FIGS, Inc. reported first quarter 2025 net revenues of $124.9 million, an increase of 4.7% year-over-year, exceeding expectations. U.S. net revenues grew 3%, and international sales increased by 16%. However, net income was $0.1 million, down from $1.4 million in Q1 2024, and adjusted EBITDA decreased to $9.0 million, representing a 7.2% margin, down from 10.9% in the prior year.
The company updated its full-year 2025 adjusted EBITDA margin outlook to a range of 7.5% to 8.5%, a reduction from previous guidance. This adjustment primarily reflects the projected impact of new U.S. tariffs, including a 10% baseline tariff announced in April 2025, which is expected to increase product costs and affect profitability, particularly in the second half of the year.
Despite the tariff headwinds, FIGS is accelerating strategic investments in key growth areas. These include prioritizing international expansion with planned debuts in Japan in Q2 2025 and South Korea in H2 2025, evolving the TEAMS B2B business with an outbound sales team, and expanding physical retail with a new Community Hub in Houston and two additional locations by year-end 2025. The company also launched its new FORMx fabric during the quarter.
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