FIGS posts strong Q1 with 28% revenue growth, raises full-year outlook amid margin pressures.

FIGS reported a strong first quarter for fiscal 2026, with revenue up 28% and active customers growing 12%. The company raised its full-year revenue and EBITDA guidance, signaling confidence in continued growth. Despite challenges from tariffs and freight costs, gross margins expanded, though management expects margin pressure in Q3 before improvement in Q4. International sales grew 50% year-over-year, highlighting growth potential, but high marketing expenses at 18.4% of revenue raise concerns about sustainability. The stock is rated Hold at 30 times forward EBITDA, with a preferred entry price of $10–$11 due to execution and margin risks.