CMON’s Financial Woes Deepen with $8 Million Profit Warning

The major topic in the board game industry is concern as CMON, the company behind massive crowdfunding hits like Zombicide and Blood Rage, has issued a second profit warning this year. The company’s latest announcement to the Hong Kong Stock Exchange reveals a projected equity loss of between $6 and $8 million for the first half of 2025.

This news is the latest in a series of financial struggles that have plagued the miniatures-heavy publisher. While CMON is a crowdfunding giant, having raised over $100 million on platforms like Kickstarter, recent years have seen a significant downturn in its financial performance.

A Cascade of Challenges

The factors contributing to CMON’s dire financial situation are complex and multifaceted:

• Shrinking Revenue: The company’s previous annual report showed a loss of over $3 million in 2024, a figure that nearly doubled its total profits from the three preceding years. CMON has attributed this decline to rising costs of living in key markets, which has impacted consumers’ ability to purchase games.
• US Tariffs: A major headwind for CMON and many other board game companies has been the imposition of new tariffs on goods manufactured in China. These tariffs have significantly increased production costs, eating into profit margins and forcing the company to make difficult decisions.
• Operational Changes: In an effort to staunch the bleeding, CMON has taken drastic measures. They have laid off staff, paused the development of all new games, and even sold off several of their most popular and profitable intellectual properties, including Zombicide and Eric Lang’s titles Blood Rage and Rising Sun, to competitors like Asmodee and Tabletop Tycoon.
• Unfulfilled Campaigns: The company still has a number of crowdfunded projects and pre-ordered games it is committed to delivering. The financial strain raises concerns among backers about whether these titles will be fulfilled in a timely manner, or at all. The company’s inability to secure a $12 million IP sale and its legal dispute with the IP holder of Degenesis have only added to the uncertainty.
• Executive Departures: Adding to the instability, CMON has seen a number of senior executives resign in recent months, including its Chief Financial Officer, amidst the financial turmoil.

What’s Next for CMON?

While the company is working on a plan to stabilize its finances, including a pivot to smaller, direct-to-retail games, the road ahead is uncertain. The estimated loss for the first half of 2025 is a staggering sum, almost triple CMON’s profits from the last decade combined.

This situation serves as a stark reminder of the volatile nature of the board game industry, which relies heavily on crowdfunding and is susceptible to global economic pressures. For backers and fans of CMON’s games, it’s a time of concern and cautious observation. The industry will be watching closely to see if this crowdfunding titan can navigate its way out of this crisis.