Funko (FNKO) Q4 2024 earnings summary

Executive summary

• Q4 net sales reached $294 million, up 1% year-over-year and at the top end of guidance, with gross margin and adjusted EBITDA exceeding expectations, driven by strong DTC and EMEA sales.

• Full-year 2024 net sales were $1.05 billion, down from $1.1 billion in 2023, but gross profit and adjusted EBITDA improved by over $100 million each, and total debt was reduced by $90 million.

• Direct-to-consumer (DTC) sales grew to 29% of total sales, up from 25% in Q4 2023, driving higher margins and customer insights.

• Core collectibles business grew over 10% in Q4, with international sales up 23% and Bitty Pop! line up 83% year-over-year.

• Strategic focus is on financial discipline, diversification into sports, music, and gaming, and sustainable long-term value creation.

Financial highlights

• Q4 net sales: $293.7 million, up 1% year-over-year.

• Q4 gross profit: $124.4 million (42.4% margin), up from $109.4 million (37.6%) in Q4 2023.

• Q4 adjusted net income: $4.4 million ($0.08 per diluted share), up from $0.1 million in Q4 2023.

• Q4 adjusted EBITDA: $26.3 million, well above guidance.

• Full-year adjusted EBITDA: $94.7 million (vs. -$11.8 million in 2023); total debt reduced to $182.8 million.

Outlook and guidance

• 2025 full-year net sales expected between $1.05 billion and $1.102 billion; adjusted EBITDA between $80 million and $100 million.

• Q1 2025 guidance: net sales $188–198 million, gross margin ~39%, SG&A ~$91 million, adjusted net loss $22–25 million, negative adjusted EBITDA $9–14 million.

• Guidance incorporates 20% tariffs on China imports and potential pricing adjustments.

• Expect modest top-line growth for 2025, with momentum accelerating in the second half as strategic initiatives take effect.

• First half of 2025 expected to be down year-over-year due to tariffs and soft U.S. consumer sentiment; second half expected to improve.