FIGS (FIGS) Q1 2026: International Revenue Jumps 50% as Brand Expansion Accelerates
FIGS delivered a standout Q1, with international markets up 50% and active customers surpassing 3 million, underlining the brand’s deepening healthcare sector penetration. Execution in core U.S. e-commerce, expansion of physical community hubs, and disciplined cost management fueled margin expansion despite tariff and freight headwinds. Upwardly revised guidance signals management’s confidence in sustaining growth as FIGS leverages product innovation, global reach, and healthcare’s replenishment-driven demand.
Summary
- International Expansion Outpaces U.S.: Overseas markets drove outsized growth, reinforcing FIGS’ global brand strategy.
- Customer Engagement Deepens: Active customer base topped 3 million, with higher order frequency and retention.
- Margin Resilience Despite Cost Pressures: Operational discipline offset tariffs and freight, supporting improved profitability outlook.
Business Overview
FIGS designs and sells premium medical apparel and lifestyle products, primarily through a direct-to-consumer e-commerce model. The company’s core business is scrubwear, which accounts for the majority of revenue, but it also offers non-scrubwear including outerwear, accessories, and lab coats. FIGS monetizes through product sales to individual healthcare professionals, institutional teams, and increasingly through physical community hubs, with a growing international footprint.
Performance Analysis
FIGS posted broad-based growth in Q1, as net revenues rose sharply, propelled by both U.S. and international markets. The company’s active customer count climbed past 3 million for the first time, with 12% year-over-year growth driven by a mix of new, reactivated, and retained customers. Average order value (AOV) advanced 4% to $124, primarily due to price increases and favorable product mix, while purchase frequency and net revenue per customer also hit multi-year highs.
Scrubwear remained the anchor, representing 79% of sales and growing 27%, but non-scrubwear outpaced at 31% growth, marking the strongest expansion in three years. International net revenues surged 50%, led by established markets like France, Germany, and Canada, while new market launches had minimal near-term impact. Gross margin was stable despite sequential tariff and freight cost headwinds, as pricing and operational efficiency offset mix pressures.
- International Outperformance: 50% international revenue growth far exceeded U.S. gains, validating localized storytelling and targeted investment.
- Non-Scrubwear Momentum: Accessories, outerwear, and layering systems are expanding FIGS’ relevance and wallet share among healthcare professionals.
- Operational Leverage: Fulfillment center optimization and carrier diversification drove selling expense leverage, even as marketing investment increased.
Inventory discipline and capital allocation remained tight, with inventory up just 6% and buybacks totaling $8.8 million. The company’s cash position and low promotional activity reinforce the sustainability of its growth model.
Executive Commentary
"We surpassed 3 million active customers for the first time in our history, an important milestone that reflects the growing resonance of our brand within the healthcare community. Strength was apparent across categories, styles, and color supporting success across all selling occasions during the quarter including our business as usual days, new product launches, and promotional events."
Trina Spear, Co-founder and Chief Executive Officer
"Growth across customers, order per customer frequency, and AOV are a powerful combination and support schemes in our trailing 12-month measure for net revenues per active customer. This measure strengthened again during the period, posting 6% growth to $220, which is the highest level recorded since Q4 2022."
Sarah Altred, Chief Financial Officer
Strategic Positioning
1. Product Innovation and Assortment Depth
FIGS is doubling down on both core and new product franchises, expanding fabrications like Formex and FiberX, and introducing new silhouettes and layering options. This strategy aims to cement FIGS’ leadership in functional, replenishment-driven healthcare apparel, while expanding use cases and wallet share.
2. Global Market Expansion
International growth is a major lever, with the company now operating in 85 markets—up from 32 at the end of 2024. The “go-deep” strategy in key countries (France, Germany, Mexico, Canada) is complemented by a “go-broad” approach in new regions, building a long-term runway for global revenue diversification.
