FIGS Inc (NYSE:FIGS) shares are climbing on Friday after the healthcare‑apparel company delivered a standout fourth‑quarter report that blew past Wall Street expectations, with earnings coming in far stronger than analysts anticipated.
The rally gained additional momentum after KeyBanc upgraded the stock from Sector Weight to Overweight.
Earnings Strength Fuels The Move
FIGS posted earnings of 10 cents per share, far above the 2 cent estimate and a sharp improvement from the 1 cent it earned a year earlier. Revenue also impressed, reaching $201.9 million, which topped expectations by more than 22% and marked a 33% year‑over‑year increase.
Growth was broad across the business, with scrubwear, non‑scrubwear, U.S. sales and international sales all posting double‑digit gains.
CEO Trina Spear said the company's strong finish to 2025 reflected momentum across nearly every part of the business, supported by lower discounting and stronger execution.
Profitability Improves Across The Board
Net income rose to $18.5 million, up from $1.9 million a year earlier, lifting net income margin to 9.2% from 1.2%. Adjusted EBITDA increased to $26.7 million, with margins improving to 13.2%. Operating expenses fell meaningfully as a percentage of revenue, helped by lower stock‑based compensation, reduced shipping and fulfillment costs, and better leverage on fixed expenses.
Outlook Points To Continued Growth
For 2026, FIGS expects revenue to grow 10% to 12% year-over-year, with adjusted EBITDA margins between 12.7% and 12.9%. Spear said the company is entering the year with strong momentum and highlighted the long‑term opportunity to serve healthcare professionals globally, noting that FIGS is well positioned to capture that demand.
FIGS Price Action: Figs shares were up 18.52% at $14.78 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro.
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