You should read the following discussion and analysis of our financial condition and results of operations together with our condensed consolidated financial statements and related notes included elsewhere in this Quarterly Report on Form 10-Q, as well as our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the Securities and Exchange Commission (“SEC”) on February 26, 2026 (the “2025 Annual Report on Form 10-K”). This discussion contains forward-looking statements based upon current plans, expectations and beliefs involving risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth in Part II, Item 1A. “Risk Factors” and other factors set forth in other parts of this Quarterly Report on Form 10-Q. Unless the context requires otherwise, references in this Quarterly Report on Form 10-Q to “FIGS,” the “Company,” “we,” “our” or “us” refer to FIGS, Inc. and its consolidated subsidiaries. Overview Our mission is to celebrate, empower and serve those who serve others. We are a founder-led, direct-to-consumer healthcare apparel and lifestyle brand that seeks to celebrate, empower and serve current and future generations of healthcare professionals. We are committed to helping this growing, global community of professionals, whom we refer to as Awesome Humans, look, feel and perform at their best—24/7, 365 days a year. We create technically advanced apparel and products that feature an unmatched combination of comfort, durability, function and style, all at an affordable price. In doing so, we have redefined what scrubs are—giving rise to our tag-line: why wear scrubs, when you can #wearFIGS? By elevating scrubs and creating premium products for healthcare professionals that support them on and off-shift, we revolutionized the large and fragmented healthcare apparel market, branded a previously unbranded industry and de-commoditized a previously commoditized product. Most importantly, we built a community and lifestyle around a profession. As a result, we have become the industry’s category-defining healthcare apparel and lifestyle brand. We sell products purposefully designed to serve the particular needs of healthcare professionals primarily through our direct-to-consumer (“DTC”) digital platform, consisting of our website, mobile app and B2B business (“TEAMS”). We also operate physical retail stores, which we call Community Hubs, and which represent a first-of-its-kind retail experience for healthcare professionals. Our offerings include scrubwear and non-scrubwear, such as outerwear, underscrubs, footwear, compression socks, lab coats, loungewear and other apparel. We primarily design all of our products in-house, leverage third-party suppliers and manufacturers to produce our product components and finished products, and generally utilize shallow initial buys and data-driven repurchasing decisions to test new products. We directly and actively coordinate with our suppliers on every step of our product development and production process to ensure that our extremely high quality standards are met. We also have a dynamic merchandising model with lessened inventory risk, as a result of the largely non-discretionary, replenishment-driven nature of scrubwear and a focus on our core scrubs offerings. At June 30, 2026, we had approximately 3.1 million active customers. Our customers come to us through word of mouth referrals, as well as through our data-driven brand and performance marketing efforts. See the section titled “Key Operating Metrics and Non-GAAP Financial Measures” for a definition of active customers. In the three and six months ended June 30, 2026, we had the following results compared to the comparable period in 2025: ◦Expanded our community of active customers by 13.2% from approximately 2.7 million at June 30, 2025 to approximately 3.1 million at June 30, 2026; ◦Net revenues increased from $152.6 million to $196.6 million, or 28.8%, in the three months ended June 30, 2026, and increased from $277.5 million to $356.5 million, or 28.5%, in the six months ended June 30, 2026; ◦Gross margin increased 8.2 percentage points from 67.0% to 75.2% in the three months ended June 30, 2026, and increased 4.5 percentage points from 67.3% to 71.8% in the six months ended June 30, 2026; 21 Table of Contents ◦Net income increased from $7.1 million to $28.4 million in the three months ended June 30, 2026, and increased from $7.0 million to $34.7 million in the six months ended June 30, 2026; ◦Net income margin increased from 4.7% to 14.4% in the three months ended June 30, 2026, and increased from 2.5% to 9.7% in the six months ended June 30, 2026; ◦Adjusted EBITDA increased from $19.7 million to $36.6 million in the three months ended June 30, 2026, and increased from $28.9 million to $50.5 million in the six months ended June 30, 2026, representing an adjusted EBITDA margin of 18.6% and 14.2%, respectively; ◦Cash flows from operating activities increased from $(3.2) million to $43.7 million in the six months ended June 30, 2026; and ◦Free cash flow increased from $(5.6) million to $38.6 million in the six months ended June 30, 2026. See the section titled “Key Operating Metrics and