FIGS, Inc. (FIGS): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of FIGS, Inc.'s business segments as of late 2025, and the BCG Matrix is the perfect tool to map their strategic priorities and cash flow generation. Honestly, the picture shows a classic high-growth play: the U.S. domestic scrubwear remains a massive 84% revenue Cash Cow with a 69.9% gross margin, funding ambitious Stars like the 12% growing international push and new fabric platforms pushing Average Order Value to $114. Still, you've got Dogs dragging down the average, like the non-scrub apparel that dipped 2.5%, while big bets like the B2B TEAMS segment and physical retail hubs remain unproven Question Marks needing capital. Dive in to see exactly where FIGS needs to invest, harvest, or cut bait to hit that moderate 7.0% full-year revenue growth outlook.

Background of FIGS, Inc. (FIGS)

You're looking at FIGS, Inc. (FIGS) as of late 2025, and the story right now is one of renewed momentum after a couple of tough years. FIGS, Inc. is a founder-led, direct-to-consumer healthcare apparel brand. Their whole mission is centered on improving the lives of healthcare professionals by creating technically advanced apparel and products that blend comfort, durability, function, and style. They definitely carved out a premium niche in the market.

Looking at the most recent numbers-the third quarter of 2025-the company showed its best growth in two years. Net Revenues hit $151.7 million, marking an 8.2% increase year over year. Because of this strong showing, FIGS management actually raised its full-year 2025 outlook, now expecting net revenue growth to land around 7.0% for the whole year. That's a solid pivot point for the business.

When you break down the customer base, active customers as of September 30, 2025, grew 4.0% from the prior year, reaching 2.8 million people. Plus, the average order value (AOV) is climbing; it was $114 in Q3 2025, which is 5.6% higher than the year before. This suggests you're getting more dollars per transaction, likely due to product mix and fewer sales, which is good for the bottom line.

Profitability is looking better, too. For Q3 2025, the net income margin came in at 5.8%, and the adjusted EBITDA margin hit 12.4%. Gross margin also improved to 69.9%, helped by lower freight expenses and less promotional selling. The core scrubwear segment brought in $127.0 million in Q3 revenue, up 8.4%, while non-scrubwear-things like outerwear, footwear, and loungewear-contributed $24.6 million, growing 7.2%.

Geographically, the U.S. business is still the biggest piece, but international markets are showing serious acceleration, growing 11.7% in the third quarter. Overall, as of September 30, 2025, the trailing 12-month revenue stood at $581M. Honestly, the focus on brand engagement and operational efficiency seems to be paying off, even with tariff headwinds they've mentioned.

FIGS, Inc. (FIGS) - BCG Matrix: Stars

You're looking at the engine room of FIGS, Inc.'s current growth story. Stars in the BCG Matrix are those business units or products operating in high-growth markets where the company holds a strong market share. They consume cash to fuel that growth but are essential for future Cash Cow status. For FIGS, Inc., the Star quadrant is defined by aggressive international penetration and the continued dominance of its core offering, both supported by product innovation that lifts transaction value.

The international segment is definitely showing the high-growth characteristics required for a Star. Management is clearly focused on capturing the vast majority of the global market, which is estimated to be comprised of approximately 80% of global healthcare professionals outside the U.S..

Here are the specific metrics defining this high-growth area as of the third quarter of 2025:

• International net revenues grew 11.7% year-over-year in Q3 2025.
• International net revenues for Q3 2025 reached $24.3 million.
• The company has expanded its reach to nearly 60 international markets.

The core scrubwear business, while operating in a more mature segment compared to pure international growth, still demonstrates strong market leadership and healthy growth, solidifying its high-market-share position. FIGS, Inc. remains the outsized leader in the scrubs market.

The performance snapshot for the core business in Q3 2025 looks like this:

Product innovation is the mechanism keeping the core offering relevant and driving up the value of each transaction. New fabric platforms, such as FormX and Float, alongside others like FINEX and FIBREX, are key to this strategy. This focus on premium product mix directly translates to better customer spending per order.

The impact of these product initiatives on customer spending is concrete:

• Average Order Value (AOV) settled at $114 in Q3 2025.
• This AOV represents a 5.6% increase year-over-year.
• Net revenues per active customer increased 2.0% year-over-year to $209.

