Q2 2026 Figs Inc Earnings Call

August 6, 2026

Speaker #1: If you would like to ask a question, please press *1 to raise your hand. To withdraw your question, press *1 again. I will now hand the conference over to Tom Shaw, Senior Vice President of Investor Relations.

Speaker #1: Please go ahead.

Speaker #2: Good afternoon. And thank you for joining us to discuss FIGS second quarter 2026 results, which were released this afternoon and can be found in our earnings press release and in the shareholder presentation posted to our Investor Relations website at ir.warefigs.com.

Tom Shaw: Good afternoon. Thank you for joining us to discuss FIGS' Q2 2026 results, which we released this afternoon and can be found in our earnings press release and in the shareholder presentation posted to our investor relations website at ir.wearfigs.com. Presenting on today's call are Trina Spear, our Co-founder and Chief Executive Officer, and Sarah Oughtred, our Chief Financial Officer. As a reminder, remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations, or estimates, including about future financial performance, market opportunity, or business plans. Forward-looking statements involve risk and uncertainties, and actual results could differ materially. These and other risks are discussed in our SEC filings, including in the 10-Q we filed today. Do not place undue reliance on forward-looking statements, which speak only as of today and which we undertake no obligation to update.

Speaker #2: Presenting on today's call are Trina Spear, our co-founder and Chief Executive Officer, and Sarah Oughtred, our Chief Financial Officer. As a reminder, remarks on this call that do not concern past events are forward-looking statements.

Speaker #2: These may include predictions, expectations, or estimates, including about future financial performance, market opportunity, or business plans. Forward-looking statements involve risk and uncertainties, and actual results could differ materially.

Speaker #2: These and other risks are discussed in our SEC filings, including in the 10-Q we filed today. Do not place undue reliance on forward-looking statements, which speak only as of today and which we undertake no obligation to update.

Speaker #2: Finally, we will discuss certain non-GAAP metrics and key performance indicators which we believe are useful supplemental measures for understanding our business. Definitions and reconciliations of these non-GAAP measures to their most comparable GAAP measures are included in our shareholder presentation.

Tom Shaw: We'll discuss certain non-GAAP metrics and key performance indicators, which we believe are useful supplemental measures for understanding our business. Definitions and reconciliations of these non-GAAP measures to their most comparable GAAP measures are included in our shareholder presentation. Now I would like to turn the call over to Trina.

Speaker #2: And now, I would like to turn the call over to Trina.

Speaker #3: Thanks, Tom. Good afternoon, everyone, and thank you for joining us today. FIGS strong broad-based momentum continued in Q2, highlighting the sustainability of our success and our truly unique positioning.

Trina Spear: Thanks, Tom. Good afternoon, everyone. Thank you for joining us today. FIGS' strong, broad-based momentum continued in Q2, highlighting the sustainability of our success and our truly unique positioning. Net revenues grew 29% to $197 million, beating our outlook and marking our third straight quarter with 25% plus growth. Notably, this is the strongest sustained stretch of growth we have seen since 2021. What is most exciting is that our growth is coming from across our business rather than from just one part of it. We are seeing tremendous traction across the board, our channels, product categories, geographies, and customer cohorts, driving a number of record highs for the brand. As examples, we have never sold more scrub wear in a single quarter than we did in Q2, and our three market expansion opportunities, international teams, and community hubs each achieved new highs.

Trina Spear: Thanks, Tom. Good afternoon, everyone. Thank you for joining us today. FIGS' strong, broad-based momentum continued in Q2, highlighting the sustainability of our success and our truly unique positioning. Net revenues grew 29% to $197 million, beating our outlook and marking our third straight quarter with 25%+ growth. Notably, this is the strongest sustained stretch of growth we have seen since 2021. What is most exciting is that our growth is coming from across our business rather than from just one part of it. We are seeing tremendous traction across the board, our channels, product categories, geographies, and customer cohorts, driving a number of record highs for the brand. As examples, we have never sold more scrub wear in a single quarter than we did in Q2, and our three market expansion opportunities, international teams, and community hubs each achieved new highs.

Speaker #3: Net revenues grew 29% to $197 million, beating our outlook and marking our third straight quarter with 25%-plus growth. Notably, this is the strongest sustained stretch of growth we have seen since 2021.

Speaker #3: What is most exciting is that our growth is coming from across our business rather than from just one part of it. We are seeing tremendous traction across the board.

Speaker #3: Our channels, product categories, geographies, and customer cohorts are driving a number of record highs for the brand. As examples, we have never sold more scrubwear in a single quarter than we did in Q2, and our three market expansion opportunities—international, teams, and community hubs—each achieved new highs.

Speaker #3: Our strength is seen in the metrics. Active customer growth surged 13% to $3.1 million. AOV hit its own record of $127, and purchase frequency continued to increase.

Trina Spear: Our strength is seen in the metrics. Active customer growth surged 13% to 3.1 million. AOV hit its own record of $127. Purchase frequency continued to increase. This powerful combination drove net revenues per active customer to an all-time high for the brand of $229, surpassing even our COVID era peak of $227. This success is the manifestation of everything we've been outlining in recent quarters and gives us even greater conviction in the growth opportunities that lie ahead. Just as impressive is our progress on profitability. Excluding the prior year portion of tariff refunds, adjusted EBITDA margin surged to 18.6%. Underlying that performance, our strong margin expansion was driven by efforts to increase full price selling and improve returns, both strong indicators of brand health, as well as overall expense leverage, given our incredible top-line momentum.

Speaker #3: This powerful combination drove net revenues per active customer to an all-time high for the brand of $229. Surpassing even our COVID error peak of $227.

Speaker #3: This success is the manifestation of everything we have been outlining in recent quarters and gives us even greater conviction in the growth opportunities that lie ahead.

Speaker #3: Just as impressive is our progress on profitability. Excluding the prior year portion of tariff refunds, adjusted EBITDA margins surged to 18.6%. Underlying that performance are strong margin expansion was driven by efforts to increase full-price returns.

Speaker #3: Both strong indicators of brand health, as well as overall expense leverage, given our incredible top-line momentum. And finally, we have not only accelerated our share buyback efforts during the quarter, but just announced a new $100 million authorization.

Trina Spear: Finally, we have not only accelerated our share buyback efforts during the quarter, but just announced a new $100 million authorization, demonstrating the confidence we have in our brand, our strategy, and the opportunity in front of us. With this strength, I want to take a moment to reiterate why we believe we are winning, because I think it is important context for everything that follows. It starts with brand differentiation. Technically advanced products are non-negotiable for us, and we are extending our premium positioning and bringing even more impact and relevance to our product lineup, from scrubs to the full layering system, to solve needs of healthcare professionals. What truly sets FIGS apart is our unique ability to drive connection and be part of the cultural conversation in healthcare in a way no one else is.

Speaker #3: Demonstrating the confidence we have in our brand, our strategy, and the opportunity in front of us. With this strength, I want to take a moment to reiterate why we believe we are winning, because I think it is important context for everything that follows.

Speaker #3: It starts with brand differentiation. Technically advanced products are non-negotiable for us, and we are extending our premium positioning and bringing even more impact and relevance to our product lineup—from scrubs to the full layering system—to solve the needs of healthcare professionals.

Speaker #3: And what truly sets FIGS apart is our unique ability to drive connection and be part of the cultural conversation in healthcare in a way no one else is.

Speaker #3: This combination, product and storytelling, is incredibly powerful and hard to replicate. Second, we are building a durable foundation for growth, supported by sustained investments across our team, technology, and customer acquisition.

Trina Spear: This combination, product and storytelling, is incredibly powerful and hard to replicate. Second, we are building a durable foundation for growth, supported by sustained investments across our team, technology, and customer acquisition. We have talked a lot about our growing sophistication of how we bring the brand and product to life, efforts designed for more than driving performance in a single year. They are about building the resiliency and agility to continue delivering elevated performance across top line, profitability, and shareholder returns over the long run. Third, we are serving the best industry in the world. Healthcare touches everyone. Those needs are only growing as the demands of the profession are compounded by an aging population and growing focus on wellness.

Speaker #3: We have talked a lot about our growing sophistication of how we bring the brand and product to life, efforts designed for more than driving performance in a single year.

Speaker #3: They are about building the resiliency and agility to continue delivering elevated performance across top-line, profitability, and shareholder returns over the long run. And third, we are serving the best industry in the world.

Speaker #3: Healthcare touches everyone. Those needs are only growing as the demands of the profession are compounded by an aging population and growing focus on wellness.

Speaker #3: Healthcare and social assistance is projected to have the largest job growth and be the fastest-growing industry over the next decade, and we see this demand in our data.

Trina Spear: Healthcare and social assistance is projected to have the largest job growth and be the fastest-growing industry over the next decade. We see this demand in our data. With an average of over 50,000 new jobs coming into the industry each month this year, the broader healthcare industry is serving as a powerful driver of overall job creation in the United States. These macro tailwinds, combined with the strong fundamentals of healthcare apparel, make this industry highly attractive. Unlike other apparel companies, we do not sell product that's driven by fad or prevents inventory risk. We sell non-discretionary and replenishment-driven uniforms that do not go out of style and that healthcare professionals need all year round. Because so many of them work in densely packed institutions wearing FIGS as a walking billboard, we benefit from a word-of-mouth dynamic that is very unique.

Speaker #3: With an average of over 50,000 new jobs coming into the industry each month this year, the broader healthcare industry is serving as a powerful driver of overall job creation in the United States.

Speaker #3: These macro tailwinds combined with the strong fundamentals of healthcare apparel make this industry highly attractive. Unlike other apparel companies, we do not sell products that's driven by fad, or prevent inventory risk.

Speaker #3: We sell non-discretionary and replenishment-driven uniforms that do not go out of style and that healthcare professionals need all year round. And because so many of them work in densely packed institutions wearing FIGS as a walking billboard, we benefit from a word-of-mouth dynamic that is very unique.

Speaker #3: Before I move on, I want to provide a quick update on our supply chain. I use the word resilience earlier in my remarks and it applies here too.

Trina Spear: Before I move on, I want to provide a quick update on our supply chain. I used the word resilience earlier in my remarks. It applies here too. U.S. Customs and Border Protection recently issued a Withhold Release Order that currently prevents us from importing product into the United States from our partner in Jordan. Through COVID and the disruption in the Middle East, facing supply chain challenges is not new to us. We have always been able to manage through them due to the strength and flexibility of the supply chain we've built. That remains true today. Our team is cross-functionally adapting our planning to mitigate disruption in the second half of the year. This includes leveraging capacity with our other strong existing partners and expediting their production.

Speaker #3: US customs and border protection recently issued a withhold release order that currently prevents us from importing products into the United States from our partner in Jordan.

Speaker #3: Through COVID and the disruption in the Middle East, facing supply chain challenges is not new to us, and we have always been able to manage through them due to the strength and flexibility of the supply chain we've built.

Speaker #3: That remains true today. Our team is cross-functionally adapting our planning to mitigate disruption in the second half of the year. This includes leveraging capacity with our other strong existing partners and expediting their production.

Speaker #3: As a reminder, our high volume, low SKU count footprint is a powerful differentiator that makes us highly attractive to the world's best suppliers. Most importantly, even with this challenge, we are able to raise our top and bottom-line targets.

Trina Spear: As a reminder, our high volume, low SKU count footprint is a powerful differentiator that makes us highly attractive to the world's best suppliers. Most importantly, even with this challenge, we are able to raise our top and bottom line targets. We have not only passed through the upside of our Q2 results, we've also layered in increased expectations for the balance of the year. This is exactly the kind of agility that spotlights the strength of the foundation we have built, and it positions us for long-term execution in delivering great product to our community. Now, let me share some of the progress we are most excited about across product, brand, and market expansion. Starting with product, we are winning at the intersection of style, color, fabric, and fit.

Speaker #3: We have not only passed through the upside of our Q2 results, we have also layered in increased expectations for the balance of the year.

Speaker #3: This is exactly the kind of agility that spotlights the strength of the foundation we have built. And it positions us for long-term execution in delivering great product to our community.

Speaker #3: Now, let me share some of the progress we are most excited about across product, brand, and market expansion. Starting with product, we are winning at the intersection of style, color, fabric, and fit.

Speaker #3: On style, we are evolving choice for healthcare professionals, complementing our successful core styles with modern looks that combine functionality, design, and comfort. Our scrub pants are a great example.

Trina Spear: On style, we are evolving choice for healthcare professionals, complementing our successful core styles with modern looks that combine functionality, design, and comfort. Our scrub pants are a great example. Wider leg solutions continue to resonate strongly, and we're continuing to bring newness in this area, including new waistband options that debut this quarter. This strategy reflects our unique merchandising flywheel in action. We launch limited edition options that generate excitement and a quick sell-through while driving in greater interest in the core that represents the majority of our business. Color is always important at FIGS. It is woven into the DNA of our brand across both core and limited edition styles. We are always listening to feedback, analyzing trends, and responding quickly. Espresso is a great example. To say that our community was clamoring for this color was an understatement, and we heard them.

