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1. Company Snapshot

1.a. Company Description

Funko, Inc., a pop culture consumer products company, designs, sources, and distributes licensed pop culture products in the United States, Europe, and internationally.The company provides vinyl, blind-packed miniature, and action figures; fashion accessories, including bags, backpacks, and wallets; apparel, such as t-shirts and hats; board games, plush products, and accessories, such as keychains, pens, and pins; homewares, comprising drinkware, and other home accessories, non-fungible tokens, and others.It offers its products under the Funko, Pop!, Loungefly, Mystery Minis, Paka Paka, Vinyl Gold, Funko Soda, Funko Games, Funko action figures, Funko Plush, Funko Gold, and Popsies brand names; and licenses its properties under the classic evergreen, movie release, current TV, and current video game categories.


The company sells its products to specialty retailers, mass-market retailers, e-commerce sites, and distributors; and at specialty licensing and comic book shows, conventions, and exhibitions, as well as through its e-commerce business.Funko, Inc.was incorporated in 2017 and is headquartered in Everett, Washington.

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1.b. Last Insights on FNKO

Funko, Inc.'s recent performance is driven by its solid growth attributes, with above-average growth in financials. The company's profitability metrics have improved, thanks to effective inventory management and debt reduction. Additionally, the appointment of Jason Harinstein to the Board of Directors brings valuable experience in the pop culture space, further strengthening the company's strategic vision. With its leading pop culture lifestyle brand, Funko is well-positioned to continue its momentum.

1.c. Company Highlights

2. Funko's Q3 2025 Earnings: A Mixed Bag with Strategic Progress

Funko reported total net sales of $250.9 million for Q3 2025, in line with expectations, and a gross margin of 40.2%, beating expectations. Adjusted net income was $3.2 million or $0.06 per diluted share, surpassing the estimated $0.035. The company's adjusted EBITDA was $24.4 million. The reported EPS is a positive surprise, indicating better-than-expected profitability. Yves Le Pendeven noted that the company had cash and cash equivalents of $39.2 million, net inventory of $99.8 million, and total debt of approximately $241 million.

Publication Date: Nov -23

📋 Highlights
  • Q3 Net Sales and Gross Profit:: Total net sales reached $250.9 million, with gross profit of $100.8 million (40.2% margin), exceeding expectations.
  • Adjusted Earnings and Liquidity:: Adjusted net income was $3.2 million ($0.06 per diluted share), while adjusted EBITDA hit $24.4 million, with $39.2 million in cash reserves.
  • Strategic Partnerships and Product Expansion:: Renewed multiyear licensing deals with Warner Bros, Disney, and Paramount, plus new product launches like Bitty Pop! and KPop Demon Hunters.
  • Q4 Guidance and Refinancing Progress:: Outlook for modest Q4 sales growth, 40% gross margin, and mid- to high-single-digit adjusted EBITDA margin, alongside ongoing refinancing efforts with Moelis & Company.
  • Inventory and Retail Momentum:: Net inventory reduced to $99.8 million, with global POS units down 3% YoY, EMEA up low double digits, and Europe expected to return to growth in Q4.

Operational Highlights and Strategic Initiatives

The company has made significant progress in its strategic initiatives, including the "Make Culture POP!" strategy, focusing on culture, creativity, and commerce. Josh Simon highlighted the company's speed-to-market capabilities, citing the KPop Demon Hunters product line as an example. Funko has also expanded its product offerings, including Bitty Pop! and Mystery Minis, and has made significant partnerships with major licensing partners. The company is also exploring new areas, such as sports and music, and introducing new products like Pop! Yourself, which allows fans to create customized Funko Pop! figures.

Outlook and Guidance

For Q4 2025, Funko expects net sales to increase modestly from Q3 2025, driven by the launch of Pop! Yourself in Europe and sales of KPop Demon Hunters product lines. The company expects a gross margin of approximately 40% and an adjusted EBITDA margin in the mid- to high single digits range. Analysts estimate next year's revenue growth at 10.5%, indicating a positive outlook for the company's future performance.

