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What this page is: Delvantic's full research page for Figs Inc. (FIGS) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.
Our current read (analysis of 2026-08-23): Designation Low · Gem Score -31 (−100…+100 Quality+Value blend) · Quality 20 · Value -72 · Sentiment -72 (timing only, not weighted) · Composite fair value $6.29 vs $11.21 at analysis
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profile-header/price-overview— company profile, live quote, market capextended-analysis— the core: three AI lens reads with findings, scores, and the analyst memofuture-predictions— our forward price-band predictionsmarket-narrative/ai-findings/gpt-critique— narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)- Members-only sections (render as login gates for anonymous readers):
price-history,income-trend,key-metrics,financials(statement tables),insider-trading. The analysis above is public; the raw data tables require a free account.
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any ticker resolves at delvantic.com/stock/TICKER ·
raw inputs are public-company filings and market data (via licensed data feeds);
every model, score, lens read, and prediction on this page is Delvantic's own analysis.
Figs Inc.
FIGS NYSEFigs Inc. is a specialized apparel company focused on designing and selling stylish, high-performance medical scrubs and apparel. Its primary function is to provide healthcare professionals with comfortable, durable, and functional workwear that integrates innovative fabric technology. Known for its direct-to-consumer business model, Figs Inc. utilizes e-commerce to efficiently distribute its products, making it a notable player in the online retail space. The company emphasizes sustainability, ethical manufacturing practices, and social impact, often engaging in initiatives that support healthcare communities. Operating within the evolving healthcare and retail sectors, Figs Inc. taps into the growing demand for advanced medical apparel solutions. The brand has carved out a significant niche in the market, redefining traditional views of medical uniforms by blending fashion-forward design with utility. Established in Los Angeles, Figs Inc. is positioned as a leader in the niche industry of medical apparel, reflecting both the changing needs of healthcare professionals and the increasing importance of functional fashion in various professional fields.
Price Overview
Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 0.19
Total Equity: $437.46M
Shares: 179,486,886
Total Debt: $0.00
Cash: $81.99M
EBITDA: $47.18M
Total Debt: $0.00
Cash: $81.99M
Revenue: $631.10M
Revenue: $631.10M
Revenue: $631.10M
Total Equity: $437.46M
Tax Rate: 27.4%
Equity: $437.46M
Total Debt: $0.00
Cash: $81.99M
Current Liabilities: $90.52M
Long-Term Debt: $0.00
Total Debt: $0.00
Total Equity: $437.46M
Shares: 179,486,886
Shares: 179,486,886
CapEx: -$8.17M
Shares: 179,486,886
Stock Price: $11.08
Net Income: $34.25M
Industry Benchmarks
Income Statement (Annual)
Last updated: Aug 3, 2026 12:47pm (20d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $419.6M | $505.8M | $545.6M | $555.6M | $631.1M |
| Cost of Revenue | $118.4M | $151.4M | $168.7M | $179.9M | $211.3M |
| Gross Profit | $301.2M | $354.5M | $377.0M | $375.6M | $419.8M |
| Operating Expenses | $290.2M | $316.8M | $342.9M | $373.4M | $381.7M |
| Operating Income | $11.0M | $37.7M | $34.0M | $2.3M | $38.1M |
| Net Income | -$9.6M | $21.2M | $22.6M | $2.7M | $34.3M |
| EBITDA | $12.4M | $39.6M | $37.0M | $9.0M | $47.2M |
| EPS | $-0.06 | $0.13 | $0.13 | $0.02 | $0.21 |
| EPS (Diluted) | $-0.06 | $0.11 | $0.12 | $0.02 | $0.19 |