Speaker #3: Wider-leg solutions continue to resonate strongly, and we're continuing to bring newness in this area, including new waistband options that debuted this quarter. This strategy reflects our unique merchandising flywheel in action.

Speaker #3: We launched limited edition options that generate excitement in a quick sell-through while driving in greater interest in the core that represents the majority of our business.

Speaker #3: Color is always important at FIGS. It is woven into the DNA of our brand across both core and limited edition style. We are always listening to feedback, analyzing trends and responding quickly.

Speaker #3: Espresso is a great example. To say that our community was clamoring for this color is an understatement, and we heard them. So we responded with two separate launch moments this year, including a product drop just last week that sold out quickly. We have used color to tap into cultural moments, incorporating it into our Star Wars collaboration in Q2 and into our new collaboration with Marvel’s Spider-Man, which launched this quarter timed with the movie’s release and was a huge hit.

Trina Spear: We responded with two separate launch moments this year, including a product drop just last week that sold out quickly. We have used color to tap into cultural moments, incorporating it into our Star Wars collaboration in Q2 and into our new collaboration with Marvel's Spider-Man, which launched this quarter timed with the movie's release and was a huge hit. On fabrication, we remain focused on delivering across the full spectrum of use cases, complementing our hallmark FIONx with FORMx and now our new FiberX. FORMx continues to resonate and grow as a complement to our core offering, and we're super excited to build on the FiberX story in the weeks ahead. Wrapping all of this together is fit.

Speaker #3: On fabrication, we remained focused on delivering across the full spectrum of use cases, complementing our hallmark 5NX with 4MX, and now our new FiberX.

Speaker #3: 4MX continues to resonate and grow as a complement to our core offering, and we're super excited to build on the FiberX story in the weeks ahead.

Speaker #3: In wrapping all of this together is fit. All new products are aligned with the fit work we have been driving the past few years, and we continue to be encouraged by the gains we are seeing through lower returns and positive customer feedback.

Trina Spear: All new products are aligned with the fit work we have been driving the past few years, and we continue to be encouraged by the gains we are seeing through lower returns and positive customer feedback. On non-scrub wear, we remain focused on building out our layering system. We are winning here. 40% growth in the quarter was the highest we have seen in nearly 4 years. Non-scrub wear now represents nearly 20% of our business, and we believe it can mix even higher over time as we build out key areas including under scrubs, lab coats, outerwear, footwear, medical-grade compression socks, and jewelry. Healthcare professionals may wear a uniform, but they are looking for ways to personalize and accessorize their look. Which brings me to something we're incredibly excited to announce. As you may have seen from our recent social posts, we have acquired V Coterie.

Speaker #3: On non-scrubwear, we remain focused on building out our layering system. We are winning here. 40% growth in the quarter was the highest we have seen in nearly four years.

Speaker #3: Non-scrubwear now represents nearly 20% of our business, and we believe it can mix even higher over time as we build out key areas, including under scrubs, lab coats, outerwear footwear, medical-grade compression socks, and jewelry.

Speaker #3: Healthcare professionals may wear uniform, but they're looking for ways to personalize and accessorize their look. Which brings me to something we're incredibly excited to announce.

Speaker #3: As you may have seen from our recent social posts, we have acquired Vicodery, a longtime partner of ours on pins. Vicodery brings a broad range of pins, jewelry, charms, and accessories dedicated to the healthcare community.

Trina Spear: A longtime partner of ours on pins, V Coterie brings a broad range of pins, jewelry, charms, and accessories dedicated to the healthcare community. These are not just any kinds of accessories. V Coterie's founder, Lina Van Merri, who we are excited to announce is now part of FIGS, is a former dentist and an incredible entrepreneur, who has creatively married jewelry and healthcare in a way no one else has. While V Coterie is immaterial from a purchase standpoint, our community loves these products, and we believe this positions us to unlock meaningful growth opportunities in this category going forward. Ultimately, this is a great example of how we drive a greater share of wallet and expand consideration for our brand.

Speaker #3: These are not just any kinds of accessories. Vicodery's founder, Leena Van Mercry, who we are excited to announce is now part of FIGS, is a former dentist and an incredible entrepreneur who has creatively married jewelry and healthcare in a way no one else has.

Speaker #3: While Vicodery is immaterial from a purchase standpoint, our community loves these products, and we believe this positions us to unlock meaningful growth opportunities in this category going forward.

Speaker #3: Ultimately, this is a great example of how we drive a greater share of wallet and expand consideration for our brand. Moving on to the brand side, we had a series of powerful moments throughout the quarter, and what I want to highlight most is how we are threading our support of this community across multiple efforts and real impactful ways.

Trina Spear: Moving on to the brand side, we had a series of powerful moments throughout the quarter, and what I want to highlight most is how we are threading our support of this community across multiple efforts in real, impactful ways. Starting with Nurses Week, we are excited with our financial performance, though the bigger story was how we brought an authentic reflection of the experience of nurses to life. This work highlighted the multitude of challenges they face every day on the job, while also celebrating their unwavering commitment to always putting their patients first, something that will never change. That work then carried forward in a profound way two weeks later when we took action against those very challenges at our Healthcare is Human rally in Washington, DC. I previewed our plans on the last call, and the actual event surpassed our expectations.

Speaker #3: Starting with Nurse's Week, we are excited with our financial performance, though the bigger story was how we brought an authentic reflection of the experience of nurses to life.

Speaker #3: This work highlighted the multitude of challenges they face every day on the job while also celebrating their unwavering commitment to always putting their patients first.

Speaker #3: Something that will never change. That work then carried forward in a profound way two weeks later when we took action against those very challenges at our healthcare as human rally in Washington, DC, I previewed our plans on the last call and the actual events surpassed our expectations.

Speaker #3: This was our biggest advocacy effort to date. With hundreds of awesome humans at the rally, more than 30 meetings with key members of Congress, and triple-digit gains across key social measures.

Trina Spear: This was our biggest advocacy effort to date, with hundreds of awesome humans at the rally, more than 30 meetings with key members of Congress, and triple-digit gains across key social measures. Together, we pushed forward on three critical priorities: passing the FIGS-created Healthcare is Human Act, the first-ever federal tax credit specifically for healthcare professionals, funding the Dr. Lorna Breen Act to provide mental health services specifically for healthcare professionals, and introducing the Speak Free Act, protecting healthcare professionals' right to speak up when they have safety concerns for themselves or their patients. Noah Wyle was by our side again, and I could not be prouder of what this community showed up and did together. We then took these efforts a step further with the return of our Figs Retreat in June.

Speaker #3: Together, we pushed forward on three critical priorities. Passing the FIGS-created healthcare as human act, the first-ever federal tax credit specifically for healthcare professionals. Funding the Dr. Lorna Breen Act to provide mental health services specifically for healthcare professionals, and introducing the Speak Free Act, protecting healthcare professionals' right to speak up when they have safety concerns for themselves or their patients.

Speaker #3: Noah Wiley was by our side again. And I could not be prouder of what this community showed up and did together. We then took these efforts a step further with the return of our FIGS retreat in June.

Speaker #3: We hosted nearly 80 healthcare professionals creating a space where they could recharge, care for themselves, connect through shared experiences, and recenter around what matters most.

Trina Spear: We hosted nearly 80 healthcare professionals, creating a space where they could recharge, care for themselves, connect through shared experiences, and recenter around what matters most. This is a manifestation of our purpose and how we show up for our community, and we're making these important touchpoints a priority going forward. Our brand momentum has carried into Q3. We have already had a series of great product moments, including our Spider-Man collaboration, the return of Espresso, and the debut of V Coterie on our platform. Yesterday, we kicked off our back-to-school campaign with the latest chapter of Never Change, highlighting the lifelong learning journey through the eyes of residents. Turning to market expansion, each of our three growth drivers delivered record net revenues. International delivered 67% growth, with over 50 points of that growth coming from our existing comp markets.

Speaker #3: This is a manifestation of our purpose and how we show up for our community, and we are making these important touchpoints a priority going forward.

Speaker #3: Our brand momentum has carried into Q3. We have already had a series of great product moments, including our Spider-Man collaboration, the return of espresso, and the debut of Vicodery on our platform.

Speaker #3: And yesterday, we kicked off our back-to-school campaign with the latest chapter of Never Change, highlighting the lifelong learning journey through the eyes of residents.

Speaker #3: Turning to market expansion, each of our three growth drivers delivered record net revenues. International delivered $67% growth with over 50 points of that growth coming from our existing comp markets.

Speaker #3: We now operate in 85 international markets, including 27 new markets opened year to date. As we become more efficient overall, we are increasing our investments in international brand building.

Trina Spear: We now operate in 85 international markets, including 27 new markets opened year to date. As we become more efficient overall, we are increasing our investments in international brand building. We are finding more ways to localize and activate in-person moments, including our first Nurses Week event in Toronto. We are in the early innings of recruiting ambassadors and supporting user-generated content in key markets where that has outsized importance. We are ramping new search and social platforms, including Line in Japan, Kakao in South Korea, and Douyin in China. All highly relevant digital channels to accelerate local reach and impact. Looking at our team's business, we continue to build momentum as we focus on strengthening relationships with existing institutions, growing our pipeline of future accounts, and executing on our technology roadmap.

Speaker #3: We are finding more ways to localize and activate in-person moments, including our first Nurse's Week event in Toronto. We are in the early innings of recruiting ambassadors and supporting user-generated content in key markets where that has outsized importance.

Speaker #3: We are ramping new search and social platforms, including Line in Japan, Kakao in South Korea, and Douyin in China. All highly relevant digital channels to accelerate local reach and impact.

Speaker #3: Looking at our team's business, we continue to build momentum as we focus on strengthening relationships with existing institutions. Growing our pipeline of future accounts and executing on our technology roadmap.

Speaker #3: As an example, we recently onboarded Bupa Dental Care, a division of the British United Provident Association, which is one of the largest private healthcare and insurance companies in the world.

Trina Spear: As an example, we recently onboarded Bupa Dental Care, a division of the British United Provident Association, which is one of the largest private healthcare and insurance companies in the world. Our initial work here will focus on outfitting their nearly 400 dental centers across the UK, demonstrating the type of reach and impact this channel can have, both domestically and abroad. Supporting those efforts on the tech side, we continue to add functionality to our platform in Q2. We have additional work ahead on our roadmap, all designed with the same intention, make it as easy as possible to outfit a diverse range of healthcare workforces in FIGS and create unparalleled value in that experience. Community health also delivered record results with both strong comp store performance and new store contributions.

Speaker #3: Our initial work here will focus on outfitting their nearly 400 dental centers across the UK, demonstrating the type of reach and impact this channel can have both domestically and abroad.

Speaker #3: Supporting those efforts on the tech side, we continue to add functionality to our platform in Q2. We have additional work ahead on our roadmap, all designed with the same intention.

Speaker #3: Make it as easy as possible to outfit a diverse range of healthcare workforces in FIGS and create unparalleled value in that experience. Community helps also delivered record results with both strong comp store performance and new store contributions.

Speaker #3: Our in-store work remains focused on optimizing the assortment. Going deeper in core colors and styles to serve the higher mix of new customers coming through the channel.

Trina Spear: Our in-store work remains focused on optimizing the assortment, going deeper into core colors and styles to serve the higher mix of new customers coming through the channel. Looking ahead, our team has signed four new leases for openings planned for later this year, including Fashion Square in Scottsdale, Tysons Corner outside of Washington, DC, Valley Fair near San Jose, and Aventura Mall in Miami, each leveraging strong local healthcare communities. Our team is already hard at work securing locations for 2027 and beyond. We could not be more excited about where this channel is going. Before I hand it over to Sarah, I want to share one last but important point about what makes me feel so confident. In the past, I've spoken about what I believe to be the leading indicators that tell us where we are as a brand: search, website traffic, social followers, and more.

Speaker #3: Looking ahead, our team has signed four new leases for openings planned for later this year. Including fashion square in Scottsdale, Tysons Corner outside of Washington, DC, Valley Fair near San Jose, and Aventor Mall in Miami.

Speaker #3: Each leveraging strong local healthcare communities. Our team is already hard at work securing locations for 2027 and beyond, and we could not be more excited about where this channel is going.

Speaker #3: Before I hand it over to Sarah, I want to share one last but important point about what makes me feel so confident. In the past, I've spoken about what I believe to be the leading indicators that tell us where we are as a brand.

Speaker #3: Search, website traffic, social followers, and more. When these metrics inflected last year, we believed we were starting to turn the corner, and that's exactly what happened in the subsequent quarters, with strong momentum across our business.