Valuation and Financial Health

Funko's current valuation metrics indicate a mixed picture. The P/E Ratio is -2.24, and the P/S Ratio is 0.17, suggesting a relatively low valuation. However, the EV/EBITDA ratio is 31.09, indicating a relatively high valuation compared to its earnings before interest, taxes, depreciation, and amortization. The Net Debt / EBITDA ratio is 19.89, which is a concern, highlighting the company's significant debt burden relative to its EBITDA. The ROE and ROIC are both negative, indicating that the company is currently not generating returns on its equity and invested capital.

3. NewsRoom

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Gold, Crypto, Wine, Art. Invest In Collectibles Via These 3 Overlooked and Undervalued Stocks.

Nov -28

Source: 247wallst.com

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Funko's New Artist Collaborations “Premium Blind Box” Available Now

Nov -11

Source: businesswire.com

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Funko, Inc. (FNKO) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Funko Reports Third Quarter 2025 Financial Results

Nov -06

Source: businesswire.com

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Funko to Host 2025 Third Quarter Financial Results Conference Call on Thursday, November 6, 2025

Oct -23

Source: businesswire.com

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Funko: A Switch-Up On How To Play This Binary Outcome

Sep -24

Source: seekingalpha.com

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Funko Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

Aug -29

Source: businesswire.com

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INVESTOR ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Funko, Inc. - FNKO

Aug -17

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.39%)

6. Segments

Core Collectibles

Expected Growth: 7%

Funko's Core Collectibles segment growth is driven by increasing popularity of pop culture, expansion into new markets, and strategic partnerships. The company's ability to secure licenses for popular franchises, such as Marvel and Star Wars, has also contributed to its growth. Additionally, Funko's focus on e-commerce and online sales has helped to boost revenue.

Loungefly Branded Products

Expected Growth: 5%

Funko's Loungefly branded products' 5% growth is driven by increasing demand for licensed accessories, expansion into new retail channels, and strategic partnerships. The brand's popularity among Gen Z and Millennials, coupled with its trendy and collectible designs, contributes to its growth. Additionally, Funko's strong relationships with licensors and efficient supply chain management enable the company to capitalize on emerging trends and opportunities.

Other

Expected Growth: 4%

Funko's 'Other' segment, with 4% growth, is driven by increasing demand for its subscription box service, Loot Crate, and expansion into new markets. Additionally, the company's growing presence in the e-commerce space, strategic partnerships, and innovative product offerings contribute to this growth.

7. Detailed Products

Funko POP! Vinyl Figures

Stylized vinyl figures of popular characters from movies, TV shows, comics, and video games

Funko Wacky Wobblers

Bobblehead figures of popular characters from movies, TV shows, comics, and video games

Funko Plush Toys

Cuddly plush toys of popular characters from movies, TV shows, comics, and video games

Funko Keychains

Small figurines or charms of popular characters from movies, TV shows, comics, and video games

Funko Apparel

T-shirts, hoodies, and hats featuring popular characters from movies, TV shows, comics, and video games

Funko Home and Accessories

Home decor items, such as mugs, posters, and throw blankets, featuring popular characters

Funko Games

Board games and puzzles featuring popular characters from movies, TV shows, comics, and video games

8. Funko, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Funko, Inc. faces moderate threat from substitutes, as customers can opt for alternative products such as action figures, dolls, or other collectibles.

Bargaining Power Of Customers

Funko, Inc. has a large customer base, but customers have significant bargaining power due to the availability of substitutes and the ease of switching to competitors.

Bargaining Power Of Suppliers

Funko, Inc. has a diverse supplier base, and suppliers have limited bargaining power due to the company's large scale and negotiating power.

Threat Of New Entrants

The threat of new entrants is low due to the high barriers to entry, including significant capital requirements, licensing agreements, and established relationships with licensors.

Intensity Of Rivalry

The collectibles industry is highly competitive, with many established players, and Funko, Inc. faces intense rivalry from competitors such as Hasbro, Mattel, and others.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.65%
Debt Cost 3.95%
Equity Weight 44.35%
Equity Cost 9.23%
WACC 6.29%
Leverage 125.48%

11. Quality Control: Funko, Inc. passed 1 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Johnson Outdoors

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Growth: 1.9

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Momentum: 8.0

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A-Score: 2.2/10

Value: 7.7

Growth: 2.7

Quality: 1.4

Yield: 0.0

Momentum: 0.0

Volatility: 1.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.12$

Current Price

3.12$

Potential

-0.00%

Expected Cash-Flows