Healthcare apparel company Figs (NYSE: FIGS) reported revenue ahead of Wall Street’s expectations in Q1 CY2026, with sales up 28% year on year to $159.9 million. Its GAAP profit of $0.03 per share was $0.01 above analysts’ consensus estimates.

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Company Overview

Rising to fame via TikTok and founded in 2013 by Heather Hasson and Trina Spear, Figs (NYSE: FIGS) is a healthcare apparel company known for its stylish approach to medical attire and uniforms.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Over the last five years, Figs grew its sales at a 15.9% annual rate. Though this growth is acceptable on an absolute basis, we need to see more than just topline growth for the consumer discretionary sector, which can display significant earnings volatility. This means our bar for the sector is particularly high, reflecting the non-essential and hit-driven nature of the products and services offered. Additionally, five-year CAGR starts around Covid, when revenue was depressed then rebounded.

We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new product or trend. Figs’s recent performance shows its demand has slowed as its annualized revenue growth of 10.6% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

Figs also discloses its number of active customers, which reached 124,000 in the latest quarter. Over the last two years, Figs’s active customers averaged 15.1% year-on-year declines. Because this number is lower than its revenue growth during the same period, we can see the company’s monetization has risen.

This quarter, Figs reported robust year-on-year revenue growth of 28%, and its $159.9 million of revenue topped Wall Street estimates by 4.7%.

Looking ahead, sell-side analysts expect revenue to grow 7.8% over the next 12 months, a slight deceleration versus the last two years. This projection is underwhelming and implies its products and services will see some demand headwinds.

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Operating Margin

Figs’s operating margin has risen over the last 12 months and averaged 3.6% over the last two years. The company’s higher efficiency is a breath of fresh air, but its suboptimal cost structure means it still sports inadequate profitability for a consumer discretionary business.

This quarter, Figs generated an operating margin profit margin of 2.8%, up 3 percentage points year on year. This increase was a welcome development and shows it was more efficient.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sadly for Figs, its EPS declined by 9% annually over the last five years while its revenue grew by 15.9%. This tells us the company became less profitable on a per-share basis as it expanded.

In Q1, Figs reported EPS of $0.03, up from $0 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. We also like to analyze expected EPS growth based on Wall Street analysts’ consensus projections, but there is insufficient data.

Key Takeaways from Figs’s Q1 Results

It was good to see Figs beat analysts’ EPS expectations this quarter. We were also excited its EBITDA outperformed Wall Street’s estimates by a wide margin. Zooming out, we think this was a solid print. The market seemed to be hoping for more, and the stock traded down 15% to $13.07 immediately after reporting.

So should you invest in Figs right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).