Trina Spear: When these metrics inflected last year, we believed we were starting to turn the corner. That's exactly what happened in the subsequent quarters with strong momentum across our business. What's encouraging to me is that these leading indicators continue to grow, creating a fantastic pipeline for future engagement. Across the entire brand funnel, from awareness to consideration to preference, we are seeing year-to-date improvement. Our brand is increasingly cutting through at a time when many others in the industry are treading water. Ultimately, we believe we are positioned to expand our leadership position in the industry and change the game for healthcare professionals in ways that no one else can, just as we have been doing for the past 14 years. In the near term, we see this through our strong outlook on both top and bottom lines.

Speaker #3: And what's encouraging to me is that these leading indicators continue to grow. Creating a fantastic pipeline for future engagement. And across the entire brand funnel, from awareness to consideration to

Speaker #1: To preference . We are seeing year to date improvement . Our brand is increasingly cutting through at a time when many others in the industry are treading water Ultimately , we believe we are positioned to expand our leadership position in the industry and change the game for healthcare professionals in ways that no one else can Just as we have been doing for the past 14 years , in the near term , we see this through our strong outlook on both top and bottom lines and in the long term .

Trina Spear: Ultimately, we believe we are positioned to expand our leadership position in the industry and change the game for healthcare professionals in ways that no one else can, just as we have been doing for the past 14 years. In the near term, we see this through our strong outlook on both top and bottom lines. In the long term, we know we're just getting started as there is so much additional opportunity and so much impact we can still have across the healthcare community. With that, I will turn it over to Sarah to walk through our financial results and full year outlook.

Trina Spear: In the long term, we know we're just getting started as there is so much additional opportunity and so much impact we can still have across the healthcare community. With that, I will turn it over to Sarah to walk through our financial results and full year outlook.

Speaker #1: We know we're just getting started as there is so much additional opportunity and so much impact . We can still have across the healthcare community .

Speaker #1: With that , I will turn it over to Sarah to walk through our financial results in full year outlook

Speaker #2: Thanks , Trina . Our second quarter results were outstanding from top to bottom , building off a great Q1 with across the board wins and setting us up for a stronger second half of the year than our implied prior guide .

Sarah Oughtred: Thanks, Trina. Our Q2 results were outstanding from top to bottom, building off a great Q1 with across-the-board wins and setting us up for a stronger H2 of the year than our implied prior guide. FIGS is building a powerful ecosystem for the entire healthcare community, something that extends well beyond transactions. This community, in turn, is instrumental in feeding back to the brand, giving what we believe is a very special and unique story in the broader consumer space. Let me first start with a recap of our incredible Q2 performance, which included a number of key records and multiyear highs that Trina outlined upfront. I'll then provide an update on our increased full year guidance, including our current assessment of tariff-related impacts and our readiness to achieve our raised H2 expectations.

Speaker #2: Figs is building a powerful ecosystem for the entire health care community , something that extends well beyond transactions . And this community , in turn , is instrumental in feeding back to the brand , giving what we believe is a very special and unique story in the broader consumer space Let me first start with a recap of our incredible Q2 performance , which included a number of key records and multi-year highs that Trina outlined up front .

Speaker #2: I'll then provide an update on our increased full year guidance , including our current assessment of tariff related impacts and our readiness to achieve our raised second half expectations On to the numbers for Q2 net revenues increased 29% year over year to $196.6 million , outpacing our outlook , calling for growth in the low 20% range .

Sarah Oughtred: On to the numbers, where Q2 net revenues increased 29% year over year to $196.6 million, outpacing our outlook, calling for growth in the low 20% range. Virtually all parts of our business are growing at strong rates as we look across categories, geographies, and channels. We saw highly productive launch events and promotions during the period and continue to be incredibly encouraged by how we are performing during those business as usual selling days without specific brand activations. Active customer growth accelerated again to 13% year over year to reach 3.1 million, led by particular strength with customers coming back to the brand. Average order value increased 9% to $127, led by higher average unit retail due to early 2026 pricing actions and also driven by improved quality of sales that were supported by lower discount and return rates. Complementing these drivers, we are seeing improved purchase frequency.

Speaker #2: Virtually all parts of our business are growing at strong rates . As we look across categories , geographies , and channels . We saw highly productive launch events and promotions during the period and continue to be incredibly encouraged by how we are performing during this business as usual selling days without specific brand activations , active customer growth accelerated again to 13% year over year to reach 3.1 million , led by particular strengths with customers coming back to the brand Average order value increased 9% $127 .

Speaker #2: LED by higher average unit retail due to early 2026 pricing actions , and also driven by improved quality of sales that were supported by lower discount and return rates Complementing these drivers , we are seeing improved purchase frequency Together , these factors drove our trailing 12 month measure for net revenues per active customer , 10% higher to a Figs record $229 .

Sarah Oughtred: Together, these factors drove our trailing 12-month measure for net revenues per active customer 10% higher to a FIGS record $229. By category, scrub wear grew 27%, representing 82% of net revenues for the period. We continue to be pleased with the range of performance here, with strong growth coming across both core franchises and limited edition offerings. Color in particular was impactful, with improved sequencing and newness also supporting core productivity. Non-scrub wear surged 40%, representing 18% of net revenues. Growth was broad-based, highlighted by under scrubs, where we saw an improved assortment across styles and fabrications, as well as outerwear, which was driven by core product family extensions. We are positioned to add even more excitement and differentiation around both of these areas in the upcoming quarters. Accessories are another emerging opportunity, with strength registered across diverse areas such as hair accessories, our bags assortment, and compression socks.

Speaker #2: By category scrub grew 27% , representing 82% of net revenues for the period . We continue to be pleased with the range of performance here , with strong growth coming across both core franchises and limited edition offerings Color in particular , was impactful , with improved sequencing and newness also supporting core productivity .

Speaker #2: Non scrub wear surged 40% , representing 18% of net revenues . Growth was broad based , highlighted by Under Scrubs , where we saw an improved assortment across styles and fabrications , as well as outerwear , which was driven by core product , family extensions .

Speaker #2: We are positioned to add even more excitement and differentiation around both of these areas . In the upcoming quarters Accessories are another emerging opportunity with strength registered across diverse areas such as hair accessories .

Speaker #2: Our bags assortment and compression socks . We are excited to unlock further growth the full addition of the V Coterie Jewelry assortment , which has already been a very productive part of our assortment .

Sarah Oughtred: We are excited to unlock further growth with the full addition of the V Coterie jewelry assortment, which has already been a very productive part of our assortment. The overall cohesiveness of our product strategy across color, technically advanced scrub wear, expanded head-to-toe extensions, and great storytelling is creating a powerful ecosystem and a real competitive advantage for FIGS. By geography, US net revenues increased 22% to $158.7 million, while international net revenues increased 67% to $37.9 million. In the US, I would reiterate some of the leading indicators that Trina pointed out, both as key drivers of our Q2 business and also as bullish signs of what's to come. Strong gains registered across search and traffic are great starts. We then see the added stickiness through ongoing traction across our social following, email sign-ups, and engagement rates. We also saw great signs across both new and returning customers.

Speaker #2: The overall cohesiveness of our product strategy across color, technically advanced scrubs, our expanded head-to-toe extensions, and great storytelling is creating a powerful ecosystem and a real competitive advantage for FIGS by geography.

Speaker #2: U.S. net revenues increased 22% to $158.7 million , while international net revenues increased 67% to $37.9 million . In the US , I would reiterate some of the leading indicators that train pointed out , both as key drivers of our Q2 business and also as bullish signs of what's to come Strong gains registered across search and traffic are great starts , we then see the added stickiness through ongoing traction across our social following , email sign ups and engagement rates .

Speaker #2: We also saw great signs across both new and returning customers . New customers are increasingly coming in at high values and holding that value in subsequent periods Returning customer strength reflects high purchase frequency and customers moving into higher spending thresholds International growth continues to reflect the strong balance between new and returning customers .

Sarah Oughtred: New customers are increasingly coming in at high values and holding that value in subsequent periods. Returning customer strength reflects high purchase frequency and customers moving into higher spending thresholds. International growth continues to reflect a strong balance between new and returning customers. For Q2, this included exceptional growth in Europe, Latin America, and Mexico, as well as meaningfully better performance in Canada, Australia, and the Middle East. As we turn to margins, let me first provide some details on tariff refunds. Last quarter, we indicated that we had taken action to recover approximately $20.5 million paid under the IEEPA tariff. Based on initial receipts of $4.5 million in Q2, we assessed that the recovery of the remaining claims was probable and included the full benefit in our GAAP results.

Speaker #2: For Q2 . This included exceptional growth in Europe , Latin America , and Mexico , as well as meaningfully better performance in Canada , Australia and the Middle East .

Speaker #2: As we turn to margins , let me first provide some details on tariff refunds Last quarter , we indicated that we had taken action to recover approximately $20.5 million paid under the tariff , based on initial receipts of $4.5 million in Q2 .

Speaker #2: We assessed that the recovery of the remaining claims was probable and included the full benefit in our GAAP results This resulted in a $15.4 million reduction to cost of goods sold , which related to tariffs expensed since the tariffs were implemented in February 2025 , including $7.9 million expensed in fiscal 2025 and $7.5 million expensed in the first half of fiscal 2026 .

Sarah Oughtred: This resulted in a $15.4 million reduction to cost of goods sold, which related to tariffs expensed since the IEEPA tariffs were implemented in February 2025, including $7.9 million expensed in fiscal 2025 and $7.5 million expensed in H1 of fiscal 2026. In addition, we recognized an approximate $5.1 million reduction in the carrying value of our inventory balance for tariffs previously capitalized, which will be realized on the P&L as those goods are sold in future periods. Subsequently, we have received the full amount of these refunds in Q3, which we expect will be recorded in cash with our future results. I'll further detail each of these impacts to results and our outlook in my commentary ahead. Looking at Q2 gross margin, we experienced an 820 basis point improvement to 75.2%. This includes the 780 basis point cumulative impact from the $15.4 million tariff refund.

Speaker #2: In addition , we recognized an $5.1 million reduction in the carrying value of our inventory balance for tariffs previously capitalized , which will be realized on the PNL as those goods are sold in future periods Subsequently , we have received the full amount of refund in Q3 , which we expect will be recorded in cash with our future results I'll further detail each of these impacts to results and our outlook in my commentary ahead Looking at Q2 gross margin , we experienced an 820 basis point improvement to 75.2% .

Speaker #2: This includes the 780 basis point cumulative impact from the $15.4 million tariff refund This core improvement excluded the refunds was primarily driven by the positive impacts from pricing and ongoing efficiency efforts , including product costing , as well as better than expected performance from higher full price selling and lower return rates These gains more than offset the impact of higher non , i.e. , tariffs Our selling expense for Q2 was $43.7 million , representing 22.2% of net revenues , compared to 22.6% last year .

Sarah Oughtred: This core improvement, excluding the refunds, was primarily driven by the positive impacts from pricing and ongoing efficiency efforts, including product costing as well as better-than-expected performance from higher full price selling and lower return rates. These gains more than offset the impact of higher non-IEEPA tariffs. Our selling expense for Q2 was $43.7 million, representing 22.2% of net revenues, compared to 22.6% last year. The lower expense rate was driven by favorable outbound shipping rates as well as net revenue leverage. Partially offsetting these efficiencies, we had the impact of supply chain investments and international mix. Marketing expense for Q2 was $28.5 million, representing 14.5% of net revenues, down from 15.2% last year. Following the higher planned marketing rate in Q1, our Q2 performance reflected the impacts of net revenue leverage as well as digital CAC efficiencies.

Speaker #2: The lower expense rate was driven by favorable outbound shipping rates as well as net revenue leverage , partially offsetting these efficiencies , we had the impact of supply chain investments and international mix , marketing expense for Q2 was $28.5 million , representing 14.5% of net revenues , down from 15.2% last year .

Speaker #2: Following the higher planned marketing rate in Q1 or Q2 . Performance reflected the impacts of net revenue leverage as well as digital cap efficiencies .

Speaker #2: At the same time , we continue to opportunistically invest across our business , including brand awareness initiatives internationally . Our Figs retreat activations and through expanded brand partnerships for Q2 was $40.4 million , representing 20.5% of net revenues , compared to 22.8% last year .

Sarah Oughtred: At the same time, we continue to opportunistically invest across our business, including brand awareness initiatives internationally, our FIGS Retreat activations, and through expanded brand partnerships. G&A for Q2 was $40.4 million, representing 20.5% of net revenues, compared to 22.8% last year. The lower G&A rate was primarily due to net revenue leverage and lower stock-based compensation expense, partially offset by investments in our team. Inclusive of the tariff refund benefit, our operating margin for Q2 was 17.9%, compared to 6.5% last year. Net income for the quarter totaled $28.4 million, or diluted EPS of $0.15, compared to net income of $7.1 million last year, or diluted EPS of $0.04. Measuring adjusted EBITDA for the period, we have excluded the $7.9 million benefit of IEEPA tariff refunds that pertain to tariffs on goods sold in fiscal 2025.

