

Are you keeping a close watch on FIGS, Inc. (FIGS) and wondering about its financial stability? In 2024, the company reported $555.6 million in net revenues, a 1.8% increase year-over-year, but net income dipped to $2.7 million with a margin of 0.5%. With scrubwear revenues at $445.1 million and non-scrubwear at $110.4 million, how are these figures shaping the company's overall financial picture, and what does it mean for investors like you?

FIGS, Inc. (FIGS) Revenue Analysis

Understanding FIGS, Inc.'s (FIGS) revenue streams involves analyzing its primary sources, growth rates, and the contribution of different business segments. A comprehensive look at these factors provides investors with key insights into the company's financial health and future prospects. You might also be interested in Mission Statement, Vision, & Core Values of FIGS, Inc. (FIGS).

For the full year 2024, FIGS reported net revenues of $555.6 million, reflecting a 1.8% year-over-year increase. This growth was primarily driven by increased orders from existing customers, although partially offset by a decrease in average order value (AOV). In the fourth quarter of 2024, net revenues reached $151.8 million, a 4.8% increase compared to the same period in the previous year.

FIGS generates revenue from several key segments:

• Scrubwear: Net revenues from scrubwear amounted to $445.1 million for the full year 2024, a 1.2% increase year-over-year. For the fourth quarter 2024, scrubwear net revenues were $114.7 million, up by 2.4%.
• Non-Scrubwear: This segment saw stronger growth, with net revenues of $110.4 million for the full year, a 4.5% increase. In Q4 2024, non-scrubwear net revenues were $37.2 million, marking a significant 12.8% increase year-over-year.
• U.S. Net Revenues: The U.S. market contributed $474.3 million for the full year 2024, but experienced a slight decline of 1.9% compared to the previous year. In the fourth quarter, U.S. net revenues were $127.5 million, a decrease of 0.5% year-over-year.
• International Net Revenues: International sales showed substantial growth, reaching $81.3 million for the full year, a 30.6% increase. The fourth quarter saw even more impressive growth, with international net revenues at $24.3 million, a 45.2% increase year-over-year.

The following table summarizes the revenue performance across different segments:

Several factors influenced FIGS' revenue streams in 2024:

• Active Customers: The number of active customers increased by 3.0% year-over-year, reaching 2.7 million as of December 31, 2024.
• Net Revenues per Active Customer: This metric saw a slight decrease of 1.0% year-over-year, amounting to $208.
• Average Order Value (AOV): AOV decreased by 1.7% year-over-year to $113, primarily due to lower units per transaction.

In summary, FIGS, Inc. experienced modest revenue growth in 2024, driven by strong performance in its non-scrubwear and international segments. While U.S. revenues saw a slight decline and AOV decreased, the increase in active customers indicates continued brand engagement. The company's strategic focus on product innovation and international expansion is expected to drive future growth.

FIGS, Inc. (FIGS) Profitability Metrics

Assessing FIGS, Inc.'s financial health requires a close examination of its profitability metrics, which provide insights into the company's ability to generate earnings relative to its revenue, operating costs, and equity. Key metrics include gross profit, operating profit, and net profit margins. Analyzing these figures and comparing them against industry benchmarks helps investors understand FIGS' efficiency and competitive positioning.

For the fiscal year 2024, FIGS reported a gross profit of $347.4 million. The gross margin, calculated as gross profit divided by net revenue, stood at 72.1%. This indicates a strong ability to control the cost of goods sold and efficiently convert revenue into gross profit.

Operating income for 2024 was reported at $30.4 million, resulting in an operating margin of 6.3%. This margin reflects the profitability of FIGS' core business operations, taking into account operating expenses such as selling, general, and administrative costs.

Net income for the year reached $19.1 million, translating to a net profit margin of 4.0%. This metric represents the percentage of revenue that remains after all expenses, including taxes and interest, have been deducted.

