Funko, Inc. (FNKO) Earnings History

Funko, Inc. - Q3 FY2025 Earnings

Filed at: Nov 6, 2025, 3:25 PM EST|Read from source

EXECUTIVE SUMMARY

Funko reported a mixed third quarter with net sales below the prior year, but gross margin, net income, and adjusted EBITDA exceeded expectations due to strong performance in Bitty Pop! and effective tariff mitigation.

POSITIVE HIGHLIGHTS

  • •

    Gross profit was $100.8 million, with gross margin at 40.2%, exceeding expectations.

    positive
  • •

    Net income was $0.9 million, or $0.02 per diluted share, and adjusted net income was $3.2 million, or $0.06 per diluted share, both ahead of expectations.

    positive
  • •

    Adjusted EBITDA was $24.4 million, also higher than expected.

    positive
  • •

    Sales of the Bitty Pop! line were a key contributor and made Walmart's 2025 Top Toy List.

    positive
  • •

    Strong gross margin benefited from swift implementation of tariff mitigation plans.

    positive

CONCERNS & RISKS

  • •

    Net sales decreased by 14.3% to $250.9 million compared to $292.8 million in the prior year.

    negative
  • •

    Core Collectible net sales decreased by 12.0%, Loungefly by 5.5%, and Other by 67.0%.

    negative
  • •

    Net sales in the United States decreased by 20.1%.

    negative
  • •

    Total debt increased significantly to $241.0 million from $182.8 million at the beginning of the year.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$250.91M
-14.3%
Prior year: $292.76M
Annual (YTD)
$635.11M
N/A
Prior year: $756.12M
Net Income
Quarterly
$901.00K
-79.2%
Prior year: $4.33M
Annual (YTD)
$-67.18M
N/A
Prior year: $-13.22M
EPS (Diluted)
Quarterly
$0.02
-75.0%
Prior year: $0.08
Annual (YTD)
$-1.24
N/A
Prior year: $-0.26
Operating Income
Quarterly
$6.43M
-45.2%
Prior year: $11.74M
Annual (YTD)
$-51.52M
N/A
Prior year: $7.57M
EPS (Basic)
Quarterly
$0.02
-75.0%
Prior year: $0.08
Annual (YTD)
$-1.24
N/A
Prior year: $-0.26

MARGIN ANALYSIS

Gross Margin
Current Quarter
40.2%
Prior Year
40.9%
YoY Change
-70 bps
Operating Margin
Current Quarter
2.6%
Prior Year
4.0%
YoY Change
-140 bps
Net Margin
Current Quarter
0.4%
Prior Year
1.5%
YoY Change
-110 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

Q4 2025

net_sales
"Net sales to increase modestly from Q3 2025"
gross_margin
40.0%—40.0%
Mid-point: 40.0%
"Approximately 40%"
adjusted_ebitda_margin
"To be in the mid- to high single-digits range"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q3 2025
Non-recurring charge in SG&A expenses
Impacts comparability of SG&A expenses.
+$1M
Q3 2024
Non-recurring charges in SG&A expenses
Impacts comparability of SG&A expenses.
+$0.4M
Total Impact
+$1.4M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

CEO Josh Simon is optimistic about the Funko brand's power and growth opportunities.

— Funko, Inc., Q3 FY2025 2025 Earnings Call

The 'Make Culture POP!' strategy focuses on rapid launches and expanding into new fandoms.

— Funko, Inc., Q3 FY2025 2025 Earnings Call

Bitty Pop! line was a key contributor and was recognized on Walmart's 2025 Top Toy List.

— Funko, Inc., Q3 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.