Stock Analysis · Figs Inc (FIGS)
Overview
Figs Inc designs and sells medical apparel, mainly scrubs, along with related products for healthcare professionals. The company built its brand around combining function, comfort, and modern style for nurses, physicians, and other clinical workers. Its business is largely digital-first, meaning it reaches customers mainly through its own online channels rather than relying heavily on wholesale distribution.
The revenue base is concentrated in apparel, with scrubs as the core category. Based on company disclosures, sales are generated primarily through direct-to-consumer e-commerce, with a smaller contribution from other products and channels. A simple breakdown looks like this:
- Scrubwear and core apparel: approximately 80% to 90% of revenue. This includes tops, pants, underscrubs, outerwear, and other everyday medical workwear.
- Non-scrub products and accessories: approximately 10% to 20% of revenue. This generally includes footwear, compression socks, lab coats, lifestyle items, and related accessories.
- Channel mix: the large majority of revenue comes from direct-to-consumer digital sales, while a smaller share comes from other channels such as institutional or international arrangements where applicable.
What stands out economically is the company’s gross profit structure. Revenue has climbed from about $420 million in 2021 to roughly $631 million in 2025, while gross profit remained strong throughout that period. Selling and administrative costs have not risen at the same pace as revenue in recent years, which helps explain the rebound in operating income and net income after a weak 2024.
Key Figures
| Metric | Value | Sector ⓘ |
|---|---|---|
| Date | Sep 12, 2026 | |
| Context | ||
| Sector | Consumer Cyclical | |
| Industry | Apparel Manufacturing | |
| Market Cap ⓘ | $2.15B | |
| Beta ⓘ | 1.07 | |
Value (Cheapness) | ||
| P/E Ratio ⓘ | 40.47 | 17.10 |
| FCF Yield ⓘ | 4.52% | 8.53% |
| EBIT / EV ⓘ | 3.90% | 6.46% |
| PEG ⓘ | N/A | |
Growth (Business expansion) | ||
| Revenue Growth ⓘ | 28.80% | 5.75% |
| RPS Growth (5Y CAGR) ⓘ | 8.32% | 9.14% |
| EPS Growth (5Y CAGR) ⓘ | -1.95% | -18.21% |
| Margin Growth (5Y Trend) ⓘ | 5.07% | -0.23% |
| FCF Growth (5Y CAGR) ⓘ | -4.50% | 4.91% |
Quality (Business durability) | ||
| ROIC (Latest) ⓘ | 14.37% | 12.61% |
| ROIC (5Y Median) ⓘ | 6.61% | 10.72% |
| Net Debt / EBIT (Latest) ⓘ | -0.66 | 2.10 |
| Net Debt / EBIT (5Y Median) ⓘ | -2.38 | 2.32 |
| Operating Margin (Latest) ⓘ | 10.79% | 9.25% |
| Operating Margin (5Y Median) ⓘ | 7.48% | 9.64% |
| Debt to Equity (Latest) ⓘ | 13.04% | 75.78% |
| Profit Margin (Latest) ⓘ | 8.72% | 5.33% |
| Free Cash Flow (Latest) ⓘ | $97.22M | |
Momentum (Price trend) | ||
| 3Y Return ⓘ | +138.82% | +14.53% |
| 12M Return (excl. last month) ⓘ | +117.50% | +3.08% |
| 6M Return ⓘ | -11.00% | +0.55% |
| Price vs. 200-Day MA ⓘ | +5.98% | -0.54% |
FIGS is now a mid-sized public company with a market value around the low single-digit billions and a stock volatility close to the broader market. The stock price history shows a classic post-IPO boom-and-bust pattern followed by a recovery phase. The factor snapshot is mixed but readable: growth is above the sector median, quality is solid, momentum is very strong, while valuation looks demanding relative to much of the consumer sector. The balance sheet is a clear strength, with low leverage and net cash rather than heavy debt.
Growth
Healthcare apparel is not the fastest-growing part of consumer goods, but it benefits from a durable end market. Medical professionals need replacement uniforms regularly, and demand is tied more to healthcare employment and workplace needs than to short-lived fashion cycles. That gives FIGS exposure to a steady underlying sector, even if growth can be uneven from year to year.
The company’s strategy for expansion is logical. It is centered on growing repeat purchases from existing customers, introducing adjacent products beyond core scrubs, expanding internationally, and using its brand recognition to deepen its position with healthcare workers. Because FIGS sells mainly through its own platform, it keeps more control over pricing, customer data, and merchandising than many traditional apparel companies.
Recent growth trends have improved noticeably. After a softer period in 2024, year-over-year revenue growth reaccelerated into the high-20% range in early 2026, far above the sector median. That matters because it suggests the business has moved past a stagnation phase and is again showing the kind of top-line momentum that can support a premium market view.
Cash generation is more mixed. Free cash flow has remained positive overall, but it has been volatile, with a much stronger level in 2024 than in the trailing period entering 2026. For a direct-to-consumer apparel business, this is important: growth is more valuable when it converts into durable cash, not just revenue. FIGS is still showing positive cash production, but the trend is not as clean as the revenue rebound.
A meaningful catalyst is the company’s ability to keep extending its brand beyond scrubs without losing focus. If newer categories such as footwear, outerwear, and international offerings gain traction, FIGS could raise spending per customer rather than relying only on adding new buyers. Another helpful development is improving profitability alongside growth, which suggests operating leverage may be returning.
Risks
This article is for informational purposes only and does not constitute financial advice. Some content is AI-generated. See Disclaimer
