Funko (NASDAQ:FNKO) Reports Sales Below Analyst Estimates In Q3 Earnings, But Stock Soars 15.9%

Pop civilization collectibles shaper Funko (NASDAQ:FNKO) fell abbreviated of the markets gross expectations successful Q3 CY2025, with income falling 14.3% twelvemonth connected twelvemonth to $250.9 million. Its non-GAAP nett of $0.06 per stock was importantly supra analysts’ statement estimates.

Is present the clip to bargain Funko? Find retired successful our afloat probe report.

• Revenue: $250.9 cardinal vs expert estimates of $262 cardinal (14.3% year-on-year decline, 4.2% miss)

• Adjusted EPS: $0.06 vs expert estimates of -$0.09 (significant beat)

• Adjusted EBITDA: $24.43 cardinal vs expert estimates of $15 cardinal (9.7% margin, 62.9% beat)

• Operating Margin: 2.6%, down from 4% successful the aforesaid 4th past year

• Free Cash Flow was $3.38 million, up from -$4.08 cardinal successful the aforesaid 4th past year

• Market Capitalization: $217.6 million

"We delivered a coagulated 2025 3rd 4th performance, with nett income successful enactment with interior expectations and gross borderline and bottom-line profitability good up of expectations,” said Josh Simon, Chief Executive Officer of Funko.

Boasting partnerships with media franchises similar Marvel and One Piece, Funko (NASDAQ:FNKO) is simply a institution specializing successful creating and distributing licensed popular civilization collectibles.

Examining a company’s semipermanent show tin supply clues astir its quality. Even a atrocious concern tin radiance for 1 oregon 2 quarters, but a top-tier 1 grows for years. Unfortunately, Funko’s 7.7% annualized gross maturation implicit the past 5 years was sluggish. This was beneath our modular for the user discretionary assemblage and is simply a unsmooth starting constituent for our analysis.

Long-term maturation is the astir important, but wrong user discretionary, merchandise cycles are abbreviated and gross tin beryllium hit-driven owed to rapidly changing trends and user preferences. Funko’s show shows it grew successful the past but relinquished its gains implicit the past 2 years, arsenic its gross fell by 9.7% annually.

This quarter, Funko missed Wall Street’s estimates and reported a alternatively uninspiring 14.3% year-on-year gross decline, generating $250.9 cardinal of revenue.

Looking ahead, sell-side analysts expect gross to turn 7.4% implicit the adjacent 12 months. While this projection indicates its newer products and services volition substance amended top-line performance, it is inactive beneath mean for the sector.

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