Good morning. Thank you everyone for joining us. My name is Brian Nagel. I'm a Senior Equity Research Analyst here at Oppenheimer, covering consumer growth and e-commerce. Today is day two of our 26th annual Oppenheimer Consumer Growth and E-commerce Conference. Again, thank you everyone for joining us. I'm very pleased to have with us our next presenting company, FIGS, and three of the company's top executives, Founder and CEO, Trina Spear, CFO, Sarah Oughtred, and Investor Relations, Tom Shaw. Thank you all for joining us. We very much appreciate it. Thank you for having us, Brian. We're going to structure this as an informal fireside chat with me asking questions and the FIGS team responding to those questions. To the extent there are questions from the audience, just send them in the chat, and I'll be happy to work them into our conversation. I thoug ht we'd start, before we dive into the specifics of the FIGS and the FIGS business model, I would love just to hear, given kind of a theme we're having in our conference here, the health of the consumer. Clearly, FIGS serves a unique consumer, a much more resilient consumer. Trina and Sarah, I'd love to hear your thoughts on the consumer right now and to what extent the consumer backdrop is either headwind, tailwind for FIGS business. Sure. I think, when we think about the overall consumer out in the world, I do think there's a lot happening from inflation and different macro pressures and oil prices, et cetera. I think for us, what's really unique is that we serve the healthcare professional, and every healthcare professional, every FIGS customer actually has a job today. You're looking at the jobs reports every month. All the job gains are coming from healthcare. That's a really important thing to note. I think the other thing is that it's a really stable job. Wages are increasing, and healthcare professionals are the backbone of any functioning society. There's a huge shortage, right? Whether in the U.S. or any country around the world, you need doctors and nurses right now so that you can operate your hospital and treat patients. That's some of the dynamics that are true in our industry. We're not completely immune to all the things happening overall, but this is healthcare jobs. This industry has grown through every recession over the past 100 years. This industry is expected to be the fastest-growing job segment over the next decade plus. We feel really good about our position, not only in terms of who we're serving, but also how we continue to lead this industry as we move forward. It's ours to execute on, it's ours to continue to deliver on. We feel as though we are in that leadership position, and we're going to continue to drive and innovate and show up for the healthcare community in every single way we can. That's very helpful. Shifting much more to the specifics of FIGS. One of the most compelling aspects of the story lately has been this, what I consider to be a significant sales re-acceleration. We saw essentially start to take shape maybe midway through last year, that has very much continued here into 2026 with your recently reported first quarter results. I'd love to just dive into this. As you look back, that sales growth re-acceleration, really what has driven that? How do you think about the factors going forward and the sustainability of the sales growth re-acceleration? First and foremost, what we've been doing for the last 13, 14, 15 years, but really over the last even two to three years, is build out our product assortment, right? Really be the leader in terms of building and creating product that solves problems for healthcare professionals. That's first and foremost what we've done. You're seeing all that work come to fruition. The second thing that we've done is really build out our marketing engine. We've now put out some of the most engaged campaigns that we've seen in our history. We have millions of views on our films, whether it was for Nurses Week or International Women's Month. It's a really important part of what we do, you're seeing that come to fruition. The other thing that's important to note is just how the industry has shifted. Our business, we were selling scrubs to healthcare professionals during a global pandemic, you saw an acceleration of our business in 2020, 2021, and 2022. From there, you saw kind of this COVID overhang in 2023, 2024, and a large part of 2025. What has happened in the last Q4 and in Q1 is really a normalization of this industry. For the first time ever, people are able to see, investors are able to see, not only what this industry is made of, given we're really the only public company in the space, but also what FIGS is made of. 33% growth in Q4, to your point, 28% in Q1. We said that the trends are continuing in Q2 when we had our earnings call. We're excited about this more normalized period. We're excited about our performance and our ability to deliver, and our ability to deliver not just to deliver on revenue growth, but also to see the leverageability of our P&L, and you're seeing that all the way down to the bottom line. Much more to come in terms of how we're going to continue to change and lead this industry. It's an exciting time. Trina, just to dive a little deeper there. It's something we've written a lot about, and I know you've talked about, but I want maybe to discuss again, just how broad-based this sales re-acceleration has been. The