Non-GAAP Financial Measures” for information regarding adjusted EBITDA, adjusted EBITDA margin and free cash flow, including reconciliations to the most directly comparable financial measures prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Recent Developments Global Trade Policy We continue to monitor changes in policy impacting global trade, including tariffs, which have been dynamic, unpredictable and subject to ongoing modification. In February 2026, the United States Supreme Court ruled that the use of the International Emergency Economic Powers Act (“IEEPA”) to impose tariffs was not permitted, invalidating a significant portion of U.S. tariffs that had been in effect since April 2025. The Administration responded by invoking a 10.0% global tariff pursuant to Section 122 of the Trade Act of 1974 (the “Trade Act”), effective on February 24, 2026, which expired on July 24, 2026. On July 23, 2026, the Administration imposed new tariffs ranging from 10.0%-12.5% pursuant to Section 301 of the Trade Act, effective July 24, 2026. These tariffs are intended to replace the Section 122 tariffs and affect imports from approximately 60 countries and territories, including those where our suppliers are located. The ruling and the Administration’s subsequent actions have created substantial uncertainty regarding the tariff environment, including with respect to (i) the scope and duration of the new tariffs imposed under Section 301 and any new or higher tariffs that may be imposed and (ii) the outcome of pending legal challenges to the Section 122 tariffs and the potential for further legal challenges to those, the Section 301 tariffs and any future tariffs. Tariffs have increased our product costs, negatively impacting gross margin for the three months ended June 30, 2026. We have implemented, and plan to continue to implement as needed, various mitigation strategies, which have included, and may in the future again include, adjusting the countries from which we source our products and renegotiating terms with suppliers, but we cannot be certain how effective they will be over the long term. Without taking into account mitigation efforts and based on the information available to us today, we believe that tariffs will continue to negatively impact gross margin for 2026, although to a lesser extent than we previously disclosed in our 2025 Annual Report on Form 10-K. This estimate and actual impact may change materially as conditions evolve and new information becomes available. Additionally, tariffs and other trade barriers, including those imposed by other countries on the United States, could adversely impact demand for our products domestically and in international markets. We cannot predict additional near-term changes in global trade policy, and additional tariffs or other trade barriers could further increase our costs or otherwise adversely affect our business, financial condition and results of operations. IEEPA Tariff Refunds Following the February 2026 United States Supreme Court's ruling invalidating the IEEPA Tariffs, U.S. Customs and Border Protection (“CBP”) began processing refunds of the IEEPA tariffs. We estimate we previously paid a total of approximately $20.6 million of tariffs imposed under IEEPA. CBP accepted our Phase I refund claims in the aggregate amount of $20.5 million, including associated interest. As of June 30, 2026, we had received approximately $4.5 million of the accepted claims and recorded a receivable of approximately $16.0 million for the remaining accepted claims on our condensed consolidated balance sheet as of June 30, 2026. We do not expect to apply for any refunds under Phase II of the process and there is still uncertainty regarding the timing, process and applicable criteria for future phases of the refund process. See Note 16 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information regarding our IEEPA refund claims. 22 Table of Contents CBP Withhold Release Order On June 23, 2026, CBP issued a withhold release order (“WRO”) against certain garments produced by our Jordanian manufacturing partner. That manufacturer accounted for approximately one-third of our finished goods production during the three months ended June 30, 2026. As a result of the WRO, our products produced by this partner may not currently be imported into the United States, and we may ultimately be unable or choose not to sell recently finished product from this partner. We have instituted various strategies to mitigate the impact of the WRO, including transitioning raw materials and future production to our other manufacturing partners. Overall, we expect the WRO will adversely impact our net revenues, gross margin and inventory levels in the second half of 2026. See Item 1A. “Risk Factors—Risks Related to Our Business—Our reliance on a limited number of third-party suppliers to provide materials for and produce our products could cause problems in our supply chain and subject us to additional risks” and “—Our ability to source and distribute our products, including our ability to do so profitably, is impacted by global trade policy.” Key Factors Affecting Our