Funko, Inc. · NASDAQ:FNKO
Funko — Investor Presentation (March 2025)
24 slides from Funko's investor presentation, March 2025
Slide 1: Investor Presentation: Company Overview, March 2025
Investor Presentation COMPANY OVERVIEW MARCH 2025
Slide 2: Cautionary Notes Regarding Forward-Looking Statements
CAUTIONARY NOTES REGARDING FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained in this presentation that do not relate to matters of historical fact should be considered
Slide 3: Funko Is a Leading Pop Culture Consumer Products Company
FUNKO IS A LEADING POP CULTURE CONSUMER PRODUCTS COMPANY Funko is at the center of a rapidly growing collectible market segment, leveraging an industry-leading portfolio of licenses to connect fans with what they love across key growth areas like Entertainment, Sports, Music, and Gaming. We are uniq
Slide 4: Funko at a Glance
FUNKO AT A GLANCE 2024 SALES BY… TICKER: Nasdaq: FNKO • IPO: 2017 GEOGRAPHY • Founded: 1998 US .....………….............65% NET SALES 2024: $1.05 Billion International …...........35% ADJUSTED EBITDA 2024: $95 Million1 HQ: Everett, Washington PRODUCT BRANDS # of full-time employees: 1,283 as of Decembe
Slide 5: We Have a Fanatical Customer Base in a Growing Market
WE HAVE A FANATICAL CUSTOMER BASE IN A GROWING MARKET STRONG CONSUMER ENGAGEMENT FUNKO’S FOOTHOLD IN GROWING MARKET SEGMENTS Funko has built a deeply engaged consumer base, connecting The global toy market for 12+ year old consumers, known as “Kidults,” with them through Funko’s digital platform, lo
Slide 6: Competitive Moat Through Industry-Leading Portfolio of Licenses
WE HAVE BUILT A COMPETITIVE MOAT THROUGH AN INDUSTRY- LEADING PORTFOLIO OF LICENSES MOVIES TV MUSIC SPORTS ANIME GAMING ROBUST IP RELATIONSHIPS ACROSS 900+ ACTIVE LICENSED PROPERTIES AND 250+ CONTENT PROVIDERS Funko, LLC © 2025 Source: Company information 5
Slide 7: Large, Diversified Global Distribution Network
WE HAVE A LARGE, DIVERSIFIED GLOBAL DISTRIBUTION NETWORK No single retail partner accounted for over 10% of 2024 revenue Select Retail Partners Our Direct-to-Consumer sales outpace any single Mass customer, driving 24% of 2024 gross sales. E-Comm Specialty FLAGSHIP STORES EXPERIENTIAL Distributors O
Slide 8: History of Rapid Growth, Transitioning to Our Next Chapter
WITH A HISTORY OF RAPID GROWTH, WE ARE TRANSITIONING TO OUR NEXT CHAPTER FUNKO REVENUE GROWTH OVER TIME ($ M) Rapid Growth Improvements 2025 and Beyond Funko aims to return to growth ▪ Macroeconomic headwinds through four strategic pillars: ✓Growth driven by multiple blockbuster movie franchises1 &
Slide 9: New Management Has Positioned Funko for Growth
NEW MANAGEMENT HAS POSITIONED FUNKO FOR GROWTH STABILIZED TOP LINE 2023 2024 Revenue $ in millions $1,323 $1,096 – Appointed interim CEO, – Hired new CEO with strong $1,029 $1,050 with extensive track record of scaling $653 turnaround experience businesses – Eliminated unprofitable – Divested Games
Slide 10: Formula for Growth Through Intentional Diversification
WE HAVE A FORMULA FOR GROWTH THROUGH INTENTIONAL DIVERSIFICATION PERSONALIZATION + FANDOM EXPANSION + NON-TRADITIONAL RETAIL CHANNELS + INTERNATIONAL EXPANSION + PRODUCT DIVERSIFICATION POP! Yourself Sports Sell Where the Fans Are Distributors & Bitty Pop! Licensed Stores $30B $35B $15B Sports Memor
Slide 11: Pop! Yourself Delivers More Product Personalization
POP! YOURSELF DELIVERS MORE PRODUCT PERSONALIZATION FOR FANS WHAT IS IT? VARIOUS WAYS TO BUILD A CUSTOMIZED POP! Custom “builder” that allows fans to create personalized vinyl figures for themselves and loved ones ONLINE WE LAUNCHED POP! YOURSELF IN 2023 Personalized gifting Year-round value with pr
Slide 12: Pop! Yourself Results Have Exceeded Expectations
POP! YOURSELF RESULTS HAVE EXCEEDED EXPECTATIONS GROWTH DRIVER FOR E-COMMERCE & TOP SELLING PRODUCT IN COMPANY-OWNED STORES STILL TO COME Biggest driver of growth and momentum in 2024 International expansion Partnerships with additional sports leagues 80%+ In-person fan experiences at events Pop! Yo
