Funko, Inc. Class A (FNKO)

Funko's stock has experienced significant declines over the past six months. In Q3 2024, net sales were $292.8 million, at the high end of guidance, but a decline compared to Q3 2023, while gross margin and adjusted EBITDA exceeded guidance. Q2 2025 net sales were $193.5 million, down from $247.7 million in Q2 2024, due to tariff policies, with an anticipation of improved performance in the second half of 2025. Q1 2025 net sales were $190.7 million, in line with guidance, and the full-year 2025 outlook was withdrawn due to the macro environment and global tariffs. Q4 and full-year 2025 results led to a stock decline, with analysts noting that while Q4 sales and adjusted EBITDA topped expectations, initial 2026 guidance was potentially disappointing. In December 2025, Funko's shares were down over 70% for the year, with little hope for a rebound in 2026, citing sales declines, margin pressure, and a challenging macro backdrop.

Demand for Funko products exhibits seasonality, with a notable increase around the holiday season. Stronger retail demand typically drives inventory restocking orders from retailers into the holiday period, with expectations for Q4 results to increase over Q3 due to increased consumer spending.

Funko, Inc. is a global pop culture lifestyle brand specializing in licensed consumer products, particularly known for its Pop! vinyl figures and collectibles. Founded in 1998, Funko leverages licensing agreements with major entertainment franchises to offer consumers a tangible connection to their favorite characters and fandoms through innovative, high-quality, and accessible products. Its diverse portfolio includes plush toys, action figures, stationery, home goods, novelty items, and digital tokens (NFTs) under brands like Pop! Vinyl, Loungefly, Mystery Minis, and Mondo.

Funko operates in the United States, Europe, and other international geographic segments, with a significant retail footprint in major brick-and-mortar stores and a robust e-commerce platform. The company is expanding its international presence with licensed and partner stores in the United Arab Emirates and China, and its first physical presence in Southeast Asia in the Philippines. Funko also has flagship retail locations in Everett, Washington, and Hollywood, California.

Funko's brand reputation has faced challenges due to market saturation and concerns about the value of its collectibles. Collectors have observed a drop in the value of Funko Pop! figures due to mass production. Consumers facing tighter spending environments have impacted Funko's sales. Inventory issues in 2021 led to the need to dispose of unsold inventory. A new CEO, Josh Simon, took over in 2025 following a period of stock decline.

Approximately 99.15% of Funko's stock is held by institutions, while insiders hold 3.27%. Major institutional owners include TCG Capital Management, LP, Fund 1 Investments, LLC, BlackRock, Inc., and Vanguard Group Inc, among others. Individual investors and public companies also hold a portion of the stock.