Funko (FNKO) AI Stock Analysis

• Market Cap: $184.37M
• Dividend Yield: N/A
• Average Volume (3M): 906.67K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.48
• 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: 54,717,580
• 10 Day Avg. Volume: 1,023,821
• 30 Day Avg. Volume: 906,666
• 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: 2.51
• Enterprise Value/Revenue: 0.50
• Enterprise Value/Gross Profit: 1.32
• Enterprise Value/Ebitda: 27.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 48 Neutral
• Price Target: $3.00 ▲(2.04% Upside)

Funko's overall stock score is primarily impacted by its weak financial performance, characterized by declining revenues and profitability, and high leverage. The technical analysis indicates a bearish trend, while valuation metrics are unattractive due to negative earnings. However, strategic initiatives highlighted in the earnings call provide some optimism for future growth, slightly offsetting the negative aspects.

Positive Factors

International Expansion

Expanding into Asia and Latin America can diversify revenue streams and reduce dependence on the U.S. market, supporting long-term growth.

Licensing Agreements

Renewing major licensing agreements secures access to popular franchises, ensuring a steady flow of new products and sustained market relevance.

Product Innovation

Successful product launches like KPop Demon Hunters demonstrate Funko's ability to capitalize on trends, driving future sales and brand engagement.

Negative Factors

Declining Revenue

Declining net sales indicate potential challenges in maintaining market share and revenue growth, impacting long-term financial stability.

High Leverage

High leverage can strain financial resources and limit strategic flexibility, posing risks to long-term operational sustainability.

Cash Flow Challenges

Negative cash flow growth limits Funko's ability to invest in new opportunities and manage debt, affecting long-term financial health.

Funko Business Overview & Revenue Model

Company Description

Funko Inc. (FNKO) is an American consumer products company specializing in licensed pop culture collectibles. Founded in 1998, Funko is best known for its iconic Pop! Vinyl figures, which feature stylized representations of characters from movies, television shows, video games, and more. The company operates primarily in the collectibles sector, targeting a broad audience of collectors and enthusiasts. In addition to Pop! figures, Funko offers a wide range of products including action figures, plush toys, apparel, and board games, appealing to fans of various franchises across entertainment mediums.

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

Funko faces significant financial challenges with declining revenues, profitability, and cash flow. High leverage and negative returns on equity further exacerbate financial risks. The company needs to address operational inefficiencies and improve cash flow management to stabilize its financial position.

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: Negative
• Last Price: 2.94
• 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 2.94 is below the 20-day moving average (MA) of 3.19, below the 50-day MA of 3.28, and below the 200-day MA of 5.10, indicating a bearish trend. The MACD of -0.04 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 1.91 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
MAT	72 Outperform	$5.77B	13.91	18.90%	―	-2.36%	-16.06%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
HAS	56 Neutral	$10.73B	―	-65.93%	3.65%	0.87%	14.02%
JAKK	54 Neutral	$189.44M	34.18	2.40%	4.41%	-16.49%	-81.62%
FNKO	48 Neutral	$184.37M	―	-32.77%	―	-11.32%	-165.08%
PLBY	47 Neutral	$146.27M	―	―	―	60.60%	66.17%
DOGZ	41 Neutral	$161.00M	―	-5.86%	―	39.47%	31.39%

Funko Corporate Events

Funko Inc’s Earnings Call: Milestones and Challenges

Funko Inc’s recent earnings call painted a mixed picture of the company’s current standing and future prospects. While the company celebrated significant milestones and strategic advancements, it also acknowledged challenges such as declining net sales and financial uncertainties. Despite these hurdles, Funko’s efforts in diversifying its product lines and renewing key partnerships suggest potential for future growth.

Funko, Inc. Reports Strong Q3 2025 Results

Funko, Inc. is a prominent global pop culture lifestyle brand known for its diverse range of products including vinyl figures, fashion accessories, and collectibles, catering to the growing ‘Kidult’ economy. The company recently reported its financial results for the third quarter of 2025, highlighting net sales of $250.9 million, which aligned with expectations, while gross margin and net income surpassed projections. Despite a decline in net sales compared to the previous year, Funko achieved a gross margin of 40.2% and a net income of $0.9 million, supported by strong sales of its Bitty Pop! line and effective tariff mitigation strategies. The company’s adjusted EBITDA stood at $24.4 million, reflecting a decrease from the previous year. Looking ahead, Funko anticipates a modest increase in net sales for the fourth quarter, with a gross margin of approximately 40% and an adjusted EBITDA margin in the mid- to high single-digits range.

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.