Performance We believe that our performance and future success depend on a number of factors that present significant opportunities for us. There have been no material changes to such factors from those described in our 2025 Annual Report on Form 10-K under the heading “Key Factors Affecting Our Performance.” Those factors also pose risks and challenges, including those discussed in Part II, Item 1A. “Risk Factors” of this Quarterly Report on Form 10-Q. Components of Our Results of Operations Net Revenues Net revenues consist of sales of healthcare apparel, footwear and other products primarily through our digital platform. We recognize product sales at the time control is transferred to the customer, which is when the product is shipped to the customer. Net revenues represent the sale of these items and shipping revenue, net of estimated returns and discounts. Net revenues are primarily driven by the number of active customers, the frequency with which customers purchase and the average order value (“AOV”). See the section titled “—Key Operating Metrics and Non-GAAP Financial Measures” for a definition of average order value. Cost of Goods Sold Cost of goods sold consists principally of the cost of purchased merchandise and includes import duties, tariffs and other taxes, freight-in, defective merchandise returned by customers, inventory write-offs and other miscellaneous shrinkage. Our cost of goods sold has fluctuated and may continue to fluctuate with the cost of the raw materials used in our products and freight costs and the impact of changes to applicable import duties and tariffs. Gross Profit and Gross Margin We define gross profit as net revenues less cost of goods sold. Gross margin is gross profit expressed as a percentage of net revenues. Our gross margin has fluctuated historically and may continue to fluctuate from period to period based on a number of factors, including the timing and mix of the product offerings we sell as well as our ability to reduce costs, in any given period. Operating Expenses Our operating expenses consist of selling, marketing and general and administrative expenses. Selling Selling expenses represent the costs incurred for fulfillment, selling and distribution. Fulfillment expenses consist of costs incurred in operating and staffing a third-party fulfillment center, including costs associated with inspecting and warehousing inventories and picking, packaging and preparing customer orders for shipment. Selling and distribution expenses consist primarily of shipping and other transportation costs incurred in delivering merchandise to customers and from customers returning merchandise, merchant processing fees and packaging. We expect fulfillment, selling and distribution costs to increase in absolute dollars as we increase our net revenues. 23 Table of Contents Marketing Marketing expenses consist primarily of online performance marketing costs, such as retargeting, paid search and product listing advertisements, paid social media advertisements, search engine optimization, personalized email and SMS marketing and mobile push notifications through our app. Marketing expenses also include our spend on brand marketing channels, including billboards, podcasts, commercials, photo and video shoot development, expenses associated with our Ambassador Program, events and other forms of online and offline marketing. We expect our marketing expenses to increase in absolute dollars as we continue to grow our business. General and Administrative General and administrative expenses consist primarily of employee-related costs, including salaries, bonuses, benefits, stock-based compensation, other related costs and other general overhead, including certain third-party consulting and contractor expenses, certain facilities costs, software expenses, legal expenses, recruiting fees and in-kind donations. We expect our general and administrative expenses to increase in absolute dollars as we continue to grow our business. Other Income, Net Other income, net consists of interest income, interest expense, amortization of debt issuance costs, as well as gain or loss on foreign currency, primarily driven by payment to vendors for amounts not denominated in U.S. dollars. Provision for Income Taxes Our provision for income taxes consists of an estimate of federal, state and foreign income taxes based on enacted federal, state, and foreign tax rates, as adjusted for allowable credits, deductions and uncertain tax positions. Seasonality Unlike the traditional apparel industry, the healthcare apparel industry is generally not seasonal in nature. However, due to our general historical pattern of sequential growth, as well as our decision to conduct select promotions during the holiday season, we historically have generated a higher proportion of net revenues, and incurred higher selling and marketing expenses, during the fourth quarter of the year compared to other quarters, and these trends could continue. 