Funko Q3 net sales beat estimates, reiterates flat FY sales outlook

By Reuters News


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


Reuters Recommended Reads

  • Nov 5 - Papa John's Q3 revenue falls 10.5%, misses estimates

  • Nov 5 - Steve Madden Q3 profit rises on wholesale strength, lifts 2026 revenue growth outlook

  • Nov 5 - Shake Shack Q3 revenue rises 15%


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.