Funko Reports $15.1 Million Net Loss for Fiscal Year 2024, Improved from Previous Year

Funko, Inc. reported a net loss of $15.1 million for the fiscal year ending December 31, 2024, a significant improvement from a net loss of $164.4 million in the previous year. The company's net sales for 2024 were $1.05 billion, down 4.2% from $1.1 billion in 2023. This decline was attributed to reduced sales to specialty retailers and e-commerce customers, influenced by the performance of certain exclusive products and the overall content slate available during the year. Despite the decrease in sales, Funko's cost of sales dropped by 19.4% to $615.3 million, contributing to an increase in gross margin from 30.4% in 2023 to 41.4% in 2024.

In terms of strategic developments, Funko has focused on diversifying its product offerings and expanding its market presence. The company has made significant investments in its direct-to-consumer channel, which accounted for approximately 24% of total sales in 2024, up from 21% in 2023. Funko's international sales also saw growth, with net sales outside the United States increasing to 35% of total sales, compared to 31% in the previous year. The company continues to leverage its extensive licensing agreements, which cover over 930 active properties, to maintain a diverse product portfolio that appeals to a wide range of pop culture fans.

Operationally, Funko's employee headcount rose to 1,283 as of December 31, 2024, reflecting the company's ongoing efforts to support its growth strategy. The company has also been actively managing its inventory, resulting in a $30.3 million write-down in 2023 due to excess inventory. This proactive approach to inventory management is part of Funko's broader strategy to enhance operational efficiency and reduce costs. The company has also engaged in acquisitions, including the purchase of Mondo Collectibles, which has allowed it to expand into high-end collectibles and diversify its product offerings further.

Looking ahead, Funko's management has expressed optimism about future growth, emphasizing the importance of adapting to changing consumer preferences and pop culture trends. The company plans to continue investing in its direct-to-consumer business and expanding its international reach. However, it also acknowledges the challenges posed by macroeconomic factors, including inflation and shifts in retail dynamics, which could impact its financial performance. Funko's ability to execute its growth strategy effectively will be crucial in navigating these challenges and achieving sustainable profitability in the coming years.