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EarningsPresentationEUGENE B., DDS Q12025
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EARNINGSPRESENTATION2 Nothing contained in this presentation is, or should be construed as, a recommendation, promise or representation by FIGS, Inc. (the “Company”) or any officer, director, employee, agent or advisor of the Company. This presentation does not purport to be all inclusive or to contain all of the information you may desire in connection with yourinvestigation of the Company. Information provided in this presentation speaks only as of the date hereof. This presentation shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.This presentation also contains estimates and other statistical data relating to the Company's industry and estimated total addressable market.Such estimates and data are based on studies, publications, and surveys obtained from third-party sources and the Company’s own internal estimates and research. While the Company believes these third-party sources and the Company's internal estimates and own research to be reliable as of the date of this presentation, it has not independently verified, and makes no representation as to the adequacy, fairness, accuracy or completeness of, any information obtained from third-party sources, and the Company’s internal research has not been verified by any independent source.In addition, projections, assumptions and estimates regarding the Company's industry are subject to a number of assumptions and limitations and involve a high degree of uncertainty and risk. Accordingly, you are urged not to give undue weight to such estimates and statistical data.Information that can be accessed through any website addressor hyperlinkprovided herein is not a part of this presentation and is not incorporated by reference herein. We have included any such website address in this presentation solely for informational purposes. DISCLAIMER FORWARD-LOOKING STATEMENTSThis presentation contains various forward-looking statements about the Company within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, that are based on current management expectations, and which involve substantial risks and uncertainties that could cause actual results to differ materially fromthe results expressed in, or implied by, such forward-looking statements. All statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking. These forward-looking statements generally are identified by the words “anticipate”, “believe”, “contemplate”, “continue”, “could”, “estimate”, “expect”, “forecast”, “future”, “intend”, “may”, “might”, “opportunity”, “outlook”, “plan”, “possible”, “potential”, “predict”, “project,” “should”, “strategy”, “strive”, “target”, “will”, or “would”, the negative of these words or other similar terms or expressions. The absence of these words does not mean that a statement is not forward-looking. These forward-looking statements address various matters, including: the Company’s brand differentiators; the Company's growth opportunities and strategies, including product innovation, building and deepening connections with its community, international, TEAMS and retail; the Company's plans to drive awareness and engagement; international expansion and the Company’s plans to open new markets, including in Asia; the Company’s plan to invest in an outbound sales function; the Company’s TEAMS opportunity and strategy, including internationally; the Company’s plans to operate with financialdiscipline and invest in the future; the Company’s plans to continue to improve its infrastructure; the Company's advocacy efforts; the Company's future retail stores and retail strategy, including its plans to open additional locations in 2025; the Company's total addressable market and plans to grow its total addressable market and market share; the future growth and growth fundamentals of the healthcare and social assistanceindustry sector, including the expectation that secular growth of the healthcare industry will be driven by a significant shortage of healthcare workers, aging population and focus on health and wellness; growing demand from healthcare institutions to professionalize their staff; the Company’s conviction that the industry is on the path to normalization and that its actions are resonating; the Company’s belief that it has an opportunity to demonstrate its category leadership, build upon competitive advantages, and leverage its balance sheet; the Company’s efforts to serve its community and its intent to accelerate investment to better support its opportunity; the Company’s plan to boldly lead and define the industry; the projected impact of, and the Company’s response to, tariffs and trade policies; and the Company's outlook as to net revenues growth and adjusted EBITDA margin for the full year ending December 31, 2025,all of which reflect the Company’s expectations based upon currently available information and data. Because such statements are based on expectationsasto future financial and operating results and are not statements of fact, the Company’s actual results, performance or achievements may differ materially from those expressed or implied by the forward-looking statements, and you are cautioned not to place undue reliance on these forward-looking statements. The following important factors and uncertainties, among others, could cause actual results, performance or achievements to differ materially from those described in these forward-looking statements: the Company’s ability to maintain its historical growth; the Company’s ability to maintain profitability; the Company’s ability to maintain the value and reputation of its brand; the Company’s ability to attract new customers, retain existing customers, and to maintain or increase sales to those customers; the success of the Company’s marketing efforts; the Company’s ability to maintain a strong community of engaged customers and Ambassadors; negative publicity related to the Company’s marketing efforts or use of social media; the Company’s ability to successfully develop and introduce new, innovative and updated products; the competitiveness of the market for healthcare apparel; the Company’s ability to maintain its key employees; the Company’s ability to attract and retain highly skilled team members; risks associated with expansion into, and conducting business in, international markets; changes in, or disruptions to, the Company’s shipping arrangements; thesuccessful operation of theCompany’s fulfillment operations;the Company’s ability to accurately forecast customer demand, manage its inventory, and plan for future expenses; the impact of changes in consumer confidence, shopping behavior and consumer spending on demand for the Company’s products; the impact of macroeconomic trends on the Company’s operations; the Company’s reliance on a limited number of third-party suppliers;the impact of global trade policy on our ability to source and distribute our products;the fluctuating costs of raw materials; the Company’s failure to protect proprietary, confidential or sensitive information or personal customer data or risks of cyberattacks; the Company’s failure to protect its intellectual property rights; the fact that the operations of many of the Company’s suppliers and vendors are subject to additional risks that are beyond its control; and other risks, uncertainties, and factors discussed in the “Risk Factors” section of the Company’s QuarterlyReport on Form 10-Qfor the quarterended March31, 2025 to befiled with theSecurities and Exchange Commission (“SEC”), the Company’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the SEC on February 27, 2025,and the Company’s other periodic filings with the SEC. The forward-looking statements in this presentation speak only as of thetime made and the Company does not undertake to update or revise them to reflect future events or circumstances.
