Is FIGS a Buy or a Sell? The Bull and Bear Case (2026)
Last updated July 2026
Short answer
Both cases are real, which is why the question is contested. The bull case for FIGS (FIGS) rests on Reaccelerating core scrubwear and repeat demand: FIGS' foundation is a loyal, growing base of clinicians who reorder scrubs and add adjacent products over time. The bear case rests on the central risk is that FIGS sells discretionary apparel in a competitive category. Analysts covering it publish targets from $14.00 to $22.00 against a $10.50 price, so even the professionals disagree by 45% of their own average. We do not give a verdict. What follows is each case at full strength, so you can decide which set of assumptions you actually believe. Walnut is not an investment adviser.
FIGS, Inc. is a healthcare apparel company that designs and sells premium medical scrubs and related products directly to healthcare professionals, mostly through its own website and app. The core product is scrubwear (tops and pants engineered for comfort, fit, and durability), supplemented by lab coats, underscrubs, outerwear, activewear, footwear, and accessories. FIGS built its business as a digitally native, direct-to-consumer brand: it markets to individual clinicians, cultivates repeat purchases and community, and captures the full retail margin by skipping traditional uniform-shop middlemen. That model let it take meaningful share of the branded scrub market and lead the premium, direct-to-consumer segment in the United States, while expanding internationally. The mid-2026 investment picture is one of reacceleration and improving profitability. Full-year 2025 net revenues grew about 13.6% to roughly $631 million, with scrubwear and international both growing double digits and net income improving to around $34 million. Growth accelerated sharply into late 2025 and 2026: Q4 2025 revenue rose about 33% year over year, Q1 2026 rose about 28% to roughly $160 million, and the company surpassed three million active customers for the first time. FIGS has also leaned into an institutional B2B channel (its TEAMS platform) that sells directly to hospitals and health systems, broadening beyond the individual-clinician model. For 2026 the company has guided to roughly 10% to 12% revenue growth, signaling continued expansion off a larger base.
The bull case: what would have to be true for $22.00
The most optimistic published target on FIGS is $22.00, +109.5% from the $10.50 price as of July 2026. Getting there needs the following to work close to its best case, not merely to avoid going wrong.
1. Reaccelerating core scrubwear and repeat demand
FIGS' foundation is a loyal, growing base of clinicians who reorder scrubs and add adjacent products over time. After a slower stretch, revenue growth reaccelerated meaningfully into late 2025 and 2026, and the company crossed three million active customers. Because scrubs are a work uniform worn daily and replaced regularly, a strong brand can convert first purchases into a durable, repeat-revenue relationship, which is the heart of the bull case.
2. Institutional B2B (TEAMS) channel
FIGS has expanded beyond selling to individual professionals toward selling directly to hospitals and health systems through its institutional TEAMS platform. Large healthcare employers buying branded apparel in volume could open a bigger, stickier addressable market than one-off consumer orders. Success here would diversify revenue away from pure direct-to-consumer demand and give FIGS a foothold in the traditional uniform-contract channel it originally disrupted.
3. International and product-line expansion
International revenue has been growing faster than the overall business, giving FIGS a long runway outside the United States where the premium-scrub category is less developed. The company also keeps widening its product range beyond core scrubs into lab coats, underscrubs, outerwear, footwear, and lifestyle items, raising the potential spend per customer. Both levers let FIGS grow without relying solely on adding new domestic clinicians.
4. Brand strength and margin profile
FIGS commands premium pricing and full retail margins because it sells its own brand directly rather than through wholesalers. That supports gross margins well above commodity uniform makers and, as the business scales, improving net margins (net income margin expanded notably in 2025). A strong, community-driven brand is a genuine moat in apparel, and disciplined marketing spend against loyal repeat buyers is what can turn top-line growth into rising profit.
The bear case: what would have to be true for $14.00
The most pessimistic published target is $14.00, +33.3% from the current price. That is not a floor and not a forecast; it is roughly what one analyst thinks FIGS is worth if the risks below bite instead of the drivers above.
