Company Sees Q1 Adjusted EBITDA About Breakeven
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Should l Buy FNKO?
Consensus $212.2M. Sees Q1 adjusted EBITDA "about breakeven".
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Analyst Views on FNKO
Wall Street analysts forecast FNKO stock price to fall
2 Analyst Rating
1 Buy
1 Hold
0 Sell
Moderate Buy
Current: 4.495
Low
3.50
Averages
3.50
High
3.50
Current: 4.495
Low
3.50
Averages
3.50
High
3.50
About FNKO
Funko, Inc. operates as a pop culture lifestyle brand. The Company is engaged in selling a range of licensed pop culture consumer products featuring characters from a range of media and entertainment content, including movies, TV shows, video games, music and sports. Its products are principally figures, fashion accessories, apparel, plush products, accessories, homeware, NFTs, vinyl records and limited-edition posters. Its products combine its proprietary brands and distinct designs and aesthetic sensibilities into properties it licenses from content providers. In addition to offering multiple properties and product categories, it creates and sells a variety of brands that have their own look and feel. Its brand portfolio includes Core Collectible (which includes Pop! Vinyl, and other branded lines, such as Soda, Bitty Pop!, and Pop! Yourself), Loungefly (softlines, including bags, wallets, backpacks and apparel) and Other (which include brands, such as Digital Pop! and Mondo).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Funko Reports Strong Q4 Earnings with Growth Outlook
- Strong Sales Performance: Funko reported net sales of $273 million in Q4 2025, a 9% increase over the previous quarter, exceeding expectations, with a gross margin of 41%, demonstrating effective cost control and pricing strategies.
- International Market Expansion: The appointment of Andy Oddie as Chief International Officer aims to drive growth in Asia and Latin America, with expectations to enhance market share through new product categories and partnerships with Topps and Fanatics.
- Innovation and Content Development: Funko plans to collaborate with Rideback using AI animation tools for new content development, emphasizing the importance of original content as a long-term growth driver, although capital investment will remain limited.
- Optimistic Future Outlook: The CFO anticipates flat to 3% net sales growth in 2026, with adjusted EBITDA targets between $70 million and $80 million, reflecting confidence in future profitability despite risks from tariffs and market dynamics.
See More
Funko Reports Q4 and Full-Year Financial Results for 2025
- Earnings Highlights: Funko's Q4 non-GAAP EPS of $0.05 exceeded expectations by $0.01, while revenue of $273.1 million, down 7% year-over-year, still beat estimates by $12.39 million, indicating resilience in profitability despite challenges.
- Declining Gross Margin: The Q4 gross profit was $111.6 million with a gross margin of 40.9%, down from $124.4 million and 42.4% a year earlier, reflecting rising costs that pressure profitability and may impact future pricing strategies.
- Annual Performance Review: Net sales for 2025 were $908.2 million, significantly down from $1.05 billion in 2024, with gross profit at $351.3 million and a gross margin of 38.7%, indicating challenges in market competition that necessitate a reassessment of market positioning.
- Widening Net Loss: The net loss for 2025 was $67.4 million, or $1.24 per share, a significant increase from a $14.7 million loss in 2024, with adjusted net loss at $38.8 million, highlighting difficulties in cost control and revenue enhancement that could affect investor confidence.
See More
Funko to Announce Q4 Earnings on March 12
- Earnings Announcement Date: Funko (FNKO) is set to release its Q4 earnings on March 12 after market close, with a consensus EPS estimate of $0.04, reflecting a significant 50% year-over-year decline, indicating profitability challenges for the company.
- Revenue Expectations Decline: Analysts project Funko's revenue to reach $260.71 million, down 11.2% year-over-year, highlighting overall weakness in the toy market and reduced consumer demand, which could impact the company's market share.
- Historical Performance Review: Over the past two years, Funko has beaten EPS estimates 75% of the time and revenue estimates 75% of the time, demonstrating a degree of financial stability despite current challenges, which may provide some investor confidence.
- Market Sentiment Deterioration: Following a disappointing holiday season, Pleasant Lake Partners is pushing for a sale process for Funko, which could negatively affect the company's stock price and future strategy, increasing market uncertainty.
