Funko (FNKO) AI Stock Analysis

• Market Cap: $191.92M
• Dividend Yield: N/A
• Average Volume (3M): 1.29M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: -11.32%
• EPS Growth: -165.08%
• Country: US
• Employees: 1,267
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.05
• Shares Outstanding: 54,742,996
• 10 Day Avg. Volume: 1,421,225
• 30 Day Avg. Volume: 1,286,248
• PEG Ratio: >-0.01
• Price to Book (P/B): 1.00
• Price to Sales (P/S): 0.20
• P/FCF Ratio: -4.86
• Enterprise Value/Market Cap: 2.30
• Enterprise Value/Revenue: 0.49
• Enterprise Value/Gross Profit: 1.26
• Enterprise Value/Ebitda: 30.93
• 1Y Price Target: $4.00
• Price Target Upside: 14.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.07
• Revenue Forecast (FY): $990.08M

• Rating: 49 Neutral
• Price Target: $4.00 ▲(14.29% Upside)
• Action: Reiterated Date: 03/17/26
• Date: Action: Reiterated 03/17/26

The score is held back primarily by deteriorating financial performance (falling revenue, renewed losses, higher leverage, and weaker 2025 cash flow). Technicals also lean bearish with weak momentum. These are partially offset by a more optimistic 2026 earnings outlook focused on margin expansion and EBITDA improvement, while valuation support is limited given ongoing losses and no dividend.

Positive Factors

Brand & International Market Position

A top-two European market position and sustained double-digit POS growth indicate durable brand equity and distribution momentum outside the U.S. This supports multi-year revenue opportunity and diversification versus reliance on a single geography, helping stabilize demand across entertainment cycles.

Improving Margins & EBITDA Guidance

Management’s guidance implies structural margin recovery from pricing, tariff mitigation, and cost actions; sustained 40%+ gross margins in recent quarters plus targeted EBITDA show potential for steady cash generation if execution continues and top-line stabilizes.

Expense Reduction & Operating Discipline

A meaningful SG&A reduction demonstrates management focus on cost structure and operating leverage. If sustained, lower fixed costs improve break-even economics, enhance free cash flow sensitivity to modest sales recovery, and reduce the need for external financing over time.

Negative Factors

Revenue Decline & Volatility

A multiyear sales decline of this magnitude signals structural demand and assortment challenges. Persistent top-line pressure limits scale benefits, makes margin recovery dependent on product hits or licensing renewals, and raises execution risk over the 2–6 month horizon and beyond.

Weak Cash Generation

Deteriorating cash conversion reduces internal funding for inventory, licensing, and growth initiatives, increasing reliance on credit or equity. Volatile cash flow undermines the company’s ability to self-fund strategic investments and heightens refinancing and liquidity risk.

Elevated Leverage & Tighter Credit Terms

Higher leverage and an amended facility with increased spreads, step-ups and stricter covenants reduce financial flexibility. This creates callable pressures on management to prioritize deleveraging over growth, and could force constrained investment if cash flow underperforms guidance.

Funko Business Overview & Revenue Model

Company Description

Funko, Inc., a pop culture consumer products company, designs, sources, and distributes licensed pop culture products in the United States, Europe, and internationally. The company provides vinyl, blind-packed miniature, and action figures; fashion accessories, including bags, backpacks, and wallets; apparel, such as t-shirts and hats; board games, plush products, and accessories, such as keychains, pens, and pins; homewares, comprising drinkware, and other home accessories, non-fungible tokens, and others. It offers its products under the Funko, Pop!, Loungefly, Mystery Minis, Paka Paka, Vinyl Gold, Funko Soda, Funko Games, Funko action figures, Funko Plush, Funko Gold, and Popsies brand names; and licenses its properties under the classic evergreen, movie release, current TV, and current video game categories. The company sells its products to specialty retailers, mass-market retailers, e-commerce sites, and distributors; and at specialty licensing and comic book shows, conventions, and exhibitions, as well as through its e-commerce business. Funko, Inc. was incorporated in 2017 and is headquartered in Everett, Washington.