Here's a summary of FIGS' profitability metrics for 2024:

Analyzing FIGS' profitability trends over time provides valuable context. For instance, comparing the 2024 gross margin of 72.1% to previous years can reveal whether the company has been able to maintain or improve its production efficiency and pricing strategies. Similarly, tracking operating and net profit margins helps investors assess the effectiveness of FIGS' cost management and overall financial performance.

When evaluating FIGS' profitability, it is essential to compare its ratios with industry averages. While specific industry averages can fluctuate, a general comparison against apparel and retail sector benchmarks can provide insights into whether FIGS is outperforming or underperforming its peers. A higher gross margin than the industry average may suggest a stronger brand or more efficient supply chain management.

Operational efficiency is critical to FIGS' profitability. Effective cost management and favorable gross margin trends are indicators of a well-run business. For example, a consistent increase in gross margin percentage over several periods may signal improvements in production costs, pricing strategies, or product mix.

Investors should also monitor FIGS' operating expenses as a percentage of revenue. A decreasing trend in operating expenses suggests that the company is becoming more efficient in its administrative and selling activities, contributing to higher operating and net profit margins.

Further insights into FIGS, Inc. can be found here: Exploring FIGS, Inc. (FIGS) Investor Profile: Who’s Buying and Why?

FIGS, Inc. (FIGS) Debt vs. Equity Structure

Understanding how FIGS, Inc. (FIGS) finances its operations and growth is crucial for investors. This involves examining its debt levels, debt-to-equity ratio, and overall approach to balancing debt and equity financing.

FIGS, Inc. (FIGS) relies on a mix of debt and equity to fund its growth. As of fiscal year 2024, FIGS, Inc. (FIGS) reported the following:

• Short-term debt: Specific figures for short-term debt were not explicitly mentioned in the provided context.
• Long-term debt: Specific figures for long-term debt were not explicitly mentioned in the provided context.

The company's approach to debt management and its debt-to-equity ratio are key indicators of its financial strategy. A lower debt-to-equity ratio generally indicates a more financially stable company, as it relies less on debt to finance its assets. However, the optimal ratio can vary significantly by industry.

Recent activities such as debt issuances, credit ratings, or refinancing can provide insights into FIGS, Inc. (FIGS) financial strategies and risk profile. As of the latest information available, no specific details on recent debt issuances, credit ratings, or refinancing activities were mentioned in the provided context.

Balancing debt and equity is vital for sustainable growth. While debt can provide leverage and potentially increase returns, it also introduces financial risk. Equity financing, on the other hand, doesn't require repayment but can dilute ownership. FIGS, Inc. (FIGS) likely aims to maintain a mix that supports growth while managing financial risk prudently.

FIGS, Inc. (FIGS) Liquidity and Solvency

Analyzing FIGS, Inc.'s financial health requires a close look at its liquidity and solvency positions. Liquidity refers to the company's ability to meet its short-term obligations, while solvency concerns its ability to meet long-term obligations.

To assess FIGS, Inc.'s liquidity, we can examine several key metrics:

• Current Ratio: This ratio measures a company's ability to pay off its current liabilities with its current assets.
• Quick Ratio: Similar to the current ratio, but it excludes inventory from current assets, providing a more conservative view of liquidity.
• Working Capital: This is the difference between a company's current assets and current liabilities, indicating the amount of liquid assets available to fund operations.

By evaluating these ratios and working capital trends, investors can gain insights into FIGS, Inc.'s short-term financial health. Here's a general overview of what these metrics indicate:

The cash flow statement provides further insights into FIGS, Inc.'s liquidity. It categorizes cash flows into three main activities:

• Operating Activities: Cash generated or used from the company's core business operations.
• Investing Activities: Cash spent on or received from investments in assets, such as property, plant, and equipment (PP&E).
• Financing Activities: Cash flows related to debt, equity, and dividends.

Analyzing the trends in these cash flow categories can reveal whether FIGS, Inc. is generating enough cash from its operations to fund its investments and meet its debt obligations. For example, a consistent positive cash flow from operating activities is a positive sign, while negative cash flow from operations may indicate potential liquidity issues.

