Funko Reports Q2 2026 Financial Results; Reiterates Full-Year Net Sales Outlook and Raises Adjusted EBITDA Guidance
–Q2 Net Sales Grew 7%; Core Collectibles Sales Increased 9%; Record Gross Margin;
Adjusted EBITDA Well Above Expectation; Debt Reduced by $15 million —
Everett, WA — Funko day reported its consolidated financial results for the second quarter ended June 30, 2026.
Second Quarter Financial Results Summary: 2026 vs 2025
- Net sales increased 7% to $207.7 million, compared with $193.5 million
- Gross profit was $117.6 million, equal to gross margin of 56.6%, compared with $62.0 million, equal to gross margin of 32.1%
- SG&A expenses were $79.7 million compared with $82.3 million, and improved 413 basis points as a percentage of sales to 38.4% from 42.5%
- Net income was $15.4 million, or $0.27 per diluted share, compared with a net loss of $40.5 million, or $0.74 per diluted share
- Adjusted net income* was $15.0 million, or $0.26 per diluted share*, compared with an adjusted net loss* of $26.7 million, or $0.48 per diluted share*
- Adjusted EBITDA* was $40.9 million, compared with negative Adjusted EBITDA* of $16.5 million
- Gross margin, net income, adjusted net income* and adjusted EBITDA* for the second quarter of 2026 each included a pre-tax benefit of $25.4 million related to the recognition of expected tariff refunds and the release of accrued tariffs
“Q2 was a strong quarter for Funko. We delivered 7% sales growth, above the high end of our guidance range. Core Collectibles grew 9%, and gross margin reached a record high for the second consecutive quarter. Together with continued SG&A discipline, that performance drove adjusted EBITDA well above our guidance range.
These results are evidence that Make Culture Pop! is becoming a more deliberate and disciplined growth engine. We are getting better at identifying where fan demand is forming, moving faster to turn those signals into distinctive and repeatable products, and scaling them through the channels with the strongest economics. That progress showed up in broad-based POS momentum across theatrical, anime, gaming and sports, as well as rapid-response releases around live cultural moments and the launch of POP! Mystery.
At the same time, we are improving the quality of the business through tighter assortments, better SKU productivity, continued cost discipline, and concentrating our resources behind the products, fandoms and channels with the greatest demand and return potential.”
Second Quarter 2026 Net Sales by Category and Geography
The tables below show the breakdown of net sales on a brand category and geographical basis (in thousands):
|
|
Three Months Ended June 30, |
|
Period Over Period Change |
|||||||||
|
|
2026 |
|
2025 |
|
Dollar |
|
Percentage |
|||||
|
Net sales by brand category: |
|
|
|
|
|
|
|
|||||
|
Core Collectibles |
$ |
171,641 |
|
$ |
157,477 |
|
$ |
14,164 |
|
|
9.0 |
% |
|
Loungefly |
|
31,302 |
|
|
31,847 |
|
|
(545 |
) |
|
(1.7 |
)% |
|
Other |
|
4,776 |
|
|
4,145 |
|
|
631 |
|
|
15.2 |
% |
|
Total net sales |
$ |
207,719 |
|
$ |
193,469 |
|
$ |
14,250 |
|
|
7.4 |
% |
|
|
Three Months Ended June 30, |
|
Period Over Period Change |
|||||||||
|
|
2026 |
|
2025 |
|
Dollar |
|
Percentage |
|||||
|
Net sales by geography: |
|
|
|
|
|
|
|
|||||
|
United States |
$ |
121,845 |
|
$ |
117,874 |
|
$ |
3,971 |
|
|
3.4 |
% |
|
Europe |
|
68,976 |
|
|
57,784 |
|
|
11,192 |
|
|
19.4 |
% |
|
Other International |
|
16,898 |
|
|
17,811 |
|
|
(913 |
) |
|
(5.1 |
)% |
|
Total net sales |
$ |
207,719 |
|
$ |
193,469 |
|
$ |
14,250 |
|
|
7.4 |
% |
Balance Sheet Highlights – At June 30, 2026 vs December 31, 2025
- Total cash and cash equivalents were $40.7 million at June 30, 2026 compared with $42.1 million at December 31, 2025
- Inventories were $88.8 million at June 30, 2026 up from $83.1 million at December 31, 2025
- Total debt was $201.1 million at June 30, 2026 versus $225.3 million at December 31, 2025. Total debt includes the amount outstanding under the company’s term loan facility, net of unamortized discounts, revolving line of credit and the company’s equipment finance loan.
