Figs, Inc. (FIGS)
NYSEConsumer DiscretionaryApparel - ManufacturersSnapshot 2026-09-09
$13.26-3.07%
Close 2026-09-09 · 1-day change
NYSEConsumer DiscretionaryApparel - ManufacturersSnapshot 2026-09-09
Intact: The reason to own it still holds.
Figs aims for 14% to 16% revenue growth in 2026. Profit margin should expand to about 13%. The company has beaten earnings recently and is on track with growth targets. Free cash flow yield is low but positive, supporting stability.
The stock has sold off sharply, down 40% from its high. Profit margin expansion is uncertain with mixed progress. Valuation is high with a PE of 45, well above peers. Revenue growth may slow below targets amid sector headwinds.
The price is about 29% above our fair value near $8. Analysts expect roughly 12% revenue growth. Our view is more cautious on margin expansion and growth sustainability.
Breaks if: EBITDA margin falls below 11% in FY26
Breaks if: YoY revenue growth falls below 10% in FY26
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a durable compounder with a focus on growth and margin expansion. The current thesis is intact, supported by strong recent financial results and management's commitment to growth targets.
The market appears to have priced in a justified valuation, though FIGS is considered expensive compared to its peers. There is a low expectations gap, indicating that investors are not overly optimistic about future performance.
Management is on track to achieve approximately 20% net revenue growth and expand adjusted EBITDA margins to around 15% in 2026. However, there is an elevated risk due to potential sector headwinds and the possibility of guidance cuts.
The thesis hinges on FIGS maintaining its growth trajectory and successfully navigating sector challenges. Key factors include the performance of industry peers and broader economic conditions, such as inflation rates and consumer spending.
The most important moves since the prior daily snapshot.
Mixed, the news cuts both ways. The latest earnings beat supports the thesis. However, there are concerns about achieving 14% to 16% revenue growth in 2026. This uncertainty poses a threat to the overall outlook for the company.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Management aims for top-line growth of 14% to 16% for the fiscal year 2026.
Management plans for low double-digit net revenue growth and margin expansion in fiscal year 2026.
Breaks if: PE remains above 45 with slowing growth
Over the next 1 to 3 years, FIGS will need to sustain its growth and manage risks effectively to support its current valuation. Not investment advice.