Balance Sheet (Annual)
Last updated: Aug 3, 2026 12:10pm (20d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $195.4M | $159.8M | $144.2M | $85.6M | $82.0M |
| Total Current Assets | $293.3M | $356.5M | $385.7M | $382.8M | $447.3M |
| Total Assets | $311.8M | $395.1M | $473.2M | $509.8M | $580.0M |
| Current Liabilities | $62.4M | $71.4M | $57.3M | $90.1M | $90.5M |
| Long-Term Debt | — | — | — | — | — |
| Total Liabilities | $66.2M | $87.3M | $96.4M | $132.7M | $142.5M |
| Total Equity | $245.6M | $307.7M | $376.9M | $377.1M | $437.5M |
| Retained Earnings | $17.9M | $39.1M | $61.8M | $64.5M | $98.7M |
Cash Flow (Annual)
Last updated: Aug 3, 2026 12:47pm (20d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $66.4M | -$35.3M | $100.9M | $81.2M | $61.2M |
| Capital Expenditure | -$2.7M | -$5.3M | -$16.3M | -$17.0M | -$8.2M |
| Free Cash Flow | $63.7M | -$40.7M | $84.6M | $64.1M | $53.0M |
| Acquisitions (net) | — | — | — | — | — |
| Net Debt Issued / (Repaid) | — | — | — | — | — |
| Dividends Paid | — | — | — | — | — |
| Stock Buybacks | — | $0 | $0 | -$45.5M | -$2.7M |
| Net Change in Cash | $139.3M | -$37.7M | -$15.6M | -$58.5M | -$3.7M |
Growth Trends (YoY %)
Last updated: Aug 3, 2026 12:47pm (20d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +20.6% | +7.9% | +1.8% | +13.6% |
| Gross Profit Growth | +17.7% | +6.3% | -0.4% | +11.8% |
| Operating Income Growth | +242.9% | -9.6% | -93.3% | +1,584.2% |
| Net Income Growth | +321.7% | +6.8% | -88.0% | +1,159.2% |
| EBITDA Growth | +219.7% | -6.6% | -75.8% | +426.6% |
Deep Analysis
Risk : Reward — if the last quarter repeats
Live · as of 2026-08-19 08:51Even the bull case prices 30% below today — the ratio here measures the model-vs-market gap, not payoff odds. Another quarter like the worst recent one costs 62%.
| Case | Growth | Margin | Fair value | vs price ($11.21) |
|---|---|---|---|---|
| Bull — recovery | +24% | 10.0% | $7.84 | -30% |
| Base — stabilizes | +16% | 8.7% | $5.46 | -51% |
| Bear — keeps slipping | +8% | 7.4% | $3.71 | -67% |
| Stress — last quarter repeats | +8% | 8.7% | $4.29 | -62% |
Narrative Economics
market-narrative step).
Claude Reading
The raw numbers tell a more nuanced story than the synthesis $5.02 fair value suggests. Trailing four quarters (Q2'25 through Q1'26) generate $666M revenue and $40.6M net income — a 6.1% net margin, up meaningfully from the 0.5% margin in the four quarters ending Q1'25. That's real operating leverage, not accounting noise. Revenue growth accelerated from ~2% YoY in early 2024 to 13.6% in the most recent quarter, and Q4'25's 9.2% net margin shows what the model can print when SG&A is disciplined. FCF of $53M on a $1.79B market cap is a ~3% FCF yield, and stripping out the $82M net cash the EV/FCF sits around 32x. Not cheap, but not the $5 stock the DCF wants either.
That said, I share the synthesis's directional skepticism — I just think $5.02 is too aggressive. The 58x P/E is on GAAP earnings inflated by a Q4 that included seasonal strength; Q1'26 margin already compressed back to 3.9%. Annualizing recent quarters at a normalized 6% net margin on $700M revenue gets you ~$42M in earnings, or a 43x forward P/E — still rich for a company growing high single digits with 66% gross margins that are structurally down from the 72% peak. The FCF CAGR of -20.8% is the tell: earnings are recovering but cash conversion has deteriorated, which usually signals inventory build or working capital drag masking the "recovery." Market Forces flagging "alarming cash flow quality" contradicts the Secondary Signals' "Strong Cash Flow Quality" tag — I side with Market Forces given the FCF trajectory.
