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Funko
(NASDAQ:FNKO)
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Rating:54Neutral
Price Target:
$5.50
▼(-5.01% Downside)
Action:Reiterated
Date:08/07/26
FNKO scores in the mid-range primarily due to improving financial performance (return to positive operating income and better cash generation) and a positive earnings update with raised EBITDA guidance and deleveraging progress. These are tempered by weak technicals (trading below key short-term averages with soft momentum), an unfavorable/unclear valuation signal from a negative P/E, and ongoing margin/leverage risks highlighted in the financial statements and call.
Positive Factors
Strong licensing & product portfolio
Funko's licensing-driven model and expanding product formats create durable, IP-backed demand. Broad wholesale+DTC distribution and new SKUs/product tiers deepen shelf presence and diversify revenue drivers, supporting recurring sales tied to persistent fandoms and franchise cycles.
Negative Factors
Elevated leverage
Higher debt relative to equity reduces financial flexibility for a cyclical consumer business. Elevated leverage increases interest and refinancing risk, constraining capital allocation for product development, marketing, or inventory initiatives and magnifying downside in weaker demand periods.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong licensing & product portfolio
Funko's licensing-driven model and expanding product formats create durable, IP-backed demand. Broad wholesale+DTC distribution and new SKUs/product tiers deepen shelf presence and diversify revenue drivers, supporting recurring sales tied to persistent fandoms and franchise cycles.
Read all positive factors
Funko (FNKO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$326.08M
Dividend YieldN/A
Average Volume (3M)854.42K
Price to Earnings (P/E)―
Beta (1Y)2.18
Revenue Growth-10.39%
EPS Growth-191.24%
CountryUS
Employees1,104
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)-0.04
Shares Outstanding55,839,584
10 Day Avg. Volume627,433
30 Day Avg. Volume854,424
Financial Highlights & Ratios
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<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$7.00Price Target Upside20.90% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
EPS Forecast (FY)-0.06
Revenue Forecast (FY)$931.67M
Funko Business Overview & Revenue Model
Company Description
Funko, Inc. specializes in designing, sourcing, and marketing licensed consumer products rooted in popular culture, reaching customers throughout the United States, Europe, and other international markets. Their extensive product catalog comprises...
How the Company Makes Money
Funko primarily makes money by selling branded consumer products—most notably its Pop! vinyl figures—through (1) wholesale distribution to retailers and distributors and (2) direct-to-consumer (DTC) sales through its own e-commerce and owned chann...
Funko Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and strategic picture: revenue growth across key regions and categories, strong POS and SKU productivity improvements, record normalized gross margin, sizable improvement in adjusted EBITDA, progress on deleveraging, and multiple product and manufacturing innovations (Pop! Mystery, HP additive manufacturing, QuickStrike). Key risks and lowlights include the headline distortion from a one-time $25M tariff credit, ongoing tariff and input-cost uncertainty, a discounted sale of tariff claims, and work remaining on Loungefly recovery and Q4 visibility. On balance the progress on profitability, product innovation, retail placement, and financial deleveraging outweigh the one-time accounting effects and remaining execution risks.Positive Updates
Top-Line Growth
Net sales grew 7% in Q2 and were up 6% for the first half of FY2026, driven by broad-based strength rather than a single product or region.
Negative Updates
Headline Gross Margin Distortion
Reported Q2 gross margin of 6.6% (vs. 32.1% prior year) was materially distorted by recognition of a $25M tariff credit; the headline figure is misleading without normalization and highlights one-time accounting impact on reported profitability metrics.
Read all updates
Q2-2026 Updates
Positive
Negative
Top-Line Growth
Net sales grew 7% in Q2 and were up 6% for the first half of FY2026, driven by broad-based strength rather than a single product or region.
