Funko (NASDAQ:FNKO) Issues Quarterly Earnings Results

Funko (NASDAQ:FNKO) announced its quarterly earnings data on Thursday. The company reported $0.26 earnings per share for the quarter, topping the consensus estimate of ($0.21) by $0.47, FiscalAI reports. Funko had a positive return on equity of 2.64% and a negative net margin of 0.21%.The firm had revenue of $207.72 million during the quarter, compared to analysts’ expectations of $200.96 million.

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 Trading Up 11.4%

Funko stock traded up $0.60 during mid-day trading on Friday, hitting $5.88. 3,280,344 shares of the company’s stock were exchanged, compared to its average volume of 954,837. Funko has a fifty-two week low of $2.22 and a fifty-two week high of $7.04. The company’s 50 day simple moving average is $5.60 and its 200-day simple moving average is $4.72. The firm has a market capitalization of $328.87 million, a P/E ratio of -146.96 and a beta of 0.93. The company has a quick ratio of 0.78, a current ratio of 1.15 and a debt-to-equity ratio of 1.16.

Trending Headlines about Funko

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.

Analysts Set New Price Targets

FNKO has been the subject of several analyst reports. The Goldman Sachs Group lifted their price target on shares of Funko from $4.00 to $6.00 and gave the stock a “neutral” rating in a research report on Monday, May 11th. DA Davidson set a $8.00 price target on Funko in a research report on Friday. Finally, Weiss Ratings restated a “sell (d-)” rating on shares of Funko in a research report on Friday, July 17th. One research analyst has rated the stock with a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, Funko presently has a consensus rating of “Reduce” and a consensus price target of $6.83.

Institutional Investors Weigh In On Funko

Several large investors have recently made changes to their positions in FNKO. Tudor Investment Corp ET AL bought a new position in Funko during the 4th quarter worth about $134,000. Oxford Asset Management LLP bought a new stake in shares of Funko in the fourth quarter valued at about $171,000. Price T Rowe Associates Inc. MD lifted its holdings in shares of Funko by 14.5% in the fourth quarter. Price T Rowe Associates Inc. MD now owns 51,276 shares of the company’s stock valued at $175,000 after purchasing an additional 6,500 shares in the last quarter. Wells Fargo & Company MN boosted its position in shares of Funko by 68.9% during the fourth quarter. Wells Fargo & Company MN now owns 47,137 shares of the company’s stock worth $160,000 after buying an additional 19,230 shares during the period. Finally, PharVision Advisers LLC acquired a new position in shares of Funko during the third quarter worth about $126,000. Institutional investors own 99.15% of the company’s stock.

About Funko

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.