The contrarian case that nobody's making forcefully enough: FIGS has zero debt, $82M cash, a founder-led brand with genuine (if narrow) community affinity, and just demonstrated it can flex margins back toward historical highs. The bear thesis assumes healthcare-worker discretionary spending normalizes downward, but the Q4'25/Q1'26 revenue acceleration happened despite macro headwinds — suggesting either share gains or successful adjacency expansion (loungewear, international). Insider activity is F-InKind (tax withholding on vesting) and A-Awards (grants), not open-market sales — the "Unusual Selling Activity" flag is misreading standard equity compensation mechanics. That's a meaningful error in the Secondary Signals layer and it's echoed in the Market Forces "insider selling signaling limited confidence" language. There is no signal here.
Where I land: the synthesis is directionally right that FIGS trades above fundamental value, but the $5.02 anchor is a normalized-DCF artifact that ignores the visible margin recovery and the zero-debt balance sheet optionality. A fair range is $7-9 — roughly 20-25x normalized EPS of $0.35-0.40 plus the cash cushion — implying 20-35% downside, not 55%. The thesis score of -8 (essentially neutral) feels closer to reality than the synthesis verdict. This isn't a table-pounding short; it's a "priced for a category expansion story that hasn't been proven, but the underlying business is healthier than the DCF admits." Catalyst risk cuts both ways: another Q4-caliber print reaccelerates the narrative and this stock trades to $14+; a Q2'26 miss and it visits $8 fast. I'd want to see two more quarters of double-digit revenue growth with margins holding above 6% before paying 40x+ forward earnings for a specialty apparel brand. Partial agreement with the overvalued verdict, strong dissent on the magnitude.
GPT Reading
FIGS looks like a good business, not a great stock. The core fact pattern is straightforward: revenue has recovered from a soft 2024 to $631.1M in 2025, up 13.6%, while net income rebounded from just $2.7M to $34.3M and free cash flow reached $53.0M. That is real improvement, and the balance sheet is clean with $82.0M of cash and no debt. But the market cap is already $1.79B, which means investors are paying about 3.1x sales, 36x EBITDA, and 58x earnings for a company whose four-year revenue CAGR is only 7.6% and whose annual operating margin is 6.0%. Those are not disaster numbers; they are simply far too ordinary for that valuation.
What stands out most is that FIGS’ vaunted gross margin is indeed excellent at 66.5%, but nearly all of the investment debate hinges on whether that gross margin can ever translate into durable operating leverage. So far, the answer is only partially. Annual gross profit rose from $375.6M in 2024 to $419.8M in 2025, yet operating income only reached $38.1M, barely above the $34.0M posted back in 2023 on lower revenue. Quarterly profitability also remains choppy: net margin swung from -0.1% in 2025-03 to 4.7%, 5.8%, 9.2%, then back down to 3.9% in 2026-03. That pattern does not support a premium multiple reserved for a compounding consumer brand with clean, widening earnings power. It supports a business still fighting for consistent conversion of brand strength into bottom-line scale.
The more subtle issue is that the latest quarter was good optically but less exciting beneath the surface. Revenue at $159.9M in 2026-03 was up sharply from $124.9M a year earlier, but that compares against a near-flat profit quarter last year; net income only reached $6.3M, still just a 3.9% margin. On a trailing four-quarter basis using the disclosed quarters, revenue is roughly $666M and net income about $40.6M, so the stock still trades around 44x trailing earnings even after the rebound. For a niche apparel company with category concentration, that implies confidence in sustained double-digit growth and margin expansion that the history does not yet prove. If FIGS were delivering 15-20% annual sales growth with operating margins pushing into the low teens, I could defend a premium. At 8-14% growth and mid-single-digit net margins, I cannot.
The best case against my view is that the business may be stronger than the income statement currently shows. A debt-free company generating $61.2M of operating cash flow and $53.0M of free cash flow on $631.1M of sales has meaningful financial resilience, and the cash conversion looks healthier than many DTC peers. Gross margins above 66% are rare in apparel and suggest the brand still has pricing power and customer loyalty. The quarterly revenue trajectory has also undeniably improved: from $140.2M and $144.2M in mid-2024 to $151.8M, $124.9M seasonally softer, then $152.6M, $151.7M, $201.9M, and $159.9M. If this is the early stage of a cleaner growth reacceleration, the stock may deserve more than a commodity-apparel multiple. I weigh that less heavily because FIGS has already had multiple years to demonstrate sustained operating leverage, yet earnings remain too volatile and too low relative to the valuation.