Read all positive updates
Company Guidance
Management reiterated full-year net sales guidance of flat to +3% and raised adjusted EBITDA guidance to $100–$110 million, citing a $25 million Q2 tariff-credit benefit and about $5 million of improved profitability as the drivers; supporting Q2 metrics included sales up 7% (1H +6%), regional Q2 growth of US +3% and Europe +19%, product performance with core collectibles +9% and Loungefly -2% despite ~50% fewer SKUs, reported Q2 gross margin of 6.6% (vs 32.1% LY) that normalizes to 44.4% when removing the $25M credit (management’s guidance range 42–44%), Q2 adjusted EBITDA of $40.9M (vs -$16.5M LY) and $15M excluding the tariff benefit, SG&A improvement of over 400 basis points, wholesale POS +6% in Q2 (YTD +9%; US mid-single-digit, Europe >20%), ~3–4 months of wholesale order visibility, and a $19M proceeds sale of IEEPA claims used to pay down $15M of debt—while noting downside risks from tariffs (factored at 10–12%) and potential freight/raw-material cost pressure.Funko Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
48
Neutral
Cash Flow
62
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 932.64M | 908.21M | 1.05B | 1.10B | 1.32B | 1.03B |
| Gross Profit | 212.36M | 351.27M | 434.53M | 363.30M | 434.02M | 380.99M |
| EBITDA | 85.60M | 14.34M | 72.65M | -7.28M | 34.96M | 133.28M |
| Net Income | -1.97M | -67.36M | -14.72M | -154.08M | -8.04M | 43.90M |
Balance Sheet | ||||||
| Total Assets | 653.75M | 685.23M | 707.25M | 804.64M | 1.09B | 967.50M |
| Cash, Cash Equivalents and Short-Term Investments | 40.71M | 42.15M | 34.66M | 36.45M | 19.20M | 83.56M |
| Total Debt | 259.86M | 292.77M | 260.31M | 362.35M | 347.08M | 238.63M |
| Total Liabilities | 466.05M | 499.42M | 470.90M | 566.61M | 701.46M | 570.95M |
| Stockholders Equity | 187.70M | 185.81M | 233.02M | 231.94M | 368.22M | 321.64M |
Cash Flow | ||||||
| Free Cash Flow | 29.18M | -38.09M | 90.73M | -4.20M | -99.28M | 59.60M |
| Operating Cash Flow | 73.10M | -5.12M | 123.52M | 30.93M | -40.13M | 87.36M |
| Investing Cash Flow | -43.83M | -31.90M | -25.23M | -39.80M | -78.06M | -27.38M |
| Financing Cash Flow | -46.88M | 42.04M | -99.24M | 25.60M | 54.64M | -28.63M |
Funko Technical Analysis
Neutral
5.79
Price Trends
5.59
Negative
4.87
Positive
4.25
Positive
Market Momentum
0.04
Positive
39.57
Neutral
7.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNKO, the sentiment is Neutral. The current price of 5.79 is below the 20-day moving average (MA) of 5.80, above the 50-day MA of 5.59, and above the 200-day MA of 4.25, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 39.57 is Neutral, neither overbought nor oversold. The STOCH value of 7.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for FNKO.
Funko Risk Analysis
Funko disclosed 62 risk factors in its most recent earnings report. Funko reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Funko Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | $301.33M | 18.28 | 6.50% | 4.08% | -14.67% | -59.03% | |
65 Neutral | $4.39B | 9.61 | 19.88% | ― | -0.25% | 2.23% | |
64 Neutral | $13.25B | 16.69 | 136.90% | 3.15% | 16.87% | ― | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
54 Neutral | $326.08M | -5.52 | -32.19% | ― | -10.39% | -191.24% | |
47 Neutral | $128.72M | -14.86 | -79.63% | ― | -18.44% | 91.45% | |
44 Neutral | $12.81M | -1.67 | -8.77% | ― | -19.38% | -33.51% |
* Consumer Cyclical Sector Average
FNKO
Funko
5.28
1.62
44.26%
HAS
Hasbro
91.69
16.86
22.52%
JAKK
Jakks Pacific
25.47
9.38
58.25%
MAT
Mattel
14.49
-2.80
-16.19%
DOGZ
Dogness (International)
0.93
-6.80
-87.96%
PLBY
Playboy
1.16
-0.57
-32.95%
Funko Corporate Events
Business Operations and StrategyFinancial Disclosures
Funko boosts margins and guidance on strong Q2
Positive
Aug 6, 2026
Funko reported strong results for the second quarter ended June 30, 2026, with net sales up 7% to $207.7 million and Core Collectibles up 9%, while Europe led geographic growth and Loungefly declined modestly. Gross margin reached a record 56.6%, ...
Executive/Board ChangesShareholder Meetings
Funko Shareholders Back Board, Executive Pay at Meeting
Positive
Jun 4, 2026
On June 3, 2026, Funko, Inc. held its Annual Meeting of Stockholders, with approximately 77.5% of outstanding common stock represented in person or by proxy as of the April 10, 2026 record date. Shareholders elected Class III directors Diane Irvin...
Business Operations and StrategyFinancial Disclosures
Funko Posts Strong Q1 2026 Results, Turnaround Progressing
Positive
May 7, 2026
Funko reported strong financial results for the first quarter ended March 31, 2026, with net sales rising 5.3% year over year to $200.9 million and gross margin improving to a record 44.2% as Core Collectibles grew 16.8%, offsetting declines in Lo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.