FIGS, Inc. (FIGS): Business Model Canvas [Dec-2025 Updated]

You're looking at the financials of a company that successfully took medical apparel from a commodity to a premium lifestyle play, and honestly, the numbers back up the hype. I've seen a lot of Direct-to-Consumer (DTC) stories, but the way this team built a brand around the 'Awesome Human' while hitting a projected $640 million revenue for 2025 is smart business. What really caught my eye, given my background, is that they are maintaining a 69.9% gross margin in Q3 2025, supported by an $114 average order value from 2.8 million active customers. Dig into the canvas below to see exactly how their Key Activities and Value Propositions drive this premium pricing power.

FIGS, Inc. (FIGS) - Canvas Business Model: Key Partnerships

You're looking at the strategic alliances FIGS, Inc. is using to drive growth and manage costs as of late 2025. These relationships are key to moving beyond the direct-to-consumer (DTC) model.

Healthcare Institutions: Expanding the TEAMS business for B2B bulk orders

The B2B TEAMS business is a focus area, targeting a significant portion of the market. The Total Addressable Market (TAM) for this segment in the U.S. is estimated at 15%.

• The core business supports this with 2.8 million active customers as of September 30, 2025.
• Average Order Value (AOV) was $114 in Q3 2025.

Global Sourcing/Manufacturing: Strategic partners to manage supply chain and tariff headwinds

FIGS, Inc. is working to offset persistent tariff headwinds by deepening ties with its global manufacturing partners. The company has relationships spanning over a decade with these partners.

The impact of tariffs was visible in Q1 2025, where inventory surged 13% year-over-year to $131.5 million, partly due to stockpiling ahead of potential tariff disruptions.

The company is aiming for operational efficiency improvements at its new distribution center to return costs to 2023 levels by 2026 or 2027.

Team USA: Official outfitter for the Medical Team at the 2026 Winter Games

The partnership with Team USA is a major brand visibility play, cementing FIGS, Inc.'s position alongside major sportswear brands.

The limited-edition Team USA-inspired collection for the general public is scheduled for availability starting in January.

Philanthropic Organizations: Supporting global healthcare initiatives (e.g., Kenya Operating Theater)

The philanthropic arm focuses on providing product donations and infrastructure support to underserved healthcare professionals globally. The Awesome Humans Foundation is central to this effort.

• 2024 Donations: 325,000 units of FIGS donated via Threads for Threads.
• 2024 Financial Giving: $510,000 donated to non-profit organizations.
• Kenya Operating Theatre: Construction was finished in early 2024, improving healthcare for 500,000 people in the surrounding area.
• 2023 Giving: Almost $600,000 donated to 17 organizations.

The company collaborates with organizations like Project C.U.R.E. to deliver product donations to over 38 countries in 2024.

Finance: draft 13-week cash view by Friday.

FIGS, Inc. (FIGS) - Canvas Business Model: Key Activities

Direct-to-Consumer (DTC) E-commerce Operations and fulfillment is the primary engine for FIGS, Inc. This involves managing the entire digital customer journey, from the e-commerce platform to final delivery, which allows for control over the brand experience and data capture.

The operational performance in Q3 2025 shows the effectiveness of this model, with net revenues reaching $151.7 million. The core customer base is growing, with active customers reaching 2.8 million as of September 30, 2025, a 4.0% increase year-over-year. The company is successfully driving higher spend per transaction, as the Average Order Value (AOV) in Q3 2025 was $114, representing a 5.6% rise year-over-year. This focus on premium positioning is supported by a strong Gross Margin, which improved to 69.9% in Q3 2025, aided by reduced promotional sales. The core scrubwear category accounted for 84% of revenue in Q3 2025.

Proprietary Fabric R&D is central to the value proposition, moving the product beyond a commodity. This activity focuses on developing technical fabrics that justify the premium pricing. The success of this R&D is evidenced by the AOV growth of 5.6% to $114 in Q3 2025, showing customers are willing to pay more for quality and innovation like the FIONx fabric platform.

Brand Marketing centers on community building and lifestyle advocacy, turning apparel into a status symbol for healthcare professionals. The marketing expense as a percentage of revenue saw a significant reduction, dropping from 20.3% in Q3 2024 to 15.5% in Q3 2025. This efficiency supports the brand's service-oriented mission, demonstrated by the Threads for Threads initiative, which donated over 100,000 sets of scrubs globally in 2024.

International Expansion is a clear growth lever, with management noting that over 80% of global healthcare professionals are outside the U.S. The company is actively launching in new geographies, with plans for Japan in Q2 2025 and South Korea in the second half of 2025. International revenue growth was strong in recent quarters:

• - International Revenue Growth (Q3 2025): 11.7% year-over-year.
• - International Revenue Growth (Q2 2025): 19.8% year-over-year.
• - International Revenue Growth (Q1 2025): 16.4% year-over-year.