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To celebrate,empower,& servethose who serve others OUR MISSION EARNINGSPRESENTATION3
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EARNINGSPRESENTATION4 WHY FIGS? •Large, replenishment-drivensector with strong long-term growth fundamentals•Disrupting the healthcare apparel industry globally with best-in-class product and storytellingthat centers around an underserved community•Sustainable brand differentiatorswithin marketing, product innovation, and merchandising strategy•Numerous growth opportunities within the US, International, TEAMS (B2B), andCommunity Hubs (Retail)•Strong balance sheet and cash flow provide flexibility to both invest in growth and return value to shareholders RACHEL S., DVM
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Q1at a GlanceNET REVENUES $124.9MGROSS MARGIN 67.6%ADJ. EBITDA MARGIN(1) 7.2% EARNINGSPRESENTATION5 KAIRAVI P., DMD •Delivered year-over-year net revenues growth of 5% in Q1 2025, exceeding our outlookoCustomer Data: Average Order Value (“AOV”)(1)increased 3% to $119, a record high for the company; active customers(1)grew 4% to 2.7 million, supported by strong growth of customer reactivationsoCategories: Scrubweargrew 5%; non-scrubweargrew 4%oGeographies: the U.S. grew 3%; international grew 16% •Adjusted EBITDA margin(2)of 7.2% also outpaced expectations despite year-over-year pressure from product mix, higher fulfillment and shipping expenses, and investments in people•Generated free cash flow(2)of $7.9 million, supporting our strong end of period cash, cash equivalents and short-term investments position of $251.2 million (1)AOV and active customers arekey operational and business metrics that is important to understanding our performance. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appendix for additional information on this metric.(2)Adjusted EBITDA, adjusted EBITDA margin and free cash flow are non-GAAP financial measures. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appendix for additional information on non-GAAP financial measures and reconciliations to the mostdirectly comparable GAAP measures.
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KEY OPERATING METRICS Active Customers(TRAILING TWELVE MONTHS, IN THOUSANDS) Net Revenues Per Active Customer(TRAILING TWELVE MONTHS) (1) (1) 596 1,300 1,872 2,2942,5932,6702,5972,696 0 50 0 1, 00 0 1, 50 0 2, 00 0 2, 50 0 3, 00 0 20 1920 2020 2120 2220 2320 24Q1'24Q1'25 $185 $202 $224 $221 $210 $208 $210 $208 $- $50 $100 $150 $200 $250 20 1920 2020 2120 2220 2320 24Q1'24Q1'25 YOY+4% YOY-1% EARNINGSPRESENTATION6 (1) Active customers and net revenues per active customer are key operational and business metrics that are important to understanding our performance. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appendix for additional information on these metrics.
