Funko (NASDAQ:FNKO) Releases Quarterly 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 for the quarter, beating the consensus estimate of ($0.21) by $0.47, FiscalAI reports. The business had revenue of $207.72 million during the quarter, compared to analysts’ expectations of $200.96 million. Funko had a positive return on equity of 2.64% and a negative net margin of 0.21%.

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 Stock Up 11.4%

Funko stock traded up $0.60 during midday trading on Friday, reaching $5.88. The stock had a trading volume of 3,280,344 shares, compared to its average volume of 954,837. The stock has a market capitalization of $328.87 million, a P/E ratio of -146.96 and a beta of 0.93. The firm’s fifty day simple moving average is $5.60 and its 200-day simple moving average is $4.72. 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.

Key Stories 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.

Wall Street Analysts Forecast Growth

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

Hedge Funds Weigh In On Funko

Several hedge funds have recently made changes to their positions in the business. Royal Bank of Canada lifted its position in shares of Funko by 95.3% in the first quarter. Royal Bank of Canada now owns 32,345 shares of the company’s stock worth $222,000 after purchasing an additional 15,782 shares in the last quarter. AQR Capital Management LLC grew its position in Funko by 343.6% in the first quarter. AQR Capital Management LLC now owns 340,130 shares of the company’s stock valued at $2,333,000 after purchasing an additional 263,451 shares in the last quarter. Jane Street Group LLC increased its stake in Funko by 296.6% in the 1st quarter. Jane Street Group LLC now owns 74,124 shares of the company’s stock valued at $508,000 after buying an additional 55,436 shares during the last quarter. Geode Capital Management LLC increased its stake in Funko by 5.4% in the 2nd quarter. Geode Capital Management LLC now owns 867,243 shares of the company’s stock valued at $4,129,000 after buying an additional 44,448 shares during the last quarter. Finally, JPMorgan Chase & Co. lifted its position in Funko by 5,627.1% during the 2nd quarter. JPMorgan Chase & Co. now owns 900,360 shares of the company’s stock worth $4,286,000 after buying an additional 884,639 shares in the last quarter. 99.15% of the stock is owned by institutional investors.

Funko Company Profile

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.