Press release
Funko Reports First Quarter 2025 Financial Results
--Q1 Net Sales Within Guidance Range, Gross Margin and Adjusted EBITDA Above Expectations; Withdraws 2025 Full-Year Outlook Due to Tariff-Related
About this update from Funko, Inc.
[{"type":"text","content":"\n--Q1 Net Sales Within Guidance Range, Gross Margin and Adjusted EBITDA Above Expectations; Withdraws 2025 Full-Year Outlook Due to Tariff-Related Uncertainties--\n\n EVERETT, Wash.--(BUSINESS WIRE)--\nFunko, Inc. (Nasdaq: FNKO), a leading pop culture lifestyle brand, today reported its consolidated financial results for the first quarter ended March 31, 2025.\n\nFirst Quarter Financial Results Summary: 2025 vs 2024\n\n\nNet sales were $190.7 million compared with $215.7 million\n\n\nGross profit was $76.9 million, equal to gross margin of 40.3%, compared with $86.3 million, equal to gross margin of 40.0%\n\n\nSG&A expenses were $84.8 million. This compares with $85.6 million, which included non-recurring charges of $5.1 million. Details related to the non-recurring charges can be found in footnotes 3 and 4 of the attached reconciliation tables\n\n\nNet loss was $28.1 million, or $0.52 per share, compared with $23.7 million, or $0.45 per share\n\n\nAdjusted net loss* was $17.8 million, or $0.33 per share*, compared with $9.2 million, or $0.17 per share\n\n\nNegative adjusted EBITDA* was $4.7 million versus adjusted EBITDA* of $9.6 million\n\n\n\"Despite a challenging Q1 environment, we were able to deliver net sales within our guidance range and better than expected gross margin and adjusted EBITDA,” said Cynthia Williams, Chief Executive Officer of Funko. “International continues to be a strength for both our business and our brand. Market research shows we’re gaining share as we outpace the broader toy industry, our sell-through increased in the European G5 markets, and we’re expanding our global footprint. Our roadmap is working—and we’re moving fast to build a stronger, more global Funko.\n\n\"Since the beginning of April, the extent and volatility of tariffs have intensified, especially with regard to imports from China. As a result, we have taken swift and decisive action to protect our margins and liquidity. Those actions include reducing costs, adjusting pricing, and accelerating our diversified sourcing strategy. We now expect approximately 5% of our future US bound product to be sourced from China by year end.\"\n\nFirst Quarter 2025 Net Sales by Category and Geography\n\nThe tables below show the breakdown of net sales on a brand category and geographical basis (in thousands):\n\n\n\n \n\n\n\nThree Months Ended March...