Posted in: Comics, IDW | Tagged: Davidi Jonas, diamond, godzilla, sonic, tmnt

IDW Reports 12.5% Sales Decline, Blames Diamond For Losses

IDW reports a 12.5% sales decline for the last financial year, and blames the Diamond Comic Distributors bankruptcy for its losses

As well as holding an investor's earnings call, IDW Media Holdings, the parent company of IDW Publishing, has released its annual financial results for the fiscal year ending October 2025. This reveals a notable downturn in sales while holding losses steady through cost controls and debt adjustments. And partly attributing this to the Diamond Comic Distributors bankruptcy.

IDW has written off "bad debt expenses of $702,000" either to Diamond or Penguin Random House as a result of the bankruptcy, and the company's cash levels decreased to $6,544,000 as October, 2025 from $7,432,000 the previous year, which  IDW cites "a decrease in overall cash inflow due primarily to the impact of the bankruptcy of Diamond Comic Distributors" which they also blame for "a deterioration in operating income from IDWP of $50,000".  IDW stated that expected cash inflows from operations… together with our working capital, including the balance of cash… will be sufficient to sustain our operations for at least the twelve months following the date of this report" and that it's only Diamond that kept them from making money this year, saying "while the Company had negative operating cash flow in this year and previous years, fiscal year 2024 provided positive operating cash flow, and the current year's negative operating cash flow is primarily due to the impact of the bankruptcy of Diamond Comic Distributors. We anticipate positive operating cash flow in future years."

IDW also notes that although some retailers now get IDW comics "distributed directly through PRH, it is unclear if we will find a long-term solution for distribution to the segments of the comic retailer market that will not be served by PRH on a timely basis, if at all."

IDW reported total sales in the 2025 fiscal year of over $23 million, down from over $26 million in 2024, reflecting a 12.5% decline. Net loss widened to $1.41 million from $1.391 million. But the biggest drop was bookstores rather than comic shops, down $2.2 million, which IDW attributed primarily to a "weak backlist of licensed titles". The direct market of comic shops saw only a $949,000 decrease, chalked up to tough comparisons against stronger licensed-title performance in 2024. Basically, when they still had My Little Pony.

But despite the revenue hit, and with the Diamond bankruptcy write-off, net losses remained nearly flat at $1.4 million, with IDW citing inventory write-offs, improved margins on lower sales, and positive offsets from lower returns and growth in direct-to-consumer channels such as comic book conventions and the company website.

However, the fall, during which IDW sold over 3.8 million comics, contrasts with broader industry trends, where superhero-heavy lines from DC and Marvel, such as the Absolute line and Ultimate revival, have driven gains, and some indies have seen boosts from younger readers entering the market.

Looking ahead, IDW aims to expand by "acquiring and publishing new Licensed and Controlled Content", by which it means comics it owns, and growing into speciality, library, education, and direct-to-consumer markets. IDW also states that no dividends have been paid since 2016, with cash flows directed toward business growth. On the entertainment side, IDWE reported revenues of $206,000, up from $91,000, including "revenue for worldwide distribution of Wynonna Earp and from optioned projects." However, the segment posted an operating loss of $361,000, with no full-time employees. Notably, their TV series Wynonna Earp, based on their own comic book, was cancelled after four seasons in 2021. Well, they can't blame Diamond for that.

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