Speaker #2: The lower G&A rate was primarily due to net revenue leverage and lower stock based compensation expense , partially offset by investments in our team , inclusive of the tariff refund benefit .

Speaker #2: Our operating margin for Q2 was 17.9% compared to 6.5% last year Net income for the quarter totaled $28.4 million , or diluted EPS , of $0.15 , compared to net income of $7.1 million last year , or diluted EPS of $0.04 , measuring adjusted EBITDA for the period we have excluded the 7.9 million benefit of , Iipa tariff refunds that pertain to tariffs on goods sold in fiscal 2025 .

Speaker #2: This resulted in adjusted EBITDA margin of 18.6% as compared to 12.9% in the same period last year Q2 adjusted EBITDA does include the benefit of the portion of the tariff refund attributable to goods sold in the year to date period , which contributed to our stronger performance , it aligns with how our forward looking performance will be accounted for as impacted inventory is sold on our balance sheet .

Sarah Oughtred: This resulted in adjusted EBITDA margin of 18.6% as compared to 12.9% in the same period last year. While Q2 adjusted EBITDA does include the benefit of the portion of the tariff refund attributable to goods sold in the year-to-date period, which contributed to our stronger performance, it aligns with how our forward-looking performance will be accounted for as impacted inventory is sold. On our balance sheet, we finished the quarter with net cash equivalents, and short-term investments of $296.3 million. Inventory decreased 12% year-over-year to $119.6 million, inclusive of the $5.1 million IEEPA-related inventory adjustment. Outside of these developments, we continue to drive greater efficiency here as we balance strategic buying with more proactive inventory management. We expect Q3 inventory will remain down double digits year-over-year given our supplier transitions, though remain confident in delivering our stronger top-line outlook.

Speaker #2: We finished the quarter with net cash , cash equivalents and short term investments of $296.3 million . Inventory decreased 12% year over year to $119.6 million , inclusive of the $5.1 million Iipa related inventory adjustment Outside of these developments , we continue to drive greater efficiency here as we balance strategic buying with more proactive inventory management .

Speaker #2: We expect Q3 inventory will remain down double digit year over year . Given our supplier transitions , though , remain confident in delivering our stronger top line outlook on the capital allocation slide share repurchases during the quarter under our ongoing repurchase program totaled approximately $24 million at a weighted average price of $11.94 per share .

Sarah Oughtred: On the capital allocation slide, share repurchases during the quarter under our ongoing repurchase program totaled approximately $24 million at a weighted average price of $11.94 per share. We have now repurchased approximately $81 million cumulatively since initiating the program nearly two years ago. Additionally, our board of directors authorized an additional increase of $100 million to our ongoing share repurchase program, bringing our total share repurchase capacity to $119 million. Finally, capital expenditures for the quarter were $2.6 million, continuing to reflect software capitalization and leasehold improvements with larger community hub-related outlays still planned later in the year. Now turning to our updated outlook. Our full-year 2026 net revenues are now expected to grow approximately 20%, ahead of our prior outlook of 14% to 16% growth. This includes both our stronger H1 momentum as well as higher expectations for the H2 of the year.

Speaker #2: We have now repurchased approximately $81 million cumulatively since initiating the program nearly two years ago. Additionally, our Board of Directors authorized an additional increase of $100 million to our ongoing share repurchase program, bringing our total share repurchase capacity to $119 million.

Speaker #2: Finally , capital expenditures for the quarter were $2.6 million , continuing to reflect software capitalization and leasehold improvements , with larger community hub related outlays still planned later in the year Now , turning to our updated outlook .

Speaker #2: Our full year 2020 net revenues are now expected to grow approximately 20% ahead of our prior outlook of 14% to 16% growth . This includes both our stronger first half momentum as well as higher expectations for the back half of the year Embedded in this outlook , we are planning for two three net revenue growth of approximately 20% year over year in Q4 .

Sarah Oughtred: Embedded in this outlook, we are planning for Q3 net revenue growth of approximately 20% year-over-year and Q4 net revenue growth of approximately 10% year-over-year. This incorporates our comparison against improving performance as we move through the H2 of fiscal 2025, including our 33% growth acceleration achieved last Q4. On to gross margin, we now expect our full-year GAAP gross margin to approximate 69.5%, inclusive of the tariff refund during the quarter and the expected benefit as impacted goods in inventory are sold during the H2 of the year. The underlying gross margin expectation is unchanged from our prior guide, which called for modest year-over-year full-year improvement from 66.5% in fiscal 2025. On the positive side, we see both our Q2 operating performance coupled with the modest improvement relative to our prior expectations given the Section 301 tariffs that were implemented as of 24 July.

Speaker #2: Net revenue growth of approximately 10% year over year . This incorporates our comparison against improving performance as we move through the second half of fiscal 2025 , including our 33% growth acceleration achieved last Q4 , onto gross margin , we now expect our full year GAAP gross margin to approximate 69.5% , inclusive of the tariff refund during the quarter and the expected benefit as impacted goods in inventory are sold during the second half of the year The underlying gross margin expectation is unchanged from our prior guide , which called for modest year over year , full year improvement from 66.5 in fiscal 2025 .

Speaker #2: On the positive side, we see both our Q2 operating performance, coupled with the modest improvement relative to our prior expectations, given the Section 301 tariffs that were implemented as of July 24th.

Speaker #2: This new rate assumption of 12.5% compares to our prior global tariff assumption of 15%. Though, with average costing and the timing of shipments, the benefit is minimal for the fiscal year, largely offsetting these positives.

Sarah Oughtred: This new rate assumption of 12.5% compares to our prior global tariff assumption of 15%, though with average costing and the timing of shipments, the benefit is minimal for the fiscal year. Largely offsetting these positives, we plan to use air freight to expedite certain products. It is important to remind you of the gross margin comparisons in H2. We continue to expect a year-over-year decline in Q3, followed by a large year-over-year improvement in Q4. While our Q4 gross margin rate is planned to be the lowest of the year, it is still expected to remain well above the prior year, in part due to the large inventory write-off comparison. Shifting over to SG&A, we expect better net revenue leverage will play the largest factor overall, benefiting Q3 relative to Q4.

Speaker #2: We plan to use air freight to expedite certain products . It is important to remind you of the gross margin comparisons in the back half of the year .

Speaker #2: We continue to expect a year over year decline in Q3 , followed by a large year over year improvement in Q4 . While our Q4 gross margin rate is planned to be the lowest of the year , it is still expected to remain well above the prior year , in part due to the large inventory write off comparison Shifting over to sG&A , we expect better net revenue leverage will play the largest factor overall , benefiting Q3 relative to Q4 .

Speaker #2: We expect this to mean expense leverage across selling , marketing , and DNA . In the third quarter , though only on the marketing line during the fourth quarter .

Sarah Oughtred: We expect this to mean expense leverage across selling, marketing, and G&A in Q3, though only on the marketing line during Q4. Overall, we have increased our full-year operating margin outlook from between 7.8% and 8% to approximately 10.8% inclusive of refunds. We have also increased our full-year adjusted EBITDA margin outlook from between 13% and 13.2% to between 14.8% and 15%, inclusive of refunds associated with our H1 performance and sell-through expectations in H2. This includes an expected Q3 adjusted EBITDA margin of approximately 14%, up from the 12.4% level in the prior year period. In summary, the FIGS brand is resonating more than ever, and we are executing against this opportunity exceptionally well in a dynamic operating environment. Our net revenue growth guidance is nearly double our original outlook, while our profitability continues to inflect.

Speaker #2: Overall , we have increased our full year operating margin outlook from between 7.8% and 8% to approximately 10.8% , inclusive of refunds . We have also increased our full year adjusted EBITDA margin outlook from between 13% and 13.2% to between 14.8% and 15% , inclusive of refunds associated with our first half performance and sell through expectations in the second half .

Speaker #2: This includes an expected Q3 adjusted EBITDA margin of approximately 14% , up from the 12.4% level in the prior year period . In summary , the Figs brand is resonating more than ever , and we are executing against this opportunity exceptionally well in a dynamic operating environment .

Sarah Oughtred: In summary, the FIGS brand is resonating more than ever, and we are executing against this opportunity exceptionally well in a dynamic operating environment. Our net revenue growth guidance is nearly double our original outlook, while our profitability continues to inflect. We believe this demonstrates the growing resonance of our brand, the incredible execution of our team, and the unique opportunity we have ahead to continue redefining expectations with the healthcare community. We are now happy to take your questions. Operator?

Speaker #2: Our net revenue growth guidance is nearly double our original outlook, while our profitability continues to inflect. We believe this demonstrates the growing resonance of our brand.

Sarah Oughtred: We believe this demonstrates the growing resonance of our brand, the incredible execution of our team, and the unique opportunity we have ahead to continue redefining expectations with the healthcare community. We are now happy to take your questions. Operator?

Speaker #2: The incredible execution of our team , and the unique opportunity we have ahead to continue redefining expectations with the healthcare community . We are now happy to take your questions .

Speaker #2: Operator .

Speaker #3: We will now begin the question and answer session . Please limit yourself to one question and one follow up . If you would like to ask a question , please press star one to raise your hand .

Operator 3: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Bob Derbel with BTIG. Your line is open. Please go ahead.

Operator: We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Bob Derbel with BTIG. Your line is open. Please go ahead.

Speaker #3: To withdraw your question, press star one. Again, we ask that you pick up your handset when asking a question to allow for optimum sound quality.

Speaker #3: If you are muted locally , please remember to unmute your device . Please stand by while we compile the Q&A roster Your first question comes from the line of Bob Dobell with BTIG .

Speaker #3: Your line is open . Please go ahead

Speaker #4: Hi . Good afternoon and congratulations on another stellar result

Bob Derbel: Hi. Good afternoon, congratulations on another stellar result.

Bob Drbul: Hi. Good afternoon, congratulations on another stellar result.

Speaker #5: Thanks , Bob

Trina Spear: Thanks, Bob. Appreciate it.

Speaker #4: You got it . The I guess the the , the biggest question that I would love to just start with is when you look at new customer growth , returning customer growth , can you just talk us through , you know , what you think is working so well right now ?

Bob Derbel: You got it. I guess the biggest question that I would love to just start with is, when you look at new customer growth, returning customer growth, can you just talk us through what you think is working so well right now with the customer situation?

Bob Drbul: You got it. I guess the biggest question that I would love to just start with is, when you look at new customer growth, returning customer growth, can you just talk us through what you think is working so well right now with the customer situation?

Speaker #4: You know , with , with the customer situation

Speaker #5: Sure . I mean , I think it's it goes back to our two North stars , which is product and marketing . You know , we have continued to deliver the best product that meets every need of , you know , a health care professional .

Trina Spear: Sure. I think it goes back to our two north stars, which is product and marketing. We have continued to deliver the best product that meets every need of a healthcare professional, we're doing that head to toe across our layering system. We've continued to make steady improvements on our fit, on our function, bringing comfort, durability, and style to our community. I think on the second piece, which I know you know, Bob, is around marketing. We continue to roll out incredible campaigns that are really resonating and going viral regularly within our community. You've seen that throughout the year with our Never Change campaign this year. I think that's driving new customers to the brand. I think the beautiful thing about our business is that so much is still driven by word of mouth.

Speaker #5: And we're doing that head to toe across our layering system . We've continued to make steady improvements on our fit , on our function , bringing comfort , durability , and style to our community .

Speaker #5: And I think on the second piece , which I know , you know , Bob is around marketing We continue to roll out incredible campaigns that are really resonating .

Speaker #5: And going viral regularly within our community. And you've seen that throughout the year with our Never Change campaign this year.

Speaker #5: And so , you know , I think that's driving , that's driving new customers to the brand . I think , you know , the beautiful thing about our business is that so much is still driven by word of mouth .

Speaker #5: Every customer is a walking billboard, acquiring that next customer for us. And that's truly unique and dynamic, given the densely populated environments that health care professionals work in.

Trina Spear: Every FIGS customer is a walking billboard acquiring that next customer for us. That's truly a unique dynamic given the densely populated environments that healthcare professionals work in. In terms of the returning customer piece, this is a replenishment driven industry. Healthcare professionals need their uniforms to go to work and do their job, and they're coming back over and over again for their Catarina top and Isabel wide-leg pants, right? They're coming back for their under scrubs and their scrub jackets and their compression socks, and kind of all of these different pieces and different parts of their uniform that they need to go and do their job. It's been exciting to see the results for the quarter, but we really do feel like we're just getting started.

Speaker #5: And then, in terms of the returning customer piece, this is a replenishment-driven industry. Health care professionals need their uniforms to go to work and do their jobs.