To maintain this Star status, FIGS, Inc. needs continued investment to support both the high-growth international push and the product development pipeline that keeps the core scrubwear segment premium. Finance: draft the Q4 2025 capital allocation plan prioritizing international market entry costs by next Tuesday.

FIGS, Inc. (FIGS) - BCG Matrix: Cash Cows

The U.S. Domestic Scrubwear segment functions as the core Cash Cow for FIGS, Inc., representing the primary revenue driver with a significant market share in a mature category. For the third quarter of 2025, this segment generated net revenues of $127.0 million. Scrubwear net revenues accounted for 84% of the total Q3 2025 net revenue of $151.7 million. This high-share position is supported by a strong gross margin of 69.9% reported in Q3 2025.

The established brand equity, built through the Direct-to-Consumer (DTC) model, translates into predictable, high-margin sales from a substantial customer base. As of September 30, 2025, the active customer count stood at 2.8 million. This base supports a strong Average Order Value (AOV) of $114 in Q3 2025, which was an increase of 5.6% year over year.

FIGS, Inc. maintains a strong financial foundation, which is characteristic of a mature Cash Cow unit that generates more cash than it consumes to support other portfolio segments. The company reported a robust cash balance of $251.2 million in cash, cash equivalents, and short-term investments at the end of the first quarter of 2025. This liquidity supports ongoing operations and strategic investments elsewhere in the portfolio.

The low-growth profile expected of a Cash Cow is reflected in the mature domestic market performance. For the second quarter of 2025, U.S. net revenue growth was 3.7% year-over-year, which was $129.9 million for that period. This slower growth rate, compared to international expansion, fits the profile of a high-share, mature segment requiring maintenance investment rather than aggressive growth funding.

You can see the key metrics supporting the Cash Cow classification below:

The operational efficiency and cash generation capabilities are evident in these supporting figures:

• Net income margin for Q3 2025 was 5.8%.
• Adjusted EBITDA margin for Q3 2025 was 12.4%.
• U.S. Net Revenues for Q3 2025 were $127.3 million.
• Average Order Value (AOV) was $114 in Q3 2025.
• Operating expenses as a percentage of net revenues decreased to 63.6% in Q3 2025.

FIGS, Inc. (FIGS) - BCG Matrix: Dogs

You're analyzing the parts of FIGS, Inc. (FIGS) that aren't driving growth or capturing significant market share, the classic 'Dogs' in the Boston Consulting Group (BCG) Matrix. These are units that tie up capital without generating substantial returns, making divestiture or minimization a key strategic consideration.

Non-scrubwear Apparel

The non-scrubwear category consistently represents a small fraction of total net revenues, showing market share stagnation or decline in a low-growth environment relative to the core scrubwear business. In the first quarter of 2025, this segment generated $25.3 million, which was 3.8% higher year-over-year (YoY), representing about 20.25% of the total $124.9 million in Q1 revenue. However, this momentum reversed sharply in the second quarter. Non-scrubwear net revenues fell to $25.2 million, a YoY decline of 2.5%, even as total net revenues hit $152.6 million. To be fair, Q3 showed a rebound, with non-scrubwear growing 7.2% YoY to reach $24.6 million on total revenues of $151.7 million. This volatility confirms its low-growth, low-share status.

Here's the quick math on the segment's contribution:

Legacy Distribution Inefficiencies

Operational drag from infrastructure changes places these units firmly in the Dog quadrant, as they consume cash without providing commensurate efficiency gains yet. Specifically, the transition costs associated with the new fulfillment center were noted as a factor increasing operating expenses in prior periods. For instance, in Q1 2025, operating expenses were impacted by higher operational costs at the new fulfilment centre. While the company has shown success in reducing the overall operating expense rate-dropping to 60.5% of net revenues in Q2 2025 from 66.4% in Q2 2024-the lingering inefficiency suggests cash is still being trapped. The expectation for a return to 2023 cost levels is pushed out to the 2026 or 2027 timeframe, meaning this unit will likely remain a cash neutral or slightly negative contributor for the near term.

Key cost indicators related to operations:

• Q1 2025 Operating Expenses: $84.7 million (up 3.6% YoY).
• Q2 2025 Operating Expenses: $92.3 million (down 3.5% YoY).
• Q3 2025 Operating Expenses: $96.4 million (down 6.1% YoY).
• Q2 2024 Selling Expense Rate: 27.5% of net revenues (included majority of transition costs).

