NASDAQ$FNKO

Funko Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Funko's Q2 2023 results reflected lower net sales due to inventory de-stocking by U.S. wholesale customers, but SG&A expenses improved. The company is implementing cost savings measures and focusing on core products.

Funko reported a decrease in net sales to $240.0 million compared to $315.7 million in Q2 2022. The company experienced a net loss of $75.9 million, or $1.54 per share, but adjusted net loss was $22.3 million, or $0.43 per share. Negative adjusted EBITDA was $7.6 million. The company is implementing cost reduction initiatives and focusing on core products to improve financial performance.

  • Net sales decreased to $240.0 million from $315.7 million in the second quarter of 2022.
  • Gross margin was 29.2% compared to 32.7% in the prior year's quarter.
  • Net loss was $75.9 million, or $1.54 per share, including a non-cash charge of $38.5 million.
  • Adjusted EBITDA was negative $7.6 million, compared to $31.8 million in the second quarter of 2022.

Headline financials

Total Revenue

$240M

Previous: $316M-24.0%
EPS (adj)

-$0.43

Previous: $0.26-265.4%
Gross Margin

29.2%

Previous: 32.7%-10.7%
Capital Expenditures

-$22.7M

Previous: -$33.7M+32.6%
Free Cash Flow

-$95.7M

Previous: -$19M-402.7%
Net Income

-$73M

Previous: $14.7M-597.5%
Operating Income

-$30.5M

Previous: $8.94M-441.2%
Gross Profit

$70M

Previous: $103M-32.1%
Cash & Equivalents

$36.8M

Previous: $56.2M-34.5%
Total Assets

$898M

Previous: $1.14B-21.2%
Stock-Based Comp

$4.8M

Previous: $3.95M+21.3%

Revenue & EPS history

Funko · Revenue · Quarterly

$240M

Q2 2023-24%vs Q2 2022
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Funko · $240M total across 3 segments · Q2 2023

  • Core Collectible
    $174M-25.5%
  • Loungefly
    $50M-28.5%
  • Other
    $16.4M+28.8%

Forward guidance

Funko revised its 2023 full-year outlook, projecting net sales of $1.05 billion to $1.12 billion and adjusted EBITDA of $20 million to $30 million. For the third quarter, the company expects net sales of $280 million to $310 million, with sequential improvements in gross margin and SG&A expense.

Tailwinds

  • Gross margin % Increasing sequentially from Q2
  • SG&A expense Improving sequentially from Q2

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.2%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+4.2%

Avg return

30 days after

56%

19 / 34 earnings

Positive

+25.1%

Q1 2020

Best reaction

-59.2%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.6%+26.3%+16.2%
Q4 2025-4.0%-18.6%-15.3%
Q3 2025+10.3%+22.2%-0.3%
Q1 2025-16.5%+11.7%+14.5%
Q4 2024-13.5%-28.8%-49.3%
Q3 2024-3.4%-9.2%+0.9%
Q2 2024+11.7%+11.0%+11.6%
Q1 2024+8.9%+28.2%+43.5%
Q4 2023+7.0%-0.8%-10.6%
Q3 2023+22.1%+9.6%-5.0%
Q2 2023-13.2%-12.7%-4.4%
Q1 2023+15.0%+13.5%+27.4%
Q4 2022-8.0%-9.6%-12.8%
Q3 2022-59.2%-47.1%-45.8%
Q2 2022-19.2%-22.0%-23.1%
Q1 2022+19.5%+8.9%+21.7%
Q4 2021+9.5%-4.0%-1.6%
Q3 2021+10.8%+8.1%-7.6%
Q2 2021-3.3%-5.0%-0.5%
Q1 2021+19.1%+9.5%+10.2%
Q4 2020+23.0%+24.3%+58.0%
Q3 2020-9.4%+12.0%+63.2%
Q2 2020-4.8%+2.9%+2.6%
Q1 2020+25.1%+18.4%+88.1%
Q4 2019-8.1%-17.5%-57.8%
Q3 2019-12.7%-16.1%-18.0%
Q2 2019+10.0%+9.1%+8.1%
Q1 2019+3.4%+9.7%+4.6%
Q4 2018+3.8%-6.7%+7.8%
Q3 2018-25.3%-25.7%-31.5%
Q2 2018+8.5%+7.3%+50.3%
Q1 2018+2.5%+3.5%+28.4%
Q4 2017+7.1%+13.0%+3.4%
Q3 2017-10.7%-17.2%-34.7%
Q2 2017
Q1 2017
Q4 2016
Q3 2016
Q2 2016
Q1 2016
Q4 2015

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