FIGS Class A (NYSE: FIGS) 🍇👩⚕️
$7.33 ▼ -0.01 (-0.14%)
As of Sep-16-2025 4:10:00 PM ET

The Trigger 🍏➡️🍇

When billionaire investor Ron Baron decides to buy scrubs instead of shorting them, Wall Street listens. Baron—yes, the same guy who saw Tesla’s long-term rocket ride 🚀 before it happened—upped his stake in Figs, Inc. (FIGS), the premium medical-apparel company, over the past few weeks. Not only did he buy more, but he also opposed a $6 per share takeover bid from private equity firm Story3 Capital Partners. Translation: he’s betting Figs can stitch together a future worth way more than a quick sale.

Ron Baron’s Scrub Love 💚👕

• January 2025: Baron bought out all of Thomas Tull’s shares, boosting his ownership above 36%.

• Earlier 2025: Baron Capital scooped up 19M shares in January, another 8M in February.

• December 2024: Story3 Capital offered to buy Figs for $6/share (~$1B valuation). The board rejected it, calling the strategy “standalone strong.” Baron backed them up.

His words? Figs is the “Lululemon of healthcare”. If yoga moms could mint LULU stock, why not nurses and doctors powering a trillion-dollar healthcare market?

Why Baron is Bullish 🦾

• Long-Term Lens 👓: He invests for decades, not quarters. His conviction? Figs can grow big over the next 10–15 years.

• Premium Brand 🧵: Just like Lululemon, Figs disrupted a boring, unbranded market (scrubs) with premium fabrics, antimicrobial tech, and status vibes.

• Direct-to-Consumer 🛒: By selling through its app, website, and a few retail outlets, Figs keeps customer loyalty tight, data flowing, and margins healthier.

• Community Power ❤️: Healthcare professionals actually brag about their scrubs. Who thought lab coats could be cool?

The Wall Street Roll Call 📊🎩

It’s not just Ron. Institutions practically own the float:

• Institutional Ownership: 94% (that’s nearly every floating share!)

• Bamco (Ron’s shop): 59.9M shares, worth $440M

• Ameriprise: 13.9M shares (+9%)

• T. Rowe Price: 10.3M shares (steady hand)

• Vanguard & BlackRock: both trimmed but still hold big stakes

📌 Takeaway: Wall Street is in the waiting room, betting Figs won’t flatline.

For Figs, Inc. (FIGS)'s Institutional Ownership breakdown, 🔍 see here

The Numbers in 2025 💰📈

Q2 2025 Highlights

• Revenue: $152.6M (+5.8% YoY)

• Scrubwear: $127.4M (+7.7%)

• International: $22.7M (+19.8%)

• Gross Margin: 67% (tiny dip, tariffs hurt)

• Net Income: $7.1M vs $1.1M last year

• Adj. EBITDA Margin: 12.9% vs 9% prior year

• Active Customers: 2.74M (+4.1%)

CEO Trina Spear put it best: “We drove our largest revenue quarter in history and powered overall results ahead of expectations.” Translation: Scrubs are selling faster than free donuts in a hospital break room. 🍩👩⚕️

FY 2025 Outlook

• Revenue Growth: Low single digits 📉➡️📈

• Adj. EBITDA Margin: 9.0–9.5%

• Cash: Strong, no debt

Valuation Snapshot 🔍

• Market Cap: $1.2B

• Forward P/E: 105 (yes, pricey!)

• EV/Revenue: 1.78 (reasonable for growth apparel)

• Price/Sales: 2.28

Bottom line: Expensive by P/E, not terrible by sales multiples. Investors are paying for the brand and the growth runway.

👉 Want the full picture? Dive into Figs, Inc. (FIGS)'s financials here.

Market Opportunity 🌍👩⚕️

• Healthcare Apparel TAM: Billions and growing as the global healthcare workforce expands.

• International Expansion: Big plans for Asia, including Japan & South Korea.

• Lifestyle Expansion: Not just scrubs. FIGS now sells lab coats, compression socks, loungewear, fleece jackets, and even beanies.

Think Lululemon or Nike, but for stethoscope-wearers. 🩺👟

Risks 🚨

• Competition: Mandala Scrubs, Fabletics, and others could undercut prices.

• Valuation: Forward P/E above 100 is nosebleed territory. If growth stalls, stock falls.

• Customer Growth: Had slowed a bit, but trending back up and margins are improving.

• Fashion Risk: Healthcare apparel might not be forever trendy (but neither were yoga pants at first).

💡💡💡 Curious about another deep oil exploration play?
Check our takes on UnitedHealth Group.

The Ron Factor 👑

Baron’s investing track record: Tesla, SpaceX, and now… scrubs. If he’s right again, Figs could rebound toward IPO levels and beyond (and retrace huge). If wrong? Well, at least the nurses will look fabulous.

✅ FAQ Section

Q: Why did Figs reject the $6 takeover bid?
A: Because they believe their standalone strategy can deliver far more long-term value. Baron agreed.

Q: Is Figs really the “Lululemon of healthcare”?
A: Yes! Premium branding + loyal community + product innovation.

Q: Are institutions supportive?
A: Very. Institutions hold 94% of shares.

Q: Is the stock cheap?
A: Not by P/E. But EV/Revenue makes it more palatable if growth keeps rolling.

✅ Quick Take / TL;DR

• Ron Baron keeps buying scrubs 👨⚕️💸.

• Institutions own nearly everything not nailed down.

• Figs has premium brand mojo, global growth plans, and real profits now.

• Risks: competition, slowing growth, aggressive valuation.

• Verdict: Baron’s bet could finally bear fruit 🍇… or end up as fruit salad.

🧾⚠️📢 Disclaimer: 🧾⚠️📢

FIGS may be the Lululemon of scrubs, but it’s still an investment—one that can rise or fall faster than a nurse sprinting to a Code Blue. 🚑📉 

Always DYOR, hold the FOMO, and don’t invest what you can’t afford to lose.

We laugh, we analyze, we meme. We sell jokes and opinions — and yes, we’re billing your sense of humor. 🎪💸 
We’re not financial advisors. We’re FUNancial advisors. 

Invest at your own risk.

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