Funko is as soon as once more dealing with the duality of merchandise with confirmed demand and economic challenges knocking down the enterprise.
The Washington-based firm behind Pop! Vinyl, Loungefly, and Mondo reported a pointy year-over-year decline in its second quarter 2025 financials, with web gross sales falling to $193.5 million in comparison with $247.7 million in Q2 2024 — an almost 22% drop. Gross revenue fell to $62 million, leading to a gross margin of 32.1%, down from 42% within the prior-year interval.
Gross sales of core collectibles slipped 15.7% adopted by a 23.2% dip in Loungefly gross sales. The corporate’s “Different” class, a type of catch-all for added merchandise, fell off a cliff, charting a 78.7% decline versus final yr.
As anticipated, our 2025 second quarter efficiency was impacted by a dynamic and unsure tariff surroundings. Trying forward, we anticipate headwinds to reasonable and our enterprise to enhance because of the actions we have taken to chop prices, diversify product sourcing and modify costs. The group is targeted on stabilizing the enterprise, accelerating execution on development initiatives and unlocking Funko’s long-term potential.”
— Michael Lunsford, Interim CEO, Funko
The earnings come simply days after Funko authorised retention bonuses for CFO Yves LePendeven ($300,000) and Tracy Daw, Chief Authorized Officer and Secretary ($150,000), topic to continued employment by March 31, 2026. Moreover, the corporate’s Board of Administrators authorised a two-month compensation package deal for Interim CEO Michael Lunsford, together with a month-to-month money payment of $75,000 and a month-to-month award of 10,000 restricted inventory items.
“I stepped in once more on the Board’s request to assist Funko understand the complete potential of its enterprise by accelerating the natural development initiatives, exploring monetary and strategic choices for the enterprise, and figuring out Funko’s subsequent CEO,” Lunsford mentioned on an earnings name with analysts Thursday afternoon.
In accordance with LePendeven, tariffs and associated bills are estimated to value Funko $40 million this yr, as the corporate works to diversify its provide chain, which is basically depending on Vietnam and China. Worth will increase within the U.S. have helped, with no actual affect on demand, in line with firm execs.
Deeper into the Numbers
Promoting, normal, and administrative (SG&A) bills totaled $82.3 million, up from $77.9 million in 2024. Final yr’s determine included a one-time web good thing about $1.5 million, making the year-over-year comparability barely uneven. Particulars associated to the non-recurring expenses have been included within the firm’s reconciliation tables.
The corporate posted a web lack of $41 million, or $0.74 per share, in comparison with web revenue of $5.4 million, or $0.10 per share, a yr in the past. On an adjusted foundation, web loss got here in at $26.7 million, or $0.48 per share, reversing an adjusted web revenue of $5.6 million, or $0.10 per diluted share.
Adjusted EBITDA swung to a lack of $16.5 million from a constructive $27.9 million a yr earlier, marking a troublesome quarter as the corporate navigated macroeconomic headwinds and operational strain.
Future Outlook
Funko is leaning into its direct-to-consumer enterprise, the triumphant success of its latest Comic-Con International: San Diego (SDCC) activations, and development in classes like sports activities and Bitty Pop! as wins.
In the meantime, the corporate filed a $100 million blended securities shelf with the SEC. The doc features a prospectus for the gross sales of further securities, which Funko could select to pursue later. You may view the Securities Registration Assertion here.
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