Funko Inc ( (FNKO) ) has released its Q1 earnings. Here is a breakdown of the information Funko Inc presented to its investors.
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Funko, Inc. is a global pop culture lifestyle brand known for its diverse collection of brands and industry-leading portfolio of licenses, offering products such as vinyl figures, fashion accessories, and digital collectibles. In the first quarter of 2025, Funko reported net sales of $190.7 million, which fell within their guidance range, and a gross margin of 40.3%, slightly above expectations. However, the company faced a net loss of $28.1 million, or $0.52 per share, compared to a net loss of $23.7 million in the same period last year.
Key financial metrics revealed a decrease in net sales across all brand categories and geographical regions, with the United States experiencing the most significant decline. Despite these challenges, Funko’s international markets, particularly in Europe, showed resilience. The company’s gross profit stood at $76.9 million, and adjusted EBITDA was negative at $4.7 million, contrasting with a positive $9.6 million from the previous year.
Funko’s management highlighted the impact of intensified tariffs, particularly from China, which led to strategic actions such as cost reductions, pricing adjustments, and a shift in sourcing strategies. The company aims to reduce its reliance on Chinese imports to approximately 5% by year-end. Due to these uncertainties, Funko has withdrawn its full-year 2025 outlook.
Looking ahead, Funko is focusing on expanding its global footprint and strengthening its brand presence internationally. The company remains committed to navigating the current economic challenges while building a more robust and diversified business model.