How the Company Makes Money

Funko primarily makes money by designing, sourcing/manufacturing (typically via third-party manufacturers), and selling licensed pop-culture products to retailers and directly to consumers. (1) Wholesale sales to retail and distribution partners: A significant portion of revenue comes from selling Funko-branded products (notably Pop! vinyl figures and other collectibles) to third-party retailers, including specialty stores, mass merchants, and e-commerce retailers, generally recognized when control of goods transfers under standard product sales arrangements. (2) Direct-to-consumer (DTC) sales: Funko also generates revenue through sales made directly to end customers via its owned e-commerce sites and other company-operated channels, which can include higher gross margins than wholesale depending on product mix, fulfillment, and promotional activity. (3) Licensed IP monetization as a core driver: Funko’s products are largely based on third-party intellectual property (e.g., entertainment, sports, gaming, and music brands). Funko typically enters into licensing agreements and pays royalties; earnings are driven by the company’s ability to secure desirable licenses, launch products tied to popular franchises and events, and manage the economics of royalty rates versus pricing and demand. (4) Product mix and collectibles dynamics: Revenue is influenced by the volume and mix of standard items versus higher-priced or limited-edition/exclusive items (often tied to conventions, specific retailers, or Funko’s own channels), which can affect average selling price and margins. (5) Key factors that contribute to earnings: performance depends on demand for licensed pop-culture collectibles, timing of major entertainment and gaming releases, the breadth and strength of retail distribution, the effectiveness of DTC marketing and customer engagement, and operational execution in sourcing, inventory management, and freight/logistics costs. Specific partner names, royalty terms, and exact segment revenue breakdowns are not provided here; if needed, they should be taken directly from Funko’s latest annual report and investor filings.

Funko Financial Statement Overview

Summary

Overall fundamentals are weak: revenue has declined materially (from $1.32B in 2022 to $0.91B in 2025), profitability reverted to a meaningful loss in 2025, leverage has risen (debt-to-equity ~1.57 in 2025) with shrinking equity, and cash flow deteriorated in 2025 (negative operating and free cash flow).

Income Statement

Revenue has been volatile and recently pressured, falling from $1.32B (2022) to $1.05B (2024) and $0.91B (2025). Profitability has not stabilized: after a modest improvement in 2024 (near break-even net margin), 2025 reverted to a meaningful loss (net margin about -7%) with negative operating profit, while EBITDA stayed only slightly positive. Gross margin also weakened meaningfully from ~41% (2024) to ~33% (2023) and is not reliable in 2025 due to missing/zero gross profit data.

Balance Sheet

Leverage is elevated and has trended worse recently: debt-to-equity moved from ~0.74 (2021) to ~1.12 (2024) and ~1.57 (2025), reflecting higher balance-sheet risk. Equity has declined from ~$368M (2022) to ~$186M (2025), reducing financial flexibility. Returns on equity are negative in most recent years (including 2025), consistent with ongoing losses, though total assets have been relatively stable (~$685M in 2025 vs ~$707M in 2024).

Cash Flow

Cash generation has been inconsistent. 2024 showed strong cash performance (operating cash flow ~$124M and free cash flow ~$91M), but 2025 deteriorated to negative operating cash flow (~-$5M) and negative free cash flow (~-$38M). Earlier years also show volatility (notably negative free cash flow in 2022), indicating uneven conversion of earnings into cash and a higher risk of needing external funding during weaker operating periods.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	908.21M	1.05B	1.10B	1.32B	1.03B
Gross Profit	351.27M	434.53M	363.30M	434.02M	380.99M
EBITDA	14.28M	72.65M	-7.28M	35.75M	133.28M
Net Income	-67.36M	-14.72M	-154.08M	-8.04M	43.90M
Balance Sheet
Total Assets	685.23M	707.25M	804.64M	1.09B	967.50M
Cash, Cash Equivalents and Short-Term Investments	42.15M	34.66M	36.45M	19.20M	83.56M
Total Debt	291.65M	260.31M	362.35M	347.08M	238.63M
Total Liabilities	499.42M	470.90M	566.61M	701.46M	570.95M
Stockholders Equity	185.81M	233.02M	231.94M	368.22M	321.64M
Cash Flow
Free Cash Flow	-38.09M	90.73M	-4.20M	-99.28M	59.60M
Operating Cash Flow	-5.12M	123.52M	30.93M	-40.13M	87.36M
Investing Cash Flow	-31.90M	-25.23M	-39.80M	-78.06M	-27.38M
Financing Cash Flow	42.04M	-99.24M	25.60M	54.64M	-28.63M

Funko Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNKO, the sentiment is Negative. The current price of 3.5 is below the 20-day moving average (MA) of 4.55, below the 50-day MA of 4.15, and below the 200-day MA of 3.75, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 32.90 is Neutral, neither overbought nor oversold. The STOCH value of 13.73 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FNKO.

