A Fresh Look at FIGS (FIGS) Valuation Following Q2 Earnings Beat and Analyst Upgrades

FIGS reported second-quarter 2025 results that beat Wall Street expectations for both revenue and profit. This earnings momentum has led analysts to boost their forecasts and outlook for the company.

See our latest analysis for FIGS.

After a stretch of cautious sentiment, FIGS has shown clear momentum. Its 90-day share price return is an impressive 15%, helping to deliver a 17.15% gain year-to-date. While the past year’s total shareholder return of 7.48% is more modest, the stock’s positive earnings surprise and improved outlook have investors taking notice, even as insider sales and margin pressures remain in the backdrop.

If you’re watching strong earnings stories unfold, it’s worth broadening your search with our list of fast growing stocks with high insider ownership.

With recent analyst upgrades and a string of positive results, the question now becomes whether FIGS shares are still undervalued or if the company’s stronger outlook is already reflected in the price. This may leave little room for upside from here.

Most Popular Narrative: 7.5% Overvalued

With analysts now pegging fair value for FIGS a little below its latest closing price, the consensus suggests the recent upward momentum may have reached its limit for now. This sets the stage for a debate on whether the improved outlook warrants a premium or if the stock has run too far, too fast.

Strategic international expansion, with recent launches in Japan, South Korea, and twelve new Latin American markets, is poised to diversify revenues and accelerate top-line growth beyond the U.S. core over the next several years. Enhanced product innovation, including new fits, fabrications, limited edition/seasonal launches, and deeper lifestyle category offerings, is increasing AOV and customer engagement, setting the stage for higher gross margins and expanded customer lifetime value.

Read the complete narrative.

Want to know the formula behind this eye-catching price target? The story hinges on a surprisingly aggressive earnings ramp and margin leap. The future profit multiple might shock you. See what bold analyst assumptions lie under the surface.

Result: Fair Value of $6.42 (OVERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising tariff headwinds and increased competition could pressure FIGS' growth and margins. These factors may serve as catalysts that challenge the current bullish consensus.

Find out about the key risks to this FIGS narrative.

Build Your Own FIGS Narrative

If you have a different perspective or want to investigate the numbers on your own terms, it only takes a few minutes to build your own view. Do it your way

A great starting point for your FIGS research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

Don’t let great opportunities slip by. Arm yourself with actionable stock ideas that match your strategy. Simply Wall St makes it simple to move fast and smart.

• Capture high yields when you browse these 19 dividend stocks with yields > 3%, offering reliable income potential and a track record of rewarding shareholders.
• Target future-defining industries by checking out these 26 quantum computing stocks, paving the way in quantum computing and redefining innovation.
• Capitalize on trends shaping tomorrow and scan these 24 AI penny stocks, set to benefit from the explosive growth in artificial intelligence.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com