- In Q2, the company executed a participation sale of $22.1 million in tariff claims for $19.2 million. Half of the proceeds from the sale were used to pay down the company’s term loan.
Outlook for 2026
The company updated its 2026 full-year outlook to reflect its strong second quarter performance, expected continued growth in Core Collectibles, and its decision to rationalize Loungefly’s SKU count and concentrate the assortment behind products with stronger demand and return potential. The company also provided 2026 third-quarter guidance.
|
|
Current Outlook |
|
2026 Full Year |
|
|
Net Sales |
Reiterating net sales guidance of flat to up 3% |
|
Gross Margin % |
Raising to 46%-47%, including the $25.4 million Q2 tariff-related benefit, up from 41%-43% |
|
Adjusted EBITDA* |
Raising to $100M-$110M, including the $25.4 million Q2 tariff-related benefit, up from $70M-$80M |
|
2026 Third Quarter |
|
|
Net sales |
Approximately flat year-over-year |
|
Gross margin % |
Approximately 43%-44% |
|
Adjusted EBITDA* |
$25 million to $30 million |
|
Funko, Inc. Condensed Consolidated Statements of Operations (Unaudited) |
||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
|||||||
|
|
(In thousands, except per share data) |
|||||||||||||
|
Net sales |
$ |
207,719 |
|
$ |
193,469 |
|
|
$ |
408,638 |
|
|
$ |
384,208 |
|
|
Cost of sales (exclusive of depreciation and amortization) |
|
90,090 |
|
|
131,429 |
|
|
|
202,182 |
|
|
|
245,297 |
|
|
Selling, general, and administrative expenses |
|
79,723 |
|
|
82,259 |
|
|
|
163,410 |
|
|
|
167,066 |
|
|
Depreciation and amortization |
|
15,767 |
|
|
14,528 |
|
|
|
30,541 |
|
|
|
29,790 |
|
|
Total operating expenses |
|
185,580 |
|
|
228,216 |
|
|
|
396,133 |
|
|
|
442,153 |
|
|
Income (loss) from operations |
|
22,139 |
|
|
(34,747 |
) |
|
|
12,505 |
|
|
|
(57,945 |
) |
|
Interest expense, net |
|
5,198 |
|
|
4,522 |
|
|
|
10,082 |
|
|
|
8,371 |
|
|
Other expense, net |
|
480 |
|
|
887 |
|
|
|
936 |
|
|
|
1,055 |
|
|
Income (loss) before income taxes |
|
16,461 |
|
|
(40,156 |
) |
|
|
1,487 |
|
|
|
(67,371 |
) |
|
Income tax expense |
|
1,016 |
|
|
848 |
|
|
|
4,169 |
|
|
|
1,692 |
|
|
Net income (loss) |
|
15,445 |
|
|
(41,004 |
) |
|
|
(2,682 |
) |
|
|
(69,063 |
) |
|
Less:net income (loss) attributable to non-controlling interests |
|
61 |
|
|
(514 |
) |
|
|
9 |
|
|
|
(985 |
) |
|
Net income (loss) attributable to Funko, Inc. |
$ |
15,384 |
|
$ |
(40,490 |
) |
|
$ |
(2,691 |
) |
|
$ |
(68,078 |
) |
|
|
|
|
|
|
|
|
|
|||||||
|
Income (loss) per share of Class A common stock: |
|
|
|
|
|
|
|
|||||||
|
Basic |
$ |
0.28 |
|
$ |
(0.74 |
) |
|
$ |
(0.05 |
) |
|
$ |
(1.26 |
) |
|
Diluted |
$ |
0.27 |
|
$ |
(0.74 |
) |
|
$ |
(0.05 |
) |
|
$ |
(1.26 |
) |
|
Weighted average shares of Class A common stock outstanding: |
|
|
|
|
|
|
|
|||||||
|
Basic |
|
55,860 |
|
|
54,362 |
|
|
|
55,644 |
|
|
|
53,948 |
|
|
Diluted |
