FIGS (FIGS) closed out FY 2025 with Q4 revenue of US$201.9 million and basic EPS of US$0.11, while trailing twelve month EPS sat at US$0.21 on US$631.1 million of revenue. This came alongside a very large year over year earnings increase and a trailing net profit margin of 5.4% versus 0.5% a year earlier. The company has seen quarterly revenue move from US$151.8 million and EPS of US$0.01 in Q4 2024 to US$201.9 million and EPS of US$0.11 in Q4 2025, putting improving profitability front and center in how investors are likely to read this latest update.

See our full analysis for FIGS.

With the numbers on the table, the next step is to see how this earnings profile lines up against the widely followed narratives around FIGS, and where the data pushes back on those stories.

Margins Climb to 5.4% on TTM Basis

• On a trailing twelve month view, FIGS earned US$34.3 million of net income on US$631.1 million of revenue, which works out to a 5.4% net margin compared with 0.5% a year earlier in the dataset.
• What bullish investors highlight is that this very large earnings improvement over the last 12 months, alongside a margin at 5.4%, lines up with their view that cost controls and logistics efficiencies can support stronger profitability, even though the longer five year trend in the data shows earnings declining at an annualized rate of 7.6% and keeps the recent jump from being a simple straight line story.
  • Bulls point to trailing EPS of US$0.21 and Q4 FY 2025 EPS of about US$0.11 as evidence that earnings power is now closer to their projections for higher margins over time.
  • At the same time, the five year earnings decline in the dataset is a direct reminder that recent margin strength is still relatively new, which is exactly where more cautious investors say execution over the next few years matters most.

Very strong margin gains alongside a mixed longer term earnings record are exactly what bulls and skeptics are debating right now, and you can see how the optimistic side joins the dots in the 🐂 FIGS Bull Case

Premium 75.1x P/E Versus Peers

• FIGS is trading on a trailing P/E of 75.1x compared with a peer average of 14.2x and a US Luxury industry average of 21x, while the current share price of US$15.45 sits above a DCF fair value estimate of about US$7.96 in the dataset.
• Bears focus on this valuation gap and argue that even with strong recent EPS, a multiple more than 3x the industry level, combined with a DCF fair value materially below US$15.45, leaves little room for disappointment if earnings or cash flows track closer to the five year trend of 7.6% annual earnings decline than to the recent 12 month rebound.
  • Critics point out that the data already show a very large 12 month earnings jump of over 1,000%, yet the DCF fair value of about US$7.96 still sits well under the market price, which anchors their concern about overpaying.
  • They also note that while analysts in the dataset expect earnings to grow faster than revenue, with revenue projected at 7.8% per year, the combination of slower top line growth and a high P/E is exactly what can pressure returns if profit outcomes fall short.

If you want to see why some investors lean into this cautious angle, the detailed bear case walks through how they read these valuation and growth trade offs in the 🐻 FIGS Bear Case

Quarterly EPS Swings Versus Longer Trend

• Across FY 2025, quarterly basic EPS moved from roughly breakeven in Q1 (US$0.00) to US$0.04 in Q2, US$0.05 in Q3 and US$0.11 in Q4, while trailing twelve month EPS in the dataset rose from US$0.02 at Q4 FY 2024 to US$0.21 by Q4 FY 2025.
• Analysts’ consensus narrative in the data leans on this pattern of improving quarterly EPS and trailing EPS when arguing that better cost discipline and higher margin digital sales can support earnings growth, yet the same dataset also records a 7.6% annualized decline in earnings over five years, which leaves room for investors to question how durable the recent run rate is.
  • Supporters of the consensus view point to the sequence from a small Q4 FY 2024 profit of US$1.9 million to Q4 FY 2025 net income of US$18.5 million as evidence that margin initiatives are feeding through to the bottom line.
  • Others look at the longer horizon in the data and see that strong single year gains can sit alongside a weaker multi year trend, which is why they pay close attention to whether the next few years of revenue near US$631.1 million and beyond actually

    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.

    After all this, are you feeling optimistic or cautious about how the story fits together? Take a moment to review the full set of positives for yourself, starting with 2 key rewards.

    See What Else Is Out There

    For all the recent margin gains, FIGS still carries a very high 75.1x P/E against peers and a DCF value in the data below its share price.

    If that rich P/E and valuation gap make you uneasy about overpaying for growth, use 47 high quality undervalued stocks to quickly focus on companies where the price tag looks more reasonable against their fundamentals.

    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.