point you've made, and your team has made, is it has not been one product, it's not been one region. Maybe we can discuss that a little further. Again, because that helps, I think, the market understand this likely sustainability here. Yes, such a great point, Brian. Thank you. I think it's across our scrubwear and non-scrub wear. It's across all of our different growth levers from international. scrubwear grew, and correct me if I'm wrong, Sarah, 27%, non-scrub wear 31%, international 50%. Our Teams business is growing, our Community Hubs business is growing. Across all countries are growing and are profitable. This is truly unique. This is very broad-based. Everyone wants to point to this one. What was the one thing that is driving this? This is across categories, it's across regions, it's across channels. That's what gives us a lot of confidence and the ability to continue to perform and continue to deliver. I think, it's a testament to the brand strength. It's a testament to what we mean to this community, and it's a testament to our team. We have the best leadership team that we've had in our history across product, marketing, obviously finance, Sarah Oughtred, CFO, best in the game. We have a really strong team that is so bought in to this mission and to showing up every day for the healthcare community that deserves it, right? These are p eople that are saving lives and helping patients and curing diseases and are there with your family and many of us during our most trying hours. These are the people that are the backbone of any functioning society, and we get to be the brand that gets to serve them. That's what I think is truly unique as well. Sarah, maybe I'd like to shift here and talk about, we talked here about the sales re-acceleration and the broad-based nature, the sustained nature. How should we think about from a profitability standpoint? Something we point out in our work a lot that FIGS still operates well below prior peak operating margins or EBITDA margins. As you're looking at the sales growth engine really getting going here, how should we think about how this should manifest itself into profitability, either currently or over time? Yeah. When we look back at some of those historical adjusted EBITDA levels, we were at 15.7% in 2023. Keep in mind that we are a different business today, and we've made some really incredible shifts to continue to reach healthcare professionals. We've made shifts to expand our business globally. That has some implications. We've made some shifts to expand our fabrication, expand into non-scrub wear. Where we're guiding to today at that 13%-13.2% bottom line, keep in mind that we have 300 to 400 basis points of tariff pressure. If you were to back that out, we're up to a much more favorable level. We continue to see the opportunity to scale into the future. How we think about that is really the opportunity is within scaling our SG&A. From a gross margin perspective, I think that we will continue to be in range of where we are today, maybe a bit of headwind as we continue to expand our assortment. Within SG&A, we continue to see opportunity within our outbound shipping and packaging rates. Some of the efforts there is continuing to look at the opportunity to reduce that cost internationally, and that is part of our roadmap to explore a potential 3PL facility that would make distance to customer much shorter than it is today. We have the opportunity to continue to reduce our marketing costs, and that's really just through continuing to find efficiencies and scale the brand. Similarly within our G&A structure, I think you would have seen over time, as we continue to increase revenue, there is definitely an opportunity to leverage that. We haven't given an exact number for the longer range, but I think we've been demonstrating that as revenue increases, we are seeing quite a bit of ability to pass through profit improvement, and we'll continue to deliver that going forward. That's very helpful. On tariffs, a moment ago, you talked about that ongoing headwind and to the extent that it's weighing upon the current margin profile of the business. How should we think about FIGS' efforts over time to mitigate those tariffs? Yeah. We've been happy with our tariff mitigation to date. We did successfully negotiate certain cost reductions. We really went aggressively after all areas of the P&L to identify where we could find mitigation. That's been really looking at both our inbound and outbound freight costs, finding efficiencies across the P&L. You can see that we've been able to continue to expand our bottom line despite incurring and having to cover these higher tariffs. We had disclosed that we incurred about $20 million of the IEEPA tariffs. We've gone through the process to submit for a refund on that. We have seen some refund come through already. We'll be able to give a more detailed update in our next quarter, but we feel fairly confident on continuing to be able to receive the remaining amount of that $20 million. Our guidance is structured right now that we'll continue to incur the 10% Section 301 tariffs through to the end of July, our guidance assumes 15% thereafter. Clearly, there is some uncertainty on the go forward, I think we feel comfortable with our ability to navigate whatever may come at us post-July, given our ability to navigate what has come to us so far. On the tariff refunds, I recognize that