What would change my mind is not another quarter of decent top-line growth alone. I would need to see evidence that FIGS can hold revenue growth above 12-15% while converting that into at least 8-10% net margins or low-teens operating margins for several quarters, not just one holiday quarter spike. Concretely, if annual revenue can move toward $700M+ with net income power above $60M and free cash flow staying above $50M without margin backsliding, then today’s price starts to look more reasonable. Absent that, the market is still paying a premium for an aspirational brand narrative when the numbers describe a good niche retailer with inconsistent profitability. At $11.08, I think fair value is closer to $7-8.
Grok Reading
The numbers tell a turnaround story that is real but already more than fully priced. FIGS grew revenue from $556M in 2024 to $631M in 2025 (+13.6%), ending a near-stall year, and Q1 2026 printed $160M versus $125M the prior-year quarter—roughly 28% growth and clear sequential reacceleration. More importantly, operating income leapt from $2.3M to $38.1M and net income from $2.7M to $34.3M in a single year, with gross margin holding at an apparel-defying 66.5%. Free cash flow of $53M on minimal capex ($8.2M) and a debt-free balance sheet with $82M cash and a 4.9 current ratio confirm the P&L improvement is converting to cash. This is not a broken business; it is a high-gross-margin DTC franchise that finally showed operating leverage after two flat years.
What the models undervalue is the durability of that margin structure and the early evidence that demand is not dead. A 66% gross margin in apparel is Lululemon-adjacent and gives enormous room to reinvest or expand EBIT if revenue compounds even at low-double-digits. The 2025 earnings explosion (earnings CAGR 23%, recent earnings YoY over 1,000% off a depressed base) and accelerating quarterly revenue trend argue against the pure “category ceiling has been hit” bear case. Zero debt and strong FCF quality further reduce downside fragility. The $5 composite fair value spit out by the valuation engine therefore looks mechanically harsh—it appears to embed permanent mid-single-digit growth and margin mean-reversion that the latest four quarters simply do not support.
Still, at $11.08 and a $1.79B enterprise, the stock is pricing a far more ambitious outcome than the data yet justify. Trailing PE of 58x, EV/EBITDA of 36x, and roughly 34x FCF are growth-stock multiples for a company whose five-year revenue CAGR is only 7.6% and whose lifestyle/adjacencies expansion remains a narrative, not a disclosed revenue mix. The market is paying for FIGS to become a smaller LULU—sustained 15-20% growth, stable mid-60s gross margins, and successful category escape velocity—while the financials still read as a premium scrub brand that just rediscovered mid-teens growth. Insider prints are mostly awards and withholdings rather than open-market conviction buys, and FCF CAGR of –20.8% over the longer window is a reminder that cash generation has been lumpy. A smart opponent would correctly note that 28% Q1 growth and a 1,200 bp operating-margin swing are exactly the setup that can re-rate a cult brand higher, and that shorting clean-balance-sheet 66%-gross-margin compounders has been a graveyard trade; those points have merit, but they require the growth reacceleration to persist for several more quarters before 35x+ EBITDA is earned rather than hoped.
I am therefore in the overvalued camp, though less extremely than the $5 model output. Something closer to $7–8 (roughly 20–22x a normalized mid-cycle FCF run-rate with mid-teens growth) feels like a more defensible anchor; $11 still embeds too much unproven TAM expansion. The verdict flips if the next two quarters sustain ≥20% revenue growth with gross margin ≥65% and operating margin pushing toward high-single-digits, or if management breaks out non-scrub mix showing material lifestyle traction. Conversely, a return to sub-10% growth or gross-margin compression below 63% would confirm the ceiling and open material downside.