|
57,461 |
|
|
54,362 |
|
|
|
55,644 |
|
|
|
53,948 |
|
|
Funko, Inc. Condensed Consolidated Balance Sheets (Unaudited) |
|||||||
|
|
June 30, |
|
December 31, |
||||
|
|
(In thousands, except per share data) |
||||||
|
Assets |
|
|
|
||||
|
Current assets: |
|
|
|
||||
|
Cash and cash equivalents |
$ |
40,713 |
|
|
$ |
42,148 |
|
|
Accounts receivable, net |
|
93,561 |
|
|
|
117,018 |
|
|
Inventories |
|
88,800 |
|
|
|
83,136 |
|
|
Prepaid expenses and other current assets |
|
51,540 |
|
|
|
48,094 |
|
|
Total current assets |
|
274,614 |
|
|
|
290,396 |
|
|
Property and equipment, net |
|
64,498 |
|
|
|
68,679 |
|
|
Operating lease right-of-use assets, net |
|
41,671 |
|
|
|
46,928 |
|
|
Goodwill |
|
133,848 |
|
|
|
133,900 |
|
|
Intangible assets, net |
|
127,925 |
|
|
|
135,826 |
|
|
Other assets |
|
11,191 |
|
|
|
9,505 |
|
|
Total assets |
$ |
653,747 |
|
|
$ |
685,234 |
|
|
Liabilities and Stockholders’ Equity |
|
|
|
||||
|
Current liabilities: |
|
|
|
||||
|
Revolving credit facility |
$ |
1,500 |
|
|
$ |
1,125 |
|
|
Current portion of term debt |
|
16,939 |
|
|
|
21,932 |
|
|
Current portion of operating lease liabilities |
|
16,989 |
|
|
|
18,792 |
|
|
Accounts payable |
|
58,206 |
|
|
|
64,748 |
|
|
Accrued royalties |
|
54,712 |
|
|
|
59,821 |
|
|
Accrued expenses and other current liabilities |
|
87,583 |
|
|
|
77,499 |
|
|
Total current liabilities |
|
235,929 |
|
|
|
243,917 |
|
|
Long-term debt |
|
182,659 |
|
|
|
202,246 |
|
|
Operating lease liabilities |
|
43,273 |
|
|
|
48,680 |
|
|
Other long-term liabilities |
|
3,867 |
|
|
|
4,261 |
|
|
|
|
|
|
||||
|
Commitments and Contingencies |
|
|
|
||||
|
|
|
|
|
||||
|
Stockholders’ equity: |
|
|
|
||||
|
Class A common stock, par value $0.0001 per share, 200,000 shares authorized; 55,989 and 55,327 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively |
|
5 |
|
|
|
5 |
|
|
Class B common stock, par value $0.0001 per share, 50,000 shares authorized; 91 and 91 shares issued and outstanding as of June 30, 2026 and December 31, 2025, respectively |
|
— |
|
|
|
— |
|
|
Additional paid-in-capital |
|
362,526 |
|
|
|
357,330 |
|
|
Accumulated other comprehensive income |
|
4,003 |
|
|
|
4,621 |
|
|
Accumulated deficit |
|
(178,833 |
) |
|
|
(176,142 |
) |
|
Total stockholders’ equity attributable to Funko, Inc. |
|
187,701 |
|
|
|
185,814 |
|
|
Non-controlling interests |
|
318 |
|
|
|
316 |
|
|
Total stockholders’ equity |
|
188,019 |
|
|
|
186,130 |
|
|
Total liabilities and stockholders’ equity |
$ |
653,747 |
|
|
$ |
685,234 |
|
|
Funko, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) |
|||||||
|
|
Six Months Ended June 30, |
||||||
|
|
2026 |
|
2025 |
||||
|
|
(In thousands) |
||||||
|
Operating Activities |
|
|
|
||||
|
Net loss |
$ |
(2,682 |
) |
|
$ |
(69,063 |
) |
|
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
|
|
|
||||
|
Depreciation and amortization |
