FIGS, Inc.

Hello, everyone. Thank you for joining us. And welcome to the FIGS second quarter fiscal 2026 earnings conference call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. I will now hand the conference over to Tom Shaw, Senior Vice President of Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us to discuss FIGS second quarter 2026 results, which we released this afternoon. It can be found in our earnings press release and in the shareholder presentation posted to our investor relations website at ir.warefigs.com. Presenting on today's call are Trina Spear, our co-founder and chief executive officer, and Sarah Oughtred, our chief financial officer. As a reminder, remarks on this call that do not concern past events are forward-looking statements. These may include predictions, expectations, or estimates, including about future financial performance, market opportunity, or business plans. Forward-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 10Q we filed today. We do not place undue reliance on forward-looking statements, which speak only as of today, and which we undertake no obligation to update. Finally, we will discuss certain non-GAAP metrics and key performance indicators, which we believe are useful supplemental measures for understanding our business. Definitions and reconciliations of these non-GAAP measures to their most comparable GAAP measures are included in our shareholder presentation. And now, I would like to turn the call over to Trina.

Thanks, Tom. Good afternoon, everyone, and thank you for joining us today. Big, strong, broad-based momentum continued in Q2, highlighting the sustainability of our success and our truly unique positioning. Net revenues grew 29% to $197 million, beating our outlook and marking our third straight quarter with 25% plus growth. Notably, this is the strongest sustained stretch of growth we have seen since 2021. What is most exciting is that our growth is coming from across our business rather than from just one part of it. We are seeing tremendous traction across the board, our channels, product categories, geographies, and customer cohorts, driving a number of record highs for the brand. As examples, we have never sold more scrubware in a single quarter than we did in Q2, and our three market expansion opportunities, international teams, and community hubs each achieved new highs. Our strength is seen in the metrics. Active customer growth surged 13% to 3.1 million. AOV hit its own record of $127, and purchase frequency continued to increase. This powerful combination drove net revenues per active customer to an all-time high for the brand of $229, surpassing even our COVID-era peak of $227. This success is the manifestation of everything we've been outlining in recent quarters and gives us even greater conviction in the growth opportunities that lie ahead. Just as impressive is our progress on profitability. Excluding the prior year portion of tariff refunds, adjusted EBITDA margins surged to 18.6%. Underlying that performance, our strong margin expansion was driven by efforts to increase full price selling and improve returns, both strong indicators of brand health, as well as overall expense leverage given our incredible top line momentum. And finally, we have not only accelerated our share buyback efforts during the quarter, but just announced a new $100 million authorization. demonstrating the confidence we have in our brand, our strategy, and the opportunity in front of us. With this strength, I want to take a moment to reiterate why we believe we are winning because I think it is important context for everything that follows. It starts with brand differentiation. Technically advanced products are non-negotiable for us and we are extending our premium positioning and bringing even more impact and relevance to our product lineup from scrubs to the full layering system to solve needs of healthcare professionals. and what truly sets Figs apart is our unique ability to drive connection and be part of the cultural conversation in healthcare in a way no one else is. This combination, product and storytelling is incredibly powerful and hard to replicate. Second, we are building a durable foundation for growth supported by sustained investments across our team, technology and customer acquisition. We've talked a lot about our growing sophistication of how we bring the brand and product to life efforts designed for more than driving performance in a single year. They are about building the resiliency and agility to continue delivering elevated performance across top line, profitability, and shareholder returns over the long run. And third, we are serving the best industry in the world. Healthcare touches everyone. Those needs are only growing as the demands of the profession are compounded by an aging population and growing focus on wellness. healthcare and social assistance is projected to have the largest job growth and be the fastest growing industry over the next decade. And we see this demand in our data. With an average of over 50,000 new jobs coming into the industry each month this year, the broader healthcare industry is serving as a powerful driver of overall job creation in the United States. These macro tailwinds combined with the strong fundamentals of healthcare apparel make this industry highly attractive. Unlike other apparel companies, we do not sell products that's driven by fad, We sell non-discretionary and replenishment-driven uniforms that do not go out of style and that healthcare professionals need all year round. And because so many