The central risk is that FIGS sells discretionary apparel in a competitive category. Scrubs face price competition from legacy uniform makers and a growing field of premium and value direct-to-consumer challengers, so market share and pricing power are never guaranteed. As a small-cap consumer stock, FIGS is sensitive to swings in discretionary spending, promotional intensity, freight and input costs, and inventory management, any of which can pressure margins. Growth has been uneven historically, so the recent reacceleration must prove durable rather than a one-off. The newer institutional (TEAMS) channel is still unproven at scale and carries different economics and sales cycles than direct-to-consumer. Founder-led governance and a dual-class-style ownership structure can concentrate control, and the stock has been volatile, trading well off its post-IPO highs. Any slowdown back toward low-single-digit growth would challenge the premium the market assigns a growth brand.
The bear case deserves the same attention as the bull case, and usually gets less. If you are holding FIGS already, the question is not whether these risks exist but whether any of them has moved from possible to actually happening in the reported numbers.
Where analysts land on FIGS
8 analysts cover FIGS, with an average target of $17.62 (+67.8% against $10.50) and a split of 5 buy, 4 hold, 0 sell. Bear in mind sell-side ratings skew positive across the whole market, so that split is not a balanced vote. The full target table, the recent rating actions by firm, and how the consensus has shifted are on the FIGS forecast and price target page.
How is FIGS valued? (as of Jul 2026)
Snapshot for FIGS as of July 2026, sourced from Yahoo Finance and may be delayed. Valuation figures move with price and earnings; verify the current numbers with your broker before deciding.
- Revenue trend: Reaccelerating: FY2025 net revenues ~$631M (up ~13.6%), with Q4 2025 up ~33% and Q1 2026 up ~28% to ~$160M year over year
- Profitability: Profitable and improving: FY2025 net income ~$34M with net margin ~5.4%; Q4 2025 net margin expanded to ~9%. Gross margins are high for apparel given the direct-to-consumer, own-brand model
- Growth guidance: Company guided full-year 2026 net revenue growth of roughly 10% to 12% versus 2025
- Balance sheet / leverage: Generally described as a cash-generative, low-debt balance sheet typical of an asset-light apparel brand; verify current cash and any debt live
- Valuation: Trades as a small-cap growth consumer name; multiples reflect growth-reacceleration expectations rather than a value profile. Verify current market cap and earnings multiples live
- Analyst sentiment: Estimates rose over 2025-2026 as growth reaccelerated; sentiment is mixed between growth optimists and skeptics on durability and competition
These figures are approximate and tied to the asOf date; verify live numbers before acting. FIGS is a small-cap consumer growth stock, so its valuation hinges on whether the recent reacceleration and the institutional channel prove durable rather than on any single quarter. Treat revenue-growth and margin trends as the key signals, and confirm the latest quarterly results and full-year guidance directly.
How do you decide if FIGS is a buy?
Rather than asking whether FIGS is a buy in the abstract, it tends to help to answer four questions:
- Thesis: do you believe the bull case above, and is it still true today?
- Time horizon: a single stock can be volatile, so a longer horizon absorbs more of the swings.
- Position sizing: a thesis can be right and the sizing still wrong; decide how much of your portfolio one name should be.
- Overlap: check whether you already hold FIGS indirectly through an index or sector ETF before adding more.
What would change your mind on FIGS
Write the tripwires down before you need them. Deciding what would falsify your view is far harder once a position is moving against you.
- Bull case breaks if: Reaccelerating core scrubwear and repeat demand stalls in the reported numbers rather than in the narrative around them.
- Bear case breaks if: the central risk is that FIGS sells discretionary apparel in a competitive category fails to materialise over several reporting periods while the drivers keep compounding.
- Neither matters if: the position has grown large enough that being wrong would damage the whole portfolio. Sizing overrides the argument.
For the full picture, see the FIGS stock guide (what the company does, the ETFs that hold it, similar stocks, and the themes it fits). In Walnut you can ask its AI about FIGS against your real portfolio and see your actual exposure before deciding.
Investing in FIGS with AI
Connect the broker you already use and ask Walnut's AI how FIGS fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
Is FIGS a good stock to buy right now?