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KEY OPERATING METRICS $95 $94 $105 $112 $115 $113 $116 $119 $80 $85 $90 $95 $100 $105 $110 $115 $120 $125 20 1920 2020 2120 2220 2320 24Q1'24Q1'25 YOY+2.6% EARNINGSPRESENTATION7 Average Order Value (AOV) (1) AOV is akey operational and business metrics that is important to understanding our performance. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appendix for additional information on this metric. (1)
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EARNINGSPRESENTATION8 DIVERSIFIED GROWTH STRATEGY InternationalContinue to expand and penetrate the global healthcare community by reaching them where they are (32 current countriesoutside the U.S.). RetailDeepen connection to our community by engaging with them in new ways. TEAMSOpportunity to serve institutions around the world who want to professionalize and standardize their teams. Deep Connection with the Healthcare CommunityDrive awareness and engagement through powerful, purposeful storytelling, and unwavering commitment to advocacy. Product Innovation with PurposeContinued disruption and technical innovation across styles, categories, and fabrications to better serve our healthcare professionals. Operate with Financial Discipline and Invest in the FutureOptimize infrastructure to support scale, increase reliability, flexibility,and speed to market EARNINGSPRESENTATION8 Reach New and Existing Customers
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EARNINGSPRESENTATION9 ProductInnovationWe introduced new products across the layering system designed for maximum comfort, versatility, and durability, including: •FORMx™: Our revolutionary new fabric that delivers unparalleled flexibility with a premium touch. Our FORMxcollection is the sleekest, stretchiest, and most comfortable —for days when our HCPs need to be in multiple places at once —aka every day.•FIGS | New Balance 3447 Zip: Our proprietary FIGS model, designed for optimal support with a thick midsole, zip closure, easy wipeability, and a kickstand for hands free removal. •Lunar New Year Capsule:We celebrated the Year of the Snake with our Pop Red scrubwearcapsule, Lunar New Year graphic underscrubs, and Pop Red FIGS | New Balance 347s.
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EARNINGSPRESENTATION10 Build and Deepen Connection withCommunityBLACK HISTORY MONTHWe celebrated Black History Month by spotlighting standout ambassadors in our first-ever “Must-Have” Shops and brought our community together through intimate events in LA and Chicago—creating space for connection, reflection, and celebration with over 60 students and healthcare professionals.MATCH DAY AT HOWARD UNIVERSITYWe celebrated over 100 Howard students by sponsoring the live stream of their White Coat Ceremony and providing each student with custom embroidered FIGS. We also hosted a commemorative post-ceremony celebration for over 1,000 students, friends, and loved ones.INTERNATIONAL WOMEN’S DAYWe hosted our 3rd annual International Women’s Day event for 115 healthcare professionals in LA. The event spotlighted the inspiring women from our campaign film and featured immersive activations that celebrated and connected trailblazing women in healthcare.
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EARNINGSPRESENTATION11 ImpactLA FIRE RELIEF:The fires in Los Angeles impacted hundreds of thousands in our hometown. Amid the devastation, Awesome Humans kept showing up—caring for their patients no matter what. In the wake of this disaster, we rallied around our community—making sure they felt seen, supported, and cared for when they needed it most. We moved quickly to meet urgent needs, ease the everyday burdens, and remind them they weren’t alone. Because standing with healthcare professionals is what we’re here to do.OUR IMPACT:•8,600 FIGS to Awesome Humans in need•$34,000 in direct support to healthcare professionals and causes supporting them•2,500+ meals deliveredto 8+ hospitals•4,400 N95 masks delivered to hospitals across LATo celebrate the spirit of our hometown and go further to provide relief, FIGS partnered with Project Hope –a trusted friend of FIGS deploying emergency response teams with essential supplies and services. We donated 100% of profits from our limited-edition I 🫀LA Supersoft LongsleeveUnderscrub™to support their efforts.
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Expanding Global PresenceINTERNATIONAL EARNINGSPRESENTATION12 Disrupting global healthcare apparel with product innovation,powerful top of funnel marketing campaigns and localized engagement with the community•Opportunity: over 80% of global healthcare professionals are outside the U.S. yet represented only 15% of our net revenues in FY 2024 and Q1 2025.•Experienced strong Q1 2025 net revenues growth of 16%.•Operate in 32 total international markets today and remain on-track to debut in Japan in Q2 2025 and in South Korea in 2H 2025.•Our 2025 focus also includes efforts to invest in localization, awareness and engagement, while also building out of TEAMS functionality.
