The first quarter of 2025 wasn’t what Freddy Funko was looking for.
Funko, the pop culture powerhouse behind Pop! Vinyl figures and other toys, collectibles, and lifestyle products from the Loungefly and Mondo brands, posted net sales of $190.7 million, dropping more than 11% from $215.7 million during the same period last year. Gross profit clocked in at $76.9 million, with a gross margin of 40.3%, holding relatively steady against last year’s 40.0%.
“Despite a challenging Q1 environment, we were able to deliver net sales within our guidance range and better than expected gross margin and adjusted EBITDA,” says Funko CEO Cynthia Williams. “International continues to be a strength for both our business and our brand. Market research shows we’re gaining share as we outpace the broader toy industry, our sell-through increased in the European G5 markets, and we’re expanding our global footprint. Our roadmap is working — and we’re moving fast to build a stronger, more global Funko.”
During the mixed Q1, the red ink ran a bit deeper: Funko reported a net loss of $28.1 million, or $0.52 per share, compared to $23.7 million, or $0.45 per share, in Q1 2024. Adjusted net loss came in at $17.8 million, or $0.33 per share.
On the expense side, SG&A dipped slightly to $84.8 million from $85.6 million, though last year’s figure included $5.1 million in one-time charges.
Adjusted EBITDA flipped to the negative, landing at -$4.7 million versus a positive $9.6 million last year.
With tariff concerns looming large for the greater toy, game, and collectibles industries, Funko has withdrawn its 2025 guidance.
“Since the beginning of April, the extent and volatility of tariffs have intensified, especially with regard to imports from China,” Williams explains. “As a result, we have taken swift and decisive action to protect our margins and liquidity. Those actions include reducing costs, adjusting pricing, and accelerating our diversified sourcing strategy. We now expect approximately 5% of our future U.S.-bound product to be sourced from China by year-end.”
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