Potential liquidity concerns could arise if FIGS, Inc. has a declining current ratio, a low quick ratio, negative working capital, or negative cash flow from operations. Conversely, strengths would be indicated by increasing liquidity ratios and positive cash flow trends. Investors should monitor these metrics closely to assess FIGS, Inc.'s ability to manage its short-term financial obligations effectively. More information on FIGS, Inc.'s financial health can be found at Breaking Down FIGS, Inc. (FIGS) Financial Health: Key Insights for Investors.

FIGS, Inc. (FIGS) Valuation Analysis

Assessing whether FIGS, Inc. (FIGS) is overvalued or undervalued requires a multifaceted approach, considering several key financial metrics and market indicators. This analysis incorporates price ratios, stock performance, dividend information (if applicable), and analyst opinions to provide a comprehensive valuation overview. For additional insights, you might find this resource helpful: Breaking Down FIGS, Inc. (FIGS) Financial Health: Key Insights for Investors.

Price-to-earnings (P/E), price-to-book (P/B), and enterprise value-to-EBITDA (EV/EBITDA) ratios are crucial valuation tools. These ratios help investors understand how the company's stock price relates to its earnings, book value, and overall profitability. Unfortunately, current specific ratio values for FIGS as of late April 2025 were not found in the provided search results. Generally:

• A high P/E ratio might suggest that the stock is overvalued, or that investors are expecting high growth in the future.
• A low P/B ratio could indicate that the stock is undervalued, as it is trading at a discount to its net asset value.
• EV/EBITDA provides a view of overall company valuation relative to its earnings before interest, taxes, depreciation, and amortization, offering a clearer picture of operational profitability.

Analyzing FIGS' stock price trends over the last 12 months (or longer) provides context on market sentiment and company performance. The search results did not provide specific stock price movements. However, significant stock price increases could suggest growing investor confidence, while declines might indicate concerns about the company's future prospects. Such trends should be compared against industry peers and overall market performance to gauge relative strength.

Dividend yield and payout ratios are essential for income-focused investors, but are only applicable if FIGS distributes dividends. As the search results do not indicate whether FIGS pays dividends, this aspect cannot be assessed. Generally:

• Dividend yield indicates the return on investment based on dividend payments.
• Payout ratio shows the proportion of earnings paid out as dividends, signaling dividend sustainability.

Analyst consensus on stock valuation (buy, hold, or sell) reflects the overall sentiment of financial professionals covering FIGS. While specific recent analyst ratings were not available in the search results, this consensus is typically derived from detailed financial models and industry analysis, offering a summarized view on whether the stock is likely to outperform, match, or underperform market expectations. It's important to consider the source and track record of the analysts when interpreting these ratings.

FIGS, Inc. (FIGS) Risk Factors

FIGS, Inc. (FIGS) faces a variety of internal and external risks that could significantly impact its financial health. These risks range from industry-specific challenges to broader market conditions. Understanding these factors is crucial for investors assessing the company's long-term viability. To find out more about the company's goals, check out Mission Statement, Vision, & Core Values of FIGS, Inc. (FIGS).

Industry Competition: The market for medical apparel is highly competitive. FIGS faces competition from established brands, smaller niche players, and direct-to-consumer startups. Intense competition could lead to price wars, reduced profit margins, and loss of market share. Maintaining a competitive edge requires continuous innovation, effective marketing, and strong brand loyalty.

Regulatory Changes: The healthcare industry is subject to evolving regulations and standards. Changes in regulations related to healthcare apparel, safety standards, or trade policies could increase compliance costs and disrupt supply chains. Monitoring and adapting to these changes is essential for FIGS to maintain its operational efficiency and market access.

Market Conditions: Economic downturns, shifts in consumer spending, and global events can all impact FIGS' financial performance. A decrease in healthcare spending or changes in consumer preferences could reduce demand for its products. Managing inventory levels, diversifying product offerings, and expanding into new markets can help mitigate these risks.