3. Omnichannel Ecosystem and Community Hubs
Physical community hubs are exceeding expectations, with comp stores in Los Angeles and Philadelphia up significantly and four new locations slated for the back half of the year. These hubs drive new customer acquisition (40% of foot traffic is new to FIGS) and deepen brand engagement, complementing the digital-first model.
4. Institutional Teams Channel Buildout
The Teams business is evolving beyond transactional sales, with the launch of a dedicated team store and a focus on building long-term institutional relationships. While still early, this channel is positioned as a future growth lever as FIGS develops tailored solutions for healthcare organizations.
5. Brand Advocacy and Community Engagement
FIGS is embedding advocacy into its brand DNA, launching the Awesome Humans Foundation and influencing federal policy with the Healthcare is Human Act. These initiatives bolster authentic connection with healthcare professionals and differentiate FIGS in a crowded apparel landscape.
Key Considerations
Q1 results spotlight a business scaling on multiple fronts—product, geography, and channel—while maintaining strict operational discipline. Investors should weigh the following:
- Tariff and Freight Headwinds: Sequentially higher tariffs and surging inbound freight costs are offset by pricing and efficiency, but remain a variable risk.
- Promotional Cadence Discipline: FIGS maintains one of the lowest promotional rates in the industry, supporting gross margin and brand equity.
- Physical Retail Learning Curve: Early community hub performance is strong, but store size and experience optimization are ongoing priorities as expansion ramps.
- Teams Channel Ramp: While institutional sales are growing, meaningful step-change is likely a multi-year story as technology and relationships mature.
- Customer Cohort Resilience: Growth is broad-based across income segments, with higher spend quintiles and nurses/students driving engagement.
Risks
Rising tariffs, fuel-driven freight costs, and macro uncertainty in new international markets could pressure margins and growth rates. While dual sourcing and supply chain flexibility have limited operational disruption so far, geopolitical risks and consumer volatility remain. The pace at which new markets and channels become material contributors is inherently uncertain, and competitive intensity in healthcare apparel is rising.
Forward Outlook
For Q2 2026, FIGS guided to:
- Net revenue growth in the low 20% range YoY
- Adjusted EBITDA margin of approximately 13.5%
For full-year 2026, management raised guidance:
- Net revenue growth of 14% to 16% (prior: 10% to 12%)
- Operating margin of 7.8% to 8%
- Adjusted EBITDA margin of 13% to 13.2%
Management highlighted:
- “Greater confidence for the balance of the year, even as we embed prudent caution given some of the pressures and uncertainties consumers are facing.”
- Gross margin outlook unchanged as tariff relief is offset by higher freight and paused duty drawback program.
Takeaways
- Brand Strength and Operational Agility: FIGS is executing on multiple strategic fronts, using product innovation, global expansion, and omnichannel engagement to drive durable growth and margin improvement.
- Cost Management and Pricing Power: Pricing actions and operational leverage are absorbing external cost pressures, with limited demand elasticity and ongoing gross margin discipline.
- Watch for Materialization of New Channels: The Teams business and new international markets are future growth levers, but investors should monitor the pace and profitability of these initiatives in 2026 and beyond.
Conclusion
FIGS enters the rest of 2026 with strong momentum, leveraging brand resonance, product expansion, and international reach to offset macro and cost headwinds. The path to sustainable, multi-channel growth is clearer, but disciplined execution and cost vigilance will remain essential as the brand scales globally.
Industry Read-Through
FIGS’ Q1 performance highlights the power of a focused, replenishment-driven model in healthcare apparel, where non-discretionary demand and repeat purchase behavior provide resilience against macro volatility. The company’s ability to expand internationally and build omnichannel engagement offers a template for other vertical brands looking to globalize and deepen customer relationships. Margin discipline in the face of cost inflation sets a high bar for peers in both apparel and healthcare-adjacent sectors, while FIGS’ advocacy-driven brand strategy may pressure competitors to strengthen their own community and policy engagement. Investors in specialty retail and DTC models should monitor FIGS’ evolving playbook for international ramp, physical retail optimization, and team/institutional channel penetration.