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Funko Inc (FNKO)
:FNKO
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Funko
(NASDAQ:FNKO)
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Rating:48Neutral
Price Target:
$3.00
▲(2.04% Upside)
Funko's overall stock score reflects significant financial challenges, including declining revenues and profitability, high leverage, and cash flow issues. While there are strategic initiatives and potential growth opportunities, these are overshadowed by current financial risks and valuation concerns.
Positive Factors
International Expansion
Expanding into international markets like Asia and Latin America can diversify revenue streams and reduce reliance on the U.S. market, providing long-term growth potential.
Licensing Agreements
Strong licensing agreements with major entertainment brands ensure a steady pipeline of popular products, enhancing competitive advantage and market position.
Product Innovation
Innovative product launches like the KPop Demon Hunters line demonstrate Funko's ability to capitalize on trends, driving demand and supporting revenue growth.
Negative Factors
Declining Revenue
Declining revenue indicates challenges in maintaining sales momentum, which can impact profitability and long-term business sustainability.
High Leverage
High leverage can strain financial flexibility and increase risk, potentially limiting the company's ability to invest in growth opportunities.
Cash Flow Issues
Negative cash flow trends indicate operational inefficiencies and may hinder the company's ability to fund operations and growth initiatives.
Funko (FNKO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$184.37M
Dividend YieldN/A
Average Volume (3M)906.67K
Price to Earnings (P/E)―
Beta (1Y)1.48
Revenue Growth-11.32%
EPS Growth-165.08%
CountryUS
Employees1,267
SectorConsumer Cyclical
Sector Strength84
IndustryLeisure
Share Statistics
EPS (TTM)0.06
Shares Outstanding54,717,580
10 Day Avg. Volume1,023,821
30 Day Avg. Volume906,666
Financial Highlights & Ratios
PEG Ratio0.52
Price to Book (P/B)2.99
Price to Sales (P/S)0.66
P/FCF Ratio7.68
Enterprise Value/Market Cap2.51
Enterprise Value/Revenue0.50
Enterprise Value/Gross Profit1.32
Enterprise Value/Ebitda27.51
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Funko Business Overview & Revenue Model
Company DescriptionFunko 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 MoneyFunko 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 Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Mar 05, 2026
Earnings Call Sentiment Neutral
The earnings call highlights Funko's strategic advancements in licensing agreements, product innovation, and international expansion. However, there are notable challenges such as declining net sales, tariff impacts, and financial uncertainty. Despite these issues, the company's efforts in diversifying its product lines and renewing key partnerships suggest potential for future growth.Q3-2025 Updates
Positive Updates
1 Billion Units Sold Milestone
Funko celebrated selling 1 billion units, marking a significant achievement in the company's history.
Membership Growth
The fan loyalty program membership grew by 27% since the start of the year.
Strong Social Media Presence
Funko boasts a strong social media presence with 9 million followers and a highly diversified customer base.
Renewal of Major Licensing Agreements
Funko renewed multi-year agreements with major partners including Warner Bros, NBC Universal, 20th Century, Paramount, and Disney.
Launch of KPop Demon Hunters Line
KPop Demon Hunters became one of Funko's biggest presale items ever, showcasing the company's ability to quickly capitalize on trends.
Introduction of Bitty Pop!
Bitty Pop! was introduced in Walmart's toy aisle and featured in Walmart's top toy list, expected to expand to 1,800 stores.
Improved Gross Margin
The company's gross margin was reported at 40.2%, showing resilience despite increased tariffs.
Strong International Potential
Funko sees significant growth opportunities in Asia and Latin America, leveraging existing relationships.
Negative Updates
Decrease in Net Sales
Net sales were $250.9 million, reflecting a decline attributed to SKU rationalizations and reduced clearance sales.
Challenges in U.S. Market
U.S. POS units were down mid- to high single digits year-over-year, indicating challenges in domestic market demand.
Tariff Impact
The announcement and implementation of tariffs earlier in the year disrupted shipping and order placements.
Debt and Refinancing Concerns
Total debt was approximately $241 million with ongoing refinancing processes and concerns about the company's ability to continue as a going concern.
Pullback in Marketing Spend
There was a decrease in direct-to-consumer sales due in part to reduced marketing efforts.
Company Guidance
During Funko's 2025 Third Quarter Financial Results Conference Call, the company provided guidance indicating a modest increase in net sales for the fourth quarter compared to the third quarter's $250.9 million, driven by initiatives like the launch of Pop! Yourself in Europe and the sales of KPop Demon Hunters product lines. Gross margin is expected to remain around 40%, with adjusted EBITDA margin projected to be in the mid- to high-single digits. The company's strategy focuses on expanding international presence, particularly in Asia and Latin America, enhancing direct-to-consumer capabilities, and leveraging its strong portfolio of more than 900 active licensed properties. Funko aims to capitalize on its diverse customer base and growing fandom, highlighted by achievements such as 1 billion units sold and a 27% growth in its fan loyalty program since the start of the year. The company's long-term strategy, "Make Culture POP!", is centered around culture, creativity, and commerce, with plans to innovate product offerings and strengthen retail partnerships worldwide.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.45
Neutral
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.50
Neutral
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.40
Negative
| 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
Positive
2.94
Price Trends
3.13
Positive
3.28
Positive
4.37
Negative
Market Momentum
<0.01
Negative
57.90
Neutral
58.64
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 2.94 is below the 20-day moving average (MA) of 3.08, below the 50-day MA of 3.13, and below the 200-day MA of 4.37, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 57.90 is Neutral, neither overbought nor oversold. The STOCH value of 58.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FNKO.
Funko Risk Analysis
Funko disclosed 63 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | $6.28B | 15.67 | 18.90% | ― | -2.36% | -16.06% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
56 Neutral | $11.21B | ― | -65.93% | 3.41% | 0.87% | 14.02% | |
56 Neutral | $184.37M | 33.27 | 2.40% | 5.98% | -16.49% | -81.62% | |
51 Neutral | $146.27M | ― | ― | ― | 60.60% | 66.17% | |
48 Neutral | $184.37M | ― | -32.77% | ― | -11.32% | -165.08% | |
41 Neutral | $159.86M | ― | -5.86% | ― | 39.47% | 31.39% |
* Consumer Cyclical Sector Average
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Funko Corporate Events
Business Operations and StrategyFinancial Disclosures
Funko Reports Q3 2025 Financial Results, Exceeds Expectations
Positive
Nov 6, 2025
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.
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.