|
30,541 |
|
|
|
29,790 |
|
|
Equity-based compensation |
|
5,196 |
|
|
|
6,377 |
|
|
Other, net |
|
1,133 |
|
|
|
1,301 |
|
|
Changes in operating assets and liabilities: |
|
|
|
||||
|
Accounts receivable, net |
|
23,318 |
|
|
|
24,572 |
|
|
Inventories |
|
(6,160 |
) |
|
|
(5,761 |
) |
|
Prepaid expenses and other assets |
|
2,499 |
|
|
|
5,529 |
|
|
Accounts payable |
|
(5,992 |
) |
|
|
3,207 |
|
|
Accrued royalties |
|
(5,109 |
) |
|
|
(14,967 |
) |
|
Accrued expenses and other liabilities |
|
(19,114 |
) |
|
|
(25,427 |
) |
|
Net cash provided by (used in) operating activities |
|
23,630 |
|
|
|
(44,442 |
) |
|
|
|
|
|
||||
|
Investing Activities |
|
|
|
||||
|
Purchases of property and equipment |
|
(18,954 |
) |
|
|
(16,211 |
) |
|
Other, net |
|
— |
|
|
|
970 |
|
|
Net cash used in investing activities |
|
(18,954 |
) |
|
|
(15,241 |
) |
|
|
|
|
|
||||
|
Financing Activities |
|
|
|
||||
|
Borrowings on revolving credit facility |
|
— |
|
|
|
85,000 |
|
|
Debt amendment costs |
|
(3,648 |
) |
|
|
— |
|
|
Payments of term debt |
|
(21,303 |
) |
|
|
(11,530 |
) |
|
Proceeds from sale of tariff receivable |
|
19,248 |
|
|
|
— |
|
|
Payments under tax receivable agreement |
|
(249 |
) |
|
|
— |
|
|
Other, net |
|
179 |
|
|
|
193 |
|
|
Net cash (used in) provided by financing activities |
|
(5,773 |
) |
|
|
73,663 |
|
|
|
|
|
|
||||
|
Effect of exchange rates on cash and cash equivalents |
|
(338 |
) |
|
|
516 |
|
|
|
|
|
|
||||
|
Net change in cash and cash equivalents |
|
(1,435 |
) |
|
|
14,496 |
|
|
Cash and cash equivalents at beginning of period |
|
42,148 |
|
|
|
34,655 |
|
|
Cash and cash equivalents at end of period |
$ |
40,713 |
|
|
$ |
49,151 |
|
The following tables reconcile the Non-GAAP Financial Measures to the most directly comparable U.S. GAAP financial performance measure, which is net income (loss), for the periods presented:
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
|
|
(In thousands, except per share data) |
||||||||||||||
|
Net income (loss) attributable to Funko, Inc. |
$ |
15,384 |
|
|
$ |
(40,490 |
) |
|
$ |
(2,691 |
) |
|
$ |
(68,078 |
) |
|
Reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock(1) |
|
61 |
|
|
|
(514 |
) |
|
|
9 |
|
|
|
(985 |
) |
|
Equity-based compensation(2) |
|
2,782 |
|
|
|
3,112 |
|
|
|
5,196 |
|
|
|
6,377 |
|
|
Foreign currency transaction loss(3) |
|
588 |
|
|
|
1,463 |
|
|
|
1,104 |
|
|
|
1,639 |
|
|
Tax receivable agreement liability adjustments(4) |
|
— |
|
|
|
— |
|
|
|
112 |
|
|
|
— |
|
|
Third-party debt amendment fees(5) |
|
106 |
|
|
|
— |
|
|
|
3,655 |
|
|
|
— |
|
|
Income tax (benefit) expense(6) |
|
(3,968 |
) |
|
|
9,743 |
|
|
|
1,280 |
|
|
|
16,531 |
|
|
Adjusted net income (loss) |
$ |
14,953 |
|
|
$ |
(26,686 |
) |
|
$ |
8,665 |
|
|
$ |
(44,516 |
) |
|
Adjusted net income (loss) margin(7) |
|
7.2 |
% |
|
|
(13.8 |
)% |
|
|
2.1 |
% |
|
|
(11.6 |
)% |
|