Slide 13: Focused Fandom Expansion into High-Growth Segments
FOCUSED FANDOM EXPANSION INTO HIGH-GROWTH SEGMENTS SPORTS GAMING MUSIC $35B Sports Memorabilia & Trading Cards in 20231 3.3B Gamers Globally3 150M Attended Live Nation Concerts in 20245 3.7B 69% have U.S. households someone who plays at least 1-3 20+HRS Average listening per week6 Sports fans global
Slide 14: Sports Are an Attractive and Growing Market
SPORTS ARE AN ATTRACTIVE AND GROWING MARKET ATTRACTIVE MARKET CHARACTERISTICS OUR GOALS $35B Size of Funko Sports ~$40M, or ~4% Sports Memorabilia and Trading Cards in 2023 (+11%)1 Business Today 2024 Revenue 221M Fans attended European football matches during the 2023/24 season2 Introduce new licen
Slide 15: Music Merchandising Is a Large Adjacent Opportunity
MUSIC MERCHANDISING IS A LARGE ADJACENT OPPORTUNITY OVERVIEW OF MARKET OUR GOALS $16B Size Of Funko Music Business Today ~$27M, or ~2% Global music merchandise business by 20301 2024 Revenue $19B KEY FUNKO MUSIC IP Revenue of Live Nation concerts in 2024, up 2%2 17% Revenue increase in vinyl sales i
Slide 16: Gaming Fandom Is Large, Extends Globally
GAMING FANDOM IS LARGE, EXTENDS GLOBALLY OVERVIEW OF MARKET OUR GOALS 3.3B Size Of Funko Gaming ~$105M, or ~10% Business Today 2024 Revenue Gamers across the globe, and growing1 % Gamers in the U.S. by Generation(2) KEY FUNKO GAME IP Gen Z 28% ~53% of gamers in the U.S. are Millennial-age or younger
Slide 17: Expanding into New Retail Channels to Sell Where the Fan Is
EXPANDING INTO NEW RETAIL CHANNELS TO SELL WHERE THE FAN IS WE HAVE ALREADY ESTABLISHED A HIGHLY DIVERSIFIED DISTRIBUTION NETWORK AND WE ARE EXPLORING WHERE WE CAN MEET NEW FANS WHERE THEY ARE No single retail partner accounted for over 10% of 2024 revenue Select Retail Partners Mass Movie Team Stor
Slide 18: Strong International Base with Room to Run
STRONG INTERNATIONAL BASE WITH ROOM TO RUN SIZEABLE INTERNATIONAL PRESENCE WITH OPPORTUNITY FOR FURTHER INTERNATIONAL GROWTH MEXICO & 2025 Pop! Yourself EUROPE Middle East Asia – Partner and Licensed Pacific Latin Stores EXPANSION America STRATEGY – Third Party Distributors – Establish Local Presenc
Slide 19: Bitty Pop! Brings Funko Magic to Micro-Collectibles Market
BITTY POP! BRINGS FUNKO MAGIC TO MICRO-COLLECTIBLES MARKET OVERVIEW OF MARKET THE FUTURE EXPANSION OF BITTY POP! LICENSED… …AND NON-LICENSED $15B Mini-figures market size 20231 BITTY POP! CURRENT OFFERING INNOVATE EXPAND DISTRIBUTE Star Wars Hans Solo Deadpool We’re developing new unboxing extension
Slide 20: Expanding Blind Box to Capture the Growing Market
EXPANDING BLIND BOX TO CAPTURE THE GROWING MARKET EXCITING MARKET OPPORTUNITY REINTRODUCING AN EXCITING PRODUCT $14B $39B Global Blind Box market in 2024, Global market forecast for 2033, Mystery Random product from 40% coming from North America1 based on a 9.6% CAGR1 Contents… specific collection T
Slide 21: Key Considerations
KEY CONSIDERATIONS Powerful pop culture Diversified sales channels ecosystem with passionate with massive DTC, core fans, driving core business collector loyalty program, growth through intentional and international diversification. opportunity. Exciting product Results-oriented line extensions such
Slide 22: Supplemental Financial Information
Supplemental Financial Information 21
Slide 23: Reconciliation of Non-GAAP Financial Metrics
RECONCILIATION OF NON-GAAP FINANCIAL METRICS Year Ended December 31, 2024 2023 2022 2021 2020 (in thousands) Net loss $(15,070) $(164,438) $(5,240) $67,854 $9,763 Interest expense, net 20,575 27,970 10,334 7,167 10,712 Income tax expense (benefit) 4,564 132,497 (17,801) 17,061 2,025 Depreciation and
Slide 24: Reconciliation of Non-GAAP Financial Metrics Cont.
RECONCILIATION OF NON-GAAP FINANCIAL METRICS CONT. 1. Represents non-cash charges related to equity-based compensation programs, which vary from period to period depending on the timing of awards. 2. For the year ended December 31, 2024, includes a net one-time legal settlement gain of $1.4 million