Big-3 Panel — where each AI stands
Advanced Analysis Forensic deep-dive · separate lenses
FIGS is a self-funding apparel business: $82M cash, no debt, Altman Z of 9.81, and OCF/NI of 5.49x with strongly negative accruals (-9.3% of assets) - the mechanical earnings-quality checks are clean and Beneish M at -2.84 shows no manipulation flags. Revenue has grown from $419.6M (2021) to $631.1M (2025), a ~10.7% CAGR, and FCF has been positive in four of five years ($53M in 2025). The balance sheet and cash conversion are genuinely strong for a mid-cap apparel name. However, the operating story is choppier than the top line suggests. Gross margin has compressed every single year from 71.8% (2021) to 66.5% (2025) - a 530bp erosion - and operating margin has bounced around violently (2.6, 7.4, 6.2, 0.4, 6.0), including a near-zero 0.4% print in 2024. That volatility in a category once framed as a premium brand is a durability question. Net income of $34.3M on $631M revenue implies ~5.4% net margin, modest for a supposed brand business. Capital discipline is the other soft spot: SBC runs 4.3% of revenue, diluted shares have compounded 3.1% annually, and buybacks recover only 20.6% of SBC - so repurchases are mopping up dilution rather than returning capital. Insider tape is one-directional: four sales totaling ~$1.86M in the last 12 months, zero open-market buys, alongside routine awards and tax-withholding. Not alarming in size, but no conviction signal from those closest to the business.
Verify before trusting this (6)
- Driver of GM compression from 71.8% to 66.5% - promo intensity, freight, mix shift into international/teams?
- What caused the 2024 collapse to 0.4% OpM (inventory writedowns, marketing spend, one-timers)?
- Customer/channel concentration - reliance on DTC vs. teams/international and any single-customer risk
- Inventory position and days-on-hand given 2022 negative FCF (-$40.7M) was inventory-driven
- SBC vesting schedule and whether the founder shares still voting-dominate the board
- 10b5-1 plans behind the Spear/Hasson/Oughtred sales - programmatic vs. discretionary
The e2e synthesis lands at a composite fair value of $5.15 and signal-adjusted $5.02, implying about -55% downside from $11.21. The methods triangulate in a tight, unflattering range: DCF at $6.81 is the most generous, anchored PE at $3.67 reflects the near-zero 2024 operating margin, and EPV floor at $1.24 shows what the current earnings power alone supports. Even giving full credit to the DCF as the 'business keeps compounding' case, the price is still ~65% above it. That is not a rounding error, it is a gap that requires the bull narrative (category expansion, international, pricing power) to largely come true.
Verify before trusting this (5)
- Gross margin trajectory in next 2 quarters - stabilization vs further bleed materially changes DCF
- International and non-scrubs revenue mix and contribution margin
- SBC as % of revenue and net share count trend
- Any guidance on operating margin recovery path
- Inventory levels and markdown risk
FIGS sits in the worst spot for a sentiment lens: a cult-favorite archetype with strong intensity but fragile durability, meaning the story is doing all the heavy lifting on the price and any nick to it lands hard. The May 8 tape tell was decisive - a 28% revenue beat and 125% earnings beat still produced a 24% collapse, which is the market telling you the narrative is already exhausted at these levels and good news no longer buys upside. Since January the stock has drifted flat around $10-11 while the S&P added 7%, and sell-side pieces are now openly framing it as a sell - classic signs of a fading cult where believers are quietly bleeding out. The macro tape is only mildly supportive (regime +22, VIX 16) and with beta near 1 there's no cushion; higher rates specifically punish DTC consumer-cyclical names whose bull case rests on lifestyle TAM expansion and future CAC leverage. Sector (apparel) is out of favor, the healthcare-worker spending wave narrative is normalizing, and there is no fresh catalyst or analyst upgrade cycle to reignite the cult. Net: the non-fundamental pressure leans clearly negative - the story is losing believers faster than the tape is helping.
Verify before trusting this (4)
- Whether Q2/Q3 prints again produce sell-the-news reactions - a positive reaction would signal the sentiment cycle has bottomed
- Any credible international or category-expansion news that could reignite the lifestyle-brand narrative
- Short interest trend and any signs of forced-seller exhaustion around the $10 level
- Sell-side rating changes - a capitulation downgrade often marks the sentiment low
This lens hasn't been run for this ticker yet.
When we made this prediction on Aug 5, 2026, FIGS was $10.85. We expect it to be $7.90 by Feb 2027, and we consider it great value under $6.50. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 5, 2026.
Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.