of them work in densely packed institutions wearing figs as a walking billboard, we benefit from a word-of-mouth dynamic that is very unique. Before I move on, I want to provide a quick update on our supply chain. I used the word resilience earlier in my remarks and it applies here too. U.S. Customs and Border Protection recently issued a withhold release order that currently prevents us from importing product into the United States from our partner in Jordan. Through COVID and the disruption in the Middle East, facing supply chain challenges is not new to us, and we have always been able to manage through them due to the strength and flexibility of the supply chain we've built. That remains true today. Our team is cross-functionally adapting our planning to mitigate disruption in the second half of the year. This includes leveraging capacity with our other strong existing partners and expediting their production. As a reminder, our high volume, low skew count footprint is a powerful differentiator that makes us highly attractive to the world's best suppliers. Most importantly, even with this challenge, we are able to raise our top and bottom line targets. We have not only passed through the upside of our Q2 results, we've also layered in increased expectations for the balance of the year. This is exactly the kind of agility that spotlights the strength of the foundation we have built, and it positions us for long-term execution in delivering great products to our community. Now, let me share some of the progress we are most excited about across product, brand, and market expansion. Starting with product, we are winning at the intersection of style, color, fabric, and fit. On style, we are evolving choice for healthcare professionals, complementing our successful core styles with modern looks that combine functionality, design, and comfort. Our scrub pants are a great example. Wider leg solutions continue to resonate strongly, and we're continuing to bring newness in this area, including new waistband options that debut this quarter. This strategy reflects our unique merchandising flywheel in action. We launch limited edition options that generate excitement and a quick sell-through while driving in greater interest in the core that represents the majority of our business. Color is always important at FIGS. It is woven into the DNA of our brand across both core and limited edition styles. We are always listening to feedback, analyzing trends, and responding quickly. Espresso is a great example. To say that our community was clamoring for this color was an understatement, and we heard them. So we responded with two separate launch moments this year, including a product drop just last week that sold out quickly. And we have used color to tap into cultural moments, incorporating it into our Star Wars collaboration in Q2, and into our new collaboration with Marvel's Spider-Man, which launched this quarter times with the movie's release and was a huge hit. On fabrication, we remain focused on delivering across the full spectrum of use cases, complementing our Hallmark Finex with Formex and now our new Fibrex. Formex continues to resonate and grow as a complement to our core offering, and we're super excited to build on the Fibrex story in the weeks ahead. And wrapping all of this together is fit. All new products are aligned with the fit work we have been driving the past few years, and we continue to be encouraged by the gains we're seeing through lower returns and positive customer feedback. On non-scrubware, we remain focused on building out our layering system. We are winning here. 40% growth in the quarter was the highest we've seen in nearly four years. Non-scrubware now represents nearly 20% of our business, and we believe it can mix even higher over time as we build out key areas, including underscrubs, lab coats, outerwear, footwear, Medical grade compression socks and jewelry. Healthcare professionals may wear a uniform, but they're looking for ways to personalize and accessorize their look. Which brings me to something we're incredibly excited to announce. As you may have seen from our recent social posts, we have acquired V Coterie. A longtime partner of ours on pins, V Coterie brings a broad range of pins, jewelry, charms, and accessories dedicated to the healthcare community. These are not just any kinds of accessories. V Coterie's founder, Lena VanMerkrie, who we are excited to announce is now part of FIGS, is a former dentist and an incredible entrepreneur who has creatively married jewelry and healthcare in a way no one else has. While Bicoterie is immaterial from a purchase standpoint, our community loves these products and we believe this positions us to unlock meaningful growth opportunities in this category going forward. Ultimately, this is a great example of how we drive a greater share of wallets and expand consideration for our brand. Moving on to the brand side, we had a series of powerful moments throughout the quarter. And what I want to highlight most is how we were threading our support of this community across multiple efforts in real impactful ways. Starting with Nurses Week, we were excited with our financial performance, though the bigger story was how we brought an authentic reflection of the experience of nurses to life. This work highlighted the multitude of challenges they face every day on the job while also celebrating their unwavering commitment to always putting their patients first, something that will never change. that work then carried forward in a profound way two weeks later when we