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Serving HealthcareInstitutionsTEAMS Serving hospitals, medical offices,and concierge clinics to professionalize and standardize their teams•Opportunity: estimate 15% of the U.S. scrubs industry has historically been driven by institutions buying for their teams, while the commercialization of healthcare is increasingly driving premium experiences including scrubs.•Hired a dedicated leader in January 2025 to drive our existing inbound efforts and build our outbound sales function.•2025 focus includes the formation of an outbound sales function and team, as well as solutions to simplify and expand the TEAMS experience.•Continue to see an outsized international TEAMS opportunity given buying behavior in many of these markets. EARNINGSPRESENTATION13
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EARNINGSPRESENTATION14 Creating Community PresenceRETAIL Executing a retail strategy that enables healthcare professionals to connect with FIGS and their peers•Opportunity: over 60% of non-FIGS customers want to try and feel a product before a purchase.•Continue to employ a thoughtful and disciplined “Test, Learn, Apply and Win” rollout strategy.•Operate two existing Community Hubs with Century City opened in Q4 2023 and Philadelphia opened in Q3 2024.•2025 focus on opening new locations with three new Community Hubs planned in 2H 2025 (announced next location in Houston), as well as driving operational support to ensure an omni-channel mentality.
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EARNINGSPRESENTATION15 Large Industry Sector with Strong Long Term Growth Fundamentals•Largely non-discretionary,replenishment-driven industry with approximately 23million workers in the U.S.(1) •Creating TAM by expanding and evolving the FIGS layering system with both newinnovation and new categories•Expect secular growth to be driven by significant shortage of healthcare workers, aging population, and focus on health and wellness•Healthcare and social assistance is projected to have the largest growth and be the fastest growing industry sector from 2023-2033(2) WHY FIGS? (1) According to the U.S. Bureau of Labor Statistics for the number of healthcare and social assistance industry sector workers in the U.S. as of April 2025.(2) See News Release, U.S. Bureau of Labor Statistics, Employment Projections –2023-2033 (Aug. 29, 2024).(3) Free cash flow is anon-GAAP metric. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appendix for additional information on non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. Sustainable Differentiators•Authentic, category-defining brand with deeply passionate, loyal community•Industry leading product innovation•Highly efficient marketing engine due to strong word of mouth (about two-thirds of net revenues driven by repeat customers)•Proven merchandising strategy with highly concentrated and productive core assortment •Vast data set informs product innovation and drives personalization Numerous Growth Opportunities •Long runway in U.S. with untappedbrand awareness and high NPS•Significant international potential with less than 1% market share globally •TEAMS (B2B) capitalizing on growing demand from healthcare institutions to professionalize their staff•Retail (Community Hubs) to drive brand awareness, deepen connection, and increase lifetime value of customers Strong Margin and Cash Flow Dynamics•Structurally high gross margin with concentrated seasonless scrubs assortment •Healthy, debt-free balance sheet•Strong free cash flow(3)generation
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Financials16 EARNINGSPRESENTATION
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$263.1 $419.6 $505.8 $545.6 $555.6 $119.3 $124.9 $0 $100 $200 $300 $400 $500 $600 FY'20FY'21FY'22FY'23FY'24Q1'24Q1'25 Q12025NET REVENUES(IN MILLIONS) SCRUBWEAR / NON-SCRUBWEARNET REVENUES MIX AND YOY GROWTH US / INTERNATIONALNET REVENUES MIX AND YOY GROWTH 80%,+5% YOY 20%,+4% YOY ScrubwearNon-Scrubwear 85%,+3% YOY 15%,+16% YOY U.S.International YOY+4.7% EARNINGSPRESENTATION17
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Q1 2025 GROSS MARGIN 72.3%71.8% 70.1% 69.1% 67.6% 68.9% 67.6% 65% 67% 69% 71% 73% FY'20FY'21FY'22FY'23FY'24Q1'24Q1'25 EARNINGSPRESENTATION18 The decline in gross margin compared to Q1 2024 primarily reflected mix headwinds within the scrubwearcategory, including the impact of limited-edition styles, as well as higher freight expense given our action to mitigate shipping issues in the Red Sea. This impact was partially offset by the benefit of fewer promotions during the period.
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30.2% 27.1% 14.5% 14.5% 23.9% 26.2% 0% 10 % 20 % 30 % 40 % 50 % 60 % 70 % Q1'24Q1'25G&AMarketing Selling Q1 2025OPERATING EXPENSE EARNINGSPRESENTATION19 68.5%67.8% (% OF NET REVENUES) The increase in selling expense in Q1 2025 as a percentage of net revenues primarily reflects the impact of the higher cost structure of our new fulfillment center in Arizona, as well as elevated outbound shipping expenses given our investments to improve domestic shipping times and due to the higher international sales mix. Marketing expenses in Q1 2025 were unchanged as a percentage of net revenues. The decrease in G&A expenses in Q1 2025 as a percentage of net revenues was primarily related to meaningfully lower stock-based compensation expense, partially offset by higher depreciation related to asset purchases for the fulfillment center.
