Pop culture collectibles maker Funko misses Q3 net sales expectations

Funko

06/11/2025 22:01

Overview

Funko Q3 net sales miss analysts' expectations

Gross margin and adjusted EBITDA exceed expectations, aided by tariff mitigation plans

Net income drops sharply to $0.9 mln from $4.6 mln last year

Outlook

Company expects Q4 2025 net sales to increase modestly from Q3 2025

Funko anticipates Q4 2025 gross margin of approximately 40%

Adjusted EBITDA margin for Q4 2025 expected in mid- to high single-digits

Result Drivers

BITTY POP! SALES - Sales of Bitty Pop! line, featured on Walmart's Top Toy List, significantly contributed to Q3 performance

TARIFF MITIGATION - Strong gross margin benefited from swift implementation of tariff mitigation plans

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Sales
Miss
$250.91 mln
$258.58 mln (3 Analysts)
Q3 Net Income
$948,000
Q3 Income from Operations
$6.43 mln
Q3 Operating Expenses
$244.48 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 $5.00, about 36.4% above its November 5 closing price of $3.18

Press Release: ID:nBw98PM02a

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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.)