Funko (FNKO) AI Stock Analysis

• Market Cap: $235.97M
• Dividend Yield: N/A
• Average Volume (3M): 833.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: -11.32%
• EPS Growth: -165.08%
• Country: US
• Employees: 1,267
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Leisure
• EPS (TTM): 0.06
• Shares Outstanding: 54,742,996
• 10 Day Avg. Volume: 1,151,535
• 30 Day Avg. Volume: 833,757
• PEG Ratio: 0.52
• Price to Book (P/B): 2.99
• Price to Sales (P/S): 0.66
• P/FCF Ratio: 7.68
• Enterprise Value/Market Cap: 2.15
• Enterprise Value/Revenue: 0.55
• Enterprise Value/Gross Profit: 1.45
• Enterprise Value/Ebitda: 30.14
• 1Y Price Target: $3.50
• Price Target Upside: -17.84% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 50 Neutral
• Price Target: $4.50 ▲(5.63% Upside)

The score is held down primarily by weak financial performance (declining revenue, negative margins, deteriorating free cash flow, and high leverage). Technicals provide some offset via positive momentum and price strength versus moving averages, but elevated RSI suggests the move may be stretched. Valuation is hard to support with a negative P/E driven by losses, while the earnings call offers only a modestly positive outlook amid meaningful debt and demand risks.

Positive Factors

Diversified Licensing Portfolio

Multi-year licensing renewals secure long-term access to major IP, ensuring a steady pipeline of new SKUs, co-branded promotions, and retailer demand. This supports product cadence, retail shelf penetration, and limited-edition economics that sustain revenue and margin potential over quarters.

Product Innovation with Repeat Hits

Demonstrated ability to rapidly develop and execute trend-driven launches (e.g., KPop Demon Hunters) indicates a durable product development engine and merchandising playbook. Repeat hit launches drive retailer buy-in, pre-sales, and inventory turns, strengthening medium-term revenue resilience.

Large Fan Base and Engagement

Scale and engaged fandom create durable demand elasticity for new drops, exclusives, and premium SKUs. A growing loyalty program and strong social reach lower customer acquisition costs, increase repeat purchase rates, and support international rollouts and DTC expansion over multiple quarters.

Negative Factors

Declining Revenue and Margin Compression

Falling sales combined with a steep gross margin decline signal persistent cost or pricing pressure and SKU mix shifts. This reduces operating leverage, squeezes profit generation, and hampers the company's ability to reinvest in marketing or product innovation over the medium term.

Deteriorating Cash Generation

Rapidly worsening free cash flow and poor cash conversion constrain the company's capacity to fund inventory, marketing, and international expansion internally. Weak cash generation increases dependency on external financing and limits strategic flexibility across upcoming quarters.

High Leverage and Refinancing Risk

Elevated leverage and explicit refinancing/going-concern risk reduce financial optionality and raise interest and covenant pressures. Coupled with weak cash flow, this heightens the risk of balance-sheet-driven constraints on operations, inventory purchases, and strategic initiatives in the near term.

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 generates revenue primarily through the sale of its collectible products, with a significant portion coming from its Pop! Vinyl figures. The company sells its products through various channels including retail partnerships with major retailers, e-commerce platforms, and direct-to-consumer sales via its own online store. Funko's revenue model is enhanced by licensing agreements with major brands and franchises, allowing them to create and sell collectibles based on popular characters. Additionally, the company benefits from limited edition releases and exclusives, which can drive up demand and pricing. Partnerships with retailers such as Walmart, Target, and Hot Topic, as well as participation in conventions and pop culture events, further contribute to its earnings by expanding its market reach and visibility.

Funko Financial Statement Overview

Summary

Weak fundamentals drive a low score: TTM revenue growth is negative (-4.31%), profitability is pressured (net margin -7.39%) with a sharp gross margin decline (26.78% vs. 41.39% prior year), and cash generation is deteriorating (free cash flow growth -44.39%). Leverage is elevated (debt-to-equity 1.71) and ROE is deeply negative (-33.93%).

