CMON’s 2024 Nightmare: Over $3M Loss Dwarfs Years of Profit as Tariffs Loom

The board game world is reeling from the latest financial report from industry giant CMON, and the news is stark. The company, known for its highly successful and visually stunning miniatures games funded through crowdfunding, has announced a loss exceeding $3 million for 2024. This figure isn’t just a dip in the red; it’s a chasm, nearly double the company’s combined profits from the previous three years.

This significant downturn marks a troubling period for CMON, whose annual revenue of approximately $37.4 million represents its lowest point since the pandemic-stricken year of 2020. The company attributes this 17% drop in revenue to rising living costs impacting consumers’ discretionary spending on non-essential items like board games.

However, a key factor appears to be the significant slump in revenue from its crowdfunding campaigns. In 2024, this figure plummeted by almost 25% to around $20 million. This was the first year of CMON’s exclusive partnership with Gamefound, a platform switch that followed over a decade of raising a staggering $108 million through rival Kickstarter. Whether this platform transition played a direct role in the decline remains a point of discussion, but the timing is certainly noteworthy.

The announced loss is even more severe than the company’s own profit warning issued last month, which initially projected losses between $1.4 million and $2.1 million. This underestimation underscores the challenging financial headwinds CMON is currently facing.

The woes of 2024 have bled into 2025, with CMON revealing last week that it would be laying off staff and halting new game development and campaign launches. The primary culprit cited for these drastic measures is the ongoing unpredictability surrounding US tariffs.

The impact of these tariffs is particularly acute for CMON, as approximately 39% of its revenue originates from the US market. The recent imposition of a staggering 145% tariff on goods manufactured in China has sent shockwaves throughout the board game industry, leaving companies scrambling to adapt.

CMON currently has 11 crowdfunding projects, representing over $26 million in pledges, in various stages of production and fulfillment. While the $3.8 million Zombicide: White Death project managed to navigate the tariff issue by CMON absorbing the 20% extra cost, a significant number of upcoming releases are now directly in the firing line of the full 145% tariff. These include highly anticipated titles like DC Super Heroes United (which raised over $4.4 million on Gamefound) and DCeased: A Zombicide Game (which garnered over $2.5 million on Kickstarter), both slated for delivery later in 2025.

Despite the grim outlook, CMON remains cautiously optimistic about a potential resolution to the tariff situation. In a statement to the Board Game Insider podcast, the company expressed hope for a negotiated solution that could bring stability back to the market. They also indicated a willingness to absorb costs for US backers of their direct crowdfunding products if tariffs return to a “reasonable level.”

In addition to halting new development and campaigns, CMON’s financial report outlines other cost-cutting measures and strategic shifts. These include plans to expand their presence in the European wholesale market and to begin producing smaller games in Europe to mitigate logistics costs associated with fulfillment.

This current predicament is a stark contrast to CMON’s decade-long reign as a crowdfunding powerhouse. Since the groundbreaking success of the original Zombicide in 2012, the company has experienced significant growth, with revenues exceeding $45 million in both 2022 and 2023, fueled by the immense popularity of miniatures-heavy games based on both original IPs and major licenses like Marvel and DC.

The delay in publishing the annual financial report also led to a temporary suspension of CMON’s shares on the Hong Kong Stock Exchange. While the report has now been published and an application to lift the suspension has been made, this further highlights the internal pressures the company has been facing.

Adding to the challenges, CMON has also seen a $12 million IP sale fall through and is currently pursuing legal action against two new shareholders who failed to deliver on their promised $1.39 million investment. These setbacks have forced the company to actively seek alternative fundraising avenues to bolster its working capital and improve its financial standing.

The substantial loss in 2024 effectively wipes out three years of gradual profit recovery following a near $5 million loss in 2020 due to the pandemic. While profits in 2021, 2022, and 2023 showed improvement, they still fell short of the company’s pre-pandemic performance, which saw profits consistently in the millions.

CMON’s cash reserves have also been steadily declining, and while their borrowing has decreased, the overall financial picture paints a concerning scenario for a company that was once a seemingly unstoppable force in the board game industry.

Despite these significant challenges, CMON recently completed a successful $2.85 million crowdfunding campaign for Massive Darkness: Dungeons of Shadowreach on Gamefound, demonstrating that there is still strong demand for their products. However, the shadow of the 2024 losses and the looming threat of US tariffs cast a long shadow over the company’s future.

The board game community will be watching closely to see how CMON navigates these turbulent times and whether their strategic shifts and hopes for tariff relief will be enough to steer them back onto a profitable course. The story of CMON serves as a potent reminder of the volatile nature of the global economy and the significant impact external factors can have, even on seemingly successful enterprises.