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Funko Inc. (FNKO-5.36%) has filed its Form 10-K filing for the fiscal year ended December 31, 2024.
The company reported net sales of $1.05 billion, a decrease of 4.2% from $1.1 billion in 2023. The decline was primarily due to reduced sales to specialty retailers and e-commerce sites.
Cost of sales decreased by 19.4% to $615.3 million from $763.1 million in 2023, largely due to non-recurring costs in the previous year.
Selling, general, and administrative expenses were $359.0 million, a 4.8% decrease from $377.1 million in 2023, driven by reduced personnel expenses and professional fees.
The company recognized a net loss of $15.1 million, compared to a net loss of $164.4 million in 2023. The improvement was attributed to lower net sales offset by non-recurring events in 2023.
Funko's gross margin increased to 41.4% from 30.4% in 2023, as a result of decreased product and shipping costs.
Interest expense decreased by 26.4% to $20.6 million due to lower average debt balances.
The company did not record any impairment charges related to goodwill for the year ended December 31, 2024.
As of December 31, 2024, Funko had $34.7 million in cash and cash equivalents and $(18.7) million in working capital.
The company expects its sources of liquidity, including cash flows from operations and borrowings under its credit facilities, to be sufficient to finance its operations and capital expenditures for at least the next 12 months.
Funko's top ten wholesale customers accounted for approximately 31% of its total sales in 2024.
The company incurred $68.6 million in minimum royalty commitments under its licensing arrangements, with $64.2 million expected for 2025.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Funko Inc. annual 10-K report dated March 13, 2025. To report an error, please email earnings@qz.com.