FIGS (FIGS) Stock Forecast & Price Target

FIGS Inc reported a 2.2% year-over-year increase in total orders, reaching 1.305 million, which reflects the company's stable demand and growth in customer engagement. The international segment demonstrated significant momentum, with sales rising 19.8% year-over-year to $22.7 million, indicating a successful expansion strategy beyond the domestic market. Additionally, the company saw a 4.1% year-over-year increase in active customers, totaling 2.736 million, showcasing its ability to attract and retain a growing customer base.

FIGS Inc. reported an adjusted EBITDA margin of 12.9% in the second quarter, reflecting a significant decline of 390 basis points compared to the previous year's 9.0%, which indicated stronger performance than both internal estimates and market forecasts. While total operating expenses decreased by 3.5% year-over-year, upcoming challenges such as increased tariff pressures and anticipated higher marketing expenditures related to the winter Olympics are projected to further reduce the EBITDA margin in Q4. These financial metrics collectively highlight a deteriorating profitability outlook, raising concerns about the company's capability to maintain healthy margins moving forward.