Funko Inc ( (FNKO) ) has released its Q2 earnings. Here is a breakdown of the information Funko Inc presented to its investors.
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Funko, Inc., a prominent player in the pop culture lifestyle sector, is known for its diverse range of collectibles and fashion accessories that cater to fans worldwide. The company recently released its financial results for the second quarter of 2025, highlighting a challenging period marked by a significant decline in sales and profitability.
In the second quarter of 2025, Funko reported net sales of $193.5 million, a substantial decrease from $247.7 million in the same period of 2024. The company’s gross profit also fell to $62.0 million, with a gross margin of 32.1%, compared to a previous gross margin of 42.0%. Funko faced a net loss of $41.0 million, or $0.74 per share, a stark contrast to the net income of $5.4 million, or $0.10 per share, recorded in the second quarter of 2024.
The decline in sales was evident across all brand categories and geographical regions, with the core collectible segment experiencing a 15.7% drop, and the U.S. market seeing a 27.7% reduction in sales. Despite these setbacks, Funko’s cash reserves improved to $49.2 million, up from $34.7 million at the end of 2024, although total debt increased significantly to $256.6 million.
Looking ahead, Funko’s management remains cautiously optimistic, expecting financial performance to improve in the second half of 2025. The company anticipates a high single-digit decline in net sales compared to the latter half of 2024 but expects adjusted EBITDA margins to stabilize in the mid- to high single-digit range, with a stronger performance anticipated in the fourth quarter.