took action against those very challenges at our Health Care is Human rally in Washington, D.C. I previewed our plans on the last call, and the actual event surpassed our expectations. This was our biggest advocacy effort to date, with hundreds of awesome humans at the rally, more than 30 meetings with key members of Congress, and triple-digit gains across key social measures. Together, we pushed forward on three critical priorities, passing the FIGS-created Health Care is Human Act the first ever federal tax credit specifically for healthcare professionals, funding the Dr. Lorna Breen Act to provide mental health services specifically for healthcare professionals, and introducing the Speak Free Act, protecting healthcare professionals' right to speak up when they have safety concerns for themselves or their patients. Noah Wiley was by our side again, and I could not be prouder of what this community showed up and did together. We then took these efforts a step further with the return of our FIGS retreat in June. We hosted nearly 80 healthcare professionals, creating a space where they could recharge, care for themselves, connect through shared experiences, and recenter around what matters most. This is a manifestation of our purpose and how we show up for our community, and we're making these important touch points a priority going forward. Our brand momentum has carried into U3. We have already had a series of great product moments, including our Spider-Man collaboration, the return of Espresso, and the debut of V-Coterie on our platform. and yesterday we kicked off our back to school campaign with the latest chapter of Never Change highlighting the lifelong learning journey through the eyes of residents. Turning to market expansion, each of our three growth drivers delivered record net revenues. International delivered 67% growth with over 50 points of that growth coming from our existing comp markets. We now operate in 85 international markets including 27 new markets opened year to date. As we become more efficient overall, we are increasing our investments in international brand building. We are finding more ways to localize and activate in-person moments, including our first Nurses Week event in Toronto. We are in the early innings of recruiting ambassadors and supporting user-generated content in key markets where that has outsized importance. We are ramping new search and social platforms, including Line in Japan, Kakao in South Korea, and Duyen in China, all highly relevant digital channels to accelerate local reach and impact. Looking at our team's business, we continue to build momentum as we focus on strengthening relationships with existing institutions, growing our pipeline of future accounts, and executing on our technology roadmap. As an example, we recently onboarded Bupa Dental Care, a division of the British United Providence Association, which is one of the largest private healthcare and insurance companies in the world. Our initial work here will focus on outfitting their nearly 400 dental centers across the UK, demonstrating the type of reach and impact this channel can have both domestically and abroad. Supporting those efforts on the tech side, we continue to add functionality to our platform in Q2. We have additional work ahead on our roadmap, all designed with the same intention. Make it as easy as possible to outfit a diverse range of healthcare workforces and FIGs and create unparalleled value in that experience. Community Hubs also delivered record results with both strong comp store performance and new store contributions. Our in-store work remains focused on optimizing the assortment, going deeper in core colors and styles to serve the higher mix of new customers coming through the channel. Looking ahead, our team has signed four new leases for openings planned for later this year, including Fashion Square in Scottsdale, Tyson's Corner outside of Washington, D.C., Valley Fair near San Jose, and Aventura Mall in Miami, each leveraging strong local healthcare communities. Our team is already hard at work securing locations for 2027 and beyond, and we could not be more excited about where this channel is going. Before I hand it over to Sarah, I want to share one last but important point about what makes me feel so confident. In the past, I've spoken about what I believe to be the leading indicators that tell us where we are as a brand. Search, website traffic, social followers, and more. When these metrics inflected last year, we believed we were starting to turn the corner, and that's exactly what happened in the subsequent quarters with strong momentum across our business. And what's encouraging to me is that these leading indicators continue to grow, creating a fantastic pipeline for future engagement. And across the entire brand funnel, from awareness to consideration to preference, we are seeing year-to-date improvements. Our brand is increasingly cutting through at a time when many others in the industry are treading water. Ultimately, we believe we are positioned to expand our leadership position in the industry and change the game for healthcare professionals in ways that no one else can, just as we have been doing for the past 14 years. In the near term, we see this through our strong outlook on both top and bottom lines. And in the long term, we know we're just getting started as there's so much additional opportunity and so much impact we can still have across the healthcare community. With that, I will turn it over to Sarah to walk through our financial results and full year outlook.