•
Sep 30, 2024

Funko Q3 2024 Earnings Report

Funko reported solid financial results, with net sales at the top end of guidance and better-than-expected profitability due to improved gross margins.

Key Takeaways

Funko reported Q3 2024 financial results with net sales of $292.8 million and net income of $4.6 million. The company updated its full-year 2024 outlook, expecting net sales to be at the low end to slightly below the previous range and raising the full-year outlook for Adjusted EBITDA to above the high end of the range.

Net sales were $292.8 million, compared to $312.9 million in the prior year.

Gross profit was $119.8 million, with a gross margin of 40.9%, compared to $104.0 million with a gross margin of 33.2% in the prior year.

Net income was $4.6 million, or $0.08 per diluted share, compared to a net loss of $16.2 million, or $0.31 per share in the prior year.

Adjusted EBITDA was $31.0 million, compared to $25.4 million in the prior year.

Total Revenue
$293M
Previous year: $313M
-6.4%
EPS
$0.14
Previous year: $0.03
+366.7%
Gross Margin
40.9%
Previous year: 33.2%
+23.2%
Adjusted EBITDA Margin
10.6%
Gross Profit
$120M
Previous year: $104M
+15.2%
Cash and Equivalents
$28.5M
Previous year: $31.9M
-10.5%
Free Cash Flow
-$4.19M
Previous year: $1.02M
-510.6%
Total Assets
$784M
Previous year: $880M
-11.0%

Funko

Funko

Funko Revenue by Segment

Funko Revenue by Geographic Location

Forward Guidance

Funko provided guidance for its 2024 fourth quarter, including net sales between $280 million and $294 million, gross margin between 38% and 40%, and adjusted EBITDA between $17 million and $22 million. The company lowered the range for net sales and raised the range for adjusted EBITDA for full year 2024.

Positive Outlook

  • Gross margin %: 38% to 40%
  • Adjusted net income (loss)*: ($3) million to $1 million

Challenges Ahead

  • Net sales: $280 million to $294 million
  • SG&A expense, in dollars: $93 million to $99 million
  • Adjusted net income (loss) per diluted share*: ($0.05) to $0.02
  • Adjusted EBITDA*: $17 million to $22 million