FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc has demonstrated solid growth through a year-over-year increase of 2.2% in total orders, reaching 1.305 million, indicating a positive customer engagement trend. The company’s international segment has also shown remarkable performance, with sales increasing by 19.8% year-over-year in the second quarter, contributing significantly to overall revenue growth. Additionally, FIGS Inc has expanded its customer base, with active customers rising by 4.1% year-over-year to 2.736 million, highlighting strong demand for its healthcare apparel offerings.

FIGS Inc reported an adjusted EBITDA margin of 12.9% in the second quarter, reflecting a decline of 390 basis points from the previous year and falling short of internal and market expectations. While total operating expenses decreased by 3.5% year-over-year, the anticipated sharp decline in the EBITDA margin for Q4, driven by rising tariff pressures and increased marketing expenses, raises concerns about future profitability. These financial metrics suggest a negative outlook for FIGS, as the company navigates cost challenges and diminishing margins in an increasingly competitive healthcare apparel market.