Funko reports Q2 EPS 10c, consensus (14c)

Reports Q2 revenue $247.7M, consensus $231.0M. “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%. “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.”