Shares of Funko (NASDAQ: FNKO) tanked by more than 25% in pre-market trading on Thursday as the pop culture lifestyle brand swung to an adjusted loss of $0.35 per share in Q4 versus a profit of $0.38 in the same period last year. This loss was far worse than analysts’ expectations of a loss of $0.10 per share.
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Revenues declined by 1% year-over-year to $333 million but beat consensus estimates of $317.9 million. In addition, the company announced the appointment of Steve Nave as CFO and COO, effective immediately.
Looking forward, Funko has projected its Q1 revenues to range from $225 million to $255 million while adjusted EBITDA is likely to be a loss between $50 million and $45 million. However, the company expects to swing back to profitability in the second half of this year. Adjusted loss is projected to range from a loss of $1.00 to $0.90 per diluted share.
For FY23, Funko anticipates revenues to grow year-over-year between 0% and 5% while adjusted EBITDA is expected to be between $50 million and $75 million.
Analysts are sidelined about FNKO stock with a Hold consensus rating based on one Buy, three Holds and one Sell.