Institutional Sales efforts for the TEAMS business represent a strategic diversification from the DTC model. This segment targets the institutional market, which historically represents about 15% of the U.S. scrubs market. The company formalized this focus by hiring a dedicated leader in January 2025 and forming an outbound sales function to capture this B2B opportunity.

FIGS, Inc. (FIGS) - Canvas Business Model: Key Resources

You're looking at the core assets that make FIGS, Inc. run, the things they own or control that let them deliver their value proposition. Honestly, for a direct-to-consumer brand, these aren't just factories or inventory; they're often intangible, like brand recognition and data systems.

The intellectual property here is key. You see the proprietary fabric technology mentioned, and the search results point to their core scrub line being known for their FIONx fabric. That's the material science that underpins the comfort and durability promise. This kind of patented or unique material is a massive barrier to entry for competitors trying to replicate the feel of the product.

The customer base is definitely a prime resource. As of September 30, 2025, FIGS, Inc. reported having a loyal community of 2.8 million active customers. That's a significant pool of people who have already bought in, literally and figuratively, to the brand experience. This base is what drives the recurring revenue engine.

Financially, you want to see stability, and as of Q3 2025, FIGS, Inc. was holding $241.5 million in cash, cash equivalents, and short-term investments. That gives them flexibility to invest in growth or weather any near-term bumps, like the negative free cash flow of $5.1 million for the nine months ended September 30, 2025, which was mostly tied up in inventory increases.

Their digital platform is the delivery mechanism for everything. It's the scalable e-commerce infrastructure that handles the direct-to-consumer sales, plus the data analytics engine that understands what those 2.8 million customers want next. This digital-first approach is what allows them to maintain premium margins.

Speaking of premium, the brand equity is evident in their pricing power. They are recognized as a premium, category-defining healthcare apparel brand, and you see that reflected in the Q3 2025 gross margin of 69.9%. That margin is what you'd expect from a luxury brand, not a uniform supplier. It shows the emotional connection they've built.

Here's a quick look at how the customer metrics stack up as of that Q3 2025 snapshot, showing the value derived from that active customer base:

You can see the AOV and Net Revenues per customer are both ticking up, which is a great sign that the existing customer base is spending more per transaction. It's defintely a sign of strong brand loyalty and successful product mix management. Finance: draft 13-week cash view by Friday.

FIGS, Inc. (FIGS) - Canvas Business Model: Value Propositions

You're looking at the core reason why FIGS, Inc. commands a premium in the healthcare apparel space. It's not just about selling scrubs; it's about delivering a specific, high-value experience to the healthcare professional.

The primary offering is Technical Apparel, which is an unmatched combination of comfort, function, and style. This focus on product engineering is what allows the company to maintain its premium pricing structure. For instance, the core scrubwear segment generated net revenues of $127.0 million in the third quarter of 2025, showing the strength of the core product line.

This technical focus directly supports the brand's identity as a Lifestyle Brand, elevating the professional identity of the 'Awesome Human.' FIGS built a community around this concept, which is reflected in its customer base metrics as of September 30, 2025. The company served 2.8 million active customers. This brand resonance is what drives customer willingness to pay more for the product.

The result of this differentiated offering is evident in the financial performance, which speaks directly to the Premium Quality proposition. This quality supports a high Q3 2025 Gross Margin of 69.9%. This margin performance came despite tariff headwinds, showing pricing power and operational efficiency in the supply chain. Also, the company achieved a net income of $8.7 million in that same quarter, a significant turnaround from the prior year's loss.

This willingness to pay a premium is further quantified by the Defintely High Average Order Value (AOV). In Q3 2025, the AOV stood at $114, which was an increase of 5.6% year-over-year. Here's a quick look at the key operational metrics that underpin this value exchange for the third quarter of 2025:

The value proposition is also supported by the brand's ability to grow its customer base while simultaneously increasing the spend per transaction. You can see this in the growth across segments:

• Non-scrubwear net revenues reached $24.6 million in Q3 2025.
• International net revenues grew to $24.3 million, an 11.7% increase year-over-year.
• The company's net income margin for the quarter was 5.8%.

Finance: draft 13-week cash view by Friday.

FIGS, Inc. (FIGS) - Canvas Business Model: Customer Relationships

You're looking at how FIGS, Inc. builds and keeps its customer base in late 2025. The strategy centers on deep connection rather than just transactions.

