For the three months ended September 30, 2024, Funko, Inc. reported net sales of $292.8 million, a decrease of 6.4% from $312.9 million in the same period of 2023. For the nine months ended September 30, 2024, net sales totaled $756.1 million, down 6.1% from $804.9 million in the prior year. The decline in sales was attributed to reduced sales to specialty retailers and e-commerce sites, influenced by the content slate and performance of exclusive products.

Despite the drop in sales, the company achieved a significant turnaround in profitability. Income from operations for the third quarter of 2024 was $11.7 million, compared to a loss of $5.4 million in the same quarter of 2023. For the nine-month period, income from operations was $7.6 million, a substantial improvement from a loss of $100.4 million in the previous year. Net income for the third quarter was $4.6 million, reversing a loss of $16.2 million in 2023, while the nine-month net loss narrowed to $13.7 million from $153.2 million.

The gross margin for the third quarter improved to 40.9%, up from 33.2% in the prior year, driven by a decrease in cost of sales, which fell 17.2% to $173.0 million. Selling, general, and administrative expenses also decreased by 1.4% to $92.7 million. The company reported an EBITDA of $26.1 million for the third quarter, compared to $9.9 million in the same period last year.

Funko's cash and cash equivalents as of September 30, 2024, were $28.5 million, down from $36.5 million at the end of 2023. The company reported net cash provided by operating activities of $63.7 million for the nine months ended September 30, 2024, a significant improvement from net cash used of $2.9 million in the same period of 2023.

Strategically, Funko sold its Funko Games inventory and certain intellectual property in January 2024, generating $6.8 million in proceeds, which were used to pay down debt. The company also reserved 1.5 million shares of Class A common stock under a new inducement award plan in May 2024.

As of September 30, 2024, Funko's total assets were $783.6 million, down from $804.6 million at the end of 2023, while total liabilities decreased to $543.1 million from $565.6 million. The company continues to face challenges, including a material weakness in internal controls over financial reporting, which management is actively addressing.