Operational Risks:

• Supply Chain Disruptions: FIGS relies on a global supply chain for sourcing materials and manufacturing its products. Disruptions such as natural disasters, geopolitical instability, or supplier bankruptcies could lead to production delays, increased costs, and inventory shortages. Diversifying suppliers and implementing robust risk management strategies are crucial for ensuring supply chain resilience.
• Logistics and Distribution: Efficient logistics and distribution are vital for delivering products to customers on time and in good condition. Issues such as shipping delays, transportation costs, and warehousing inefficiencies can negatively impact customer satisfaction and profitability. Investing in technology and optimizing logistics processes can improve efficiency and reduce costs.

Financial Risks:

• Inventory Management: Maintaining optimal inventory levels is essential for meeting customer demand without incurring excessive storage costs or obsolescence risks. Inefficient inventory management can lead to stockouts, markdowns, and reduced profit margins. Implementing advanced inventory forecasting techniques and optimizing supply chain processes can help mitigate these risks.
• Credit Risk: FIGS extends credit to some customers, which exposes the company to the risk of non-payment. Economic downturns or customer bankruptcies could increase the likelihood of defaults, leading to financial losses. Implementing credit scoring models, setting credit limits, and monitoring customer payment behavior can help manage credit risk.

Strategic Risks:

• Brand Reputation: FIGS' brand reputation is a valuable asset. Negative publicity, product recalls, or ethical concerns could damage the brand and erode customer trust. Maintaining high product quality, promoting ethical business practices, and responding effectively to customer feedback are essential for protecting brand reputation.
• Innovation and Product Development: Continuous innovation is crucial for maintaining a competitive edge. Failure to anticipate market trends or develop new and innovative products could lead to loss of market share. Investing in research and development, fostering a culture of innovation, and collaborating with customers can help drive product development.

Mitigation Strategies: FIGS can implement several strategies to mitigate these risks:

• Diversifying its supply chain to reduce reliance on single suppliers.
• Investing in technology to improve logistics and inventory management.
• Strengthening its brand through marketing and customer service initiatives.
• Continuously monitoring and adapting to regulatory changes.
• Expanding into new markets to reduce dependence on specific regions.

FIGS, Inc. (FIGS) Growth Opportunities

FIGS, Inc. (FIGS) future growth prospects hinge on several key factors, including product innovation, market expansion, strategic initiatives, and competitive advantages. Understanding these drivers is crucial for investors evaluating the company's potential.

Key growth drivers for FIGS, Inc. (FIGS) include:

• Product Innovations: FIGS, Inc. (FIGS) consistently introduces new products and updates to its core offerings, driving customer engagement and sales.
• Market Expansions: FIGS, Inc. (FIGS) strategically expands its presence in existing markets and explores new geographic regions to broaden its customer base.
• Acquisitions: While not always a primary strategy, FIGS, Inc. (FIGS) may consider acquisitions to enhance its product portfolio or market reach.

Future revenue growth projections and earnings estimates are essential for assessing FIGS, Inc. (FIGS) financial health. While specific projections vary among analysts, the overall outlook depends on the company's ability to execute its growth strategies effectively.

Strategic initiatives and partnerships play a vital role in FIGS, Inc. (FIGS) future growth:

• Partnerships: FIGS, Inc. (FIGS) may form partnerships to leverage complementary strengths and expand its market reach.
• Direct-to-Consumer Model: FIGS, Inc. (FIGS) leverages its direct-to-consumer (DTC) model to maintain control over its brand and customer experience, fostering loyalty and repeat purchases.

FIGS, Inc. (FIGS) competitive advantages position it for sustained growth in the market:

• Brand Recognition: FIGS, Inc. (FIGS) has cultivated a strong brand identity, recognized for its quality and innovation.
• Customer Loyalty: FIGS, Inc. (FIGS) fosters customer loyalty through its focus on product quality, customer service, and community engagement.

For further insights into the company's values and mission, explore Mission Statement, Vision, & Core Values of FIGS, Inc. (FIGS).