Financial Performance - Consolidated net sales for the year ended December 31, 2024, were $1,049.85 million, a decrease from $1,096.09 million in 2023, and $1,322.71 million in 2022 [414]. - The net loss attributable to Funko, Inc. for 2024 was $14.72 million, compared to a net loss of $154.08 million in 2023 [414]. - The company reported a loss per share of Class A common stock of $0.28 for 2024, consistent with the loss per share of $3.19 in 2023 [414]. - The company experienced a comprehensive loss of $16.21 million in 2024, compared to a comprehensive loss of $151.66 million in 2023 [418]. - The net loss for the year ended December 31, 2024, was $15.07 million, compared to a net loss of $164.44 million in 2023 and a net loss of $5.24 million in 2022 [534]. - Funko, Inc. reported a net loss of $15.07 million for the year ended December 31, 2024, compared to a net loss of $164.44 million in 2023 and $5.24 million in 2022, indicating a significant reduction in losses year-over-year [555]. - The basic loss per share of Class A common stock was $(0.28) for 2024, down from $(3.19) in 2023 and $(0.18) in 2022, reflecting improved performance despite ongoing losses [555]. Revenue and Sales - Total net sales for the year ended December 31, 2024, were $1,049.85 million, a decrease of 4.2% from $1,096.09 million in 2023 and a decline of 20.6% from $1,322.71 million in 2022 [534]. - Core Collectible sales accounted for $804.41 million in 2024, slightly up from $803.18 million in 2023, but down from $998.44 million in 2022 [534]. - The Company recorded net sales of $681.99 million in the United States for 2024, down from $755.62 million in 2023 and $966.32 million in 2022 [534]. Expenses and Costs - The cost of sales for 2024 was $615.32 million, down from $763.09 million in 2023, indicating a reduction in costs [414]. - Total operating expenses for 2024 were $1,036.86 million, a decrease from $1,199.91 million in 2023 [414]. - The company reported depreciation and amortization expenses of $62,583,000 in 2024, up from $57,389,000 in 2023 [427]. - Advertising and marketing costs increased to $51.6 million in 2024 from $31.3 million in 2023, reflecting a strategic push in marketing efforts [450]. - Product design and development costs were $6.8 million in 2024, down from $8.0 million in 2023, suggesting a potential shift in R&D focus [452]. Assets and Liabilities - Total assets decreased from $798,585,000 in 2023 to $707,254,000 in 2024, a decline of approximately 11.4% [421]. - Current assets fell from $336,816,000 in 2023 to $287,059,000 in 2024, representing a decrease of about 14.8% [421]. - Long-term debt decreased from $130,986,000 in 2023 to $100,303,000 in 2024, a reduction of about 23.5% [421]. - Accounts receivable decreased from $130,831,000 in 2023 to $119,882,000 in 2024, a decline of approximately 8.5% [421]. - Inventories decreased from $119,458,000 in 2023 to $92,580,000 in 2024, representing a decrease of about 22.5% [421]. - Total long-lived assets decreased to $134.996 million as of December 31, 2024, from $160.586 million in 2023 [534]. Debt and Interest - As of December 31, 2024, the company had $172.2 million of variable rate debt outstanding under its Credit Facilities, including $112.2 million under the Term Loan Facility and $60.0 million under the Revolving Credit Facility [384]. - A 1% increase or decrease in the effective interest rate would result in an approximate $1.1 million change in interest expense over the next 12 months [384]. - The company’s interest expense for 2024 was $20.58 million, down from $27.97 million in 2023 [414]. - The total term debt decreased from $153.1 million in 2023 to $122.8 million in 2024, a reduction of approximately 19.7% [482]. - The Revolving Credit Facility borrowings decreased from $120.5 million in 2023 to $60.0 million in 2024, a reduction of approximately 50% [490]. - The weighted average interest rate on outstanding borrowings under the Revolving Credit Facility decreased from 9.45% in 2023 to 6.71% in 2024 [490]. Tax and Regulatory Compliance - The company’s operations are subject to compliance with various data privacy laws, including GDPR and CCPA, which could result in fines up to €20 million or 4% of total global annual turnover for violations [249][250]. - The company may face limitations in using certain tax attributes if it undergoes an "ownership change," which could adversely impact its financial condition and operating results [246]. - The Company established a full valuation allowance of $123.2 million against its deferred tax assets as of December 31, 2023, indicating challenges in realizing tax benefits [455]. - The Company’s annual effective tax rate for 2024 is (43.4)%, significantly lower than the statutory rate of 21% due to valuation allowance and foreign taxes [503]. Legal Matters - The Company has accrued a liability of $14.75 million related to a settlement in a class action lawsuit as of December 31, 2024 [524]. - The consolidated complaint in the securities litigation alleges violations of the Securities Act, seeking compensatory damages and attorneys' fees [524]. - The Company is currently involved in ongoing legal proceedings, but does not believe these will materially affect its financial condition [529]. Equity and Stock - The Company has authorized the issuance of up to 200 million shares of Class A common stock, 50 million shares of Class B common stock, and 20 million shares of preferred stock [537]. - The Company recognized equity-based compensation expenses of $13.6 million, $10.5 million, and $16.6 million for the years ended December 31, 2024, 2023, and 2022, respectively [549]. - The weighted-average fair value of stock options granted was $4.90, $6.71, and $10.85 per share for the years ended December 31, 2024, 2023, and 2022, respectively [548]. - The Company reported an intrinsic value of $915,000 for stock option exercises in 2024, with cash received for exercise price totaling $1.41 million [547]. - As of December 31, 2024, there was $25.0 million of total unrecognized equity-based compensation expense expected to be recognized over a remaining weighted-average period of 2.7 years [550].

