FIGS (FIGS) closed out FY 2025 with Q4 revenue of US$201.9 million and basic EPS of US$0.11, alongside trailing 12 month revenue of US$631.1 million and EPS of US$0.21 that has been described as posting a very large year on year gain. The company has seen quarterly revenue move from US$140.2 million in Q3 2024 to US$201.9 million in Q4 2025, while basic EPS shifted from a loss of US$0.01 in Q3 2024 to US$0.11 in the latest quarter. This has set up a story where forecast earnings growth of about 23.1% a year and a higher trailing net profit margin put profitability quality in clear focus for investors.
See our full analysis for FIGS.With the headline numbers on the table, the next step is to pit these results against the most widely held narratives about FIGS to see which storylines the latest earnings support and which they start to challenge.
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5.4% Net Margin Puts Profit Quality Back in Focus
- On a trailing 12 month basis, FIGS earned US$34.3 million of net income on US$631.1 million of revenue, which works out to a 5.4% net profit margin compared with 0.5% a year earlier.
- What stands out for the bullish narrative is that this margin outcome sits alongside a very large EPS gain over the last year and forecast earnings growth of about 23.1% a year, yet:
- Trailing EPS moved to US$0.21 and TTM net income reached US$34.3 million, which supports the bullish view that cost discipline and operating efficiency are feeding through to the bottom line.
- At the same time, revenue growth is described at 8.5% a year, which is slower than the 11.4% forecast for the wider US market, so bulls are leaning heavily on margin strength rather than top line outperformance.
Bulls point to this step up in profitability as evidence the business model can support higher earnings over time even without very fast revenue growth. However, you should weigh whether a 5.4% margin is enough to back those expectations over the long run.🐂 FIGS Bull Case
Valuation Premium vs 75x P/E and DCF Fair Value
- FIGS is reported trading on a P/E of about 75x, above a peer average of 56.3x and the US Luxury industry at 21.8x, while the current share price of US$15.37 also sits above a DCF fair value of roughly US$8.54.
- Bears highlight this valuation gap as a key concern, and the current numbers give them material backing:
- With the stock above both peer and industry P/E levels, investors are paying more for each dollar of FIGS earnings than for many comparable companies even though revenue growth is only 8.5% a year and below the US market forecast of 11.4%.
- The share price sitting well above the DCF fair value and recent share price volatility higher than the US market fit the bearish view that expectations are demanding and that the stock may be more sensitive to any earnings disappointment.
For a beginner investor, this means you are not just judging the quality of the recent results; you are also deciding whether paying a premium P/E and a price above the DCF fair value makes sense for your risk tolerance.🐻 FIGS Bear Case
Quarterly EPS Swing Underpins Very Large TTM Earnings Rebound
- Within FY 2025, basic EPS moved from roughly breakeven in Q1 (a US$0.00 loss per share) to US$0.04 in Q2, US$0.05 in Q3, and US$0.11 in Q4, while trailing 12 month EPS over the year rose to US$0.21 alongside what is described as a very large year on year EPS increase of about 1,159%.
- Consensus narrative talks about sustained earnings growth supported by cost control and international expansion, and the recent pattern gives some support but also adds context:
- The shift from slightly negative net income of US$0.1 million in Q1 2025 to US$18.5 million in Q4 2025, and from US$2.7 million TTM net income a year ago to US$34.3 million now, aligns with the idea that profitability has moved to a different level.
- At the same time, the five year trend in the analysis still points to earnings declining around 7.6% a year over that longer period, so anyone relying on the consensus view needs to recognise that the recent rebound is set against a weaker multi year history.
Next Steps
To see how these results tie into long-term growth, risks, and valuation, check out the full range of community narratives for FIGS on Simply Wall St. Add the company to your watchlist or portfolio so you'll be alerted when the story evolves.
With both risks and rewards on the table, it is worth taking a closer look at the figures yourself and deciding how this balance fits your own approach. To see how others are weighing these trade offs and sharpen your view, check out the 2 key rewards and 1 important warning sign
See What Else Is Out There
FIGS combines a 5.4% net margin with relatively modest 8.5% revenue growth and a roughly 75x P/E, which leaves investors paying a clear valuation premium.
If paying up for a premium multiple on slower growth feels uncomfortable, you can quickly compare alternatives using the 51 high quality undervalued stocks and look for stocks where expectations and price feel more balanced.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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