See More
Funko Shares Surge 25% as Investor Urges Strategic Alternatives
- Stock Surge: Toymaker Funko's shares jumped approximately 25% following Pleasant Lake Partners' urging for the company to explore strategic alternatives, indicating strong market optimism and potential for new growth avenues.
- Strategic Restructuring: Werewolf Therapeutics has hired Piper Sandler to manage a sale process, highlighting the company's proactive approach to cut operating costs by 64% through layoffs, aiming to enhance financial stability amid restructuring efforts.
- Market Dynamics: The surge in Funko's stock price, coupled with strategic recommendations from its investors, may attract further investor interest, potentially boosting its market performance and overall valuation.
- Private Equity Opportunities: In the private equity space, David Altshuler from Cresta Fund Management discussed opportunities in the energy transition market, reflecting investor interest in the potential value of Funko and similar companies.
See More
Supreme Court Strikes Down Trump's Tariffs, New 15% Levy Announced
- Tariff Policy Reversal: The U.S. Supreme Court ruled 6-3 to strike down Trump's tariffs, stating that the current law does not authorize the President to impose such duties, potentially obligating the U.S. government to refund over $175 billion to importers, undermining Trump's economic policy foundation.
- New Tariff Implementation: Following the ruling, Trump announced a new global 10% tariff, which he raised to 15% the next day, provoking strong backlash from Congressional Democrats and international trading partners, which could disrupt trade negotiations with countries like India.
- Market Reaction: Although the court's decision surprised Wall Street, stocks rose after the ruling, helping major indexes finish the week positively; however, stock futures fell this morning as investors weighed the implications of Trump's new tariff policy.
- Airline Industry Impact: A blizzard warning in the Northeast led to 15% of scheduled U.S. flights being canceled on Monday, as airlines faced operational challenges during the busy winter holiday period, highlighting the direct economic impact of extreme weather conditions.
See More
Pleasant Lake Partners Urges Funko to Initiate Sale Process
- Significant Stake: Pleasant Lake Partners holds 5,450,251 Class A shares in Funko (FNKO), representing approximately 9.96% of the total 54,742,995 shares outstanding, indicating confidence in the company's value and likely prompting shareholder focus on future strategies.
- Activist Investor Move: In its Schedule 13D filing, Pleasant Lake identifies itself as an activist investor, planning to push for a formal sale process at Funko, highlighting its emphasis on the company's potential value and exerting pressure on management.
- Stock Price Fluctuation: Although Funko's shares rose 4.5% in after-hours trading on Thursday, they have declined 67% over the past year, reflecting market concerns about its future prospects while providing an opportunity for Pleasant Lake's investment strategy.
- Investment Opportunity Assessment: Pleasant Lake views Funko's stock as undervalued, considering it an attractive investment opportunity that may draw attention from other investors, potentially impacting the company's shareholder structure and future direction.
See More
Funko Reports Strong Q4 Earnings with Growth Outlook
- Strong Sales Performance: Funko reported net sales of $273 million in Q4 2025, a 9% increase over the previous quarter, exceeding expectations, with a gross margin of 41%, demonstrating effective cost control and pricing strategies.
- International Market Expansion: The appointment of Andy Oddie as Chief International Officer aims to drive growth in Asia and Latin America, with expectations to enhance market share through new product categories and partnerships with Topps and Fanatics.
- Innovation and Content Development: Funko plans to collaborate with Rideback using AI animation tools for new content development, emphasizing the importance of original content as a long-term growth driver, although capital investment will remain limited.
- Optimistic Future Outlook: The CFO anticipates flat to 3% net sales growth in 2026, with adjusted EBITDA targets between $70 million and $80 million, reflecting confidence in future profitability despite risks from tariffs and market dynamics.
See More
Funko Reports Q4 and Full-Year Financial Results for 2025
- Earnings Highlights: Funko's Q4 non-GAAP EPS of $0.05 exceeded expectations by $0.01, while revenue of $273.1 million, down 7% year-over-year, still beat estimates by $12.39 million, indicating resilience in profitability despite challenges.
- Declining Gross Margin: The Q4 gross profit was $111.6 million with a gross margin of 40.9%, down from $124.4 million and 42.4% a year earlier, reflecting rising costs that pressure profitability and may impact future pricing strategies.
- Annual Performance Review: Net sales for 2025 were $908.2 million, significantly down from $1.05 billion in 2024, with gross profit at $351.3 million and a gross margin of 38.7%, indicating challenges in market competition that necessitate a reassessment of market positioning.
- Widening Net Loss: The net loss for 2025 was $67.4 million, or $1.24 per share, a significant increase from a $14.7 million loss in 2024, with adjusted net loss at $38.8 million, highlighting difficulties in cost control and revenue enhancement that could affect investor confidence.
See More
Funko to Announce Q4 Earnings on March 12
- Earnings Announcement Date: Funko (FNKO) is set to release its Q4 earnings on March 12 after market close, with a consensus EPS estimate of $0.04, reflecting a significant 50% year-over-year decline, indicating profitability challenges for the company.
- Revenue Expectations Decline: Analysts project Funko's revenue to reach $260.71 million, down 11.2% year-over-year, highlighting overall weakness in the toy market and reduced consumer demand, which could impact the company's market share.
- Historical Performance Review: Over the past two years, Funko has beaten EPS estimates 75% of the time and revenue estimates 75% of the time, demonstrating a degree of financial stability despite current challenges, which may provide some investor confidence.
- Market Sentiment Deterioration: Following a disappointing holiday season, Pleasant Lake Partners is pushing for a sale process for Funko, which could negatively affect the company's stock price and future strategy, increasing market uncertainty.
See More
Funko Shares Surge 25% as Investor Urges Strategic Alternatives
- Stock Surge: Toymaker Funko's shares jumped approximately 25% following Pleasant Lake Partners' urging for the company to explore strategic alternatives, indicating strong market optimism and potential for new growth avenues.
- Strategic Restructuring: Werewolf Therapeutics has hired Piper Sandler to manage a sale process, highlighting the company's proactive approach to cut operating costs by 64% through layoffs, aiming to enhance financial stability amid restructuring efforts.
- Market Dynamics: The surge in Funko's stock price, coupled with strategic recommendations from its investors, may attract further investor interest, potentially boosting its market performance and overall valuation.
- Private Equity Opportunities: In the private equity space, David Altshuler from Cresta Fund Management discussed opportunities in the energy transition market, reflecting investor interest in the potential value of Funko and similar companies.
See More
Supreme Court Strikes Down Trump's Tariffs, New 15% Levy Announced
- Tariff Policy Reversal: The U.S. Supreme Court ruled 6-3 to strike down Trump's tariffs, stating that the current law does not authorize the President to impose such duties, potentially obligating the U.S. government to refund over $175 billion to importers, undermining Trump's economic policy foundation.
- New Tariff Implementation: Following the ruling, Trump announced a new global 10% tariff, which he raised to 15% the next day, provoking strong backlash from Congressional Democrats and international trading partners, which could disrupt trade negotiations with countries like India.
- Market Reaction: Although the court's decision surprised Wall Street, stocks rose after the ruling, helping major indexes finish the week positively; however, stock futures fell this morning as investors weighed the implications of Trump's new tariff policy.
- Airline Industry Impact: A blizzard warning in the Northeast led to 15% of scheduled U.S. flights being canceled on Monday, as airlines faced operational challenges during the busy winter holiday period, highlighting the direct economic impact of extreme weather conditions.
See More
Pleasant Lake Partners Urges Funko to Initiate Sale Process
- Significant Stake: Pleasant Lake Partners holds 5,450,251 Class A shares in Funko (FNKO), representing approximately 9.96% of the total 54,742,995 shares outstanding, indicating confidence in the company's value and likely prompting shareholder focus on future strategies.
- Activist Investor Move: In its Schedule 13D filing, Pleasant Lake identifies itself as an activist investor, planning to push for a formal sale process at Funko, highlighting its emphasis on the company's potential value and exerting pressure on management.
- Stock Price Fluctuation: Although Funko's shares rose 4.5% in after-hours trading on Thursday, they have declined 67% over the past year, reflecting market concerns about its future prospects while providing an opportunity for Pleasant Lake's investment strategy.
- Investment Opportunity Assessment: Pleasant Lake views Funko's stock as undervalued, considering it an attractive investment opportunity that may draw attention from other investors, potentially impacting the company's shareholder structure and future direction.
See More
