Funko (NASDAQ:FNKO) Announces Quarterly Earnings Results

Key Points

• Funko exceeded quarterly expectations: Revenue rose 7% year over year to $207.7 million, while adjusted EPS reached $0.26 versus analysts’ expected $0.21 loss.
• Profitability and outlook improved: Gross margin expanded sharply, and Funko raised full-year adjusted EBITDA guidance to $100 million–$110 million, partly due to a $25 million tariff credit, while maintaining its sales outlook.
• Risks remain: Management cited consumer uncertainty, tariffs and costs as potential headwinds, while Loungefly sales remained down; analysts’ average rating is “Reduce” with a $6.83 consensus price target.

Funko (NASDAQ:FNKO - Get Free Report) posted its quarterly earnings data on Thursday. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.21) by $0.47, FiscalAI reports. The company had revenue of $207.72 million for the quarter, compared to analyst estimates of $200.96 million. Funko had a negative net margin of 0.21% and a positive return on equity of 2.64%.

Here are the key takeaways from Funko's conference call:

• Sales increased 7% in Q2 and 6% in the first half, with broad-based growth across regions and products; Europe rose 19% and core collectibles grew 9%.
• Profitability improved substantially, with normalized gross margin reaching a record 44.4% and adjusted EBITDA of $15 million excluding the $25 million tariff-related benefit; the company also paid down $15 million of debt.
• Funko raised adjusted EBITDA guidance to $100 million–$110 million while maintaining full-year net sales guidance of flat to up 3%, citing improved profitability and the tariff credit.
• Management expects continued core-collectibles growth and is expanding new platforms such as Pop! Mystery, Bitty Pop!, Pop! Yourself, and HP-enabled additive manufacturing, which could shorten product development from months or years to weeks.
• Management remains cautious about the second half, citing consumer uncertainty and potential downside from tariffs, freight, raw-material costs, and possible changes in tariff policy; Loungefly sales were still down 2%, despite improved productivity after a roughly 50% SKU reduction.

Funko Stock Performance

FNKO stock traded up $0.60 during mid-day trading on Friday, reaching $5.88. The company had a trading volume of 3,280,344 shares, compared to its average volume of 954,837. The company has a quick ratio of 0.78, a current ratio of 1.15 and a debt-to-equity ratio of 1.16. The stock has a market capitalization of $328.87 million, a P/E ratio of -146.96 and a beta of 0.93. Funko has a one year low of $2.22 and a one year high of $7.04. The stock's 50-day simple moving average is $5.60 and its two-hundred day simple moving average is $4.72.

Analyst Ratings Changes

Several research firms recently issued reports on FNKO. DA Davidson set a $8.00 price target on shares of Funko in a research note on Friday. Weiss Ratings reissued a "sell (d-)" rating on shares of Funko in a research report on Friday, July 17th. Finally, The Goldman Sachs Group raised their target price on Funko from $4.00 to $6.00 and gave the company a "neutral" rating in a research note on Monday, May 11th. One equities research analyst has rated the stock with a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Reduce" and a consensus price target of $6.83.

Funko News Summary

Here are the key news stories impacting Funko this week:

• Positive Sentiment: Funko reported second-quarter revenue of $207.7 million, up 7% year over year and above the $200.96 million consensus estimate. Adjusted EPS was $0.26, substantially ahead of the expected $0.21 loss. Funko Reports Strong Second Quarter 2026 Financial Results
• Positive Sentiment: Gross profit nearly doubled to $117.6 million, while gross margin expanded to 56.6% from 32.1% a year earlier. The improvement reflects better product mix, cost controls and operational execution. Funko Flips the Script in Q2
• Positive Sentiment: Management raised full-year adjusted EBITDA guidance to $100 million-$110 million, helped in part by a $25 million tariff credit. The higher profit outlook is a key catalyst for FNKO despite unchanged full-year sales expectations. Funko Raises Full-Year Adjusted EBITDA Guidance
• Positive Sentiment: Analysts highlighted a diversified product pipeline and continued collectibles growth, including new Pixar and Disney-related Funko Pop releases that could support consumer demand. FNKO Q2 Deep Dive
• Neutral Sentiment: Funko reiterated full-year revenue guidance of $908.2 million-$935.5 million. Third-quarter revenue guidance of approximately $250.9 million is modestly below the $252.2 million consensus estimate, limiting some of the upside from the earnings beat.
• Negative Sentiment: Despite the quarterly profit, Funko continues to report negative trailing net margin and return on equity, while its balance sheet remains relatively leveraged. Sustaining the recent margin gains will be important for the rally to continue.

Institutional Trading of Funko

Large investors have recently modified their holdings of the company. Boothbay Fund Management LLC acquired a new position in Funko during the 4th quarter valued at about $63,000. Engineers Gate Manager LP acquired a new position in shares of Funko during the fourth quarter worth approximately $82,000. Brown Brothers Harriman & Co. bought a new position in Funko in the 3rd quarter worth approximately $86,000. Odyssean LLC acquired a new stake in Funko in the 4th quarter valued at approximately $98,000. Finally, Royal Bank of Canada raised its stake in Funko by 95.3% during the 1st quarter. Royal Bank of Canada now owns 32,345 shares of the company's stock valued at $222,000 after acquiring an additional 15,782 shares in the last quarter. Institutional investors and hedge funds own 99.15% of the company's stock.

Funko Company Profile

Funko, Inc is a pop culture consumer products company best known for its stylized vinyl figures, apparel, accessories and other licensed collectible goods. The company's signature product line, Funko Pop!, features bobblehead-style figurines that showcase characters from a wide array of entertainment franchises, including film, television, gaming, sports and music. In addition to vinyl figurines, Funko's portfolio encompasses plush toys, action figures, stationery, home goods and novelty items, all leveraging licensing agreements with major global brands.

Founded in 1998 by Mike Becker in Washington state, Funko initially focused on creating nostalgic bobbleheads before expanding its product offerings under current leadership.

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