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Q12025PROFITABILITYNet Income (Loss) Margin(% OF NET REVENUES) Adjusted EBITDA Margin(% OF NET REVENUES)(1) -2.3% 4.2%4.1% 0.5%1.2% -0.1% -3% 0% 3% 6% FY'21FY'22FY'23FY'24Q1'24Q1'25 25.1%17.2%15.8%9.3%10.9%7.2%0% 10% 20% 30% FY'21FY'22FY'23FY'24Q1'24Q1'25 EARNINGSPRESENTATION20 (1)Adjusted EBITDA margin is a non-GAAP financial measure. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appendix for additional information on non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. NIVEDA P., VMD
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Q1 2025BALANCE SHEET AND CASH FLOW RESULTSCash, Cash Equivalents & Short-Term InvestmentsCash Flow Changes(FOR THE QUARTER ENDED MARCH 31,2025) ($ IN MILLIONS, UNAUDITED) $155.9 $259.2$251.2 Q1'23Q1'24Q1'25 $245.1 $251.2 0 50 10 0 15 0 20 0 25 0 30 0 35 0 Cash, Cash Equivalents & Short-Term Investments, Beginning of Period Net IncomeOther Working Capital and Other Items Inventory ChangeCAPEXOther ActivitiesCash, Cash Equivalents & Short-Term Investments, Endof Period Free Cash Flow(1) -$0.1 $7.9 EARNINGSPRESENTATION21(1)Free cash flow is anon-GAAP financial measure. See “Non-GAAP Financial Measures and Key Operating Metrics” in the Appendix for additional information on non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. ($ IN MILLIONS, UNAUDITED) $25.1-$15.8-$1.3$0.9-$2.7 ShareRepurchase
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First quarter results were ahead of expectations, supported by customer growth, strong full-priced selling, record AOV, and ultimately, a return to growth in the U.S.,” said Trina Spear, Chief Executive Officer and Co-Founder. “These positive signs bolster our conviction that the industry is on the path to normalization and our actions are resonating. At the same time, we are also operating in a period of growing economic uncertainty, where we believe we have an opportunity to demonstrate our category leadership, build upon our competitive advantages, and leverage our incredibly strong balance sheet. We are maintaining the clear focus that we outlined at the beginning of the year –our unwavering efforts to serve our community and our intent to accelerate investment to better support our opportunity. We believe great brands uniquely harness adversity, and we will continue to boldly lead and define this industry going forward.-Trina Spear, Chief Executive Officer and Co-Founder NET REVENUESGROWTHVS. 2024 Down low-single-digitsADJUSTED EBITDA MARGIN(1)(2):7.5% to 8.5% EARNINGSPRESENTATION22(1) “adjusted EBITDA” and “adjusted EBITDA margin” are non-GAAP financial measures. Please see the sections titled “Non-GAAP Financial Measures and Key Operating Metrics” and “Reconciliations of GAAP to Non-GAAP Measures” below for more information regarding the Company’s use of non-GAAP financial measures.(2) We have not provided a quantitative reconciliation of our adjusted EBITDA margin outlook to a GAAP net income margin outlookbecause we are unable, without making unreasonable efforts, to project certain reconciling items. These items include, but are not limited to, future stock-based compensation expense, income taxes, expenses related to non-ordinary course disputes, and transaction costs. These items are inherently variable and uncertain and depend on various factors, some of which are outside of our control or ability to predict. For more information on our use of non-GAAP metrics, see “Non-GAAP Financial Measures and KeyOperating Metrics” in the Appendix. Full Year 2025Outlook“”While 2025 started on a strong note, changes in U.S. trade policies have added greater variability to our planning, particularly in the second half of the year. As we continue to evaluate a range of scenarios, our updated 2025 outlook reflects the projected impact of the current tariff structure, excluding the currently-paused reciprocal tariffs. We are determined to remain diligent and nimble in navigating this challenging environment, prudently planning our business while continuing our steadfast focus of serving those who serve others. -Sarah Oughtred, Chief Financial Officer “”
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Appendix 23 EARNINGSPRESENTATION SOPHIE P., OTD STUDENT
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EARNINGSPRESENTATION24 Included in this presentation are certain financial measures that are not calculated in accordance with U.S. generally accepted accounting principles (“GAAP”) and which are designed to supplement, and not as a substitute for, the Company’s financial information presented in accordance with GAAP. The non-GAAP financial measures as defined by the Company may not be comparable to similar non-GAAP financial measures presented by other companies. The presentation of such measures, which may include adjustments to exclude unusual or non-recurring items, should not be construed as an inference that the Company’s future results will be unaffected by other unusual or nonrecurring items.The Company uses “net income(loss), as adjusted,” “diluted earnings per share, as adjusted,”“adjusted EBITDA” and “adjusted EBITDA margin” to provide useful supplemental