this is a very fluid conversation and frankly, a new conversation. I mean, what portion has been refunded to you? How does FIGS recognize that and what's the use of that refund? Or how do you utilize that refund is probably a better way to say it. Yeah. We've received some of it. We haven't disclosed yet, and we'll be able to share that exact number when we share in our upcoming earnings. We've done analysis to identify how much of that has actually hit the P&L. We would record any refund pertaining to what has already been recognized into the P&L as a credit into cost of goods sold. Right now we feel that would be a one-time benefit and we're still evaluating what we would do with that at this point, keeping in mind that we do have a significant amount of cash. We continue to deploy that cash to continue to grow the business and return to shareholders. We'll continue to evaluate those opportunities and can give a more detailed update on our next earnings call. Just on tariffs. Is it over time, is the expectation that most of these tariff costs should be mitigated? I think we've been able to mitigate what we've incurred. That's evidence not necessarily through gross margin, but through our overall improvement in bottom line. The mitigation efforts can be specific to tariffs, but can be just the ways that we've looked to improve the overall P&L profile. I think that we have been able to mitigate what has come from us. We'll continue to find opportunities within the business to ensure that our profitability continues to grow over time. That's very helpful. Shifting maybe back a big picture. Trina, you mentioned some of your comments about FIGS being the largest player in this very big space. How do you think about competition? Are there competitors out there, so to say, that are in any way, shape, or form going head to head with FIGS in the business? I really think that we're a truly unique business in terms of how we disrupted this space close to 15 years ago. We really branded an unbranded industry. We de-commoditized a commodity product, we built a community around a profession. We've now built an authentic brand that means something to this community over a very long time. I would say that in terms of the competitive landscape, there's really two parts to it. The first part is the old world. We call it the anti-moat. These companies are really stuck in the strip mall. Prior to FIGS, you had to drive to an out-of-the-way location in a strip mall. You would walk into a medical supply store. There was a rack of black, a rack of navy, a rack of white. They were selling bedpans and knee braces next to your scrubs. There was a box on the middle of the floor to find your size, it was a really awful experience. Those companies are really still stuck in that, I would say, outdated experience. There are companies that saw our success when we went public in 2021, five years ago. Up until that point, we were relatively quiet. We didn't do a ton of PR. That wasn't what the business was about. We weren't trying to get on covers of magazines. We were really focused on this community. There weren't a lot of people that really knew about FIGS, which was a good thing because we were able to really widen the moat during that time. Once we went public, a lot of companies started saying, "Oh, we can do what they do," a lot of copycat brands started popping up. To date our marketing budget is larger than I think all of these companies' revenue combined. These are really subscale. We're going to do over $700 million in net revenue this year. I don't believe there's a company, maybe there's one, that's exceeding the $100 million mark. There's a big difference in terms of what scale enables you to do. It enables you to work with the best manufacturers to make the best product for healthcare professionals. It enables you to put together full-fledged campaigns that people can connect with. It enables you to operate really efficiently and at the highest level and at the highest standard of excellence, which we hold ourselves to. Not to say that we're not paranoid every now and then we look around and see what's happening, for us, this is our industry to lead. This is ours to execute on. It's ours to deliver on. Every day we wake up and think about how can we really change the game for this community, make their experience better, make more product for them so they can go to th eir job and look good and feel good and perform at their best. That is our goal. That is our only goal. Sometimes I say, "You can't look left, you can't look right. Let's just keep focusing on how we can outdo what we did yesterday, what we did last week, what we did last month, what we did last year." That's what you're seeing. That's what you're seeing in the numbers. That's what you're seeing across the business, to your point around broad-based growth. We're not taking this lightly. This is a company in an industry that no one's been focused on. It's ours to kind of put it on the map, and that's what we're doing. Let's talk a bit about the FIGS TEAMS business. It's still a relatively new effort, but something I'm personally excited because I think it's a big opportunity long term. I'd love to kind of hear where you are in FIGS TEAMS, how you think about the growth profile there, maybe any investments that need to still be put in place in order to really start to grow it. Yeah. The FIGS TEAMS business is such a