Speaker #5: And they're coming back over and over again for their Katarina Top and Isabelle wide leg pants , right ? They're coming back . For , you know , their under scrubs and their scrub jackets and their compression socks and kind of all of these different , you know , pieces in of their uniform that they need to go and do their job .

Trina Spear: They're coming back for their under scrubs and their scrub jackets and their compression socks, and kind of all of these different pieces and different parts of their uniform that they need to go and do their job. It's been exciting to see the results for the quarter, but we really do feel like we're just getting started. More to say, but definitely excited by what we're seeing in the business and what we're gonna continue to execute on.

Speaker #5: So it's been exciting to see , you know , the results for the quarter , but we really do feel like we're just getting started .

Speaker #5: You know , and so , you know , more to say , but , you know , definitely excited by , by what we're seeing in the business and what we're , what we're going to continue to execute on

Trina Spear: More to say, but definitely excited by what we're seeing in the business and what we're gonna continue to execute on.

Speaker #4: Great . Thank you very much . Good luck

Bob Derbel: Great. Thank you very much. Good luck.

Bob Drbul: Great. Thank you very much. Good luck.

Speaker #3: Your next question comes from the line of Brian Nagle with Oppenheimer . Your line is open . Please go ahead

Operator 3: Your next question comes from the line of Brian Nagel with Oppenheimer. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Brian Nagel with Oppenheimer. Your line is open. Please go ahead.

Speaker #6: Hey . Good afternoon . Thank you . Would like to add my congratulations . A spectacular quarter here . Congrats .

Brian Nagel: Good afternoon. I too would like to add my congratulations on a spectacular quarter here. Congrats.

Speaker #5: Thank you . Thanks , Brian .

Sarah Oughtred: Thank you.

Trina Spear: Thanks, Brian.

Brian Nagel: I just want to follow up maybe a bit on Bob's question, but We look at that, the customer growth and really the overall sales here. In the past, I think you talked about lapsed customers, and maybe that being a point of weakness. It seems like it's a point of strength now. What do you see with that customer base? Those who had maybe shopped at FIGS before, went away, and they're coming back now. Is that becoming an incremental significant driver?

Speaker #6: I just want to follow up on Bob's question . But one of the if we look at that , you know , the customer growth really the overall sales here , you know , in the past , I think you talked about , you know , lapsed customers , you know , and maybe that being a a point of weakness , it seems like it's a point of strength now .

Speaker #6: So what do you see with that , that , that customer base , maybe shopped as figs before went away or they're coming back now .

Speaker #6: Is that becoming an incremental significant driver ?

Speaker #7: We're really driving customer growth across several components. So, customer growth is being driven by new customers. It's also being driven by those lapsed customers that are coming back.

Sarah Oughtred: We're really driving the customer growth across several components. Customer growth is being driven from new customers. It's being by those lapsed customers that are coming back and also through just the frequency of our returning customers. All three of those have really been working for us now for several quarters. When we look at those lapsed customers, they are coming back at a good clip that has been pretty consistent for us. We feel like we are providing the right product assortment, the right opportunity for them to continue to come back and be engaged in the brand. We believe that the growth going forward will continue to come across all of those components.

Speaker #7: And also through , you know , just the frequency of our returning customers . And so all three of those have really been working for us now for several quarters .

Speaker #7: You know , when we look at those lapsed customers , they are coming back at a good clip that has been pretty consistent for us .

Speaker #7: And, you know, we feel like we are providing the right product assortment, the right opportunity for them to continue to come back and be engaged in the brand.

Speaker #7: And so , you know , we believe that the growth going forward will continue to come across all of those components

Speaker #6: That's helpful . Sarah , my follow up question , just with regard to the the tariff refunds . So , you know , a lot , a lot of consumer companies now are starting to discuss this topic , but clearly a boost here .

Brian Nagel: That's helpful, Sarah. My follow-up question, just with regard to the tariff refund. A lot of consumer companies now are starting to discuss this topic, but clearly a boost here. We saw in, at least in the GAAP results. I guess the question I want to ask is, strategically, does this receiving these refunds, does it change how you think about sort of, say, doing business in the coming quarters?

Speaker #6: You know , we saw at least in the gap results , but I guess the question I want to ask is strategically , how does this get receiving these refunds ?

Speaker #6: Does it change how you think about sort of , say , doing business over the next over , over in the coming quarters ?

Speaker #7: Yeah . So we did get back 20.5 million . And , you know , we are in a very significant cash position . So we're not earmarking it for anything specific .

Sarah Oughtred: Yeah. We did get back $20.5 million. We are in a very significant cash position. We're not earmarking it for anything specific. What we do every day is about improving the lives of healthcare workers, finding solutions to their problems. We are gonna continue to do that as we have been doing, which is investing back into our business to fuel our efforts towards that mandate. We're also gonna continue to deliver returns for our shareholders. You would have seen that with us buying back. I don't think for us it changes anything. It just helps continue to deploy that cash in a really efficient way to drive future growth.

Speaker #7: You know , what we do every day is about improving the lives of health care workers , finding solutions to their problems . So we are going to continue to do that as we have been doing , which is , you know , investing back into our business to fuel our efforts , you know , towards that mandate .

Speaker #7: And we're also going to continue to deliver returns for our shareholders. You would have seen that with us, you know, buying back.

Speaker #7: So I don't think for us it changes anything. It just helps, you know, continue to deploy that cash in a really efficient way to drive future growth.

Speaker #6: Thank you. And congrats again.

Brian Nagel: Thank you, and congrats again.

Speaker #7: Thanks , Brian .

Sarah Oughtred: Thanks, Brian.

Speaker #5: Thanks , Brian .

Trina Spear: Thanks, Brian.

Speaker #3: Your next question comes from the line of Brooke Roach with Goldman Sachs. Your line is open. Please go ahead.

Operator 3: Your next question comes from the line of Brooke Roach with Goldman Sachs. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Brooke Roach with Goldman Sachs. Your line is open. Please go ahead.

Speaker #8: Good afternoon and thank you for taking our question . Trina , I'm curious if you can talk a little bit more about the strategic expansion of your business as you looked to do this expansion into V Kothari and jewelry .

Brooke Roach: Good afternoon, and thank you for taking our question. Trina, I'm curious if you can talk a little bit more about the strategic expansion of your business as you looked to do this expansion into V Coterie and jewelry. What does this mean for your category and your TAM overall as you look to build upon all aspects of wardrobing the healthcare professionals?

Speaker #8: What does this mean for your category and your Tam overall ? As you look to build upon all aspects of Wardrobing , the healthcare professionals

Speaker #5: Thank you so much , Brooke , for the question . We couldn't be more excited about the acquisition of V coterie . V coterie was founded by an incredible entrepreneur named Lena , who you know now is a part of Fig.

Trina Spear: Thank you so much, Brooke, for the question. We couldn't be more excited about the acquisition of V Coterie. V Coterie was founded by an incredible entrepreneur named Lina, who now is a part of FIGS. She's our head of pins, charms, and jewelry, and she's somebody that we've known for quite some time. Heather and I have known Lina for about, I would say, over 7 years. She actually was a FIGS ambassador, and also has built this incredible company. To your point, it's really about helping healthcare professionals personalize their uniforms and tell something about who they are and what they do. Also, charms, jewelry, and pins is a really personal thing, and it creates this very deep emotional connection between us and our community. We're really looking to help let healthcare professionals celebrate milestones like graduating nursing school, earning certifications, working in an ICU.

Speaker #5: . She's our head of pins , charms and jewelry , and she's somebody that we've known for quite some time . Heather and I have known Lena for about , I would say over seven years .

Speaker #5: She's actually actually was a figs ambassador . And , you know , and also has has built this incredible company and it's to your point , it's really about helping healthcare professionals personalize their uniforms and it tells something about who they are and what they do .

Speaker #5: And also , you know , charms and jewelry and pins . It's a really , you know , personal thing . And it creates this very deep emotional connection between us and our community .

Speaker #5: And we're really looking to help let healthcare professionals celebrate milestones like graduating , nursing school , earning certifications , working in an ICU .

Speaker #5: And so this is like a really exciting thing that's going to help us build even more emotional loyalty with our community . And then to your point , you know , I've always said that lazy companies sell into Tam and innovative companies create Tam and that this is a Tam creation opportunity .

Trina Spear: This is a really exciting thing that's going to help us build even more emotional loyalty with our community. Then to your point, I've always said that lazy companies sell into TAM and innovative companies create TAM. This is a TAM creation opportunity. We are inventing TAM where this wasn't really part of the industry, right? So having these jewelry, charms, and pins, this is a massive industry that wasn't part of our industry. So building that in and making it fun and cool has been really exciting. Even in the Q1, we're seeing such a strong response. We've sold out of a number of key styles across our assortment already. We're moving fast to get that back into stock.

Speaker #5: We are inventing Tam where , you know , this wasn't really this wasn't really part of the industry . Right . And so having these jewelry and charms and pins , this is a massive industry that , you know , wasn't part of , of our industry .

Speaker #5: And so, building that in and making it fun and cool has been really exciting. We're seeing such— even in the first launch, we're seeing such a strong response.

Trina Spear: Even in the Q1, we're seeing such a strong response. We've sold out of a number of key styles across our assortment already. We're moving fast to get that back into stock. So, I would say overall, healthcare is hard, and as you know, Brooke, we bring the fun, which is just so important, and that's what we're going to continue to do as we continue to drive this connection with our community.

Speaker #5: We've sold out of a number of key styles across our assortment already . We're moving fast to get back into that , to get that back into stock .

Speaker #5: And so , you know , I would say overall , like healthcare is hard . And as you know , Brooke , we bring the fun , which is just so , so important .

Trina Spear: So, I would say overall, healthcare is hard, and as you know, Brooke, we bring the fun, which is just so important, and that's what we're going to continue to do as we continue to drive this connection with our community.

Speaker #5: And that's what we're going to continue to do as we continue to drive this connection with our community.

Speaker #8: And Sarah , maybe just a follow up for you with adjusted EBITDA margins now guided at about 15% , do you think that this is a new base from which you can grow as you move into 2027 , especially as you cycle some of these tariff refunds and work through some elevated raw material and oil costs ?

Brooke Roach: Sarah, maybe just a follow-up for you. With adjusted EBITDA margins now guided at about 15%, do you think that this is a new base from which you can grow as you move into 2027, especially as you cycle some of these tariff refunds and work through some elevated raw material and oil costs?

Speaker #7: Yeah . So I would say , you know , just to ground in that 15% , you know , it does include the benefit of tariffs that were previously expensed in Q1 and Q2 .

Sarah Oughtred: Yeah. I would say, just to ground in that 15%, it does include the benefit of tariffs that were previously expensed in Q1 and Q2. That is a benefit that needs to be considered. I would say, offsetting that, we do have some additional air freight that we're bringing in. I think it is a fairly clean base for us to continue to build off of into the upcoming years. Many different puts and takes, but that 15% does represent how we would be reporting our results for any future years as well.

Speaker #7: And so that is a benefit that , you know , needs to be considered . I would say , you know , offsetting that , we do have some additional air freight that we're bringing in .

Speaker #7: And , you know , I think it is a fairly clean base for us to continue to build off of into the upcoming years .

Speaker #7: And so many different puts and takes . But you know , that 15% does represent , you know , how we would be reporting our results for any future years as well .

Speaker #8: Great . Thanks so much . I'll pass it on

Brooke Roach: Great. Thanks so much. I'll pass it on.

Speaker #3: Your next question comes from the line of Matt Korando with Roth Capital . Your line is open . Please go ahead

Operator 3: Your next question comes from the line of Matt Koranda with Roth Capital. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Matt Koranda with Roth Capital. Your line is open. Please go ahead.

Speaker #6: Hey guys , great job . I guess I'll ask one on Aovs . They really took a step up in the second quarter .

Matt Koranda: You guys, great job. I guess I'll ask one on AOVs. They really took a step up in Q2. Just wanted to see if you could maybe unpack some of the drivers there, in terms of pricing. Are consumers building bigger baskets, or are we getting a better mix around the outerwear assortment and some of the higher ASP items there?

Speaker #6: I just wanted to see if you could maybe unpack some of the drivers there in terms of pricing, or consumers building bigger baskets, or are we getting a better mix around the outerwear assortment and some of the higher ASP items there?

Speaker #7: Hi , Matt . So our AOV did increase by 9% in the quarter . You know , consistent with the growth that we saw in Q1 , a portion of that is really being driven by the pricing that we took in Q1 .

Sarah Oughtred: Hi, Matt. Our AOV did increase by 9% in the quarter. Consistent with the growth that we saw in Q1. A portion of that is really being driven by the pricing that we took in Q1. In addition, we're seeing the added benefit of lower discounts and improved returns. That's really been great to see as well. Yeah, we're happy with how that's trending. It isn't necessarily coming through UPT at this point, but we did expect that just given the higher AURs with pricing. Overall, those expectations are still beyond what we had originally thought when we had taken pricing, and really happy that there's other factors, as I mentioned, outside of pricing that are really driving that higher quality growth within our AOV.

