FIGS, Inc.

Good afternoon. Thank you for attending the fig second quarter fiscal 2025 earnings conference call. My name is Cameron and I'll be your moderator for today. All lines will be muted during the presentation portion of the call with an opportunity for questions and answers at the end. If you would like to ask a question, please press star one on your telephone keypad, and I would now like to pass the conference over to your host SVP of investor relations. I'm Shaw. You may proceed.

Good afternoon and thank you for joining us to discuss fig second quarter, 2025 results, which we released this afternoon. It can be found in our earnings press release and in a shareholder presentation posted to our investor relations website at IR dot where figs dot com presenting on today's call or Trina spear, our co-founder and chief executive officer. It's our altra at our chief financial officer. As a reminder, remarks in this call that do not concern past events or forward looking statements. These may include predictions, expectations or estimates, including about future financial performance, market opportunity or business plans. For looking statements involve risk and uncertainties and actual results could differ materially. These and other risks are discussed in our SEC filings, including in the 10 Q we filed today, do not place undue reliance on for looking statements, which speak only as of today in which we undertake an obligation to update. Finally, we will discuss certain non-gap metrics and key performance indicators, which we believe are useful supplemental measures for understanding our business. Definitions and reconciliations of these non-gap measures to the most comparable gap measures are included in the shareholder presentation we issued today. And now I'd like to turn the call over to Trina.

