📊 FIGS Key Takeaways
Is FIGS, Inc. (FIGS) a Good Investment?
FIGS demonstrates solid 13.6% revenue growth and excellent 67.7% gross margins, but fundamentals reveal a structurally unprofitable business with negative operating cash flows and severely compromised capital efficiency (ROE 1.5%, ROA 1.1%). The company is burning cash despite positive net income, indicating earnings quality issues and unsustainable growth without significant operational restructuring.
FIGS shows solid fundamental quality with double-digit revenue growth, very high gross margins, and a debt-free balance sheet supported by strong liquidity. Growth quality is reasonably good because the business converts revenue into positive operating cash flow and free cash flow, but flat net income and still-moderate operating margins suggest execution risk remains as the company scales.
FIGS, Inc. Key Strengths (FIGS)
- Strong revenue growth of 13.6% YoY with $159.9M top-line
- Exceptional gross margins at 67.7% demonstrating strong pricing power and brand value
- Fortress balance sheet with $74.3M cash, zero debt, and 5.39x current ratio providing downside protection
- Double-digit revenue growth with strong gross margin of 66.5%, indicating meaningful brand and pricing power
- Debt-free balance sheet, nearly $82M in cash, and strong current and quick ratios support financial resilience
- Positive operating cash flow of $61.17M and free cash flow of $53.00M show the business is generating real cash
FIGS Stock Risks: FIGS, Inc. Investment Risks
- Negative operating cash flow of -$3.2M and free cash flow of -$5.6M despite positive net income indicates poor earnings quality and capital destruction
- Abysmal returns on capital with ROE of 1.5% and ROA of 1.1% showing severe capital inefficiency and inability to generate shareholder value
- Extremely thin operating margin of 2.8% combined with high operating expenses relative to gross profit suggests structural cost control problems
- Net income was flat year over year despite revenue growth, which suggests margin pressure or rising operating costs
- Operating margin of 6.0% and net margin of 5.4% remain modest for a premium branded apparel business
- As a consumer apparel company, results may be sensitive to demand shifts, competition, and inventory management execution
Key Metrics to Watch
- Operating cash flow trend - critical indicator of earnings sustainability and actual business health
- Operating expense as percentage of revenue - necessary to understand if margin compression is addressable
- Return on equity trajectory - must improve significantly above 1.5% to justify equity investment
- Operating margin and net income growth relative to revenue growth
- Free cash flow margin and inventory efficiency
FIGS, Inc. (FIGS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 5.39x current ratio provides a solid financial cushion.
FIGS Profit Margin, ROE & Profitability Analysis
FIGS vs Consumer Sector: How FIGS, Inc. Compares
How FIGS, Inc. compares to Consumer sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FIGS, Inc. Stock Overvalued? FIGS Valuation Analysis 2026
Based on fundamental analysis, FIGS, Inc. has mixed fundamental signals relative to the Consumer sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
FIGS, Inc. Balance Sheet: FIGS Debt, Cash & Liquidity
FIGS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: FIGS, Inc.'s revenue has grown significantly by 50% over the 5-year period, indicating strong business expansion. The most recent EPS of $0.12 reflects profitable operations.
FIGS Revenue Growth, EPS Growth & YoY Performance
FIGS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $124.9M | -$102.0K | $0.00 |
| Q3 2025 | $140.2M | -$102.0K | $0.00 |
| Q2 2025 | $144.2M | -$102.0K | $0.01 |
| Q1 2025 | $119.3M | -$102.0K | $0.00 |
| Q3 2024 | $140.2M | $835.0K | $0.00 |
| Q2 2024 | $138.1M | $1.1M | $0.01 |
| Q1 2024 | $119.3M | $1.4M | $0.01 |
| Q3 2023 | $128.6M | $1.9M | $0.02 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FIGS, Inc. Dividends, Buybacks & Capital Allocation
FIGS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for FIGS, Inc. (CIK: 0001846576)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FIGS
What is the AI rating for FIGS?
FIGS, Inc. (FIGS) has a Combined AI Grade of B from Claude (C) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FIGS's key strengths?
Claude: Strong revenue growth of 13.6% YoY with $159.9M top-line. Exceptional gross margins at 67.7% demonstrating strong pricing power and brand value. ChatGPT: Double-digit revenue growth with strong gross margin of 66.5%, indicating meaningful brand and pricing power. Debt-free balance sheet, nearly $82M in cash, and strong current and quick ratios support financial resilience.
What are the risks of investing in FIGS?
Claude: Negative operating cash flow of -$3.2M and free cash flow of -$5.6M despite positive net income indicates poor earnings quality and capital destruction. Abysmal returns on capital with ROE of 1.5% and ROA of 1.1% showing severe capital inefficiency and inability to generate shareholder value. ChatGPT: Net income was flat year over year despite revenue growth, which suggests margin pressure or rising operating costs. Operating margin of 6.0% and net margin of 5.4% remain modest for a premium branded apparel business.
What is FIGS's revenue and growth?
FIGS, Inc. reported revenue of $159.9M.
Does FIGS pay dividends?
FIGS, Inc. does not currently pay dividends.
Where can I find FIGS SEC filings?
Official SEC filings for FIGS, Inc. (CIK: 0001846576) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FIGS's EPS?
FIGS, Inc. has a diluted EPS of $0.03.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is FIGS's fundamental grade?
Based on our AI fundamental analysis in June 2026, FIGS, Inc. has a B grade with 76% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FIGS stock overvalued or undervalued?
Valuation metrics for FIGS: ROE of 1.5% (sector avg: 18%), net margin of 3.9% (sector avg: 8%). Compare these metrics with sector averages to assess valuation.
What is FIGS's AI grade for 2026?
Our dual AI analysis gives FIGS, Inc. a combined B grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FIGS's free cash flow?
FIGS, Inc.'s operating cash flow is $-3.2M, with capital expenditures of $2.4M. FCF margin is -3.5%.
How does FIGS compare to other Consumer stocks?
Vs Consumer sector averages: Net margin 3.9% (avg: 8%), ROE 1.5% (avg: 18%), current ratio 5.39 (avg: 1.5).