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Jun 30, 2023

Funko Q2 2023 Earnings Report

Funko's Q2 2023 results reflected lower net sales due to inventory de-stocking by U.S. wholesale customers, but SG&A expenses improved. The company is implementing cost savings measures and focusing on core products.

Key Takeaways

Funko reported a decrease in net sales to $240.0 million compared to $315.7 million in Q2 2022. The company experienced a net loss of $75.9 million, or $1.54 per share, but adjusted net loss was $22.3 million, or $0.43 per share. Negative adjusted EBITDA was $7.6 million. The company is implementing cost reduction initiatives and focusing on core products to improve financial performance.

Net sales decreased to $240.0 million from $315.7 million in the second quarter of 2022.

Gross margin was 29.2% compared to 32.7% in the prior year's quarter.

Net loss was $75.9 million, or $1.54 per share, including a non-cash charge of $38.5 million.

Adjusted EBITDA was negative $7.6 million, compared to $31.8 million in the second quarter of 2022.

Total Revenue
$240M
Previous year: $316M
-24.0%
EPS
-$0.43
Previous year: $0.26
-265.4%
Gross Margin
29.2%
Previous year: 32.7%
-10.7%
Gross Profit
$70M
Previous year: $103M
-32.1%
Cash and Equivalents
$36.8M
Previous year: $56.2M
-34.5%
Free Cash Flow
$8.27M
Previous year: -$21.7M
-138.1%
Total Assets
$898M
Previous year: $1.14B
-21.2%

Funko

Funko

Funko Revenue by Segment

Funko Revenue by Geographic Location

Forward Guidance

Funko revised its 2023 full-year outlook, projecting net sales of $1.05 billion to $1.12 billion and adjusted EBITDA of $20 million to $30 million. For the third quarter, the company expects net sales of $280 million to $310 million, with sequential improvements in gross margin and SG&A expense.

Positive Outlook

  • Gross margin % Increasing sequentially from Q2
  • SG&A expense Improving sequentially from Q2