What Happened?
Shares of healthcare apparel company Figs (NYSE: FIGS) jumped 28.5% in the afternoon session after the healthcare apparel company reported second-quarter 2026 results that beat Wall Street on both revenue and adjusted earnings. FIGS is converting more customers into bigger baskets: active customers rose 13% to 3.1 million, average order value climbed to $127, and adjusted EPS of $0.11 cleared the $0.07 consensus as margins expanded sharply. Management tied the $196.6 million revenue print (+28.8% year over year, roughly $10.5 million above estimates) to higher order volume and pricing/mix that lifted AOV about 8.5%. That top-line strength flowed through to profitability: operating margin widened to 17.9% from 6.5% a year earlier, helped by gross-margin gains from pricing, efficiency, and tariff-related items. Cash generation also improved, with free cash flow swinging positive versus a cash burn a year ago. Looking ahead, FIGS is targeting roughly 20% full-year 2026 net revenue growth and mid-teens adjusted EBITDA margins, and the board raised its buyback authorization—signals that management sees the rebound as durable enough to return cash. Street models that had been skeptical of FIGS’ ability to grow and expand margins at the same time are likely to revise higher after a third straight quarter of accelerating adjusted profitability.
The shares closed the day at $14.25, up 26.6% from the previous close.
Is now the time to buy Figs? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Figs’s shares are extremely volatile and have had 31 moves greater than 5% over the last year. But moves this big are rare even for Figs and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 3 months ago when the stock dropped 26.1% on the news that its first-quarter earnings report, despite beating Wall Street expectations, failed to impress investors. Figs announced strong headline results, with revenue growing 28% year-over-year to $159.9 million and a profit of $0.03 per share. Both figures surpassed analysts' forecasts, which had anticipated revenue of $152.8 million and earnings of $0.02 per share. However, a closer look at the report revealed several areas of concern that likely spooked the market. The company burned through $5.63 million in cash, a significant reversal from a positive free cash flow of $7.93 million in the same quarter last year. Furthermore, the number of active customers continued to disappoint, and analysts expect revenue growth to decelerate over the next 12 months. These underlying weaknesses overshadowed the top-line beat, prompting a significant sell-off.
Figs is up 25.2% since the beginning of the year, but at $14.26 per share, it is still trading 16.7% below its 52-week high of $17.12 from March 2026. Despite the year-to-date gain, investors who bought $1,000 worth of Figs’s shares 5 years ago would now be looking at only $356.32.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
