FIGS upgraded to hold after 16% drop; Q1 revenue up 28%, 2026 growth outlook strong.

FIGS, Inc. has been upgraded from a sell to a hold rating following a 16% decline in its share price, which now reflects fair value. The company reported a 28% year-over-year revenue increase in Q1 2026, driven by a 12% rise in active customers and higher revenue per customer. Management forecasts 14-16% revenue growth and a 27.7% increase in EBITDA for 2026, supported by a strong net cash position of $277 million. Despite ongoing industry challenges and economic uncertainty, FIGS' diversified sales channels and international expansion provide cautious optimism for continued growth.