24 Table of Contents Results of Operations Three Months Ended June 30, 2026 Compared to Three Months Ended June 30, 2025 The following table sets forth information comparing the components of our results of operations for the periods indicated and our results of operations as a percentage of net revenues for the periods presented. Three months ended June 30, Three months ended June 30, 2026 2025 2026 2025 (in thousands) (as a percentage of net revenues) Net revenues $ 196,619 $ 152,640 100.0 % 100.0 % Cost of goods sold 48,764 50,394 24.8 33.0 Gross profit 147,855 102,246 75.2 67.0 Operating expenses Selling 43,702 34,433 22.2 22.6 Marketing 28,511 23,151 14.5 15.2 General and administrative(1) 40,380 34,747 20.5 22.8 Total operating expenses 112,593 92,331 57.3 60.5 Net income from operations 35,262 9,915 17.9 6.5 Other income, net 1,619 2,116 0.8 1.4 Net income before provision for income taxes 36,881 12,031 18.8 7.9 Provision for income taxes 8,502 4,932 4.3 3.2 Net income $ 28,379 $ 7,099 14.4 % 4.7 % (1)Includes stock-based compensation expense of $6.7 million and $7.6 million for the three months ended June 30, 2026 and 2025, respectively. Net Revenues Three months ended June 30, Change 2026 2025 % (in thousands) Net revenues $ 196,619 $ 152,640 28.8 % Net revenues increased by $44.0 million, or 28.8%, for the three months ended June 30, 2026, compared to the prior year period. The increase in net revenues was primarily driven by an increase in orders and higher AOV. Cost of Goods Sold, Gross Profit and Gross Margin Three months ended June 30, Change 2026 2025 (in thousands, except margin) Cost of goods sold $ 48,764 $ 50,394 (3.2) % Gross profit 147,855 102,246 44.6 % Gross margin 75.2 % 67.0 % 820 bps Cost of goods sold decreased by $1.6 million, or 3.2%, for the three months ended June 30, 2026, compared to the prior year period. The decrease in cost of goods sold was primarily due to IEEPA tariff refunds, partially offset by higher unit sales and tariffs. 25 Table of Contents Gross profit increased by $45.6 million, or 44.6%, for the three months ended June 30, 2026, compared to the prior year period. The increase in gross profit was primarily due to IEEPA tariff refunds, higher unit sales, and positive impact from price increases, partially offset by tariffs. Gross margin increased 8.2 percentage points for the three months ended June 30, 2026, compared to the prior year period. The increase in gross margin was primarily due to IEEPA tariff refunds, positive impacts from price increases and ongoing efficiency efforts, partially offset by tariffs. Operating Expenses Three months ended June 30, Change 2026 2025 % (in thousands) Operating expenses: Selling $ 43,702 $ 34,433 26.9 % Marketing 28,511 23,151 23.2 % General and administrative 40,380 34,747 16.2 % Total operating expenses 112,593 92,331 21.9 % Operating expenses increased by $20.3 million, or 21.9%, for the three months ended June 30, 2026, compared to the prior year period, driven by higher selling expense, general and administrative expense, and marketing expense. As a percentage of net revenues, operating expenses decreased by 3.2 percentage points, primarily driven by leverage on higher net revenues in general and administrative expense, marketing expense and selling expense. Selling expense increased by $9.3 million, or 26.9%, for the three months ended June 30, 2026, compared to the prior year period and, as a percentage of net revenues, decreased by 0.4 percentage points. The decrease in selling expense as a percentage of net revenues was primarily due to leverage on higher net revenues and favorable shipping rates. Marketing expense increased by $5.4 million, or 23.2%, for the three months ended June 30, 2026, compared to the prior year period and, as a percentage of net revenues, decreased by 0.7 percentage points. The decrease in marketing expense as a percentage of net revenues was primarily due to leverage on higher net revenues and digital marketing efficiency. General and administrative expense increased by $5.6 million, or 16.2%, for the three months ended June 30, 2026, compared to the prior year period and, as a percentage of net revenues, decreased by 2.3 percentage points. The decrease in general and administrative expense as a percentage of net revenues was primarily due to leverage on higher net revenues and lower stock-based compensation expense. Other Income, Net Three months ended June 30, Change 2026 2025 % (in thousands) Other income, net $ 1,619 $ 2,116 (23.5) % Other income, net decreased for the three months ended June 30, 2026, compared to the prior year period, primarily due to foreign exchange loss. 26 Table of Contents Provision for Income Taxes Three months ended June 30, Change 2026 2025 % (in thousands) Provision for income taxes $ 8,502 $ 4,932 72.4 % Provision for income taxes increased by $3.6 million, or 72.4%, for the three months ended June 30, 2026, compared to the prior year period, primarily due to an increase in pretax book income. Results of Operations Six Months Ended June 30, 2026 Compared to Six Months Ended June 30, 2025 The following table sets forth information comparing the components of our results of operations for the periods indicated and our results of operations as a percentage of net revenues for the periods