Funko, Inc. (NASDAQ:FNKO) Q2 2023 Earnings Conference Call August 3, 2023 4:30 PM ET
Company Participants
Rob Jeffrey - Director of Investor Relations
Michael Lunsford - Interim Chief Executive Officer
Steve Nave - Chief Operating Officer and Chief Financial Officer
Conference Call Participants
Linda Bolton-Weiser - D.A. Davidson
Operator
Ladies and gentlemen, Good afternoon and welcome to Funko's 29 Free Second Quarter Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct the question-and-answer session and instructions will follow at that time [Operator Instructions]. As a reminder, this call is being recorded.
I'll now turn the call over to Funko's new Head of Investor Relations, Rob Jeffrey. Please proceed.
Rob Jeffrey
Hello, everyone, and thank you for joining us today to discuss Funko's 2023 second quarter financial results. On the call are Mike Lunsford, our recently appointed Interim Chief Executive Officer, and Steve Nave, the Company's Chief Financial Officer and Chief Operating Officer.
This call is being broadcast live @investor funko.com. A playback will be available for at least one year on the Company's website. I want to remind everyone that during the course of this call, management's discussion will include forward-looking information. These statements represent our best judgment about the Company's future results and performance. As of today, our actual results are subject to many risks and uncertainties that may differ materially from those stated or implied, including those discussed in our earnings release.
Additional information concerning factors that could cause actual results to differ materially is contained in our most recent SEC reports. In addition, during the course of this call, we refer to non-GAAP financial measures that are not prepared in accordance with U.S. Generally Accepted Accounting Principles and may be different from non-GAAP financial measures used by other companies. Investors are encouraged to review Funko's press release announcing its 2023 second quarter financial results for the Company's reasons for presenting non-GAAP financial measures.
A reconciliation of the non-GAAP financial measures to the most directly comparable GAAP financial measures is also attached to the Company's earnings press release issued earlier today.
I will now turn the call over to Steve.
Steve Nave
Thanks, Rob, and welcome to Funko. By the way, Good afternoon, everybody, and thanks for joining us today. In the second quarter, net sales were $240 million and adjusted EBITDA was a loss of approximately $8 million. Both metrics were within the guidance ranges we previously provided for this quarter. Our second quarter performance was impacted by ongoing inventory destocking by our larger wholesale customers. We anticipate this softness will continue in the second half of the year. Accordingly, we have lowered our full year guidance. I'll discuss guidance in more detail later in the call.