What Happened?

Shares of healthcare apparel company Figs (NYSE: FIGS) jumped 18.1% in the afternoon session after it reported fourth-quarter 2025 financial results that significantly beat Wall Street's expectations. In the fourth quarter, revenue climbed 33% year on year to $201.9 million, surpassing analysts' forecast of $165.8 million. This strong performance was driven by an increase in its active customer base, which grew by 251,000 from the previous year to 2.92 million. The company's profitability also impressed, with GAAP earnings per share of $0.10, easily clearing Wall Street’s estimate of $0.02. Furthermore, its operating margin expanded to 9.3% from 5.9% in the same period last year, demonstrating improved efficiency.

Is now the time to buy Figs? Access our full analysis report here, it’s free.

What Is The Market Telling Us

Figs’s shares are extremely volatile and have had 30 moves greater than 5% over the last year. But moves this big are rare even for Figs and indicate this news significantly impacted the market’s perception of the business.

The previous big move we wrote about was 4 days ago when the stock dropped 3.9% on the news that the Trump administration's announcement of new global tariffs, reignited trade policy uncertainty. The move came swiftly after the Supreme Court ruled the previous week that the president could not use the International Emergency Economic Powers Act (IEEPA) for such duties, a decision that had initially sent markets higher. However, the administration invoked a different authority, the Trade Act of 1974, to impose a 15% global tariff for up to 150 days. The rapid reimposition of trade barriers creates significant uncertainty for companies across multiple sectors that depend on international supply chains and global trade. Investors are now weighing the potential impact of these new duties on corporate earnings and broader economic activity.

Figs is up 32.2% since the beginning of the year, and at $15.05 per share, has set a new 52-week high. Investors who bought $1,000 worth of Figs’s shares at the IPO in May 2021 would now be looking at an investment worth $501.57.

The 1999 book Gorilla Game predicted Microsoft and Apple would dominate tech before it happened. Its thesis? Identify the platform winners early. Today, enterprise software companies embedding generative AI are becoming the new gorillas. Click here for access to our special report that reveals one profitable leader already riding this wave, it’s free.