Funko(US:FNKO)2025-11-06 21:25Financial Performance - Net sales for Q3 2025 were $250.9 million, a decrease of 14.3% from $292.8 million in Q3 2024[5] - Gross profit was $100.8 million, resulting in a gross margin of 40.2%, compared to a gross margin of 40.9% in the previous year[6] - Net income for Q3 2025 was $0.9 million, or $0.02 per diluted share, down from $4.6 million, or $0.08 per diluted share in Q3 2024[6] - Adjusted EBITDA for Q3 2025 was $24.4 million, compared to $31.0 million in Q3 2024[6] - Funko, Inc. reported a net loss of $68,115,000 for the nine months ended September 30, 2025, compared to a net loss of $13,650,000 for the same period in 2024[22] - Adjusted EBITDA for the nine months ended September 30, 2025, was $3,238,000, a decrease from $68,476,000 for the same period in 2024[23] - The company reported an adjusted net loss margin of 6.5% for the nine months ended September 30, 2025, compared to 0.6% for the same period in 2024[23] Debt and Liabilities - Total debt increased to $241.0 million as of September 30, 2025, up from $182.8 million at the end of 2024[11] - The company's total liabilities rose significantly to $641,658,000 as of September 30, 2025, compared to $470,097,000 as of December 31, 2024, marking an increase of 36.5%[20] - Funko, Inc. experienced a significant increase in the line of credit, which rose to $135,000,000 as of September 30, 2025, compared to $60,000,000 as of December 31, 2024[20] Assets and Equity - Total current assets increased to $299,943,000 as of September 30, 2025, up from $287,059,000 as of December 31, 2024, representing a growth of 4.5%[20] - Cash and cash equivalents at the end of the period were $39,177,000, an increase from $34,655,000 at the beginning of the period, reflecting a net change of 11.5%[21] - The company’s total stockholders' equity attributable to Funko, Inc. decreased to $182,684,000 as of September 30, 2025, down from $233,019,000 as of December 31, 2024, a decline of 21.6%[20] Inventory and Expenses - Inventories increased to $99.8 million at September 30, 2025, from $92.6 million at December 31, 2024[11] - SG&A expenses were $79.8 million, including a non-recurring charge of $1.0 million, compared to $92.7 million with a non-recurring charge of $0.4 million in the prior year[6] - Funko, Inc. recorded depreciation and amortization expenses of $44,319,000 for the nine months ended September 30, 2025, slightly down from $46,409,000 in 2024[22] - The company’s inventories increased to $99,805,000 as of September 30, 2025, up from $92,580,000 as of December 31, 2024, indicating an increase of 7.3%[20] Strategic Initiatives - The Bitty Pop! line contributed significantly to sales, being featured on Walmart's 2025 Top Toy List[3] - The company expects modest net sales growth from Q3 2025 and a gross margin of approximately 40% for Q4 2025[11] - The company plans to continue expanding into new fandoms and enhancing retail experiences as part of its Make Culture POP! strategy[4]