Funko (NASDAQ:FNKO) Releases Earnings Results, Beats Expectations By $0.47 EPS

Funko (NASDAQ:FNKO) announced its earnings results on Thursday. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of ($0.21) by $0.47, FiscalAI reports. Funko had a negative net margin of 0.21% and a positive return on equity of 2.64%. The company had revenue of $207.72 million during the quarter, compared to analysts’ expectations of $200.96 million.

Here are the key takeaways from Funko’s conference call:

• Sales increased 7% in Q2 and 6% in the first half, with broad-based growth across regions and products; Europe rose 19% and core collectibles grew 9%.
• Profitability improved substantially, with normalized gross margin reaching a record 44.4% and adjusted EBITDA of $15 million excluding the $25 million tariff-related benefit; the company also paid down $15 million of debt.
• Funko raised adjusted EBITDA guidance to $100 million–$110 million while maintaining full-year net sales guidance of flat to up 3%, citing improved profitability and the tariff credit.
• Management expects continued core-collectibles growth and is expanding new platforms such as Pop! Mystery, Bitty Pop!, Pop! Yourself, and HP-enabled additive manufacturing, which could shorten product development from months or years to weeks.
• Management remains cautious about the second half, citing consumer uncertainty and potential downside from tariffs, freight, raw-material costs, and possible changes in tariff policy; Loungefly sales were still down 2%, despite improved productivity after a roughly 50% SKU reduction.

Funko Price Performance

Shares of NASDAQ FNKO traded up $0.60 during trading hours on Friday, hitting $5.88. 3,280,344 shares of the stock were exchanged, compared to its average volume of 954,837. The company’s fifty day simple moving average is $5.60 and its two-hundred day simple moving average is $4.72. The company has a market cap of $328.87 million, a PE ratio of -146.96 and a beta of 0.93. The company has a debt-to-equity ratio of 1.16, a quick ratio of 0.78 and a current ratio of 1.15. Funko has a 1-year low of $2.22 and a 1-year high of $7.04.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on FNKO. Weiss Ratings restated a “sell (d-)” rating on shares of Funko in a research report on Friday, July 17th. The Goldman Sachs Group boosted their price target on Funko from $4.00 to $6.00 and gave the company a “neutral” rating in a research note on Monday, May 11th. Finally, DA Davidson set a $8.00 price objective on Funko in a research note on Friday. One equities research analyst has rated the stock with a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company currently has an average rating of “Reduce” and a consensus target price of $6.83.

Hedge Funds Weigh In On Funko

Several hedge funds and other institutional investors have recently modified their holdings of FNKO. Boothbay Fund Management LLC bought a new stake in shares of Funko during the 4th quarter worth $63,000. Engineers Gate Manager LP acquired a new position in Funko during the 4th quarter worth approximately $82,000. Brown Brothers Harriman & Co. bought a new position in Funko in the 3rd quarter valued at approximately $86,000. Odyssean LLC acquired a new stake in Funko in the fourth quarter valued at approximately $98,000. Finally, Jain Global LLC bought a new stake in shares of Funko during the fourth quarter worth $123,000. Institutional investors own 99.15% of the company’s stock.

Key Headlines Impacting Funko

Here are the key news stories impacting Funko this week:

• Positive Sentiment: Funko reported second-quarter revenue of $207.7 million, up 7% year over year and above the $200.96 million consensus estimate. Adjusted EPS was $0.26, substantially ahead of the expected $0.21 loss. Funko Reports Strong Second Quarter 2026 Financial Results
• Positive Sentiment: Gross profit nearly doubled to $117.6 million, while gross margin expanded to 56.6% from 32.1% a year earlier. The improvement reflects better product mix, cost controls and operational execution. Funko Flips the Script in Q2
• Positive Sentiment: Management raised full-year adjusted EBITDA guidance to $100 million-$110 million, helped in part by a $25 million tariff credit. The higher profit outlook is a key catalyst for FNKO despite unchanged full-year sales expectations. Funko Raises Full-Year Adjusted EBITDA Guidance
• Positive Sentiment: Analysts highlighted a diversified product pipeline and continued collectibles growth, including new Pixar and Disney-related Funko Pop releases that could support consumer demand. FNKO Q2 Deep Dive
• Neutral Sentiment: Funko reiterated full-year revenue guidance of $908.2 million-$935.5 million. Third-quarter revenue guidance of approximately $250.9 million is modestly below the $252.2 million consensus estimate, limiting some of the upside from the earnings beat.
• Negative Sentiment: Despite the quarterly profit, Funko continues to report negative trailing net margin and return on equity, while its balance sheet remains relatively leveraged. Sustaining the recent margin gains will be important for the rally to continue.

About Funko

Funko, Inc is a pop culture consumer products company best known for its stylized vinyl figures, apparel, accessories and other licensed collectible goods. The company’s signature product line, Funko Pop!, features bobblehead-style figurines that showcase characters from a wide array of entertainment franchises, including film, television, gaming, sports and music. In addition to vinyl figurines, Funko’s portfolio encompasses plush toys, action figures, stationery, home goods and novelty items, all leveraging licensing agreements with major global brands.

Founded in 1998 by Mike Becker in Washington state, Funko initially focused on creating nostalgic bobbleheads before expanding its product offerings under current leadership.