Community-Driven: Cultivating deep, emotional connections with healthcare workers

FIGS, Inc. focuses on celebrating and empowering its core segment, which is reflected in its growing user base. As of September 30, 2025, the company reported 2.8 million active customers. This represents a 4.0% year-over-year increase from the 2.67 million active customers reported in Q3 2024. The brand's mission to serve those who serve others underpins this connection.

Direct-to-Consumer (DTC): Personalized, high-touch digital engagement

The business model is heavily reliant on its direct channel, with 97% of sales driven through DTC. This direct relationship allows for focused digital engagement and personalization. The Average Order Value (AOV) in the third quarter of 2025 reached $114, a 5.6% increase year-over-year. This suggests customers are engaging more deeply with the product ecosystem.

The value derived from each customer is tracked closely:

• Net revenues per active customer as of September 30, 2025, stood at $209.
• This figure represented a 2.0% increase year-over-year.
• In the preceding quarter (Q2 2025), Net revenues per active customer was $208.

Here's a quick look at the key operating metrics as of the end of Q3 2025:

Ambassador Program: Leveraging influential healthcare professionals for organic reach

FIGS, Inc. maintains a grassroots approach by collaborating with approximately 250 healthcare professionals in its ambassador program. This strategy has historically been effective in reducing acquisition costs; for instance, one channel analysis showed a Customer Acquisition Cost (CAC) of $39 leading to a Return on Advertising Spend (ROAS) of 2.9, following a 61% reduction in CAC attributed to this type of authentic partnership. The focus remains on real professionals building authentic communities.

High Retention: Focus on repeat purchases from existing customers

The growth in net revenue per active customer and AOV points to strong repeat business. In one marketing channel review, about 50% of customers made a repeat purchase, generating significant incremental revenue from that cohort alone. The increase in Net Revenues per Active Customer to $209 in Q3 2025 shows existing customers are continuing to spend more with FIGS, Inc. This stickiness reduces reliance on constant new customer acquisition.

FIGS, Inc. (FIGS) - Canvas Business Model: Channels

You're looking at how FIGS, Inc. gets its technically advanced apparel into the hands of healthcare professionals, and it's almost entirely a digital-first operation, though they are actively building out physical and institutional touchpoints.

Primary E-commerce Platform: Direct sales via website and mobile app

This is the engine room for FIGS, Inc. The vast majority of sales flow through the direct-to-consumer (DTC) digital channels. As of the third quarter of 2025, the Company served 2.8 million active customers.

The Average Order Value (AOV) for this channel was $114 in Q3 2025, showing customers are buying premium-priced items in a single transaction.

Here is the revenue breakdown based on the latest reported quarter:

Institutional Sales Channel: Direct sales to hospitals and large groups (TEAMS)

The TEAMS platform is the dedicated business-to-business (B2B) effort targeting hospitals, medical offices, and concierge clinics. This represents a significant, though still developing, channel. Historically, this segment accounts for approximately 15% of the total U.S. scrubs industry revenue pool, indicating substantial headroom for growth.

The Company hired a dedicated leader for this initiative in January 2025 and is actively building out an outbound sales function to capture this institutional demand.

Community Hubs: Select physical retail locations for brand presence and acquisition

FIGS, Inc. uses select physical locations to address the customer need to physically interact with the product before buying. Research indicates that over 60% of non-FIGS customers express a desire to try products first.

As of late 2025, the Company has two existing Community Hubs (in Los Angeles and Philadelphia). They planned to open three additional locations in the fourth quarter of 2025 in key metropolitan areas:

• - Houston
• - New York City
• - Chicago

International E-commerce: Direct shipping to over 34 countries globally

International sales are a key growth driver, showing strong momentum with an 11.7% year-over-year increase in Q3 2025.

The Company has aggressively expanded its global footprint, growing from 33 markets to nearly 60 markets by the end of 2025.

International Net Revenues for recent quarters show this acceleration:

• - Q3 2025: $24.3 million
• - Q2 2025: $22.7 million
• - Q1 2025: $18.9 million

Finance: draft 13-week cash view by Friday.

FIGS, Inc. (FIGS) - Canvas Business Model: Customer Segments

You're looking at the core of the FIGS, Inc. (FIGS) operation as of late 2025. The customer segments are quite focused, which is key to their middle-luxury positioning in the healthcare apparel space. Honestly, their success hinges on serving this specific professional group exceptionally well.

The primary customer base is the individual healthcare professional, which is a direct-to-consumer (B2C) play. This group is defined by their need for durable, professional, and stylish gear. In the third quarter of 2025, FIGS reported having 2.8 million active customers. The core of their business remains the scrubwear segment, which brought in $127.0 million in net revenues for Q3 2025, making up 84% of the total $151.7 million in net revenues for the quarter. This is where you find the nurses, doctors, and allied health workers.