Group 1 - Funko's shareholders have experienced a challenging period recently, with a downgrade from 'strong buy' to 'buy' on January 3rd of this year [1] - The company's stock performance has been under scrutiny, indicating potential concerns regarding its market position and future growth [1] Group 2 - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and companies with growth potential [2] - Subscribers benefit from a comprehensive stock model account and in-depth cash flow analyses of exploration and production firms [2] - The service includes live chat discussions about the oil and gas sector, enhancing community engagement among investors [2]

Financial Data and Key Metrics Changes - Total net sales for Q4 2024 were $293.7 million, up 1% year-over-year and at the top end of guidance range [30] - Gross profit reached $124.4 million with a gross margin of 42.4%, an improvement from 37.6% in Q4 2023 [31] - Adjusted net income was $4.4 million, or $0.08 per diluted share, significantly up from $0.1 million in Q4 2023 [33] - Adjusted EBITDA for Q4 was $26.3 million, exceeding expectations [33] - For the full year, net sales were $1.05 billion, down from $1.1 billion in 2023, while adjusted EBITDA improved to $94.7 million from a negative $11.8 million in 2023 [34] Business Line Data and Key Metrics Changes - Direct-to-consumer sales increased by 20% year-over-year, comprising 29% of gross sales compared to 25% in Q4 2023 [30][22] - Core collectibles business grew over 10% in Q4, with sales outside the US increasing by 23% [9] - Biddy Pop line saw an impressive 83% year-over-year growth in Q4 [21] Market Data and Key Metrics Changes - Sales in Europe were up more than 20%, driven by strong seasonal performance [30] - POS in the US grew by 1% year-over-year, while Europe experienced a 17% increase [72] Company Strategy and Development Direction - The company is focusing on expanding its sports product line, which currently represents only 4% of total revenue, with significant growth potential identified in the $35 billion sports memorabilia market [12][64] - Plans to enhance direct-to-consumer sales and expand the Pop Yourself product line into new international territories [39] - The company aims to improve brand value by avoiding sales into discount channels, which could dilute brand perception [51] Management's Comments on Operating Environment and Future Outlook - Management acknowledged softening consumer behavior in the US market and the impact of tariffs and inflation on operations [28] - Confidence in navigating external challenges is bolstered by proactive mitigation plans and a strong leadership team [28] - Anticipated modest top-line growth in 2025, with expectations for a stronger second half of the year as strategic initiatives take effect [40] Other Important Information - The company has strengthened its leadership team with key additions to enhance brand positioning and sales operations [25][27] - The fan loyalty program, Fan Rewards, added 120,000 new members in 2024, indicating strong customer engagement [24] Q&A Session Summary Question: Guidance assumptions regarding tariffs and consumer sentiment - Management highlighted green shoots in the business, particularly in direct-to-consumer and sports segments, while acknowledging headwinds from tariffs and consumer sentiment [46][47] Question: Future of the sports strategy - Management sees significant potential in the sports category, with plans for regional capsules and activations to engage fans [59][64] Question: POS performance in the US retail channel - Management reported a 1% increase in US POS, with strong performance in Europe at 17% [72] Question: Decline in first-quarter sales guidance - Management attributed the expected decline to lower foot traffic in major retailers and cautious consumer spending [78][79] Question: Impact of tariffs and pricing adjustments - Management confirmed that guidance includes anticipated tariffs and is exploring pricing adjustments as a mitigation strategy [87]

Funko, Inc. (NASDAQ:FNKO) Q4 2024 Earnings Call March 6, 2025 4:30 PM ET Company Participants Rob Jaffe - Director, Investor Relations Cynthia Williams - Chief Executive Officer Yves Le Pendeven - Chief Financial Officer Conference Call Participants Stephen Laszczyk - Goldman Sachs Linda Weiser - D.A. Davidson Operator This call is being broadcast live at investors. funko. com. A playback will be available for at least one year on the company's website. I want to remind everyone that during the course of th ...