huge opportunity, right? I think it's even a bigger opportunity international than it is in the U.S. In the U.S., 85% of healthcare professionals buy their own uniforms. It is more of a D2C industry. Globally, the B2B side of this industry is actually larger. We're building out this pipeline, we've built this sales force, we've built out this technology, and we're starting to see incredible gains. I still think we're quite a time away because these are longer sales cycles. Like I said, our pipeline's never been bigger. We've never connected more with some of the largest healthcare institutions around the U.S., and some around the globe. We're going to keep investing in this sales team. We're putting marketing dollars behind the FIGS TEAMS effort, and we're continuing to build features and functionality within the technology experience and make it super seamless for any administrator, any head of a private practice, any head of a hospital, to be able to order an entire uniform, not just your scrubs, but also your underscrubs and your jackets and your compression socks, anything that you need for your entire workforce at any time. The ultimate vision is that we really want to connect into the HR systems of these institutions to make it even easier for them, right? To make it even easier for them to, a new employee joins. We now welcome to, and we do this actually with VEG, which is one of our largest FIGS TEAMS accounts. "Welcome to VEG. You're now a veterinarian, veteran doctor, or vet nurse on the team. You need your new uniform." FIGS is our partner. You go on, you get your charcoal scrubs with your VEG logo, with your red draw cord. You get your underscrubs, you get your fleeces, your jackets, your footwear, and it's an awesome experience. We want to scale that across all of our FIGS TEAMS customers, as well as to future ones as well. I think the opportunity is just massive because what these institutions are doing, VEG is another great example of this, is that they're providing stipends for their employees. "Okay, I want to spend $200, $400 a year on each employee." We want FIGS to also give them a discount if they buy anything else. This platform enables you to basically say, "I only want to cover a portion of that uniform spend." They can go on and get, call it, 15-ish% off to buy other things from FIGS as well. This is kind of a B2B2C model because we're not only building that relationship with the parent, with the institution, but also have that relationship with every employee within that institution. That is all about data. Once we have that data, we're able to connect not only again with the institutional level, but with individual level as well. FIGS TEAMS, massive opportunity. I would say we're still early days on it, but much more to come over the coming 12 months, over the coming two years, over the coming 10 years. This is going to be big. Sarah, with FIGS TEAMS, how should we think about the financial implications here? Yeah. FIGS TEAMS is an accretive business for us bottom line. The economic profile is different from e-com. Within gross margin, it would be a lower gross margin rate just because of the discount, but a much lower operating expense structure as we gain efficiencies from a marketing effort as well as within selling costs. As I mentioned, this is an accretive business bottom line. We will be able to continue to have that be a lever for expanding bottom lines for total company as that business scales. Another, I think, really interesting aspect of the story here, the new ads, the Community Hubs. I've spent time in your facility, in your Community Hub in L.A., and then Philly and New York. They're looking great. I'm loving watching the evolution. From your perspective, how are these physical locations helping you connect better with consumers, better advertise the unique brand? I always say the most iconic brands have stores, right? We now have five and there's four more to come. I do think this is a space where healthcare professionals can come in and talk to somebody about our fabrications, about our products. They're feeling and touching and experiencing the product firsthand. They're able to try it on and get the right fit. It's hard to embroider something, because it is final sale, before you've figured out your fit. Doing that in the hub, in our stores, is super important. Like I said, we have five. We have L.A. I love, Brian, that you've been to a number of them. We have L.A., we have Philly, we have Upper East Side, we have Rice Village in Houston, and we have West Loop in Chicago. They're all performing incredibly well, beyond our expectations. 