Funko (NASDAQ:FNKO) Releases Quarterly Earnings Results, Beats Expectations By $0.23 EPS

Funko (NASDAQ:FNKO - Get Free Report) released its quarterly earnings data on Thursday. The company reported ($0.11) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.34) by $0.23, FiscalAI reports. The business had revenue of $200.92 million during the quarter, compared to analysts' expectations of $188.60 million. Funko had a negative net margin of 7.42% and a negative return on equity of 25.96%.

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

• Funko reported a strong Q1 — sales were up 5% overall and core collectibles rose 17%, with a record gross margin of 44% driving adjusted EBITDA of $11 million.
• Management issued Q2 guidance of sales up low- to mid-single digits and adjusted EBITDA of $5–10 million, and reiterated full-year guidance of sales flat to +3% and adjusted EBITDA of $70–80 million while noting lower current tariff rates and monitoring oil-price risk.
• Product and commerce momentum accelerated with new initiatives — Bitty POP! expansion, Pop! Yourself experiential activations (WrestleMania, Inter Miami stadium exclusives), faster creator drops, and premium Loungefly SKUs that sold out quickly.
• Loungefly is undergoing a strategic reset, cutting SKUs by about 50%; management expects sales to decline this year as planned to improve SKU productivity and profitability.
• Funko has paid roughly $20M in IEPA tariffs and is pursuing refunds and potential monetization of claims, which could provide meaningful upside if realized, though timing is uncertain.

Funko Stock Performance

NASDAQ FNKO traded up $0.08 during trading on Thursday, reaching $4.46. The company's stock had a trading volume of 1,158,960 shares, compared to its average volume of 980,271. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.85 and a current ratio of 1.19. The firm has a market cap of $247.71 million, a price-to-earnings ratio of -3.60 and a beta of 0.82. Funko has a twelve month low of $2.22 and a twelve month high of $6.04. The business's fifty day moving average price is $4.03 and its 200-day moving average price is $3.66.

Wall Street Analysts Forecast Growth

Several brokerages recently commented on FNKO. The Goldman Sachs Group lifted their price target on shares of Funko from $3.50 to $4.00 and gave the stock a "neutral" rating in a research note on Monday, March 16th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Funko in a research note on Tuesday, April 21st. Finally, Truist Financial set a $6.50 price target on shares of Funko in a research note on Friday, March 13th. One equities research analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $5.83.

Insider Buying and Selling

In other Funko news, insider Tracy D. Daw sold 12,793 shares of Funko stock in a transaction on Wednesday, March 18th. The shares were sold at an average price of $3.65, for a total value of $46,694.45. Following the transaction, the insider directly owned 47,016 shares in the company, valued at approximately $171,608.40. The trade was a 21.39% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Insiders have sold 44,210 shares of company stock valued at $173,146 in the last quarter. Insiders own 3.27% of the company's stock.

Institutional Trading of Funko

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Fund 1 Investments LLC boosted its holdings in shares of Funko by 13.4% in the third quarter. Fund 1 Investments LLC now owns 5,413,887 shares of the company's stock valued at $18,624,000 after acquiring an additional 640,000 shares in the last quarter. JPMorgan Chase & Co. boosted its holdings in shares of Funko by 48.9% in the third quarter. JPMorgan Chase & Co. now owns 1,340,267 shares of the company's stock valued at $4,611,000 after acquiring an additional 439,907 shares in the last quarter. Qube Research & Technologies Ltd boosted its holdings in shares of Funko by 13.0% in the second quarter. Qube Research & Technologies Ltd now owns 1,271,984 shares of the company's stock valued at $6,055,000 after acquiring an additional 146,023 shares in the last quarter. Geode Capital Management LLC boosted its holdings in shares of Funko by 10.1% in the fourth quarter. Geode Capital Management LLC now owns 954,902 shares of the company's stock valued at $3,247,000 after acquiring an additional 87,475 shares in the last quarter. Finally, Jacobs Levy Equity Management Inc. boosted its holdings in shares of Funko by 434.3% in the fourth quarter. Jacobs Levy Equity Management Inc. now owns 946,845 shares of the company's stock valued at $3,219,000 after acquiring an additional 769,648 shares in the last quarter. Hedge funds and other institutional investors 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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