Financial Performance - Q4 2024 net sales reached $293.7 million, a 0.9% increase from $291.2 million in Q4 2023[5] - Gross profit for Q4 2024 was $124.4 million, with a gross margin of 42.4%, compared to $109.4 million and 37.6% in Q4 2023[5] - Adjusted EBITDA for Q4 2024 was $26.3 million, up from $23.1 million in Q4 2023[5] - For the full year 2024, net sales totaled $1.05 billion, down from $1.10 billion in 2023[5] - Full-year gross profit was $434.5 million, with a gross margin of 41.4%, compared to $333.0 million and 30.4% in 2023[5] - Net sales for Q4 2024 were $293.7 million, a slight increase from $291.2 million in Q4 2023, while total net sales for the year decreased to $1,049.9 million from $1,096.1 million in 2023[17] - The company reported a net loss of $1.5 million for Q4 2024, compared to a net loss of $10.8 million in Q4 2023, and a total net loss of $15.1 million for the year, down from $164.4 million in 2023[17] - Adjusted net income for the twelve months ended December 31, 2024, was $8,687,000, compared to a loss of $74,666,000 in 2023[22] Debt and Cash Management - Total debt decreased by $90 million to $182.8 million at the end of 2024, down from $273.6 million at the end of 2023[8] - Cash and cash equivalents at the end of Q4 2024 were $34.7 million, slightly down from $36.5 million at the end of Q4 2023[19] - The company reduced its line of credit from $120.5 million in 2023 to $60 million in 2024, indicating improved financial management[19] - Total current assets decreased to $287.1 million in 2024 from $336.8 million in 2023, primarily due to a reduction in inventories[19] - Interest expense for the twelve months ended December 31, 2024, was $20,575,000, down from $27,970,000 in 2023, showing a reduction of 26.5%[23] Operational Efficiency - Total operating expenses for Q4 2024 were $288.3 million, a decrease from $294.6 million in Q4 2023, with significant reductions in cost of sales and selling, general, and administrative expenses[17] - The company reported a significant increase in depreciation and amortization expenses, totaling $62.6 million for the year, compared to $57.4 million in 2023[21] - Net cash provided by operating activities for 2024 was $123.5 million, a substantial increase from $30.9 million in 2023[21] - Adjusted EBITDA margin for Q4 2024 was 8.9%, compared to 7.9% in Q4 2023, indicating improved operational efficiency[23] Future Projections - The company expects 2025 full-year net sales to be between $1.050 billion and $1.082 billion[9] - Adjusted EBITDA for 2025 is projected to be between $80 million and $100 million[9] - The company anticipates a measured top-line growth in 2025, particularly in the second half of the year[6] Strategic Initiatives - Funko plans to expand its presence in high-potential categories such as sports, music, and gaming[6] - The company made no acquisitions in 2024, contrasting with $5.4 million spent on acquisitions in 2023[21] Shareholder Information - The weighted average shares of Class A common stock outstanding increased to 52.8 million in Q4 2024 from 50.4 million in Q4 2023[17] - Adjusted earnings per diluted share for Q4 2024 was $0.08, compared to a loss of $1.43 per share in Q4 2023[22] - The weighted-average shares of Class A common stock outstanding for Q4 2024 increased to 52,826,000 from 50,384,000 in Q4 2023[22] Currency and Other Gains - The company reported a foreign currency transaction gain of $2,398,000 for the twelve months ended December 31, 2024[22]

Core Viewpoint - Funko, Inc. (FNKO) is expected to report its fourth-quarter 2024 earnings on March 6, 2025, after market close [1] Earnings Performance - In the year-ago quarter, FNKO's adjusted earnings and net sales exceeded the Zacks Consensus Estimate by 250% and 1.1%, respectively [2] - Year-over-year, the top line decreased by 6.4%, while the bottom line saw a significant increase of 366.7% [2] - FNKO has reported better-than-expected earnings in three of the last four quarters, with an average surprise of 115.7% [2] Earnings Estimates - The Zacks Consensus Estimate for FNKO's adjusted earnings per share has increased to two cents from one cent over the past 30 days, indicating a 100% year-over-year growth [3] Factors Influencing Q4 Results - FNKO's fourth-quarter performance is likely impacted by low sales volume in the U.S. and European markets, partially offset by higher sales in other international markets [4] - The company anticipates net sales to be between $280 million and $294 million, compared to $291.2 million in the same quarter last year [4] Operating Expenses and EBITDA - The bottom line is expected to grow year-over-year due to lower operating expenses, particularly a decline in selling, general, and administrative (SG&A) expenses [5] - The expected range for fourth-quarter SG&A expenses is $93 million to $99 million, down from $97.4 million reported in the previous year [6] - Adjusted EBITDA is projected to be between $17 million and $22 million, a decrease from $23.5 million in the fourth quarter of 2023 [6] Earnings Prediction Model - The current model does not predict an earnings beat for FNKO, as the Earnings ESP stands at 0.00% and the company holds a Zacks Rank of 3 (Hold) [7][8]