measures that assist in evaluating its ability to generate earnings, provide consistency and comparability with its past financial performance and facilitate period-to-period comparisons of its core operating results as well as the results of its peer companies. The Company uses “free cash flow” as a useful supplemental measure of liquidity and as an additional basis for assessing its ability to generate cash. The Company calculates “net income, as adjusted” as net incomeadjusted to exclude transaction costs, expenses related to non-ordinary course disputes, other than temporary impairment of held-to-maturity investments, stock-based compensation, including expense related to award modifications, accelerated performance awards and associated payroll taxes and costs, ambassador grants in connection with its initial public offering, and expense resulting from the retirement of a former CFO of the Company, and the income tax impact of these adjustments. The Company calculates “diluted earnings per share, as adjusted” as net income, as adjusted divided by diluted shares outstanding. The Company calculates “adjusted EBITDA” as net income(loss) adjusted to exclude: other income, net; gain/loss on disposal of assets; provision for income taxes; depreciation and amortization expense; stock-based compensation and related expense; transaction costs; and expenses related to non-ordinary course disputes. The Company calculates “adjusted EBITDA margin” by dividing adjusted EBITDA by net revenues. The Company calculates “free cash flow” as net cash (used in) provided by operating activities reduced by capital expenditures, including purchases of property and equipment and capitalized software development costs. NON-GAAP FINANCIAL MEASURES AND KEY OPERATING METRICS
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EARNINGSPRESENTATION25 The following table presents a reconciliation of adjusted EBITDA to net income(loss), which is the most directly comparable financial measure calculated in accordance with GAAP, and presents adjusted EBITDA margin with net income (loss)margin, which is the most directly comparable financial measure calculated in accordance with GAAP:NON-GAAP FINANCIAL MEASURES AND KEY OPERATING METRICS (CONT.) The following table presents a reconciliation of free cash flow to net cash provided by operating activities, which is the most directly comparable financial measure calculated in accordance with GAAP: 2025 2024 (in thousands, except margin) Net income (loss) (102)$ 1,435$ Add (deduct): Other income, net (2,075) (2,837) Provision for income taxes 1,966 1,845 Depreciation and amortization expense(1) 1,999 850 Stock-based compensation and related expense(2) 7,216 11,697 Adjusted EBITDA 9,004$ 12,990$ Net revenues 124,901$ 119,293$ Net income (loss) margin(3) (0.1%) 1.2% Adjusted EBITDA margin 7.2% 10.9% Footnote explanations: (1) Excludes amortization of debt issuance costs included in “Other income, net.” (2) Includes stock-based compensation expense, payroll taxes and costs related to equity award activity. (3) Net income (loss) margin represents net income (loss) as a percentage of net revenues. Three Months Ended March 31, (unaudited) 2025 2024 (in thousands) Net cash provided by operating activities 9,235$ 11,619$ Less: capital expenditures (1,310) (496) Free cash flow 7,925$ 11,123$ (unaudited) Three Months Ended March 31,
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EARNINGSPRESENTATION26 The Company has also included herein “active customers,” “net revenues per active customer” and “average order value,” which arekey operational and business metrics that are important to understanding Company performance. The Company believes the number of active customers is an important indicator of growth as it reflects the reach of the Company’s digital platform, brand awareness and overall value proposition. The Company defines an active customer as a unique customer account that has made at least one purchase inthe preceding 12-month period. In any particular period, the Company determines the number of active customers by counting the total number of customers who have made at least one purchase in the preceding 12-month period, measured from the last date of such period. The Company believes measuring net revenues per active customer is important to understanding engagement and retention of customers, and as such, the value proposition for its customer base. The Company defines net revenues per active customer as the sum of total net revenues in the preceding 12-month period divided by the current period active customers. The Company defines average order value as the sum of the total net revenues in a given period divided by the total orders placed in that period. Total orders arethe summation of all completed individual purchase transactions in a given period. The Company believes its relatively high average order value demonstrates the premium nature of its products. As the Company expands into and increases its presence in additional product categories, price points and international markets, average order value may fluctuate. NON-GAAP FINANCIAL MEASURES AND KEY OPERATING METRICS (CONT.)