Funko Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HAS	61 Neutral	$12.89B	-36.02	-54.74%	3.44%	0.87%	14.02%
MAT	58 Neutral	$4.51B	15.88	18.08%	―	-2.36%	-16.06%
JAKK	52 Neutral	$223.17M	-8.87	4.05%	5.97%	-16.49%	-81.62%
FNKO	49 Neutral	$191.92M	-252.62	-35.34%	―	-11.32%	-165.08%
PLBY	48 Neutral	$192.96M	14.57	754.17%	―	60.60%	66.17%
DOGZ	46 Neutral	$21.25M	-43.11	-5.92%	―	39.47%	31.39%

Funko Corporate Events

Funko Posts Weak 2025 Results Amid Gradual Operational Improvement

On March 12, 2026, Funko reported fourth-quarter and full-year 2025 results showing continued pressure on sales and profitability but some operational improvement late in the year. Fourth-quarter 2025 net sales fell 7% year over year to $273.1 million, while gross margin slipped to 40.9%; however, the company narrowed its net loss to $0.2 million, cut SG&A expenses, and delivered adjusted EBITDA of $23.3 million at the high end of expectations.

For full-year 2025, net sales declined to $908.2 million from $1.05 billion and net loss widened sharply to $67.4 million, with adjusted EBITDA dropping to $26.6 million from $94.7 million, underscoring the earnings challenge despite reductions in inventories and SG&A. Management highlighted strong demand for entertainment-driven franchises such as KPop Demon Hunters, Stranger Things and Bitty Pop!, noted a $16 million debt paydown in the fourth quarter and a credit agreement amendment extending maturities to the end of 2027, moves that aim to bolster financial flexibility as the company pursues its “Make Culture POP!” strategy and seeks to restore growth and margins in 2026.

The most recent analyst rating on (FNKO) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Funko stock, see the FNKO Stock Forecast page.

Funko Names Andrew Oddie Chief International Officer Abroad

On March 4, 2026, Funko, Inc. and its subsidiary Funko UK, Ltd amended the existing service agreement with executive Andrew Oddie, formalizing his change in role to Chief International Officer. Under the revised terms, Oddie will no longer reside in the United States for employment purposes, and his compensation will remain unchanged aside from the removal of previously agreed relocation provisions, underscoring Funko’s emphasis on internationally based leadership for its global operations.

The adjustment of Oddie’s position and location signals a further alignment of senior management with Funko’s international footprint, potentially enhancing oversight of non-U.S. markets and cross-border business functions. By maintaining his compensation while eliminating earlier relocation terms, the company appears to be optimizing executive deployment without increasing cost commitments, which may be relevant for investors tracking leadership structure and geographic strategy.

The most recent analyst rating on (FNKO) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Funko stock, see the FNKO Stock Forecast page.

Funko Extends Credit Facility, Adjusts Loan Covenant Terms

On February 13, 2026, Funko Acquisition Holdings, a subsidiary of Funko, Inc., and its key domestic subsidiaries executed a fifth amendment to their senior credit agreement with a lender group led by JPMorgan Chase, extending the loan maturity from September 17, 2026 to December 31, 2027. The amendment also revises financial covenants by temporarily waiving certain fixed charge coverage and net leverage tests for fiscal quarters spanning late 2025 through late 2026, easing fixed charge coverage requirements through early 2027, adding a minimum EBITDA test for the six months ending June 30, 2026, and allowing the company, under specified conditions, to skip some covenant tests if it prepays at least $10 million of loans in advance.

The revised facility removes a 10 basis point credit spread adjustment on SOFR loans but increases the applicable margin on all outstanding loans to 450 basis points effective at closing, with further step-ups to follow under the amended terms. It also tightens lender protections by altering term loan amortization, imposing amortization and quarterly mandatory prepayments on revolving borrowings tied to excess cash above $50 million, permanently reducing revolver commitments with each such payment, and expanding reporting duties, affirmative covenants and events of default, signaling both enhanced lender oversight and a more demanding, though extended, financing framework for Funko.

The most recent analyst rating on (FNKO) stock is a Hold with a $4.50 price target. To see the full list of analyst forecasts on Funko stock, see the FNKO Stock Forecast page.

Funko appoints digital creator executive Reed Duchscher to board

On January 11, 2026, Funko, Inc. announced that director Michael Lunsford resigned from the company’s Board of Directors, effective January 12, 2026, with the company expressing appreciation for his service and contributions. On the same date, the Board elected Night Inc. chief executive Reed Duchscher, a veteran of the creator and content industry, as a Class II director effective January 12, 2026, a move that brings digital creator-focused expertise onto the board and may strengthen Funko’s alignment with influencer-driven and content-centric brand strategies.

The most recent analyst rating on (FNKO) stock is a Hold with a $4.00 price target. To see the full list of analyst forecasts on Funko stock, see the FNKO Stock Forecast page.