Funko Q3 net sales beat estimates, reiterates flat FY sales outlook
Overview
Pop culture collectibles maker's Q3 net sales rose 3%, beating analyst expectations
Adjusted EBITDA for Q3 rose to $32.1 mln, up from $24.4 mln last year
Company reiterated full-year net sales and adjusted EBITDA guidance
Outlook
Funko reiterates 2026 full-year net sales guidance of flat to up 3%
Company maintains 2026 gross margin outlook at 46% to 47%, including Q2 tariff benefit
Funko continues to expect 2026 adjusted EBITDA of $100 mln to $110 mln, including Q2 tariff benefit
Result Drivers
CORE COLLECTIBLES GROWTH - Sales of core collectibles rose 4.8%, with international markets providing notable strength
LOUNGEFLY DECLINE - Loungefly brand sales fell 9.8% as the company continued to rationalize its product assortment
EUROPEAN AND INTERNATIONAL SALES - Sales in Europe rose 11.5% and other international markets increased 12.1%, offsetting a 2.4% decline in U.S. sales
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $258.34 mln | $250.70 mln (3 Analysts) |
Q3 Adjusted Net Income | $9.22 mln | ||
Q3 Net Income | $7.52 mln | ||
Q3 Adjusted EBITDA | $32.14 mln | ||
Q3 Income from Operations | $14.95 mln | ||
Q3 Operating Expenses | $243.39 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the toys & children's products peer group is "buy"
Wall Street's median 12-month price target for Funko, Inc. is $8.00, about 22% above its November 4 closing price of $6.56
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 84 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)