#1OFIGS OFIGS FO008 165 Q2 2023 Earnings Presentation#2Disclaimer OFIGS 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 your investigation 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. Forward-Looking Statements This 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 from the 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 belief that TEAMS presents a highly profitable growth opportunity and that it has the potential to access the approximately 15% of U.S. healthcare professionals who receive scrubs through their institutions; the Company's belief it is uniquely positioned to professionalize concierge medicine; the Company's efforts to upgrade its TEAMS platform; the Company's future retail stores and retail strategy; the timing of opening of the Company's first retail store; the Company's strategic priorities, including product innovation, building and deepening connections with its community, expanding presence, and investing in infrastructure; the Company's plans to drive long-term profitable growth; and the Company's outlook as to net revenues growth and adjusted EBITDA margin for the full year ending December 31, 2023, all of which reflect the Company's expectations based upon currently available information and data. Because such statements are based on expectations as to 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 recent rapid growth and effectively manage its 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; the successful operation of the Company's distribution and warehouse management systems; 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 COVID-19 and macroeconomic trends on the Company's operations; the Company's reliance on a limited number of third-party suppliers; the fluctuating costs of raw materials; 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 Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 to be filed with the Securities and Exchange Commission ("SEC"), the Company's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on February 28, 2023, and the Company's other periodic filings with the SEC. The forward-looking statements in this presentation speak only as of the time made and the Company does not undertake to update or revise them to reflect future events or circumstances.#3OUR MISSION To celebrate, empower & serve those who serve others DION T., PHARMD CARLO C.P., CPO SASHA I., FUTURE DENTIST MICHELLE H., BSN, RN#4Financial Performance at a Glance Q2 2023 H1 2023 NET REVENUES $138.1M +13% YOY $258.4M +11% YOY GROSS MARGIN 69.5% (110 bps) YOY 70.3% (60 bps) YOY NET INCOME $4.6M (6%) YOY $6.5M (53%) YOY ADJ. EBITDA MARGIN(¹) 13.7% (3.9) ppts YOY OFIGS 13.5% (6.5) ppts YOY (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 CAAP measures.#5(unaudited) Key Operating Metrics 2,047 Q2 Active Customers(¹) (Trailing Twelve Months, in thousands) 2,154 Q3 2022 +21% YOY 2,294 Q4 2,390 Q1 2023 2,476 Q2 $109 Q2 Average Order Value (AOV)(¹) $112 Q3 2022 +6% YOY $112 Q4 $114 Q1 2023 $115 Q2 Net Revenues Per Active Customer (¹) (Trailing Twelve Months) (5%) YOY $227 Q2 $227 Q3 2022 $221 Q4 $216 Q1 2023 OFIGS $215 Q2 Efficient marketing spend drove new customer growth; expansion of layering system contributed to higher AOV (1) Active customers, AOV 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.#6Product Innovation Solutions-based product engineering combines technical functionality with comfort and style Outerwear, our second largest category, expands with the introductions of Page and Reed scrub jackets featuring interior ribbed cuffs, an adjustable waist bungee and eight pockets FIGS outerwear serves healthcare professionals all year round on-shift and off-shift ... THE PAGE SCRUB JACKET Footwear collaboration with New Balance 70's-inspired 327; features materials and designed specifically for functionality healthcare professionals Breadth of product drives average order value OFIGS#7Build and Connect with Healthcare Community K N I AM A NURSE Celebrating our healthcare community during another record Nurses Week EMERGENCY Outpatient Entra Hospital Entrance Medical Plaza Cancer Clinic PAD Outpatient Pharmacy#8Expand Presence International International net revenues grew 52% YoY in Q2 2023 Localization strategies such as Ambassador events and translations drove strong new customer acquisition Made FIGS available in new high-demand markets with no incremental investment where performance far exceeded expectations: O Mexico O O Philippines Saudi Arabia MEXICO SAUDI ARABIA Building connections with the healthcare community globally PHILIPPINES OFIGS#9SULEY SOLLIS SOLLIS Expand Presence TEAMS Setting the stage for highly profitable growth opportunity O O SOLLIS HEALTH Potential to access the approximately 15% of U.S. healthcare professionals who receive scrubs through their institutions Global opportunity even larger and virtually untapped Building on early success with healthcare institutions and universities Capitalizing on the strong growth in concierge medicine (i.e., med spas, vet clinics, dentist offices) OFIGS Uniquely positioned to professionalize these businesses with premium brand Upgrading TEAMS platform to accelerate growth Establishing relationships across healthcare institutions, universities and concierge clinics with a premium experience#10Expand Presence Retail Store in Century City Shopping Center in Los Angeles on track to open September 2023 Signed lease for 4,000 square for Philadelphia scheduled to open in the first half of 2024 Located within two miles of five healthcare institutions A leader in healthcare education, one out of every six doctors in the U.S. has been trained in Philadelphia O Philadelphia also has the fourth highest population of healthcare professionals FUTURE LOS ANGELES CENTURY CITY RETAIL LOCATION ONE MEDICAL OFIGS WHY WEAR SCRUBS WHEN YOU CAN WEAR FIGS? COMING FALL 2023/ WEARFIGS.COM / @WEARFIGS Meeting our customer where they are at with an unmatched shopping experience in our stores "community hubs"#11COLLEGE R Advancing Strategic Priorities Product Innovation Expand FIGS layering system with solutions-based innovation across technical features, new fabrications, styles and categories O Build and Deepen Connection with Community Drive awareness and engagement through brand and performance marketing Leverage ambassador community to stay top of mind O O O Elevate personalization strategies to deepen customer engagement and enhance customer experience Expand Presence O Accelerate International and TEAMS businesses Execute retail strategy that enables HCPs to connect with the brand and each other in community hubs O OFIGS Invest in Infrastructure Enhance fulfillment to support scale, increase reliability, flexibility and speed to market Optimize supply chain to support innovation and future growth O O Building our foundation to drive long-term profitable growth#12Advocacy and Giving Back We furthered our commitment to supporting the healthcare community with the launch of our first-of-its-kind FIGS Advocacy Hub - an online experience for our community to learn about the most important policy developments affecting them, and where they can advocate for real change through FIGS. The launch of our Advocacy Hub was supported by a multi-page ad in the New York Times highlighting the challenges being experienced by healthcare workers and how our Awesome Humans Bill would help solve them. All the News That's Fir VOL CLA OFIGS The New York Times AUDDAY JUNE 1A, 2023 No. 98323 The Fires Here Are Un fer the New York City And Suburbs: A Rift Widen Pr JESSE MANLEY these prody Line of lures of Globalization Committed to supporting the healthcare community LLDaliofs OFIGS HEALTHCARE IS HUMAN Our nation's 22 million healthcare workers put#13Financials OFIGS#14Q2 2023 Revenues Results Net Revenues ($ in millions) $263.1 FY'20 $419.6 FY'21 $505.8 FY'22 $122.2 Q2 '22 +13% YoY $138.1 Q2 '23 Q2 2023 Net Revenues Mix (% of total revenues) SCRUBWEAR / NON-SCRUBWEAR 16.6% +25% YoY Scrubwear 83.4% Non-scrubwear US / INTERNATIONAL Net revenues growth was driven by an increase in orders and AOV 10.4% +52% YoY U.S. 89.6% OFIGS International#15Q2 2023 Gross Margin Gross margin decrease in Q2 was primarily related to product mix shift, and to a lesser extent, increased duties and a higher mix of promotional sales, partially offset by lower air freight utilization and ocean freight rates 72.3% FY'20 71.8% FY'21 70.1% FY'22 Strong gross margin sustained despite headwinds 70.6% Q2 '22 OFIGS 69.5% Q2 '23#16Q2 2023 Operating Expense 62.8% 23.9% 17.0% 21.9% Q2 '22 G&A Marketing (% of net revenues) 64.7% 25.2% 15.1% 24.4% Q2 '23 Selling OFIGS The increase in selling expense as a percentage of net revenues was primarily driven by higher fulfillment expenses, due to increased storage costs and, to a lesser extent, the impact from international duty subsidies. The decrease in marketing expense as a percentage of net revenues was primarily due to timing shifts in brand marketing investments related to ambassador activations and out of home advertising. The increase in general and administrative expense as a percentage of net revenues was primarily due to an increase in salaries, bonuses and stock-based compensation as we continue to invest in people. Navigated transitory cost headwinds; continued investments in long term growth#17Q2 2023 Profitability Net Income (Loss) Margin (% of net revenues) Adjusted EBITDA Margin(¹) (% of net revenues) 18.9% 26.3% FY'20 (2.3%) 25.1% FY'21 4.2% 17.2% FY'22 4.1% 17.6% Q2 '22 3.4% 13.7% Q2 '23 (1) Adjusted EBITDA margin is a non-GAAP financial measure. See "Non-GAAP Financial Measures and Key Operating Metrics" in the Appendix for additional information on non-GAAP financial measures and reconciliations to the most directly comparable GAAP measures. OFIGS#18($ in millions, unaudited) Q2 2023 Balance Sheet/Cash Flow Results Cash, Cash Equivalents & Short-Term Investments (as of June 30, 2023) $164.0 Q2'21 $170.2 Q2'22 $185.3 Q2'23 Cash Flow Changes YTD 2023 (for the YTD period ended June 30, 2023) $159.8 Cash, Cash Equivalents & Short-Term Investments, Beginning of Period $6.5 Net Income $9.8 $10.2 ($1.6) $0.6 Free Cash Flow(¹) $24.9 Other Working Capital and Other Items Inventory Change CAPEX Financing & Other Activities OFIGS $185.3 Cash, Cash Equivalents & Short-Term Investments, End of Period Strong debt-free balance sheet and resumption of positive free cash flow (1) Free cash flow 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#192023 Full Year Outlook Net Revenues growth vs. 2022: Adjusted EBITDA Margin(); 5.5% to 7.5% 12.5% to 13.5% OFIGS (1) Adjusted EBITDA margin is a non-GAAP metric. We have not provided a quantitative reconciliation of our adjusted EBITDA margin outlook to a GAAP net income margin outlook because 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 Key Operating Metrics" in the Appendix. Maintaining FY net revenues expectation and increasing adjusted EBITDA margin(¹) outlook#20Appendix OFIGS#21OFIGS 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. Non-GAAP Financial Measures and Key Operating Metrics The Company uses "net income, 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 income adjusted 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 ambassador grants in connection with its initial public offering, and expense resulting from the retirement of the Company's previous CFO, 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 adjusted to exclude: other income (loss), 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. The following table presents a reconciliation of net income, as adjusted to net income, which is the most directly comparable financial measure calculated in accordance with GAAP, and presents diluted earnings per share ("EPS"), as adjusted and diluted earnings per share: (in thousands, except share and per share amounts) Net income Add (deduct): Transaction costs Expenses related to non-ordinary course disputes(™) Income tax impacts of items above Net income, as adjusted Diluted EPS Diluted EPS, as adjusted Weighted-average shares used to compute Diluted EPS and Diluted EPS, as adjusted $ $ $ Three Months Ended June 30, 2023 (unaudited) $ 4,581 4,581 $ 0.02 $ 0.02 $ 183,332,560 2022 4,852 $ 145 2,787 (1,438) 6,346 $ 0.03 $ 0.03 $ 188,903,553 Six Months Ended June 30, 2023 (unaudited) 6,490 $ 1,256 (707) 7,039 0.04 0.04 183,094,950 (1) Exclusively represents attorney's fees, costs and expenses incurred by the Company in connection with the Company's now-concluded litigation against Strategic Partners, Inc. $ $ $ 2022 13,751 145 5,204 (2,291) 16,809 0.07 0.09 191,142,834#22Non-GAAP Financial Measures and Key Operating Metrics (cont.) The following table presents a reconciliation of adjusted EBITDA to net income, which is the most directly comparable financial measure calculated in accordance with GAAP, and presents adjusted EBITDA margin with net income margin, which is the most directly comparable financial measure calculated in accordance with GAAP: (in thousands, except percentages) Net income Add (deduct): Other income, net Provision for income taxes Depreciation and amortization expense Stock-based compensation and related expense(2) Expenses related to non-ordinary course disputes (3) Adjusted EBITDA Net Revenue Net income margin() Adjusted EBITDA margin $ $ $ 2023 Three Months Ended June 30, (unaudited) 4,581 $ (1,517) 3,501 713 11,618 18,896 138,132 3.4% 13.7% $ $ (in thousands) Net cash (used in) provided by operating activities Less: capital expenditures Free cash flow 2022 $ $ 4,852 (70) 4,669 433 8,808 2,787 21,479 2023 122,247 4.1% 17.6% $ $ $ Six months ended June 30, 2023 (unaudited) 26,520 $ (1,613) 24,907 Six Months Ended June 30, $ (unaudited) 6,490 $ (2,588) 5,961 1,372 22,482 1,256 34,973 258,364 2.5% 13.5% (1) Excludes amortization of debt issuance costs included in "Other income, net." (2) Includes stock-based compensation expense and payroll taxes related to equity award activity. (3) Exclusively represents attorney's fees, costs and expenses incurred by the Company in connection with the Company's now-concluded litigation against Strategic Partners, Inc. (4) Net income margin represents net income as a percentage of net revenues. The following table presents a reconciliation of free cash flow to net cash (used in) provided by operating activities, which is the most directly comparable financial measure calculated in accordance with GAAP: 2022 $ $ (26,535) (1,727) (28,262) 2022 13,751 (78) 9,523 808 17,254 5,204 46,462 232,348 5.9% 20.0% OFIGS#23Non-GAAP Financial Measures and Key Operating Metrics (cont.) The Company has also included herein "active customers," "net revenues per active customer" and "average order value," which are key operational and business metrics that are important to understanding Company performance. 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 in the 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 are the 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.