Here's a quick look at how the revenue broke down by product type for that quarter:

The B2B side, serving Healthcare Institutions like hospitals and large medical networks, is a distinct segment, primarily targeted through their TEAMS program. While the search results don't give a specific revenue percentage for this segment for Q3 2025, it's a strategic focus area meant to diversify revenue away from the purely direct-to-consumer model. If onboarding takes 14+ days, churn risk rises, so the efficiency of the TEAMS program is defintely critical here.

The International Professionals segment is a clear growth vector. This segment is currently 16% of Q3 2025 net revenue, coming in at $24.3 million in international net revenues for the quarter, which was up 12% year-over-year. Management noted that over 80% of global healthcare professionals are outside the U.S., so this 16% figure shows significant headroom for expansion, with plans to jump from 33 countries to nearly 60 by the end of the year.

Finally, you have the Veterinary Professionals. This is explicitly called out as a niche segment. You won't see large, dedicated revenue figures yet, but it's being targeted through specific partnerships. This is a classic example of a company leveraging its core brand strength into adjacent, high-trust professional markets.

You can see the key metrics that tie these customers to the financials:

• Active customers as of September 30, 2025: 2.8 million.
• Average Order Value (AOV) in Q3 2025: $114.
• Net revenues per active customer in Q3 2025: $209.

Finance: draft 13-week cash view by Friday.

FIGS, Inc. (FIGS) - Canvas Business Model: Cost Structure

The Cost Structure for FIGS, Inc. (FIGS) is heavily influenced by the premium nature of its products and the direct-to-consumer fulfillment model, though Q3 2025 showed improved efficiency.

Cost of Goods Sold (COGS): High material and manufacturing costs due to premium fabrics. For the third quarter of 2025, Cost of Goods Sold was reported as $45,593 thousand. This COGS supported a Gross Margin of 69.9% in Q3 2025.

Operating Expenses: Q3 2025 OpEx was $96.4 million, representing a decrease of 6.1% year over year. As a percentage of net revenues, operating expenses decreased to 63.6% from 73.2% in the same period last year.

The breakdown of Operating Expenses for Q3 2025 shows shifts in spending focus:

The reduction in the overall OpEx rate was due to lower fulfillment expenses and lower stock-based compensation expense.

Logistics and Tariffs: Significant costs from global shipping and trade duties remain a factor. The Q3 2025 Gross Margin improvement was partially offset by higher tariffs. Management estimated an unmitigated annualized tariff impact of roughly 440 bps. Conversely, lower duty rates and reduced freight expenses contributed positively to the Q3 gross margin.

Brand Marketing: Investment in digital and community-focused campaigns is reflected in the Marketing Expense line item. For Q3 2025, Marketing expense was $23.5 million. This represented 15.5% of net revenues, a notable drop from 20.3% in Q3 2024. This reduction primarily reflected lapping last year's strategic investment related to the Olympic Games campaign and efficiency in spend.

You can see the cost components shifted significantly year-over-year.

FIGS, Inc. (FIGS) - Canvas Business Model: Revenue Streams

You're looking at how FIGS, Inc. brings in the money, and as of late 2025, the story is about solidifying the core while pushing institutional growth. Total net revenues for the third quarter of 2025 hit $151.7 million, showing growth, which is a good sign. This revenue base is supported by 2.8 million active customers as of September 30, 2025. The company is defintely seeing success in getting more value from each transaction, which helps the top line.

Here's the quick math on how that $151.7 million broke down in Q3 2025, following the structure you outlined:

• - Scrubwear Sales: Core revenue driver, $127.0 million in Q3 2025.
• - Non-scrubwear Sales: Outerwear, footwear, and accessories, $24.6 million in Q3 2025.
• - Institutional/TEAMS Revenue: Recurring revenue from organizational contracts; FIGS is actively scaling this TEAMS platform, targeting an industry segment that historically accounts for approximately 15% of the U.S. scrubs industry.
• - Premium Pricing: Revenue supported by a high Average Order Value of $114 in Q3 2025.

To give you a clearer picture of the Q3 2025 performance underpinning these streams, look at these key financial metrics:

The growth in AOV to $114, up from prior periods, is a key lever, driven by higher average unit retail and a better mix of full-priced sales. Also, note that International net revenues grew by 11.7% year-over-year in the quarter, showing that the direct-to-consumer model is gaining traction outside the U.S. as well. The company's focus on product innovation, like new fabrics, is intended to support this premium pricing power and keep the AOV strong going forward.