presented. Six months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (in thousands) (as a percentage of net revenues) Net revenues $ 356,521 $ 277,541 100.0 % 100.0 % Cost of goods sold 100,368 90,836 28.2 32.7 Gross profit 256,153 186,705 71.8 67.3 Operating expenses Selling 80,141 67,111 22.5 24.2 Marketing 58,004 41,307 16.3 14.9 General and administrative(1) 78,263 68,583 22.0 24.7 Total operating expenses 216,408 177,001 60.7 63.8 Net income from operations 39,745 9,704 11.1 3.5 Other income, net 3,581 4,191 1.0 1.5 Net income before provision for income taxes 43,326 13,895 12.2 5.0 Provision for income taxes 8,659 6,898 2.4 2.5 Net income $ 34,667 $ 6,997 9.7 % 2.5 % (1)Includes stock-based compensation expense of $12.2 million and $14.9 million for the six months ended June 30, 2026 and 2025, respectively. Net Revenues Six months ended June 30, Change 2026 2025 % (in thousands) Net revenues $ 356,521 $ 277,541 28.5 % Net revenues increased by $79.0 million, or 28.5%, for the six months ended June 30, 2026, compared to the prior year period. The increase in net revenues was primarily driven by an increase in orders and higher AOV. 27 Table of Contents Cost of Goods Sold, Gross Profit and Gross Margin Six months ended June 30, Change 2026 2025 (in thousands, except margin) Cost of goods sold $ 100,368 $ 90,836 10.5 % Gross profit 256,153 186,705 37.2 % Gross margin 71.8 % 67.3 % 450 bps Cost of goods sold increased by $9.5 million, or 10.5%, for the six months ended June 30, 2026, compared to the prior year period. The increase in cost of goods sold was primarily due to higher unit sales and tariffs, partially offset by IEEPA tariff refunds. Gross profit increased by $69.4 million, or 37.2%, for the six months ended June 30, 2026, compared to the prior year period. The increase in gross profit was primarily due to higher unit sales, IEEPA tariff refunds and positive impact from price increases, partially offset by tariffs. Gross margin increased 4.5 percentage points for the six months ended June 30, 2026, compared to the prior year period. The increase in gross margin was primarily due to IEEPA tariff refunds, positive impacts from price increases and ongoing efficiency efforts, largely offset by tariffs. Operating Expenses Six months ended June 30, Change 2026 2025 % (in thousands) Operating expenses: Selling $ 80,141 $ 67,111 19.4 % Marketing 58,004 41,307 40.4 % General and administrative 78,263 68,583 14.1 % Total operating expenses 216,408 177,001 22.3 % Operating expenses increased by $39.4 million, or 22.3%, for the six months ended June 30, 2026, compared to the prior year period, driven by higher marketing expense, selling expense, and general and administrative expense. As a percentage of net revenues, operating expenses decreased by 3.1 percentage points, primarily due to leverage on higher net revenues in general and administrative expense and selling expense, partially offset by an increase in marketing expense. Selling expense increased by $13.0 million, or 19.4%, for the six months ended June 30, 2026, compared to the prior year period and, as a percentage of net revenues, decreased by 1.7 percentage points. The decrease in selling expense as a percentage of net revenues was primarily due to leverage on higher net revenues, favorable shipping rates and lower fulfillment expense due to fulfillment center optimization. Marketing expense increased by $16.7 million, or 40.4%, for the six months ended June 30, 2026, compared to the prior year period and, as a percentage of net revenues, increased by 1.4 percentage points. The increase in marketing expense as a percentage of net revenues was primarily due to our 2026 Winter Olympics campaign, partially offset by leverage on higher net revenues, and revenue efficiency on digital marketing spend. General and administrative expense increased by $9.7 million, or 14.1%, for the six months ended June 30, 2026, compared to the prior year period and, as a percentage of net revenues, decreased by 2.7 percentage points. The decrease in general and administrative expense as a percentage of net revenues was primarily due to leverage on higher net revenues and lower stock-based compensation expense. 28 Table of Contents Other Income, Net Six months ended June 30, Change 2026 2025 % (in thousands) Other income, net $ 3,581 $ 4,191 (14.6) % Other income, net decreased for the six months ended June 30, 2026, compared to the prior year period, primarily due to foreign exchange loss. Provision for Income Taxes Six months ended June 30, Change 2026 2025 % (in thousands) Provision for income taxes $ 8,659 $ 6,898 25.5 % Provision for income taxes increased by $1.8 million, or 25.5%, for the six months ended June 30, 2026, compared to the prior year period, primarily due to an increase in pretax book income. Key Operating Metrics and Non-GAAP Financial Measures We report our financial results in accordance with GAAP. In addition to the measures presented in our condensed consolidated financial statements, we use the following key operational and business metrics to evaluate our business, measure our performance, develop financial