Certain Niche Accessories

Smaller, non-core product lines, such as certain niche accessories, fit the Dog profile because they require dedicated inventory management resources but contribute only marginally to the top line. As of the third quarter of 2025, FIGS, Inc.'s trailing twelve-month (TTM) revenue stood at $581 million. These accessories are part of the overall revenue base but do not command the market share or growth profile of the core scrubs. The inventory build-up across the business highlights the risk associated with managing these smaller lines. In Q3 2025, total inventory climbed 23% to $151.2 million, increasing dollar exposure to tariffs and potential excess-stock risk. These non-core SKUs are prime candidates for divestiture to free up working capital tied up in slow-moving or low-margin stock.

The financial context for these smaller lines:

• TTM Revenue (as of Q3 2025): $581 million.
• Total Inventory (as of Q3 2025): $151.2 million.
• Inventory Growth YoY (Q3 2025): 23%.

FIGS, Inc. (FIGS) - BCG Matrix: Question Marks

You're looking at the areas of FIGS, Inc. that are in high-growth markets but currently hold a low market share, meaning they demand significant cash investment without delivering proportional returns yet. These are the Question Marks that need quick market share gains to avoid becoming Dogs.

The overall Full-Year 2025 revenue target for FIGS is set at approximately 7.0% growth compared to 2024. This moderate overall growth rate is set against the backdrop of specific, high-potential initiatives that are consuming capital while they scale up their market penetration.

Here is a breakdown of the key Question Marks for FIGS as of late 2025:

• TEAMS Business (B2B) targeting the estimated 15% U.S. scrubs TAM.
• Physical Community Hubs (Retail) expansion in high-investment, unproven channels.
• New International Markets, specifically Japan and Korea, requiring upfront localization spend.

TEAMS Business (B2B) Strategy

The TEAMS program is the institutional sales push, aiming for a slice of the estimated 15% Total Addressable Market (TAM) within the U.S. scrubs sector. This segment requires building an outbound sales function and securing large, recurring contracts, which is a different operational muscle than the direct-to-consumer model that has historically driven FIGS. While the core U.S. business saw net revenues grow 8% year-over-year in the third quarter of 2025, the B2B segment is currently a low-share area that needs rapid investment to capture share before the market solidifies around incumbents.

Community Hubs (Retail) Channel Investment

FIGS is accelerating its physical retail footprint, which represents a high-investment, unproven channel relative to its established e-commerce base. In the fourth quarter of 2025, the company slated three new Community Hub openings in key metropolitan areas: New York City, Houston, and Chicago. The recent opening of a store on New York City's Upper East Side is part of this strategy to create deeper brand connections. While these hubs aim to drive a brand halo effect, the capital outlay for leases, build-outs, and staffing in high-traffic areas like New York City is substantial, making this a significant cash consumer until proven to deliver positive returns on investment.

New International Markets Bets

International expansion is a clear high-growth bet, but it requires significant upfront marketing and localization investment, fitting the Question Mark profile. In the first quarter of 2025, international net revenues grew 16.4% year-over-year to $18.9 million. By the second quarter of 2025, this growth accelerated to 19.8% year-over-year, with international sales reaching $22.7 million, which accounted for 15% of total Q2 2025 revenue. FIGS has rapidly expanded its international footprint, moving from 32 countries to nearly 60 planned markets by the end of 2025, including recent launches in Japan (Q2 2025) and planned entry into Korea in the second half of 2025. These markets are high-growth opportunities, but the required investment to localize and market is currently weighing on overall profitability metrics.

Cash Consumption and Growth Metrics

The high investment required across these new segments is reflected in the overall cash flow. For the nine months ended September 30, 2025, FIGS reported a negative Free Cash Flow of $5.1 million. This negative flow, despite Q3 2025 net revenues hitting $151.7 million (an 8% year-over-year increase), shows that the investments in B2B infrastructure, retail build-outs, and international scaling are currently cash-negative activities. The company maintained a balance sheet of $241.5 million in cash, cash equivalents, and short-term investments as of Q3 2025, providing the necessary liquidity to fund these Question Mark initiatives.

The performance of these segments relative to the total business is critical: