FIGS, Inc. Reports Q1 2025 Revenue Growth but Faces Net Loss and Increased Operating Expenses

FIGS, Inc. reported its financial results for the first quarter of 2025, revealing a net revenue of $124.9 million, a 4.7% increase from $119.3 million in the same period last year. The company's gross profit for the quarter was $84.5 million, resulting in a gross margin of 67.6%, down from 68.9% in the prior year. However, FIGS experienced a net loss of $102,000, compared to a net income of $1.4 million in the first quarter of 2024. This shift in profitability was attributed to increased operating expenses, which rose to $84.7 million from $81.7 million, driven primarily by higher selling and fulfillment costs.

In terms of operational metrics, FIGS reported an active customer base of approximately 2.7 million as of March 31, 2025, reflecting a 3.8% increase from 2.6 million a year earlier. The average order value (AOV) also saw a rise, increasing from $116 to $119. The company continues to focus on expanding its market presence, with a significant portion of its sales generated through its direct-to-consumer digital platform. The company has also been exploring international markets, although it faces challenges related to tariffs and global supply chain disruptions.

During the quarter, FIGS repurchased approximately 567,607 shares of its Class A common stock for $2.7 million, as part of its ongoing share repurchase program, which has been increased to a total authorization of $100 million. The company had approximately $52 million remaining for future repurchases as of the end of the quarter. Additionally, FIGS is navigating challenges related to global trade policies, including a new 10% baseline tariff on U.S. imports, which could impact product costs and pricing strategies.

Looking ahead, FIGS expressed caution regarding its growth trajectory, noting that while it aims to continue expanding its customer base and product offerings, macroeconomic factors such as inflation, geopolitical tensions, and supply chain issues could pose risks to its financial performance. The company is actively working on strategies to mitigate these risks, including diversifying its supplier base and adjusting sourcing strategies in response to changing trade policies.