Income Statement

Funko's income statement reveals challenges with declining revenue and profitability. The TTM shows a negative revenue growth rate of -4.31% and a net profit margin of -7.39%, indicating struggles in maintaining sales and profitability. The gross profit margin has decreased to 26.78% from 41.39% in the previous year, reflecting increased cost pressures. The EBIT and EBITDA margins are also low, at -5.87% and 1.48% respectively, highlighting operational inefficiencies.

Balance Sheet

The balance sheet indicates a high debt-to-equity ratio of 1.71, suggesting significant leverage and potential financial risk. The return on equity is negative at -33.93%, reflecting poor profitability relative to shareholder investment. However, the equity ratio stands at 26.12%, indicating a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a concerning decline in free cash flow growth by -44.39% TTM, and a negative free cash flow to net income ratio of -0.36, indicating cash flow issues. The operating cash flow to net income ratio is low at 0.06, suggesting limited cash generation from operations relative to net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	928.84M	1.05B	1.10B	1.32B	1.03B	652.54M
Gross Profit	349.54M	434.53M	363.30M	434.02M	380.99M	249.15M
EBITDA	16.80M	72.65M	-7.28M	35.75M	133.28M	67.91M
Net Income	-68.68M	-14.72M	-154.08M	-8.04M	43.90M	3.96M
Balance Sheet
Total Assets	699.27M	707.25M	804.64M	1.09B	967.50M	763.59M
Cash, Cash Equivalents and Short-Term Investments	39.18M	34.66M	36.45M	19.20M	83.56M	52.26M
Total Debt	312.24M	260.31M	362.35M	347.08M	238.63M	262.12M
Total Liabilities	515.66M	470.90M	566.61M	701.46M	570.95M	441.14M
Stockholders Equity	182.68M	233.02M	231.94M	368.22M	321.64M	242.27M
Cash Flow
Free Cash Flow	-9.48M	90.73M	-4.20M	-99.28M	59.60M	90.26M
Operating Cash Flow	26.58M	123.52M	30.93M	-40.13M	87.36M	108.74M
Investing Cash Flow	-34.86M	-25.23M	-39.80M	-78.06M	-27.38M	-18.48M
Financing Cash Flow	17.18M	-99.24M	25.60M	54.64M	-28.63M	-63.34M

Funko Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 4.26
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FNKO, the sentiment is Positive. The current price of 4.26 is above the 20-day moving average (MA) of 3.61, above the 50-day MA of 3.31, and above the 200-day MA of 3.74, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 68.55 is Neutral, neither overbought nor oversold. The STOCH value of 75.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FNKO.

Funko Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MAT	75 Outperform	$6.42B	15.49	18.90%	―	-2.36%	-16.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HAS	60 Neutral	$12.45B	-22.14	-65.93%	3.44%	0.87%	14.02%
JAKK	56 Neutral	$214.12M	38.63	2.40%	5.97%	-16.49%	-81.62%
FNKO	50 Neutral	$235.97M	-3.35	-32.77%	―	-11.32%	-165.08%
PLBY	47 Neutral	$197.20M	-5.64	―	―	60.60%	66.17%
DOGZ	46 Neutral	$161.86M	-29.83	-5.86%	―	39.47%	31.39%

Funko Corporate Events

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.

Funko Reports Q3 2025 Financial Results, Exceeds Expectations

On November 6, 2025, Funko reported its financial results for the third quarter of 2025, showing net sales of $250.9 million, a decrease from $292.8 million in the previous year. Despite the drop in sales, the company exceeded expectations in gross margin and net income, driven by the success of its Bitty Pop! line and effective tariff mitigation strategies. CEO Josh Simon highlighted the brand’s growth potential and strategic focus on rapid product launches and retail experiences. Looking ahead, Funko anticipates modest sales growth and a stable gross margin in the fourth quarter of 2025.

The most recent analyst rating on (FNKO) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Funko stock, see the FNKO Stock Forecast page.