Speaker #7: In addition , we're seeing the added benefit of , you know , lower discounts and improved returns . So that's really been great to see as well .

Speaker #7: And so , yeah , we're happy with how that's trending . It isn't necessarily coming through upped at this point , but we did expect that just given the higher orders with pricing .

Speaker #7: So overall , you know , those those expectations are still beyond what we had originally thought when we had taken pricing and really happy that , you know , there's other factors , as I mentioned , outside of pricing that are really driving that higher quality growth within , within our AOV .

Speaker #6: Okay , helpful . And then just going forward , I guess what are you thinking in terms of what's embedded in the sales growth outlook from a active customer standpoint ?

Matt Koranda: Okay. Helpful. Just going forward, I guess, what are you thinking in terms of what's embedded in the sales growth outlook from an active customer standpoint? I guess why I'm asking is engagement trends have just been very strong for the last couple of quarters, and I would assume you kind of pull those forward, but how should we think about, I guess, higher engagement with existing customers versus new customers that are driving the growth for the remainder of the year?

Speaker #6: I guess what I'm asking is in engagement trends have just been very strong for the last couple of quarters . And I would assume you kind of pull those forward , but how should we think about , I guess , higher engagement with existing customers versus new customers that are driving the growth for the remainder of the year ?

Speaker #7: Sure . Yeah . So , I mean , as I said before , you know , the growth in total revenue is coming from growth in our active customers , growth in our orders per customer and growth in our net .

Sarah Oughtred: Sure. Yeah. As I said before, the growth in total revenue is coming from growth in our active customers, growth in our orders per customer, and growth in our net AOV. We would expect that active customer growth will continue to be at a strong rate for the rest of the year. We also think that AOV will continue because, again, a lot of that is really from pricing, so that will continue for the rest of the year until it annualizes in Q1 of 2027. I think it's the orders per customer that we've seen really good frequency come. We're not planning for that same degree of frequency growth, but that could be an opportunity if customers can continue to engage in the way that they have been engaging with us.

Speaker #7: AOV , we would expect that , you know , that active customer growth will continue to , you know , be at a , you know , a strong rate for the rest of the year .

Speaker #7: You know , we , we also think that AOV will continue because again , a lot of that is really from pricing . So that will continue for the rest of the year until it analyzes in Q1 of 2027 .

Speaker #7: And then , you know , I think it's the orders for customer that we've seen really good frequency come . We're not planning for that same degree of frequency growth , but that could be an opportunity if customers continue to engage in the way that they have been engaging with us , then .

Speaker #5: I'll just add , you know , I think that space between purchase is coming down , right ? So people are coming back to us more because of our product , because of our brands .

Trina Spear: I'll just add, I think that days between purchase is coming down, right? People are coming back to us more because of our products, because of our brands, and then also the normalization of the industry, right? Where people need their uniforms, our healthcare community needs their uniforms over and over again. We're seeing real success across the board, across new, across repeat, across AOV, and it's really not one thing driving the success.

Speaker #5: And then also the normalization of the industry, right? Where people need their uniforms, our health care community needs their uniforms over and over again.

Speaker #5: And so we're seeing really real success across the board , across nu , across , repeat , across AOV . And that's really , you know , not one thing driving the success .

Speaker #6: Awesome to hear . Thanks , Trina . Thanks , Sarah .

Matt Koranda: Awesome to hear. Thanks, Trina. Thanks, Sarah.

Speaker #7: Thanks .

Trina Spear: Thanks.

Speaker #3: Your next question comes from the line of Rick Patel with Raymond James . Your line is open . Please go ahead .

Operator 3: Your next question comes from the line of Rick Patel with Raymond James. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Rick Patel with Raymond James. Your line is open. Please go ahead.

Speaker #9: Hey . Thank you . Good afternoon guys , and congrats on the strong results . I was hoping you could provide additional color around increasing frequency so has the primary driver been customers coming back for core product like core scrubs , or are they buying into the adjacent categories ?

Rick Patel: Hey, thank you. Good afternoon, guys, and congrats on the strong results. I was hoping you could provide additional color around increasing frequency. Has the primary driver been customers coming back for a core product like core scrubs, or are they buying into the adjacent categories? Given your offerings are expanding with new scrub fabrications and a widening non-scrub assortment, I'd love to better understand what the primary driver of frequency is and just your expectations going forward, in terms of where you're most optimistic.

Speaker #9: Given your offerings, or expanding with new scrub fabrications and a widening non-scrub assortment, I'd love to better understand what the primary driver of frequency is and your expectations going forward in terms of where you're most optimistic.

Speaker #5: Yeah , sure . So I think , you know , the repeat dynamics is what makes this industry so attractive . And I think what we've done is not just given community what they need , but also what they want .

Trina Spear: Yeah, sure. I think, the repeat dynamics is what makes this industry so attractive. I think what we've done is not just given the healthcare community what they need, but also what they want. That's really a big driver of the replenishment driven dynamics of what we do. Coming out of the COVID overhang that we've discussed, that's only accelerated where frequency has accelerated. You're seeing that in our scrub wear, up 27% for the quarter. You're also seeing it in non-scrub wear, up 40% in the quarter. If you think about the trajectory or the journey of a healthcare professional, they come in on the core scrubs, and then they maybe are getting an under scrub, and then they're replenishing their scrub wear again.

Speaker #5: And so that's really a big driver of , of the replenishment driven dynamics of what we do coming out of the Covid overhang that we've discussed .

Speaker #5: That's only accelerated . We're frequency , you know , has accelerated . And you're seeing that , you know , in our scrub where up 27% for the quarter , you're also seeing it in non scrub , where up 40% in the quarter .

Speaker #5: And so , you know , if you think about . The trajectory or the journey of a health care professional , they kind of come in on the core scrubs and then they , you know , maybe are getting another scrub and then they're replenishing that scrub where again , they're , you know , trying out a limited edition style drop or , and then they're coming back and buying an outerwear piece , for instance .

Trina Spear: They're trying out a limited edition style drop, then they're coming back and buying an outerwear piece, for instance. Then maybe they're coming back and getting their favorite Catarina top and Isabel pant in new color or two new colors, based on the latest drop. As you come back more to the brand, after your second, third, fourth, fifth purchase, you actually end up buying even more over time and buying more non-scrub wear over time. This is what's so phenomenal about our business. This is the beauty of FIGS, is that we're not paying for people to come back, and as they come back to us more, they get more and more loyal. It's our job to continue to drive that and help them be more and more engaged with the brand.

Speaker #5: And then maybe they're coming back and getting their favorite Caterina Top and Isabel Pant in a new color or two new colors based on the latest drop.

Speaker #5: And so , you know , as you come back more to the brand , you know , and after your second , third , fourth , fifth purchase , you actually end up buying even more over time .

Speaker #5: And buying more non scrub wear over time . And so this is what's so phenomenal about our business . This is the beauty of figs is that we're not paying for people to come back .

Speaker #5: And as they come back to us more , they get more and more loyal . And so that's and it's our job to continue to drive that and , and help them be more and more engaged with the brand .

Trina Spear: It's our job to continue to drive that and help them be more and more engaged with the brand. We are maniacally obsessed with healthcare professionals, they are just as obsessed with us, we're going to continue to have that dialogue, share their stories, show them new products, drive engagement, and convert them to being a lifelong FIGS lover

Speaker #5: Which are maniacally obsessed with health care professionals . And they are just as obsessed with us . And that it will . And we're going to continue to , to have that dialogue , share their story , show them new products , drive engagement , and convert them to being a lifelong figs lover

Trina Spear: We are maniacally obsessed with healthcare professionals, they are just as obsessed with us, we're going to continue to have that dialogue, share their stories, show them new products, drive engagement, and convert them to being a lifelong FIGS lover.

Speaker #9: Can you also talk about your promotional strategy in the back half , given the strong demand you're seeing on business as usual days , do you see room to pull back on discounts , or do you think last year's calendar is a good proxy for what to expect this year ?

Rick Patel: Can you also talk about your promotional strategy in the H2? Given the strong demand you're seeing on business as usual base, do you see room to pull back on discounts, or do you think last year's calendar is a good proxy for what to expect this year?

Speaker #7: We're always monitoring that . You know , we're continuing to see the outperformance in our business as usual days , which does give us the flexibility to pull back on promo if it makes sense .

Sarah Oughtred: We're always monitoring that. We're continuing to see the outperformance in our business as usual days, which does give us the flexibility to pull back on promo if it makes sense. I think for now, our plan reflects a similar cadence to last year. As I said, we're nimble, we're agile, we're continuing to monitor the consumer and what levers we need to pull. For now, we will plan according to the promos that we did in 2H last year. That includes our, back to school event that is happening right now. We always have had an exciting Black Friday, Cyber Monday. We'll continue with those standard promos.

Speaker #7: I think for now , you know , our plan reflects a similar cadence to last year . And as I said , you know , we're nimble , we're agile , we're continuing to monitor the consumer and what levers we need to pull .

Speaker #7: But for now , we will , you know , plan according to the promos that we did in two last year . So that includes our back to school event that is happening right now .

Speaker #7: And we always have had an exciting Black Friday, Cyber Monday. So we'll continue with those standard promos.

Speaker #9: Great . Thanks very much .

Rick Patel: Great. Thanks very much.

Speaker #7: Thank you .

Sarah Oughtred: Thank you.

Speaker #3: Your next question comes from the line of Dana Telsey with Telsey Advisory Group. Your line is open. Please go ahead.

Operator 3: Your next question comes from the line of Dana Telsey with Telsey Advisory Group. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Dana Telsey with Telsey Advisory Group. Your line is open. Please go ahead.

Speaker #10: Hi Congratulations , everyone . On the terrific results . So nice to see Trina as you think about as you think about the activation and the engagement , whether it's the Spider-Man movie or I think the Emmys talks that you had last year , how do you think about the go forward ?

Dana Telsey: Hi. Congratulations, everyone, on the terrific results. So nice to see. Trina, as you think about the activation and the engagement, whether it is the Spider-Man movie or I think the Emmy talks that you had last year, how do you think about the go forward? Are there new activations coming? How does it relate to product? On your website, I see some of the accessories and some of the jewelry on the website also. Should we see even more of this non-scrub wear going forward, and how does it impact the margins? Just lastly, Sarah, on Jordan and what is happening with getting product and freight expenses, how do you think of the arrival of product? Is there another region that replaces Jordan, or where does that fit into the receipt of goods? Thank you.

Speaker #10: Are there new activations coming? How does it relate to product on your website? I see some of the accessories and some of the—on the website.

Speaker #10: Also , and should we see even more of this non-square going forward ? And how does it impact the margins ? And just lastly , Sarah , on Jordan and what's happening with getting product and freight and freight expenses , how do you think of the arrival of product ?

Speaker #10: Does . Is there another region that replaces Jordan , or where does that fit into the receipt of goods ? Thank you .

Speaker #5: Thank you . Dana . So yeah , it's been incredible to see just a lot of these collaborations and activations really resonate with our community .

Trina Spear: Thank you, Dana. Yeah, it's been incredible to see a lot of these collaborations and activations really resonate with our community. Really see that with our continued collaboration with "Star Wars." We had a newer collaboration with Owala. That crushed. I think we sold out in less than a day. "Spider-Man," which, it's the number one Marvel franchise, which I wasn't even aware of. It's so killer, and definitely exceeded even my expectations of what that would've done. We always have new ideas. We have the best team. We have this world-class team that's always looking around and seeing what really makes sense for our brand, what really aligns with our community, and what's going to get people super excited.

Speaker #5: Really see that with our continued collaboration with Star Wars . And then we had a newer collaboration with a Wala that crushed , I think we sold out in like , I don't know , less than a day .

Speaker #5: And then Spider-Man , which I mean , I mean , it's the number one Marvel franchise , which I wasn't even aware of .

Speaker #5: It's so killer and definitely exceeded even my expectations of what that would have done . So we always have new ideas . We have the best team , we have this world class team that's always looking around and seeing what really makes sense for our brand , what really aligns with our community and what's going to get people super excited and be coterie .

Trina Spear: V Coterie, to your point, is another excellent example of listening to our community and giving them what they want and delivering beyond their expectations. Once again, bringing the fun. We just have the best creative team that's always thinking outside the box. Really excited about what's to come in H2 of the year, what's to come in 2027, 2028. We never run out of ideas. I'll pass it over to Sarah to handle the other questions.

Speaker #5: To your point, it's another excellent example of listening to our community, giving them what they want, and delivering beyond their expectations.