Weighted-average shares of Class A common stock outstanding – basic |
|
55,860 |
|
|
|
54,362 |
|
|
|
55,644 |
|
|
|
53,948 |
|
|
Equity-based compensation awards and common units of FAH, LLC that are convertible into Class A common stock |
|
1,601 |
|
|
|
749 |
|
|
|
187 |
|
|
|
907 |
|
|
Adjusted weighted-average shares of Class A stock outstanding – diluted |
|
57,461 |
|
|
|
55,111 |
|
|
|
55,831 |
|
|
|
54,855 |
|
|
Adjusted earnings (loss) per diluted share |
$ |
0.26 |
|
|
$ |
(0.48 |
) |
|
$ |
0.16 |
|
|
$ |
(0.81 |
) |
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
2026 |
|
2025 |
|
2026 |
|
2025 |
||||||||
|
|
(amounts in thousands) |
||||||||||||||
|
Net income (loss) |
$ |
15,445 |
|
|
$ |
(41,004 |
) |
|
$ |
(2,682 |
) |
|
$ |
(69,063 |
) |
|
Interest expense, net |
|
5,198 |
|
|
|
4,522 |
|
|
|
10,082 |
|
|
|
8,371 |
|
|
Income tax expense |
|
1,016 |
|
|
|
848 |
|
|
|
4,169 |
|
|
|
1,692 |
|
|
Depreciation and amortization |
|
15,767 |
|
|
|
14,528 |
|
|
|
30,541 |
|
|
|
29,790 |
|
|
EBITDA |
$ |
37,426 |
|
|
$ |
(21,106 |
) |
|
$ |
42,110 |
|
|
$ |
(29,210 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
||||||||
|
Equity-based compensation(2) |
|
2,782 |
|
|
|
3,112 |
|
|
|
5,196 |
|
|
|
6,377 |
|
|
Foreign currency transaction loss(3) |
|
588 |
|
|
|
1,463 |
|
|
|
1,104 |
|
|
|
1,639 |
|
|
Tax receivable agreement liability adjustments(4) |
|
— |
|
|
|
— |
|
|
|
112 |
|
|
|
— |
|
|
Third-party debt amendment fees(5) |
|
106 |
|
|
|
— |
|
|
|
3,655 |
|
|
|
— |
|
|
Adjusted EBITDA |
$ |
40,902 |
|
|
$ |
(16,531 |
) |
|
$ |
52,177 |
|
|
$ |
(21,194 |
) |
|
Adjusted EBITDA margin(8) |
|
19.7 |
% |
|
|
(8.5 |
)% |
|
|
12.8 |
% |
|
|
(5.5 |
)% |
|
(1) |
Represents the reallocation of net income attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock in periods in which income was attributable to non-controlling interests. |
|
|
(2) |
Represents non-cash charges related to equity-based compensation programs, which vary from period to period depending on the timing of awards. |
|
|
(3) |
Represents both unrealized and realized foreign currency losses on transactions denominated other than in U.S. dollars, including derivative gains and losses on foreign currency forward exchange contracts. |
|
|
(4) |
Represents recognized adjustments to the tax receivable agreement liability. |
|
|
(5) |
Represents non-recurring third-party debt fees paid as part of the Fifth Amendment to the Credit Agreement. |
|
|
(6) |
Represents the income tax expense effect of the above adjustments, including adding back the valuation allowance to the net loss. This adjustment uses an effective tax rate of 25% for all periods presented. |
|
|
(7) |
Adjusted net income (loss) margin is calculated as adjusted net income (loss) as a percentage of net sales. |
|
|
(8) |
Adjusted EBITDA margin is calculated as adjusted EBITDA as a percentage of net sales. |
