Funko (NASDAQ:FNKO) Announces Earnings Results, Beats Estimates By $0.06 EPS

Funko (NASDAQ:FNKO) issued its quarterly earnings results on Thursday. The company reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates of $0.10 by $0.06, FiscalAI reports. The firm had revenue of $258.34 million for the quarter, compared to analysts’ expectations of $250.70 million. Funko had a return on equity of 6.63% and a net margin of 0.49%.

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

• Q3 sales and profitability improved: Net sales rose 3%, led by 5% growth in core collectibles and 12% growth in Europe. Gross margin expanded five percentage points to 45%, and adjusted EBITDA was $32 million, or a 12% margin.
• Debt declined: Funko ended the quarter with $42 million in cash and $155 million in net debt, down from just over $200 million a year earlier.
• Point-of-sale units were weaker in Q3: Reported global POS units fell 4% year over year, including a 10% decline in the U.S.; D2C units fell 13% amid reduced promotions. EMEA POS rose 16%, and global POS was up 3% year to date; management said last year’s post-tariff inventory shipments made the U.S. comparison tougher.
• Full-year guidance was reiterated: The company maintained its outlook for sales to be flat to up 3% and adjusted EBITDA of $100 million to $110 million.
• New products and sales channels showed early traction: Management said Pop! Mystery products sold three times faster than expected and reached 100% sell-through, with more launches planned. It also highlighted tests of live selling and auctions, while noting these are developing opportunities rather than established revenue drivers.

Funko Stock Up 9.6%

NASDAQ:FNKO traded up $0.59 during trading hours on Friday, hitting $6.72. 2,165,211 shares of the company’s stock traded hands, compared to its average volume of 994,451. The firm has a market cap of $375.85 million, a P/E ratio of 96.01 and a beta of 1.00. Funko has a twelve month low of $2.72 and a twelve month high of $7.35. The company has a debt-to-equity ratio of 0.97, a quick ratio of 0.79 and a current ratio of 1.16. The stock’s fifty day moving average price is $6.09 and its two-hundred day moving average price is $5.18.

Key Funko News

Here are the key news stories impacting Funko this week:

• Positive Sentiment: Q3 revenue rose 3% to $258.3 million, topping the roughly $250.7 million consensus, while adjusted earnings were $0.16 per share versus estimates of $0.10. Funko Q3 results
• Positive Sentiment: Gross margin expanded to 45.2% from 40.2% a year earlier, and coverage pointed to core collectibles growth and a leaner Loungefly business. Funko reiterated its full-year net sales and adjusted EBITDA guidance, supporting the view that profitability and cost management are improving. Funko’s Core Collectibles Lead Q3 Growth as Loungefly Gets Leaner
• Neutral Sentiment: FNKO’s post-earnings reaction was volatile: one report noted an initial decline despite the sales beat. The current rebound may reflect investors reassessing the results after that selloff. Funko beats Q3 sales expectations but stock drops
• Negative Sentiment: U.S. sales declined even as overall sales increased, raising a potential concern about domestic demand and leaving regional performance as a risk to monitor. Funko’s U.S. sales decline, overall sales increase

Insider Buying and Selling

In other Funko news, Director Charles Denson acquired 72,992 shares of the firm’s stock in a transaction on Monday, August 24th. The stock was purchased at an average cost of $6.85 per share, for a total transaction of $499,995.20. Following the transaction, the director owned 269,084 shares of the company’s stock, valued at $1,843,225.40. The trade was a 37.22% increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Pendeven Le sold 35,907 shares of the firm’s stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $6.51, for a total value of $233,754.57. Following the sale, the chief financial officer owned 35,907 shares of the company’s stock, valued at $233,754.57. The trade was a 50.00% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 228,662 shares of company stock valued at $1,363,086. Corporate insiders own 3.88% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts have commented on FNKO shares. The Goldman Sachs Group reiterated a “neutral” rating and issued a $6.75 target price on shares of Funko in a report on Monday, August 10th. Weiss Ratings restated a “sell (d-)” rating on shares of Funko in a report on Thursday, October 15th. DA Davidson boosted their price target on shares of Funko from $7.00 to $8.00 and gave the company a “buy” rating in a report on Friday, August 7th. Wall Street Zen upgraded shares of Funko from a “hold” rating to a “buy” rating in a research report on Saturday, August 15th. Finally, Seaport Research Partners assumed coverage on shares of Funko in a research report on Monday, August 24th. They issued a “buy” rating and a $8.00 price target for the company. One analyst has rated the stock with a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of “Hold” and an average target price of $7.08.

Funko Company Profile

Funko, Inc is a consumer products company that designs, sources and sells licensed and original pop-culture collectibles and merchandise. Its best-known product is the Pop! vinyl figure, which features characters from movies, television, video games, sports and other entertainment properties. The company also offers plush products, action figures, accessories, apparel, home goods and games.

Funko’s portfolio includes brands such as Pop!, Loungefly and Mondo. Loungefly focuses on licensed bags, wallets, accessories and other lifestyle products, while Mondo is known for premium collectibles, posters, apparel and related merchandise.