forecasts and make strategic decisions. We believe the non-GAAP financial measures, adjusted EBITDA, adjusted EBITDA margin and free cash flow, are useful in evaluating our performance. Our non-GAAP financial measures should not be considered in isolation from, or as substitutes for, financial information prepared in accordance with GAAP. Active Customers, Net Revenues per Active Customer, and Average Order Value We believe the number of active customers is an important indicator of our growth as it reflects the reach of our digital platform, our brand awareness and overall value proposition. We define 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, we determine our 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. Active customers as of June 30, 2026 and 2025, respectively, are presented in the following table: As of June 30, 2026 2025 (in thousands) Active customers 3,097 2,736 We believe measuring net revenues per active customer is important to understanding our engagement and retention of customers, and as such, our value proposition for our customer base. We define 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. Net revenues per active customer as of June 30, 2026 and 2025, respectively, are presented in the following table: As of June 30, 2026 2025 Net revenues per active customer $ 229 $ 208 We define AOV 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. We believe our 29 Table of Contents relatively high AOV demonstrates the premium nature of our product. As we expand into and increase our presence in additional product categories, price points and international markets, AOV may fluctuate. AOV for the three and six months ended June 30, 2026 and 2025, respectively, are presented in the following table: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 Average order value $ 127 $ 117 $ 125 $ 118 Adjusted EBITDA and Adjusted EBITDA Margin We calculate adjusted EBITDA as net income adjusted to exclude: other income, net; gain/loss on disposal of assets; provision for income taxes; depreciation and amortization expense; stock-based compensation and related expense; transaction costs; expenses related to non-ordinary course disputes; and refunds recognized for IEEPA tariffs incurred on goods sold in the prior fiscal year. Adjusted EBITDA margin is calculated by dividing adjusted EBITDA by net revenues. Management believes that excluding certain non-cash items and items that may vary substantially in frequency and magnitude period-to-period from net income provides useful supplemental measures that assist in evaluating our ability to generate earnings, provide consistency and comparability with our past financial performance and facilitate period-to-period comparisons of our core operating results as well as the results of our peer companies. There are several limitations related to the use of adjusted EBITDA and adjusted EBITDA margin as analytical tools, including: •other companies may calculate adjusted EBITDA and adjusted EBITDA margin differently, which reduces their usefulness as a comparative measure; •adjusted EBITDA and adjusted EBITDA margin do not reflect other income, net; •adjusted EBITDA and adjusted EBITDA margin do not reflect any gain or loss on disposal of assets; •adjusted EBITDA and adjusted EBITDA margin do not reflect our tax provision, which reduces cash available to us; •adjusted EBITDA and adjusted EBITDA margin do not reflect recurring, non-cash expenses of depreciation and amortization of property and equipment and, although these are non-cash expenses, the assets being depreciated and amortized may have to be replaced in the future; •adjusted EBITDA and adjusted EBITDA margin do not reflect the impact of stock-based compensation and related expense; •adjusted EBITDA and adjusted EBITDA margin do not reflect transaction costs; and •adjusted EBITDA and adjusted EBITDA margin do not reflect expenses related to non-ordinary course disputes. 30 Table of Contents The following table reflects a reconciliation of adjusted EBITDA to net income, the most directly comparable financial measure prepared in accordance with GAAP and presents adjusted EBITDA margin with net income margin, the most directly comparable financial measure prepared in accordance with GAAP: Three months ended June 30, Six months ended June 30, 2026 2025 2026 2025 (in thousands, except margin) (in thousands, except margin) Net income $ 28,379 $ 7,099 $ 34,667 $ 6,997 Add (deduct): Other income, net (1,619) (2,116) (3,581) (4,191) Provision for income taxes 8,502 4,932 8,659 6,898 Depreciation and amortization expense(1) 2,371 2,153 5,782 4,152 Stock-based compensation and related expense(2) 6,852 7,659 12,840 15,046 IEEPA tariff refund(3) $ (7,899) $ — $ (7,899) $ — Adjusted EBITDA(4) $ 36,586 $ 19,727 $ 50,468 $ 28,902 Net revenues $ 196,619 $ 152,640 $ 356,521 $ 277,541 Net income margin(5) 14.4 % 4.7 % 9.7 % 2.5 % Adjusted EBITDA Margin 18.6 % 12.9 % 14.2 % 10.4 % (1)Excludes amortization of debt issuance costs included in “Other income, net.” (2)Includes stock-based compensation expense, payroll taxes and costs related to equity award activity. (3)Consists