Figs, Inc.

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.

SEC original ↗Figs, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

government debt securities and corporate debt securities.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026

The Company s available-for-sale investments in debt securities are carried at fair value with unrealized gains and losses, net of taxes, reported within accumulated other comprehensive income (loss) in stockholders equity.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026

Available-for-sale debt securities with an amortized cost basis in excess of estimated fair value are assessed to determine what amount of that difference, if any, is caused by expected credit losses, with any allowance for credit losses recognized as a charge in other expense on the Company s condensed consolidated statements of operations.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026

The Company did not record any credit losses on its available-for-sale debt securities in any of the periods presented.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026

Share Repurchases Shares repurchased pursuant to the Company s share repurchase program are retired and reflected as a reduction of the par value of Class A common stock within stockholders equity on the Company s condensed consolidated balance sheets.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026

Adding to this strategic focus, we also believe we are continuing to move further past the COVID overhang toward a more normalized purchasing and replenishment backdrop.

SEC original ↗Figs, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

2024 up low-single-digits Adjusted EBITDA Margin (2)(4) 8.5% to 9.0% Sarah Oughtred, Chief Financial Officer, commented, Our growing confidence is supported by our heightened focus on reinvigorating our customer funnel and accelerating growth in our core business.

SEC original ↗Figs, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Thoughtful action has positioned us to drive strong year-to-date demand, while also supporting decisive strategic actions as we continue to manage the business in this dynamic trade environment.

SEC original ↗Figs, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

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.

SEC original ↗Figs, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

In some cases, you can identify forward-looking statements by terms such as may, will, should, expect, plan, anticipate, could, intend, target, project, contemplate, believe, estimate, forecast, predict, potential, strategy, strive or continue, or the negative of these terms or other similar expressions.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026

Gross margin was 67.0%, a decrease of 40 basis points year over year, primarily due to higher inventory reserves and tariffs, partially offset by higher duty drawback and a lower return rate.

SEC original ↗Figs, Inc. — Earnings release (8-K exhibit)EX-99Aug 7, 2025

Legal Proceedings 35 Item 1A.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026

Forward-looking statements contained in this Quarterly Report on Form 10-Q include, without limitation, statements regarding our future results of operations and financial position; our industry; business and macroeconomic trends; the impact of macroeconomic pressures; our use of ocean and air freight; the impact of and expectations related to global supply chain challenges as a result of the conflict in the Middle East and otherwise; the impact of U.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026

Forward-looking statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the important factors discussed in Part II, Item 1A.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026

3 Table of Contents SUMMARY RISK FACTORS Our business is subject to numerous risks and uncertainties, including those described in Part II, Item 1A.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026

You should carefully consider these risks and uncertainties when investing in our Class A common stock.

SEC original ↗Figs, Inc. — 10-Q Quarterly report10-QAug 6, 2026