Core Viewpoint - Growth stocks are appealing due to their potential for above-average financial growth, but identifying stocks that can fulfill their growth potential is challenging due to associated risks and volatility [1] Group 1: Company Overview - Funko-A (FNKO) is currently recommended as a strong growth stock based on the Zacks Growth Style Score, which evaluates a company's genuine growth prospects beyond traditional metrics [2] - The company has a favorable Growth Score and a top Zacks Rank, indicating strong potential for performance [2] Group 2: Earnings Growth - Funko-A has a historical EPS growth rate of 64.4%, but the projected EPS growth for this year is significantly higher at 413.6%, far exceeding the industry average of 13.7% [4] Group 3: Asset Utilization - The asset utilization ratio for Funko-A is 1.37, indicating that the company generates $1.37 in sales for every dollar in assets, which is above the industry average of 1.02, showcasing better efficiency [5] Group 4: Sales Growth - Funko-A's sales are expected to grow by 11% this year, compared to the industry average of 1.8%, highlighting its strong sales growth potential [6] Group 5: Earnings Estimate Revisions - The current-year earnings estimates for Funko-A have been revised upward by 1.9% over the past month, indicating a positive trend that correlates with potential stock price movements [7] Group 6: Conclusion - Funko-A has achieved a Zacks Rank 1 and a Growth Score of A, suggesting it is a potential outperformer and a solid choice for growth investors [9]

Investors seek growth stocks to capitalize on above-average growth in financials that help these securities grab the market's attention and produce exceptional returns. But finding a great growth stock is not easy at all.That's because, these stocks usually carry above-average risk and volatility. In fact, betting on a stock for which the growth story is actually over or nearing its end could lead to significant loss.However, the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks ...

Group 1 - The investment landscape is characterized by fluctuating opportunities, where even the best prospects eventually reach their maximum potential, leading to limited future upside [1] - Crude Value Insights provides an investment service focused on oil and natural gas, emphasizing cash flow and companies that generate it, which leads to value and growth prospects [1] - Subscribers have access to a model account with over 50 stocks, detailed cash flow analyses of exploration and production firms, and live discussions about the sector [2] Group 2 - A two-week free trial is available for new subscribers, offering an opportunity to explore the oil and gas sector [3]

Core Insights - Funko, Inc. (FNKO) reported third-quarter 2024 results with both revenue and earnings exceeding Zacks Consensus Estimates, despite a year-over-year revenue decline [1][4] - The company achieved a significant increase in gross margin, leading to better-than-expected profitability, prompting management to raise its full-year adjusted EBITDA guidance [1][13] Financial Performance - Adjusted earnings were 14 cents per share, surpassing the Zacks Consensus Estimate of 4 cents per share, and improved from 3 cents per share in the prior year [4] - Net sales were $292.8 million, a decrease of 6.4% from $312.9 million in the previous year, but above the Zacks Consensus Estimate of $289 million [5] - Gross margin expanded by 770 basis points year-over-year to 40.9%, aided by improved inventory reserves [5] - SG&A expenses decreased by 1.4% to $92.7 million from $94 million in the prior year [6] - Adjusted EBITDA rose to $30.9 million from $25.4 million in the year-ago period, with an adjusted EBITDA margin increase of 250 basis points to 10.6% [6] Segment Performance - Core Collectible sales declined by 2.3% year-over-year to $227.8 million, while Loungefly net sales fell by 17.6% to $47.3 million [7] - Other net sales decreased by 20.8% year-over-year to $17.6 million [7] - Geographically, U.S. net sales decreased by 7.4% to $194.4 million, and European sales fell by 9.1% to $74.5 million, while Other International sales increased by 13.5% to $23.9 million [8] Guidance and Outlook - For Q4 2024, management expects net sales between $280 million and $294 million, with a gross margin of 38-40% [10] - Adjusted EBITDA is projected to be between $17 million and $22 million, down from $23.5 million in the same quarter last year [11] - Full-year 2024 net sales outlook has been revised to $1.037-$1.050 billion, down from the previous range of $1.047 billion to $1.103 billion [12] - However, full-year adjusted EBITDA guidance has been raised to $85 million to $90 million, up from the previous forecast of $65 million to $85 million [13]