of refunds recognized for IEEPA tariffs incurred on goods sold in the year ended December 31, 2025. (4)For the six months ended June 30, 2025, reflects $171,000 of stock-based compensation expense and payroll taxes inadvertently not reflected in our previously disclosed Adjusted EBITDA results for the three months ended March 31, 2025. (5)Net income margin represents net income as a percentage of net revenues. Free Cash Flow We calculate free cash flow as net cash provided by operating activities reduced by capital expenditures, including purchases of property and equipment and capitalized software development costs. We believe free cash flow is a useful supplemental measure of liquidity and an additional basis for assessing our ability to generate cash. There are limitations related to the use of free cash flow as an analytical tool, including that other companies may calculate free cash flow differently, which reduces its usefulness as a comparative measure, and free cash flow does not reflect our future contractual commitments, nor does it represent the total residual cash flow for a given period. 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. Six months ended June 30, 2026 2025 (in thousands) Net cash (used in) provided by operating activities $ 43,653 $ (3,195) Less: capital expenditures (5,026) (2,399) Free cash flow $ 38,627 $ (5,594) 31 Table of Contents Liquidity and Capital Resources Cash Availability As of June 30, 2026 and December 31, 2025, we had $108.5 million and $82.0 million of cash and cash equivalents, respectively. Since inception, we have financed operations primarily through cash flows from operating activities and the sale of our capital stock. Tariff Refund Receivable Following the three months ended June 30, 2026, we received the $16.0 million IEEPA tariff refund receivable outstanding as of June 30, 2026, which we expect to record in cash and cash equivalents on our condensed consolidated balance sheets for the quarter ending September 30, 2026. See Note 16 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information regarding our IEEPA tariff refund claims. Amended and Restated Credit Agreement In September 2021, we entered into a credit agreement with Bank of America, N.A. (as amended from time to time, the “Credit Agreement”) providing for a revolving credit facility in an amount of up to $100.0 million (as amended, the “2021 Facility”). On November 3, 2025, we entered into a second amendment to the Credit Agreement, which, among other things, extends the maturity date of the 2021 Facility from September 7, 2026 to November 3, 2030 and reduces the annual commitment fee to 0.15% of the unused Revolving Facility (as defined in the Credit Agreement). As of June 30, 2026, we had no outstanding borrowings under the 2021 Facility (other than $8.4 million of outstanding letters of credit) and available borrowings of $91.6 million. See Note 9 to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information regarding the 2021 Facility. Share Repurchase Program In August 2024, our board of directors authorized a share repurchase program for up to $50.0 million of our outstanding Class A common stock, with no expiration date. On February 27, 2025, our board of directors authorized an increase of $50.0 million to the share repurchase program, bringing the total authorization for repurchases under the program as of that date to up to $100.0 million of our outstanding Class A common stock. During the three months ended June 30, 2026, we repurchased 2,009,381 shares of our Class A common stock for approximately $24.0 million. During the six months ended June 30, 2026, we repurchased 2,580,973 shares of our Class A common stock for approximately $32.8 million. As of June 30, 2026, we had approximately $19.2 million available for future repurchases under the share repurchase program. On August 6, 2026, our board of directors authorized an additional increase of $100.0 million to the share repurchase program, bringing the total authorization for repurchases under the program to up to $200.0 million of our outstanding Class A common stock. Following the authorization of the increase, as of the date hereof, we have approximately $119.2 million available for future repurchases under the share repurchase program. Use of Cash Our cash requirements have primarily been for working capital and capital expenditures. We believe that existing cash and cash equivalents, cash flows from operations and available borrowings under our 2021 Facility, if needed, will be sufficient to support our working capital and capital expenditure requirements for at least the next 12 months. Our future capital requirements may vary materially from those currently planned and will depend on many factors, including our rate of revenue growth, the timing and extent of international expansion efforts and other growth initiatives, the expansion of our marketing activities and overall economic conditions. To the extent that current and anticipated future sources of liquidity are insufficient to fund our future business activities and cash requirements, we may be required to seek additional equity or debt financing. The sale of additional equity would result in additional dilution to our stockholders. The incurrence of additional debt financing would result in debt service obligations and the instruments governing such debt could provide for operating and financing covenants that would restrict our operations. There can be no assurances that we will be able to raise additional capital when needed or on terms acceptable to us. The inability to raise capital if needed would adversely affect our ability to achieve our business objectives. 