The primary quarter of 2025 wasn’t what Freddy Funko was searching for.
Funko, the popular culture powerhouse behind Pop! Vinyl figures and different toys, collectibles, and life-style merchandise from the Loungefly and Mondo manufacturers, posted web gross sales of $190.7 million, dropping greater than 11% from $215.7 million throughout the identical interval final 12 months. Gross revenue clocked in at $76.9 million, with a gross margin of 40.3%, holding comparatively regular towards final 12 months’s 40.0%.
“Regardless of a difficult Q1 atmosphere, we had been in a position to ship web gross sales inside our steering vary and higher than anticipated gross margin and adjusted EBITDA,” says Funko CEO Cynthia Williams. “Worldwide continues to be a energy for each our enterprise and our model. Market analysis reveals we’re gaining share as we outpace the broader toy trade, our sell-through elevated within the European G5 markets, and we’re increasing our world footprint. Our roadmap is working — and we’re transferring quick to construct a stronger, extra world Funko.”
In the course of the blended Q1, the purple ink ran a bit deeper: Funko reported a web lack of $28.1 million, or $0.52 per share, in comparison with $23.7 million, or $0.45 per share, in Q1 2024. Adjusted web loss got here in at $17.8 million, or $0.33 per share.
On the expense facet, SG&A dipped barely to $84.8 million from $85.6 million, although final 12 months’s determine included $5.1 million in one-time fees.
Adjusted EBITDA flipped to the adverse, touchdown at -$4.7 million versus a optimistic $9.6 million final 12 months.
With tariff considerations looming massive for the larger toy, recreation, and collectibles industries, Funko has withdrawn its 2025 steering.
“For the reason that starting of April, the extent and volatility of tariffs have intensified, particularly with regard to imports from China,” Williams explains. “Consequently, we’ve got taken swift and decisive motion to guard our margins and liquidity. These actions embrace decreasing prices, adjusting pricing, and accelerating our diversified sourcing technique. We now anticipate roughly 5% of our future U.S.-bound product to be sourced from China by year-end.”
The put up Funko Hits Pause on 2025 Outlook as Tariff Tensions Cloud Q1 Earnings appeared first on The Toy Book.
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