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Jun 30, 2025
Funko Q2 2025 Earnings Report
Funko reported its consolidated financial results for the second quarter ended June 30, 2025, showing a decrease in net sales and a net loss compared to the prior year.
Key Takeaways
Funko experienced a challenging second quarter in 2025, with net sales significantly declining to $193.5 million from $247.7 million in the prior year. The company reported a net loss of $41.0 million, or $0.74 per share, a substantial shift from a net income of $5.4 million in Q2 2024. Adjusted net loss was $26.7 million, and adjusted EBITDA was negative $16.5 million, primarily attributed to a dynamic and uncertain tariff environment.
Net sales for Q2 2025 decreased by 21.9% to $193.5 million from $247.7 million in Q2 2024.
The company reported a net loss of $41.0 million, or $0.74 per share, a significant decline from a net income of $5.4 million, or $0.10 per share, in the same period last year.
Gross profit fell to $62.0 million, with gross margin at 32.1%, down from $104.0 million and 42.0% in Q2 2024.
Adjusted EBITDA was negative $16.5 million, compared to a positive $27.9 million in the second quarter of 2024.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Funko anticipates an improvement in financial performance in the second half of 2025 compared to the first half, with net sales expected to be down high single-digits year-over-year. Adjusted EBITDA margin is projected to be in the mid- to high single-digits range, and Q4 results are expected to ramp up over Q3.
Positive Outlook
- Financial performance is expected to improve in the second half of 2025 compared to the first half.
- The company expects headwinds to moderate.
- Actions taken to cut costs, diversify product sourcing, and adjust prices are anticipated to improve the business.
- Q4 results are expected to ramp up over Q3.
- Management is focused on stabilizing the business and accelerating growth initiatives.
Challenges Ahead
- Net sales are expected to be down high single-digits compared with the second half of 2024.
- The outlook does not account for any further tariff actions, as their impacts remain uncertain.
- The company is still facing a dynamic and uncertain tariff environment.
Revenue & Expenses
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Historical Earnings Impact
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Avg. Return Before/After Earnings
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