32 Table of Contents Historical Cash Flows The following table summarizes our cash flows for the periods presented: Six months ended June 30, 2026 2025 (in thousands) Cash flows from operating activities $ 43,653 $ (3,195) Cash flows from investing activities 24,724 (29,098) Cash flows from financing activities (41,747) (2,503) Effect of foreign currency exchange rate changes on cash and cash equivalents (76) — Net change in cash and cash equivalents $ 26,554 $ (34,796) Operating Activities Cash flows from operating activities consist primarily of net income adjusted for certain items including depreciation and amortization, stock-based compensation expense and the effect of changes in operating assets and liabilities. Cash flows from operating activities increased by $46.8 million for the six months ended June 30, 2026, compared to the same period last year. The increase was due to the timing of cash payments for accrued expenses of $38.6 million, an increase in our net income including the impact of non-cash adjustments of $28.6 million, and lower inventory purchases of $28.2 million. The increase in our net income includes a benefit to cost of goods sold from IEEPA tariff refunds. The increase was partially offset by the timing of cash payments of accounts payable of $18.7 million, IEEPA tariff refund receivable of $16.0 million, the timing of cash payments of accrued compensation and benefits of $8.3 million, and the timing of cash payments of prepaid expenses and other current assets of $4.7 million. Investing Activities Cash flows from investing activities consist of capital expenditures, as well as purchases, maturities, and sales of investments. Cash flows from investing activities increased by $53.8 million for the six months ended June 30, 2026, compared to the same period last year. The increase in cash flows from investing activities was primarily due to higher maturities and sales of available-for-sale securities of $91.8 million. This was offset by higher purchases of available-for-sale securities of $34.1 million, and higher purchases of property and equipment of $2.6 million. Financing Activities Cash flows from financing activities consist primarily of proceeds and payments related to transactions involving our common stock, borrowings, and fees associated with our existing line of credit. Cash flows from financing activities decreased by $39.2 million as compared to the same period last year. The decrease in financing cash flows was primarily due to an increase in repurchases of Class A common stock of $30.1 million. In addition, cash flows from financing activities decreased due to payments for taxes related to the net share settlement of equity awards of $9.8 million, with no comparable activity in the prior year. Contractual Obligations and Commitments There have been no material changes to our contractual obligations from those described in our 2025 Annual Report on Form 10-K. Refer to Note 10 to our condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q for any commitments entered into during the three and six months ended June 30, 2026. 33 Table of Contents Critical Accounting Policies and Estimates Our condensed consolidated financial statements and the related notes thereto included elsewhere in this Quarterly Report on Form 10-Q are prepared in accordance with GAAP. The preparation of our financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, costs, expenses, and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results could differ significantly from our estimates. To the extent that there are differences between our estimates and actual results, our future financial statement presentation, financial condition, results of operations, and cash flows will be affected. Our critical accounting policies are described under the heading “Management’s Discussion and Analysis of Financial Condition and Results of Operations—Critical Accounting Policies and Estimates” in our 2025 Annual Report on Form 10-K. There have been no material changes to our critical accounting policies since December 31, 2025. See Note 2 to our condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q for a description of our other significant accounting policies. Recent Accounting Pronouncements Refer to Note 2 to our condensed consolidated financial statements appearing elsewhere in this Quarterly Report on Form 10-Q for a discussion of accounting pronouncements recently adopted and recently issued accounting pronouncements not yet adopted and their potential impact to our condensed consolidated financial statements.