Speaker #5: And once again , bringing the fun . And we just have the best creative team that's always thinking outside the box . And so really excited about what's to come in the second half of the year .

Speaker #5: What's to come in '27, '28? We never run out of ideas, but I'll pass it over to Sarah to handle the other question.

Speaker #7: Yeah , so non scribbler does carry a lower margin right now . Non scrubber is still , you know under 20% of our business .

Sarah Oughtred: Yeah. Non-scrub wear does carry a lower margin. Right now, non-scrub wear is still under 20% of our business, so we are able to absorb that. We have shared that as we think about margins longer term, our profit expansion likely won't come from gross margins, just given some of this mix shift that's happening. We see the opportunity to more than offset that through the opportunities that we see with SG&A, to continue to expand that profit margin in the years to come. Non-scrub wear is a great way for us to continue providing that full wardrobe for the healthcare professional. We like what it does for engaging with that customer, continuing to drive that top line and really helping to fortify our position. We can manage the whole economic profile in the out years.

Speaker #7: So we are able to absorb that. You know, we have shared that as we think about margins longer term, our profit expansion likely won't come from gross margins.

Speaker #7: Just given some of this mix shift that's happening . But we see the opportunity to more than offset that through the opportunities that we see with S , G , and a to continue to expand that profit margin in the years to come .

Speaker #7: You know , non scrub is a great way for us to continue providing that full wardrobe for the health care professional . So we like what it does for engaging with that customer , continuing to drive that top line and really , you know , helping to fortify our position .

Speaker #7: And so we can manage, you know, the whole economic profile in the out years.

Speaker #10: Thank you

Dana Telsey: Thank you.

Speaker #3: Your next question comes from the line of Adrian Yee with Barclays. Your line is open. Please go ahead.

Operator 3: Your next question comes from the line of Adrienne Yih with Barclays. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Adrienne Yih with Barclays. Your line is open. Please go ahead.

Speaker #11: Hey . Good afternoon . I'll congratulations . It's really nice to see kind of the acceleration and the inflection on that topic . You know , this is three consecutive quarters north of 20% , 25% revenue growth .

Adrienne Yih: Hey, good afternoon. I'll add my congratulations. It's really nice to see the acceleration and the inflection. On that topic, this is three consecutive quarters north of 20% and 25% revenue growth. You've got the healthcare professional tailwind, you've got the active customer growth, you've got the RevPAC growing double digits. Maybe I'll ask it differently. Why should we not think that this is a new level of sort of double-digit top line growth? Can you speak to some of the marketing that you've done or did in the past, the heavy up in Q4 and Q1? What type of marketing is that? Is it brand awareness? Are we seeing some of the halo effect, the latent effect of that kind of flowing through and really starting to resonate? Thanks.

Speaker #11: You've got the health care professional tailwind . You've got the active customer growth . You've got the rev pack kind of growing double digits .

Speaker #11: Are we at or I should say maybe I'll ask you differently . Why should we not think that this is a new level of sort of double digit top line growth .

Speaker #11: And then can you speak to some of the marketing that you've done or did in the past ? The heavy up in the fourth quarter and Q1 , what's the what type of marketing is that ?

Speaker #11: Is it brand awareness, and are we seeing some of the halo effect—latent effects of that—kind of flowing through and really starting to resonate?

Speaker #11: Thanks

Speaker #7: Yeah , I .

Sarah Oughtred: Yeah.

Sarah Oughtred: Yeah. Go ahead.

Speaker #5: Can go ahead On the marketing front , I think , you know , we're really , you know , really focusing on brand awareness and getting more of this community to know about us .

Trina Spear: Go ahead. On the marketing front, I think we're really focusing on brand awareness and getting more of this community to know about us, because once you know about FIGS, you love FIGS. I think that's a really interesting dynamic, right? We have 3.1 million active customers. There's 140 million healthcare professionals around the world. We have a relatively low market share overall. We're really focusing on those top-of-funnel campaigns. That's what you've seen, I would say, over the last two years now, in getting more and more people to know about us and love us. We bring them from awareness to consideration, to conversion. We're going to continue to do that. Sarah, do you want to take that first part?

Trina Spear: On the marketing front, I think we're really focusing on brand awareness and getting more of this community to know about us, because once you know about FIGS, you love FIGS. I think that's a really interesting dynamic, right? We have 3.1 million active customers. There's 140 million healthcare professionals around the world. We have a relatively low market share overall. We're really focusing on those top-of-funnel campaigns. That's what you've seen, I would say, over the last two years now, in getting more and more people to know about us and love us. We bring them from awareness to consideration, to conversion. We're going to continue to do that. Sarah, do you want to take that first part?

Speaker #5: Because once you know about figs , you love figs . And so I think that's a really interesting dynamic , right ? We have 3.1 million active customers .

Speaker #5: There's 144 , 140 million healthcare professionals around the world . And so we have a relatively low market share overall . And so we're really focusing on those top of funnel campaigns .

Speaker #5: That's what you've seen , I would say over the last few years . Now . And getting more and more people to know about us and love us , we bring them from awareness to consideration to conversion .

Speaker #5: And so we're going to continue to do that. Sarah, do you want to take that first part?

Speaker #7: Certainly . You know , we haven't given an outlook for 2027 , but we were obviously , you know , coming out of Q4 with a 10% exit rate here .

Sarah Oughtred: Certainly. We haven't given an outlook for 2027, but we are obviously coming out of Q4 with a 10% exit rate here. Throughout the year, we've continued to see really strong metrics, broad-based across all of our drivers. That continues to give us quite a bit of conviction that there's still plenty of growth ahead of us, and that we have the strategy and the team to continue to lean on that. We did 15% growth in 2025. We're now guiding to 20% growth in 2026. Seeing momentum continue ahead of us with everything that we've been building this year. More opportunities for our growth drivers to contribute to a higher portion of that growth in 2027 and beyond.

Speaker #7: So , you know , throughout the year , we've continued to see like really strong metrics , broad based across all of our drivers that continues to give us , you know , quite a bit of conviction , but there's still plenty of growth ahead of us and that we have the strategy , the team to continue to deliver on that .

Speaker #7: You know, we did 15% growth in 2025 and are now guiding to 20% growth in 2026. So, you know, we're seeing momentum continue ahead of us with everything that we've been building this year.

Speaker #7: There are more opportunities for growth drivers to contribute to a higher portion of that growth in 2027 and beyond.

Speaker #11: Great . And then for can you actually give a comparative metric on the brand awareness that you've built , maybe today versus a year ago ?

Adrienne Yih: Great. Can you actually give a comparative metric on the brand awareness that you've built maybe today versus a year ago? Trina, this is sort of a rank order question for you. As you think about the next three to five years, there's sort of comp growth, right? Based on those 3.1 active customers that you do have. There's so many different vectors of non-comp growth, international, non-scrub wear, teams, retail store rollout. Can you sort of rank order where you think the kind of near term to longer term drivers of that additional layer of growth could be? Thanks.

Speaker #11: And then , Trina , this is sort of a rank order question for you . So as you think about the next 3 to 5 years , there's sort of comp growth , right ?

Speaker #11: Based on those 3.1 active customers that you do have , but there's so many different vectors of non-comp growth , international non scrub wear teams , retail store rollout .

Speaker #11: Can you sort of rank order where you think the kind of near term to longer term drivers of that additional layer of growth could be thanks .

Speaker #7: So in terms of our brand awareness , you know , we've seen several point improvements year to date in all metrics of both in terms of our unaided awareness , our awareness , our consideration preference , and , you know , we attribute a lot of that to the amazing work that the brand team is really doing to , you know , share about our brand and really have amazing storytelling that really connects with our health care professionals .

Sarah Oughtred: In terms of our brand awareness, we've seen several point improvements year to date in all metrics

Sarah Oughtred: In terms of our brand awareness, we've seen several point improvements year to date in all metrics [inaudible]. In terms of our unaided awareness, our awareness, our consideration, preference, and we attribute a lot of that to the amazing work that the brand team is really doing to share about our brand, and really have amazing storytelling that really connects with our healthcare professionals. Really pleased with those trends. The levels that we're at, we think there's definitely opportunity to continue to increase all of those. We've got the right strategy to continue to go after that.

Trina Spear: In terms of our unaided awareness, our awareness, our consideration, preference, and we attribute a lot of that to the amazing work that the brand team is really doing to share about our brand, and really have amazing storytelling that really connects with our healthcare professionals. Really pleased with those trends. The levels that we're at, we think there's definitely opportunity to continue to increase all of those. We've got the right strategy to continue to go after that. As it relates to the next three to five years, and I guess what I'm most excited about, it's so hard to rank all my babies, but if I had to I would say the biggest driver, and you're seeing it in the numbers, is international, right? In group 67% in the quarter.

Speaker #7: So , you know , really pleased with those trends . The levels that we're at , we think there's , you know , definitely opportunity to continue to increase all of those .

Speaker #7: And, you know, we've got the right strategy to continue to go after that.

Speaker #5: And then as it relates to the next 3 to 5 years and and I guess what I'm most excited about , it's so hard to rank all my babies .

Trina Spear: As it relates to the next three to five years, and I guess what I'm most excited about, it's so hard to rank all my babies, but if I had to I would say the biggest driver, and you're seeing it in the numbers, is international, right? In group 67% in the quarter. We're just seeing such incredible opportunity from all of these markets, but to see Mexico perform as it's performing, to see the EU, to see LATAM, to see a resurgence in Canada, Australia, it's just super exciting. We're really building for the long run, internationally, just the way we did in the US, and it's working. If I were to say, I really am excited about our hubs.

Speaker #5: But if I had to , you know , I , I would say the biggest driver and you're seeing it in the numbers is international , right ?

Speaker #5: In grew 67% in the quarter . We're just seeing such incredible opportunity from all of these markets . But , you know , to see Mexico perform as it's performing , to see the EU , to see Latam , to see a resurgence in Canada , Australia .

Trina Spear: We're just seeing such incredible opportunity from all of these markets, but to see Mexico perform as it's performing, to see the EU, to see LATAM, to see a resurgence in Canada, Australia, it's just super exciting. We're really building for the long run, internationally, just the way we did in the US, and it's working. If I were to say, I really am excited about our hubs. We only have five stores. Think about some of the largest brands that were at our scale, the Nikes and the Lululemons of the world, I never like to compare ourselves to anybody, but at our scale and doing what we're doing, essentially almost all digitally with only five stores is unprecedented. We just have so much opportunity. We are just getting started.

Speaker #5: I mean , it's just super exciting . And so , you know , we're really building for the long run internationally , just the way we did in the U.S.

Speaker #5: and it's working . If I were to then say , you know , I really am excited about our hubs , you know , we only have five stores .

Trina Spear: We only have five stores. Think about some of the largest brands that were at our scale, the Nikes and the Lululemons of the world, I never like to compare ourselves to anybody, but at our scale and doing what we're doing, essentially almost all digitally with only five stores is unprecedented. We just have so much opportunity. We are just getting started.

Speaker #5: I mean , think about some of the largest brands that were at our scale . You know , the Nike's and the Lululemon's of the world .

Speaker #5: And , you know , I never liked to compare ourselves to anybody , but , you know , at our scale and doing what we're doing essentially almost all digitally with only five stores is , is unprecedented .

Speaker #5: And so, we just have so much opportunity. We are just getting started. We just talked about the four that are coming in the back half of this year.

Trina Spear: We just talked about the four that are coming in the H2 of this year, and that's super exciting. They're performing. They're performing better than our expectations, and we've learned so much, and now we're going to step on the gas. Finally, teams. To see these large institutions, like Bupa, like European Wax Center, coming to FIGS and saying, "We're gonna spend $hundreds of thousands, $millions of dollars with you all to outfit our teams and professionalize and standardize our workforce." That's really exciting too. If I had to rank, that's how I'd rank. All early stages, all nascent in terms of what these will be for our business, and all super exciting when we think about the future.

Speaker #5: And that's super exciting . And so and they're performing , they're performing better than our expectations . And we've learned so much . And now we're going to step on the gas .

Speaker #5: And then finally teams , you know , to see these large institutions like Bupa , like European Wax Center coming to figs and saying , you know , we're going to spend hundreds of thousands , millions of dollars with you all to outfit our teams and professionalize and standardize our workforce .

Speaker #5: That's really exciting , too . So , you know , if I had to rank , that's how I would rank . But all , all early , early stages , all nascent in terms of what these will be for our business and all super excited when we think about the future .

Speaker #11: That's great to hear. Best of luck, and well done.

Adrienne Yih: That's great to hear. Best of luck, and well done.

Speaker #5: Thank you .

Trina Spear: Thank you.

Speaker #3: Your next question comes from the line of Ashley Owens with KeyBanc Capital Markets. Your line is open. Please go ahead.