40% of people coming into the store, or people transacting in the store, are new to the brand. That's amazing. I would say, I think the stat is 80-ish% of all apparel sales still are offline. In our surveys, 60% of healthcare professionals want to shop offline, having that experience, not just digitally, is super important. Early days on our hubs, and Sarah can give more color on our paybacks and our economics, but all are exceeding our plan. We've done some incrementality testing in our Philly market that shows that the store sales are fully incremental, actually added a halo impact to the overall MSA area, which is awesome. Earlier days in New York, but similarly, where adding the store did not cannibalize e-com, those store sales are fully incremental. Some of the top MSA growth areas in the U.S. are in those five cities where we've added a store. Really like the metrics that we're seeing. What we've shared is for the upcoming openings, that we would be targeting a 24-month payback, that they would be accretive to bottom line as well. Happy with how that will generate added profitability to the company overall. The fact that they can be profitable while also being a customer acquisition driver, a billboard for our brand, all has really great implications for driving the brand into the future and being able to continue to serve healthcare professionals. I could also share that we do see some different trends in that, in Community Hubs, we do see a higher portion of men's sales than we see online. We see a higher portion of our new fabrications. We see a higher portion of sales for embroidery. Having that physical experience does allow for expanded growth within some of these new areas to the business, and we like those dynamics as well. That's very helpful. On the non-scrub wear topic, we talked about this a little bit, but let's discuss the opportunity there. I think one question I always ask, a question I hear a lot from our clients too is, when you look at non-scrub wear, is that adding to the purchase of your core consumer or is this bringing a new, maybe not even a healthcare worker to the brand? I think it really is about that layering system. I think what we see is that, as a new customer, you really are shopping with us for what we're best known for, what we became famous for, which is our scrub wear. You're kind of coming in for, let's say, our Catarina top and our Isabel pant, which are two of our best-selling items that our health care professionals love. Then as you get to know us better, as we get to know you better, we're able to personalize more and more to you and who you are, where you work, what you do. So you're adding on these other elements. You're adding on our fleece jackets. You're adding on our Sydney scrub jacket. You're layering underneath your scrubs our Salta or our ribbed under scrub. You are coming to us for our compression socks, our ArchTek medical-grade patented compression socks, which are incredible. Or we have an amazing collaboration with New Balance from the footwear side. So, I do think what we're seeing is a really high, what we call People talk about attachment rate. We call it a layering rate. How are you layering on all these other pieces over time with us? Our goal really isn't to have non-healthcare professionals. These are healthcare professionals. When we think about that uniform, it isn't just your scrubs, it's all of these other pieces within your uniform wardrobe. We saw non-scrub wear 31% growth in the quarter, so really exciting to see how that will continue to scale and grow. We're early days even in terms of building out these categories from a weight perspective, a fabrication perspective. Like I said, we have two under scrubs. We have one scrub jacket, really. We've tested some other styles, but the majority of the revenue within these categories is made up by one or two styles. Really building that out for different use cases, for different types of environments, for different types of healthcare professionals is super important as we move forward, and it's a really exciting opportunity. Time's going to wind down here. I think the last topic I really want to address is just, and we talked a little bit about it already, but the balance sheet cash. One thing, a huge positive here for the story is just the strength of the balance sheet, the cash position. I guess, how do you think about the balance sheet? You do have the buyback in place now. How should we be thinking about your ability to buy back and repurchase shares? Yeah. I would say that this is a highly cash-generative business. We do have ample cash on the balance sheet, $277 million at the end of Q1. How we think about deploying that is first and foremost investing back into the business across our product innovation, community engagement, and market expansion strategic pillars. We've been increasing that investment really in 2025 and into 2026 and seeing tho se returns come in the way of this accelerated growth rate that we've been driving. We will continue to invest in that growth. From a capital perspective, we will deploy capital to fund our Community Hub expansion strategy. Within both of that, we can fund that with the free cash flow that we're generating. We will continue to accumulate cash. We do have our share buyback program that we will continue to return capital to shareholders. We were active buyers in Q1. Bought back $8.8 million worth of shares. We'll continue to use that as a lever to return capital to shareholders. Yeah, feel good about our ability to have a really strong balance sheet to help keep us agile, help take advantage of any future opportunities that may come their way. Yeah, really great financial profile for this business. Well, thank you, Sarah. Is there anything we did not discuss that we should have discussed here in this fireside chat? I think we covered it. This has been awesome, and thank you, Brian, for your continued support and helping us get the story out. I do think what we're doing at FIGS is really unique. It's exciting to talk about it, thank you. Well, I appreciate your attendance here. Congrats on the recent success. Tom, thanks for all the work and help, and we appreciate it. Thank you.