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That depends on which case you find more convincing, and both are on this page. The bull case rests on Reaccelerating core scrubwear and repeat demand, with revenue trend at Reaccelerating: FY2025 net revenues ~$631M (up ~13.6%), with Q4 2025 up ~33% and Q1 2026 up ~28% to ~$160M year over year. The bear case rests on the central risk is that FIGS sells discretionary apparel in a competitive category. Analysts covering it are spread from $14.00 to $22.00, which is itself a signal that this is genuinely contested. If you believe the thesis, the real questions become sizing and overlap rather than timing. Walnut is not an investment adviser and this is not a recommendation.
Should I sell FIGS?
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Nobody can answer that for you, and the honest version of the question is narrower: has anything changed in the reason you bought it? The bear case on this page is the place to check. The central risk is that FIGS sells discretionary apparel in a competitive category. If that risk is what you were worried about and it is now playing out, that is a real signal. If the price simply fell while the thesis held, that is a different situation entirely. The most pessimistic published target is $14.00, +33.3% from the $10.50 price, which is one analyst's downside case rather than a floor. Walnut is not an investment adviser.
What is the bull case for FIGS?
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Reaccelerating core scrubwear and repeat demand. FIGS' foundation is a loyal, growing base of clinicians who reorder scrubs and add adjacent products over time. The most optimistic analyst target on FIGS is $22.00, +109.5% from the $10.50 price. That figure is only reachable if this thesis works close to its best case.
What is the bear case for FIGS?
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The central risk is that FIGS sells discretionary apparel in a competitive category. Scrubs face price competition from legacy uniform makers and a growing field of premium and value direct-to-consumer challengers, so market share and pricing power are never guaranteed. As a small-cap consumer stock, FIGS is sensitive to swings in discretionary spending, promotional intensity, freight and input costs, and inventory management, any of which can pressure margins. Growth has been uneven historically, so the recent reacceleration must prove durable rather than a one-off. The newer institutional (TEAMS) channel is still unproven at scale and carries different economics and sales cycles than direct-to-consumer. Founder-led governance and a dual-class-style ownership structure can concentrate control, and the stock has been volatile, trading well off its post-IPO highs. Any slowdown back toward low-single-digit growth would challenge the premium the market assigns a growth brand. The most pessimistic published target is $14.00, +33.3% from the current price, which is roughly what the stock is worth if these risks bite rather than the drivers.
What does FIGS do?
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FIGS, Inc.
What would have to change for FIGS to stop being worth holding?
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Decide that in advance, because it is far harder to think clearly once a position is moving against you. The concrete tripwires here: the driver behind the bull case (Reaccelerating core scrubwear and repeat demand) stalling in the reported numbers rather than in the narrative, the risk above (the central risk is that FIGS sells discretionary apparel in a competitive category) turning from a possibility into a reported fact, or the position growing large enough that a bad outcome would matter to your whole portfolio regardless of who is right.
Is FIGS a good stock to buy right now?
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That depends on your goals, time horizon, and risk tolerance, and this is not investment advice. The bull case is a reaccelerating brand with growing scrubwear, international, and a new institutional channel, plus improving profitability and three million-plus active customers. The bear case is that FIGS is a small-cap discretionary apparel stock in a competitive category with a history of uneven growth. Weigh both against your portfolio and do your own research.
What does FIGS actually do?
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FIGS designs and sells premium healthcare apparel, led by medical scrubs and including lab coats, underscrubs, outerwear, footwear, and accessories. It sells mostly directly to individual healthcare professionals through its own website and app, and increasingly to hospitals and health systems through an institutional channel. It is a brand-led apparel company, not a medical-device or services business.
How does FIGS make money?
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FIGS sells its own-brand apparel directly to consumers, capturing the full retail margin by largely skipping traditional uniform-shop wholesalers. Revenue comes mainly from repeat scrub purchases by a loyal clinician base, plus expanding product lines, international sales, and a growing institutional (TEAMS) channel that sells to healthcare employers in volume.
Walnut is informational, not investment advice, and gives no verdict on FIGS. Analyst targets referenced here come from a July 2026 pull of published third-party research and change constantly. Verify current figures with your broker before acting on them.