FIGS (FIGS) Is Up 10.8% After Beating Q2 Estimates and Earning Analyst Praise – Has The Bull Case Changed?

• Earlier this week, FIGS reported second-quarter results that surpassed analyst expectations and garnered attention as BTIG initiated coverage with a Buy rating, highlighting robust demand in the healthcare apparel sector.
• This combination of analyst confidence and business outperformance has led to increased discussion of FIGS’ position within a competitive and evolving healthcare apparel market.
• We'll explore how analyst optimism and strong quarterly earnings could influence FIGS' long-term outlook and investment narrative.

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FIGS Investment Narrative Recap

To be a FIGS shareholder today, you need conviction in the continued expansion of healthcare employment and the company’s unique direct-to-consumer business model offsetting competitive and margin risks. While the recent Q2 beat and bullish analyst coverage brought fresh interest, these events do not significantly change the most immediate catalyst, sustaining core demand as FIGS reduces promotions, or fully address the risk of gross margin pressure from tariffs as costs remain elevated. The Q2 2025 results, where FIGS reported revenue of US$152.6 million and diluted EPS of US$0.04 (both above expectations), were the clearest update this earnings season. This strong quarterly performance reinforces the near-term narrative but does not diminish ongoing exposure to tariffs or guarantee accelerated revenue growth in the face of growing competition. But with tariffs still weighing on margins and ongoing questions about pricing power, investors should also consider the risk that...

Read the full narrative on FIGS (it's free!)

FIGS' narrative projects $656.8 million revenue and $37.0 million earnings by 2028. This requires 4.9% yearly revenue growth and a $29.8 million increase in earnings from $7.2 million currently.

Uncover how FIGS' forecasts yield a $6.74 fair value, a 12% downside to its current price.

Exploring Other Perspectives

Four members of the Simply Wall St Community estimate FIGS’s fair value between US$2.49 and US$7.21 per share. Many weigh ongoing tariff pressures against recent earnings surprises which could impact future profitability in different ways.

Explore 4 other fair value estimates on FIGS - why the stock might be worth less than half the current price!

Build Your Own FIGS Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• 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.
• Our free FIGS research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate FIGS' overall financial health at a glance.

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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.

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