Operator 3: Your next question comes from the line of Ashley Owens with KeyBanc Capital Markets. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Ashley Owens with KeyBanc Capital Markets. Your line is open. Please go ahead.

Speaker #12: Great . Thanks so much . And I'll add my congrats as well . Hear maybe just to start digging in on Jordan , because that's been a big source of production for you guys in the past .

Ashley Owens: Great. Thanks so much. I'll add my congrats as well here. Maybe just to start digging in on Jordan, that's been a big source of production for you guys in the past. Just trying to size a few things here. I guess first, how many weeks or months of the Jordan Source core product do you already have sitting in the US distribution center? Then second, what's the realistic timeline to fully resource some of that volume to other countries such as Vietnam? How confident are you that you can keep those core styles in stock to support some of these strong demand trends that you have been seeing?

Speaker #12: So, just trying to size a few things here. I guess, first, how many weeks or months of the Jordan Source core product do you already have sitting in the US distribution center?

Speaker #12: And then second , what's the realistic timeline to fully resource some of that volume to , to other countries , such as Vietnam ?

Speaker #12: And how confident are you that you can keep those core styles in stock to support some of these strong demand trends that you have been seeing?

Speaker #5: Sure. So sorry, can you just ask the question one more time? They cut out for a second.

Trina Spear: Sure. Sorry. Can you just ask the question one more time? It cut out for a sec.

Speaker #12: Oh , yeah . Sorry . First , how many weeks or months of the Jordan Source core product are in the US ? And then second timeline to fully resource that volume in confidence in the that you can keep the core styles in stock to support the demand that you've been seeing .

Ashley Owens: Yeah. Sorry. It's first, how many weeks or months of the Jordan Source core product are in the US? Then second, timeline to fully resource that volume and confidence in that you can keep the core styles in stock to support the demand that you've been seeing?

Speaker #5: Yeah . No , I think it's it's a great question . And I think , you know . The challenge that we faced on , on this isn't new to us , you know , through Covid and the disruption in the Middle East , we've faced a wide range of challenges .

Trina Spear: No, I think it's a great question, I think the challenge that we faced on this isn't new to us. Through COVID and the disruption in the Middle East, we've faced a wide range of challenges. What you're referring to really is the strength and flexibility of the supply chain that we've built over the past 14 years, that has allowed us to thrive regardless. In terms of mitigation, right, and ensuring that our core styles are in stock, we've really worked cross-functionally and adapted to mitigate the disruption from this WRO. This includes leveraging capacity with many of our other strong partners that we have, that we are expediting their production to meet our needs.

Speaker #5: And what you're referring to, really, is the strength and flexibility of the supply chain that we've built over the past 14 years that has allowed us to thrive regardless.

Speaker #5: So in terms of mitigation, right, and ensuring that our core styles are in stock, we've really worked cross-functionally and adapted to mitigate the disruption from the WRO.

Speaker #5: This includes leveraging capacity with many of our other strong partners that we have, and we are expediting their production to meet our needs.

Speaker #5: We're in a really strong position to manage this because we were already in the process of de-risking certain products and launches, given the Middle East conflict, which you saw in the changes that we disclosed last quarter.

Trina Spear: We're in a really strong position to manage this because we were already in the process of de-risking certain products and launches, given the Middle East conflict, which you saw in the changes that we disclosed last quarter. I'll say that we're in a good position, and we've mitigated the vast majority of the challenge. Just a reminder, I think I've talked about this, but we really are a supplier's dream. We have this really high volume, low SKU count business. We have a replenishment driven business that allows us to really be a great partner to our manufacturers. That's paying off now, right, where we are able to be nimble. We are able to move, and get the capacity we need to meet the needs of our community.

Speaker #5: So , you know , I'll say that we , you know , we're in a good position and we've mitigated the vast , vast majority of the of the challenge .

Speaker #5: And so and just a reminder , I think , you know , I've talked about this , but we really are a suppliers dream .

Speaker #5: We have this really high volume , low skew count business . We have a replenishment driven business that allows us to really be a great partner to our manufacturers .

Speaker #5: And so , you know , that's paying off now , right where we are able to be nimble , we are able to move and get the capacity we need to meet the needs of our community .

Speaker #5: And , you know , I'll just say , because this is really important , even with this , we're still raising our top and bottom line outlook .

Trina Spear: I'll just say, because this is really important, even with this, we're still raising our top and bottom line outlook. We're not just passing through our Q2 results. We're layering even more increased expectations beyond that. To be clear, we would be in an even better position if it wasn't for this challenge. We're highly confident in executing to both a H2 and full year plan that is above what we communicated three months ago.

Speaker #5: We're not just passing through our Q2 results , we're layering even more increased expectations . Beyond that . And to be clear , even if we would be in a better position if it wasn't for this challenge , but we're highly confident in executing to both a second half and full year plan that is above what we communicated three months ago

Speaker #12: Understood . Maybe just a follow up with that , because you are air freighting a little bit . Is that air freight costs effectively the full offset to the tariff benefit in expectation , or are there expectations embedded that this persists through the second half ?

Ashley Owens: Understood. Maybe just a follow-up with that. Because you are air freighting a little bit, is that air freight cost effectively the full offset to the tariff benefit in expectations, or are there expectations embedded that this persists through the H2? Maybe just lastly, to throw in a question on Teams here with the Bupa Dental Care win. I guess to you, does this signal that Teams is starting to hit an inflection? I would be curious as to what the ramp and reorder cadence would be for an account of this size. Thanks.

Speaker #12: And then maybe just lastly , to throw in a question on themes here with the Bupa Dental Care , win , but I guess to you , does this signal that teams is starting to hit an inflection .

Speaker #12: And then I would be curious as to what the ramp and reorder cadence would be for an account of this size. Thanks.

Speaker #7: So I think the way that I could map it out best, you know, really, is our new adjusted EBITDA guide relative to our old guide.

Sarah Oughtred: I think the way that I could map it out best really is our new adjusted EBITDA guide relative to our old guide. We're picking up the refund related to the H1, and our H2 picks up the portion of refunds that was in inventory that will be realized in the H2. That's over 100 basis points of improvement there. We are flowing through the benefit of Q2. We've raised the back half of the year, and we're flowing that through. We have some offset from the air freight, as well as opportunity to reinvest that flow-through back into the business for opportunities where we see the ability to continue to drive growth. We are definitely passing through, and we are continuing to reinvest back in the business. Many puts and takes, but we are flowing through.

Speaker #7: So, you know, we're picking up the refund related to the first half, and our second half picks up the portion of refunds that was in inventory.

Speaker #7: That will be realized in the second half . So that's , you know , over 100 basis points of improvement there . We are flowing through the benefit of Q2 .

Speaker #7: We've then raised the back half of the year , and we're flowing that through . And then we have , yeah , some offset from the air freight as well as opportunity to reinvest that flow through back into the business for opportunities where we see , you know , the ability to continue to drive growth .

Speaker #7: So , you know , we're being , we are definitely passing through and we are continuing to reinvest back in the business . And so many puts and takes .

Speaker #7: But, you know, we are—we are, we are flowing through.

Speaker #3: Your last question comes from the line of Nathan Feather with Morgan Stanley. Your line is open. Please go ahead.

Operator 3: Your last question comes from the line of Nathan Feather with Morgan Stanley. Your line is open. Please go ahead.

Operator: Your last question comes from the line of Nathan Feather with Morgan Stanley. Your line is open. Please go ahead.

Speaker #13: Hey , everyone . Thanks for taking the question . And my congrats as well . Really , really phenomenal results here . I just want to dig in a little bit on the international marketing strategy that you're deploying .

Nathan Feather: Hey, everyone. Thanks for taking the question and my congrats as well. Really phenomenal results here. I just wanted to dig in a little bit on the international marketing strategy that you're deploying. Interested to hear, as you've seen such rapid scaling in that business, as you try to increase to the absolute dollar gains there, how are you thinking about the balance between more global marketing and getting the brand halo from US versus building awareness and then down to building consideration in individual markets? Are you staffing up more localized teams to be able to do that more effectively? Thank you.

Speaker #13: Interested to hear, as you've seen such rapid scaling in that business as you try to increase the absolute dollar gains there, how are you thinking about the balance between more global marketing and getting the brand halo from the U.S. versus building awareness and then down to building consideration in individual markets?

Speaker #13: Are you staffing up more localized teams to be able to do that more effectively? Thank you.

Speaker #5: Hey , Nathan , thanks so much for the question . You know , I think it's it's really goes back to our go broad and go deep strategy .

Sarah Oughtred: Hey, Nathan. Thanks so much for the question. I think it really goes back to our go broad and go deep strategy, that's really working. As a reminder, in our go deep markets, which are Canada, Australia, UK, and Mexico, we're doing full funnel marketing, right? We're really localizing our brand for that market and really bringing fun and engaging activations to these markets. That awareness and campaigns are driving interest in our brand, and it's bringing a lot of lower funnel efficiency as well. That's great to see. On the go broad side, which is a larger number of countries, obviously, we're testing, right? We are really focused on more of the lower funnel. We're building out our ambassador community in these markets, and that strategy is working.

Speaker #5: And that's really working . And so as a reminder , in our go deep markets , which are Canada , US , Australia , UK and Mexico , we're doing full funnel marketing , right ?

Speaker #5: And we're really localizing that our brand for that market and really bringing fun and engaging activations to these markets . We are that that awareness and campaigning campaigns are driving interest in our brand .

Speaker #5: And it's bringing a lot of lower funnel efficiency as well. And so that's great to the go broad side, which is a larger number of countries.

Speaker #5: Obviously , we're testing , right ? We are really focused on more of the lower funnel we're building out our ambassador community in these markets and that strategy is working .

Speaker #5: And as those markets gain scale, they earn the right, if you will, to become a part of our 'go deep' strategy, where we're investing more dollars behind that.

Trina Spear: As those markets gain scale, they earn the right, if you will, to become a part of our go deep strategy, where we are investing more dollars behind that. I would say what we have learned a bit is a bit in these, what we will call high potential markets. China, Japan, South Korea, France, Germany. These are markets where we are seeing, and we are investing in more upper funnel to drive that brand awareness because we are seeing the impact. So they are getting more of that marketing, and we are localizing as they scale. So it is really amazing to see how these upper funnel efforts and our storytelling and our creative, which is really our secret sauce, right. It is why we have such a connection with our community globally, how that is working on a local level around the world.

Speaker #5: And I would say what we've learned a bit is , is , is a bit in these , what we would call high potential markets , China , Japan , South Korea , France , Germany , these are markets where we're seeing and we're investing in more upper funnel to drive that brand awareness because we are seeing the impact .

Speaker #5: And so they're getting they're getting more of that marketing . And we're localizing , you know , we're localizing as they scale . And so it's really amazing to see , you know , how these upper funnel efforts and our storytelling and our creative , which is , you know , which is really our secret sauce , right ?

Trina Spear: So it is really amazing to see how these upper funnel efforts and our storytelling and our creative, which is really our secret sauce, right. It is why we have such a connection with our community globally, how that is working on a local level around the world. As we continue to go here, we are going to continue to execute on this. We are profitable in almost every market that we are in. So we are really seeing these efforts pay off.

Speaker #5: It's why we have such a connection with our community globally—how that is working on a local level around the world. And as we continue to grow here, we're going to continue to execute on this.

Trina Spear: As we continue to go here, we are going to continue to execute on this. We are profitable in almost every market that we are in. So we are really seeing these efforts pay off.

Speaker #5: And, you know, we're profitable in almost every market that we're in. And so we're really seeing these efforts pay off.

Speaker #13: Very helpful . Thank you

Nathan Feather: Very helpful. Thank you.

Speaker #3: We have reached the end of the Q&A session. I will now turn the call back to Trena Spears, CEO, for closing remarks.

Operator 3: We have reached the end of the Q&A session. I will now turn the call back to Trina Spear, CEO, for closing remarks.

Operator: We have reached the end of the Q&A session. I will now turn the call back to Trina Spear, CEO, for closing remarks.

Speaker #5: Thank you so much . I just want to say fun fact , there are now more searches for figs than there are for scrubs , and that's when you know that you are on your way to owning a category like Kleenex , like Band-Aid , like Jacuzzi .

Trina Spear: Thank you so much. I just want to say, fun fact, there are now more searches for FIGS than there are for scrubs, that's when you know that you are on your way to owning a category like Kleenex, like Band-Aid, like Jacuzzi. That is where we're headed. We're going to continue to execute at the highest level. Thank you so much for joining us.

Speaker #5: That is where we're headed. So we're going to continue to execute at the highest level. And thank you so much for joining us.

Speaker #3: This concludes today's call . Thank you for attending . You may now disconnect

Operator 3: This concludes today's call. Thank you for attending. You may now disconnect.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

Ashley Owens: This event has now concluded. Access the FIGS, Inc. IR website for more information. This line will now disconnect.

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