What the release tells us
The excerpt you provided from Fun — the Business Wire “second‑quarter 2025” press release—focuses almost entirely on revenue‑related metrics:
| Metric (Q2 2025 vs Q2 2024) | Amount (in $ millions) | Comment |
|---|---|---|
| Net sales | $193.5 M vs $247.7 M | 22 % drop YoY |
| Gross profit | $62.0 M (32.1 % margin) vs $104.0 M (42.0 % margin) | 40 % decline in margin |
| SG&A expenses | $82.3 M vs $77.9 M (≈ 42 % of sales) | Slight increase in absolute dollars, higher as a % of sales |
These figures give a clear picture of top‑line performance (lower sales, tighter margins, modestly higher SG&A as a share of revenue). However, the release does not contain any of the following key financial‑statement items that would allow us to evaluate Funko’s cash‑flow, debt, or liquidity position:
- Operating cash flow (or cash flow from operations)
- Investing cash flow (e.g., capex, acquisitions)
- Financing cash flow (e.g., debt repayments, equity issuances, dividend payments)
- Cash and cash equivalents at period end
- Total debt / long‑term debt figures (both current and non‑current)
- Liquidity ratios (e.g., current ratio, quick ratio, cash‑to‑debt, net‑cash position)
Why these figures matter
| Metric | What it tells us | Why it’s needed for your question |
|---|---|---|
| Operating Cash Flow (OCF) | Cash generated (or used) by core operations after working‑capital adjustments. | Indicates whether the business is generating enough cash to fund operations, reinvest, and service debt. |
| Free Cash Flow (FCF) | OCF minus capital expenditures. | Shows the amount of cash available after maintaining the asset base, which can be used to pay down debt or fund growth. |
| Cash & Cash Equivalents | The immediate liquid resources the company can draw upon. | Direct measure of liquidity. |
| Total Debt (current & long‑term) | Obligations the company must meet. | Determines leverage and risk. |
| Liquidity Ratios (Current, Quick) | Short‑term ability to meet obligations with liquid assets. | Helps assess whether the company can cover near‑term debts without relying on financing. |
What we can infer (cautiously)
- Higher SG&A relative to sales (82.3 M / 193.5 M ≈ 42.5 %) suggests operating expenses are consuming a larger share of revenue. If this trend persists, it can put pressure on cash generation, especially given a 22 % sales decline and a 10 % drop in gross margin.
- Lower gross margin (down from 42 % to 32 %) reduces the “buffer” between revenue and the cost of goods sold, further tightening the amount of cash that can be generated from each dollar of sales.
However, without concrete cash‑flow numbers, debt balances, or cash‑balance figures, we cannot quantify:
- Net cash provided (or used) by operating activities
- Changes in cash and cash equivalents (e.g., whether cash has risen or fallen versus the prior quarter)
- The amount of short‑term (current) and long‑term debt and any changes in the debt‑service schedule
- Liquidity ratios or any covenant compliance status
How to get the missing data
- Full Press Release / Earnings Presentation – Often the company’s full earnings release (usually a PDF on the investor‑relations site) includes a “Consolidated Statement of Cash Flows” and a “Balance Sheet” summary.
- Form 10‑Q (Quarterly Report) – Filed with the SEC (usually within 45 days after quarter‑end). This provides a detailed cash‑flow statement, balance sheet, and notes on debt and liquidity.
- Earnings Call Transcript – Management typically discusses cash‑flow trends, debt repayments, and liquidity in the Q&A portion.
- Investor Presentation Deck – Companies frequently include a “Liquidity & Capital Resources” slide that summarizes cash on hand, debt maturity, and credit facilities.
Bottom line
Based solely on the excerpt you posted, we cannot determine Funko’s cash‑flow generation, debt levels, or liquidity position after Q2 2025. To answer the question definitively, you’ll need to consult the complete Q2 2025 earnings release, the accompanying Form 10‑Q, or the company’s investor‑relations materials that include the balance sheet, cash‑flow statement, and any management commentary on liquidity. Once those documents are reviewed, you’ll be able to compute:
- Operating cash flow (e.g., “Cash provided by operating activities: $‑X M”)
- Debt balances (e.g., “Total debt: $ Y M, of which $ Z M is current”)
- Liquidity metrics (e.g., “Cash & cash equivalents: $ A M; Current ratio: B.XX”).
If you obtain those figures, I’m happy to help interpret them or calculate relevant ratios. Feel free to share the numbers, and I’ll provide a detailed analysis.