Thanks Tom. And good afternoon, everyone. Following our strong top line performance in Q1, we were encouraged to see momentum continue in the second quarter. We're solid execution drove our largest revenue quarter in our history and powered overall results ahead of expectations. We placed the healthcare community at the center of all we do. And this unrelenting focus is coming through across three highly successful and interrelated areas. First, we have strengthened our product merchandising efforts through clear assortment architecture, strategic newness and continued improvements in fit and function. Second, we have created some of our most impactful marketing to date that has resonated broadly across the healthcare community and driven deeper engagement. And third, we have strategically repositioned the business away from broader based promotional periods, driving more productivity and intentionality to our overall business. This high level of execution is generating success in the foundational parts of our business, including the United States, our e-commerce channel and within core scrubware. We also believe these successful efforts are being amplified as we move further past the COVID overhang towards a more normalized purchasing and replenishment backdrop. Looking at Q2, net revenues outpaced expectations with 6% growth, supported by several high quality measures that build our confidence for the balance of the year. From a category perspective, our scrubware posted an 8% gain, which was the highest growth in the past seven quarters. This is a great example of where integrated merchandising efforts are coming through. And we are energized by what we are seeing here as our collective efforts across newness, fabric, color and fit continue to come together in the seasons ahead. From a customer perspective, growth in our active customers was supported by solid gains in both acquisition and returning customers. We also saw strong trends in two important measures that we believe are indicative of growing brand health. First, AOV gained 4% to come in just below our record level achieved last quarter. Second, customers responded particularly strongly during our baseline days, with pronounced growth during these periods that more than offset our planned reductions to our promotional days. As a reminder, we are continuing to be more deliberate with how and when we use promotions throughout 2025. Finally, from a geographic perspective, our U.S. business was positive for the second straight quarter, growing on top of the modest gain in Q2 last year. And as I'll discuss shortly, the international business continues to mix higher as we drive investment and impact to more markets. Magnifying our top line momentum, margins were also better than planned. In particular, our team has done a fantastic job of aggressively working to right size our logistics footprint and drive efficiencies. While these gains materialize quicker than expected, they are ones that we intend to sustain and build off of going forward. Even as we kept our focus on strategic investments in other parts of our P&L, our adjusted EBITDA margin improved 390 basis points year over year to 12.9%, which we believe demonstrates the power of our model when top line gains are matched with disciplined expense management. Looking ahead, we believe we're in a great position to both leverage our first half demand momentum and manage what remains a very dynamic trade environment. Given tariff uncertainty, our team had a productive trip during Q2 to visit a number of our key suppliers, where we focused on fortifying our strong relationships, building flexibility in our footprint, and driving future innovation and development. FIX remains an important sought after partner for suppliers, supported by the non-seasonal replenishment nature of our assortment. Sarah will detail our outlook inclusive of last week's trades updates, but even with the current tariff assumptions, we believe our revenue strengths and early cost mitigation efforts positioned us favorably from our call three months ago. Overall, this means an improved outlook with fiscal 2025 top line now expected to single digits and an increased adjusted EBITDA margin range to .5% to 9%. To be clear, there is more work to be done here as we plan for tariff impacts in 2026, but are encouraged by the mitigation options in our toolkit as we look across supplier negotiations, ongoing SG&A savings, and focused pricing action. Now, shifting back to our strategy, we're serving healthcare professionals remains at the heart of all we do. We continue to focus on what impact we can have on our community and how we can best celebrate them. We believe these are the key measures to differentiate the brand with healthcare professionals and ultimately drive the value of our company to all stakeholders. To that end, we're incredibly proud of our recent efforts. On our last earnings call, we were right in the middle of nurses week, which went on to become one of our most comprehensive and impactful effort for the celebration to date. We hosted 18 events across the country, capped the week with a feature on the Jennifer Hudson show, and unveiled a powerful new chapter of our Where Do You Wear Figs campaign, a rallying cry to uplift nurses and spotlight the impact they make every day. The response was extraordinary. Figs had approximately 900 million impressions, easily attaining the largest nurses week reach in our history. Film views were up an incredible 10x year over year, and overall social engagement was up 5x. As with all brand building efforts, we expect the full impact to compound over time, but we believe the extraordinary engagement we're seeing is already fueling growth in our business, and we're not slowing down. Just this week, we launched the fourth chapter of Where Do You Wear Figs, filmed at the University of Wisconsin, the alma mater of our co-founder, Heather Hassan. This chapter puts the spotlight on students, their real challenges and their aspirations as they pursue a career in medicine. It's also the cornerstone of our Back to School campaign, which importantly returned to its regular cadence this year. We're excited to carry this momentum into the second half of the year, with more chapters to come, all rooted in our mission to celebrate, empower, and serve our community in meaningful ways. As we think about furthering our impact, we set a new bar for ourselves when we headed to Washington, DC in June with 18 extraordinary Figs ambassadors for Awesome Humans on the Hill. This event is a capstone to our -the-ground efforts in DC throughout the year to advocate for solutions to the biggest policy challenges facing healthcare professionals. And this year, we went bigger than ever. During this year's Awesome Humans on the Hill, we focused our efforts on three key issues from our policy platform. To ease financial strain, we lobbied for the Awesome Humans Act, developed by Figs, to provide a tax credit for healthcare professionals. To protect mental health, we urged the reauthorization and funding of the Dr. Lorna Breen Healthcare Provider Protection Act. And to alleviate administrative burdens and return the focus to patients, we advocated for the Reducing Medically Unnecessary Delays in Care Act, legislation that would make much needed improvements to the broken, prior authorization system. We brought our advocacy efforts directly to both the biggest powers in Congress and all Americans with the support of actor and healthcare advocate Noah Wiley from The Pit and ER, and even more importantly, his mother Marty Wiley, an orthopedic nurse of nearly 50 years. Recently nominated for Emmys for Best Drama and Best Actor for Noah, The Pit has served as Noah's love letter to frontline healthcare workers and highlights the same challenges we have been working so hard to address with our advocacy. Together with Noah and our team of ambassadors, we had over 35 meetings with policymakers from both sides of the aisle and held a congressional briefing to a packed room in the Capitol. We also had live segments on CBC Mornings and ABC News, a powerful op-ed in USA Today and captured over 5 million organic views from our social posts alone. Bottom line, there's no healthcare without a well cared for healthcare workforce, and it's our privilege and our responsibility to ensure that lawmakers keep this top of mind as they craft healthcare policy. Moving to our international strategy where we drove impressive gains across Mexico, Europe, Latin America, and the Middle East. Similar to last quarter, we saw some softness in Canada, largely given an outside impact of our promotional pullback. However, we were encouraged with positive performance during our full price periods in this market and have continued to take localized action to spur demand. Our overall international approach this year has centered around investing and execution. A key milestone in Q2 was the debut of our business in Japan, where we are off to a good start. Our main focus is to continue to listen and learn from our community and apply localized strategies to drive awareness. Next up in Q3, we are adding another important country to our roster with the planned launch of South Korea. We are taking a similarly measured approach there, learning cultural nuances and preferences. We are excited to take these two big steps as we start to expand our business across the Asia Pacific region and look forward to seeing the impact on our business in 2026 and beyond. As we indicated last quarter, we are also harnessing technology to expand our regional approach to new markets. This strategy focuses on leveraging regional commonalities like purchase behaviors, language, and seasonality, allowing us to accelerate our entry into additional markets while retaining a premium brand positioning. Just last week, we utilized this program in Latin America to open 12 new markets across the region. Finally, we are in the early process of investing resources in market across our business functions. We will have more to come on this front over time as we focus our initial efforts on Canada, the UK, and Mexico. Our investment focus this year extends to our team's business, where we continue to see immense opportunities to reach new global healthcare institutions over time. To truly scale this opportunity, we are hyper focused on several areas this year. This starts with adding talent and driving sharper focus in how we build relationships across a diverse range of healthcare institutions. We then support these efforts by expanding our work on the technology side, supporting flexible customer solutions and a streamlined user experience. Finally, we are building out our marketing engine to support the overall awareness of this business. Importantly, we continue to believe these teams' efforts will have added importance as we look outside the US, where there are different buying nuances and preferences. Community hubs also remains an exciting opportunity to extend our engagement with new and existing healthcare professionals. As we outlined last quarter, the channel continues to see about 40% of customers coming in new to the brand. And approximately 30% of these acquired customers go on to purchase through our e-commerce channel. We are also capturing unique insights in the channel. For example, during the second quarter, this included a stronger core scrubware mix, stronger men's penetration, the higher adoption of our Formex fabrication, and the ongoing success of embroidery. Our ability to bring the brand to locations that add convenience to the busy lives of healthcare professionals also makes community hubs appealing. Last quarter, we highlighted our next hub is in Houston, which is opening within steps of the world's largest medical complex. We are also excited to announce that we're working toward planned openings of our next two hubs in New York City and Chicago. Opening the Upper East Side, the New York location combines a densely populated residential area, strong existing e-commerce demand, and a high concentration of premium healthcare institutions. This includes Memorial Sloan Kettering, New York Presbyterian, Wild Cornell, and Lennox Hill. Our Chicago location will open near the Illinois Medical District, one of the largest in North America. With planned store sizes ranging between our existing two locations, we are excited to take early learnings and apply an updated design to these three new openings. Before handing the call over to Sarah, I want to reiterate our growing confidence in the momentum of our business and our excitement in the opportunities we see ahead. We are managing macro uncertainty well, executing in the areas we can control, and setting ourselves up for continued success. We are supported by an incredibly strong balance sheet, which allows us to make thoughtful strategic decisions in how we invest today and also return value to shareholders over the long term. And most importantly, we are proud of how our unrelenting focus and leadership in the healthcare space supports this amazing community. With that, I'll pass it over to Sarah.