Press release
Funko Reports Second Quarter 2024 Financial Results; Reiterates 2024 Full-Year Outlook
--Q2 Net Sales, Gross Margin and Adjusted EBITDA - All Above Expectations-- EVERETT, Wash.--(BUSINESS WIRE)-- Funko, Inc. (Nasdaq: FNKO), a leading pop
About this update from Funko, Inc.
[{"type":"text","content":"\n--Q2 Net Sales, Gross Margin and Adjusted EBITDA - All Above Expectations--\n\n\n EVERETT, Wash.--(BUSINESS WIRE)--\nFunko, Inc. (Nasdaq: FNKO), a leading pop culture lifestyle brand, today reported its consolidated financial results for the second quarter ended June 30, 2024.\n\n\nSecond Quarter Financial Results Summary: 2024 vs 2023\n\n\n\nNet sales were $247.7 million compared with $240.0 million\n\n\n\nGross profit was $104.0 million, equal to gross margin of 42.0%. This compares with $70.0 million, equal to gross margin of 29.2%, which included $2.4 million of non-recurring charges\n\n\n\nSG&A expenses were $77.9 million, which included a non-recurring net benefit of $1.5 million, compared with $85.6 million, which included non-recurring charges of $0.8 million. Details related to the non-recurring charges can be found in footnotes 4 and 5 of the attached reconciliations\n\n\n\nNet income was $5.4 million, or $0.10 per diluted share, compared with net loss of $75.9 million, or $1.54 per share\n\n\n\nAdjusted net income* was $5.6 million, or $0.10 per diluted share*, compared with adjusted net loss of $22.3 million, or $0.43 per share\n\n\n\nAdjusted EBITDA* was $27.9 million versus negative adjusted EBITDA* of $7.6 million\n\n\n\n“For the 2024 second quarter, net sales, gross margin and adjusted EBITDA were all above our expectations,” said Cynthia Williams, Funko’s recently named Chief Executive Officer. “Our performance was primarily driven by strong demand for our core collectible products in Europe and other international markets, Pop! Yourself and Bitty Pop!, as well as solid growth in our direct-to-consumer business. Higher than anticipated margins on sales in the value channel and resulting inventory reserve relief were key contributors to our better-than-expected gross margin of 42%.\n\n\n“Turning to our balance sheet, we lowered our inventory levels to $109.0 million at June 30, 2024 from $112.3 million at March 31, 2024 and reduced our debt by $22.5 million to $223.9 million at June 30, 2024 from $246.4 million at March 31, 2024.\n\n\n“Having joined Funko two months ago, I look forward to leading Funko through the next stage of our growth. I am enthused by our fans and excited about our business, products and opportunities. The team is actively working on developing our plans for 2025 and beyond. We are taking ...