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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

The Top 5 Analyst Questions From Funko’s Q2 Earnings Call

FNKO Cover Image

Funko’s second quarter saw a significant contraction in sales and profitability, with results falling short of what investors anticipated despite revenue surpassing Wall Street’s estimates. Management attributed the weakness to disruptions from U.S. tariff policies, which led to paused orders from direct import customers and a costly shift of production out of China. Interim CEO Mike Lunsford explained that these factors forced Funko to make rapid changes, including a 20% workforce reduction and price increases, to counteract the impact. CFO Yves Le Pendeven described the quarter as defined by “a big variance compared to Q2 of last year” due to these external shocks and the resulting margin compression.

Is now the time to buy FNKO? Find out in our full research report (it’s free).

Funko (FNKO) Q2 CY2025 Highlights:

  • Revenue: $193.5 million vs analyst estimates of $183.9 million (21.9% year-on-year decline, 5.2% beat)
  • Adjusted EPS: -$0.48 vs analyst expectations of -$0.43 (11.6% miss)
  • Adjusted EBITDA: -$16.53 million vs analyst estimates of -$10.5 million (-8.5% margin, 57.4% miss)
  • Operating Margin: -18%, down from 4.3% in the same quarter last year
  • Market Capitalization: $159.8 million

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Funko’s Q2 Earnings Call

  • Eric Christian Wold (Texas Capital Bank) asked for details on unusual SG&A expenses related to the disruption, to which CFO Yves Le Pendeven explained the margin decline was primarily due to tariffs, documented in a gross margin bridge, but stopped short of identifying add-backs.
  • Wold further inquired about whether paused Q2 orders would shift to Q3 or were cancelled, and Le Pendeven clarified most have resumed and shipping patterns are normalizing, though some rollover and cancellations occurred.
  • Keegan Tierney Cox (D.A. Davidson & Co.) pressed for early feedback on July 1 price increases, with Le Pendeven stating that e-commerce and wholesale data showed no noticeable decline in unit volumes so far.
  • Cox also sought clarification on the adjusted EBITDA margin guidance, and Le Pendeven confirmed the guidance refers only to the second half, with expectations for improvement from Q3 to Q4.
  • Cox questioned Funko’s year-end liquidity outlook, and Le Pendeven outlined reliance on recent credit amendments and the new ATM equity offering, while emphasizing the importance of successful debt refinancing.

Catalysts in Upcoming Quarters

In the coming quarters, our team will closely track (1) the pace and sustainability of resumed U.S. shipments and price realization, (2) the momentum of international sales—especially the launch of Pop! Yourself in Europe, and (3) Funko’s progress on debt refinancing and liquidity management. Execution on production diversification and cost controls will also be vital for near-term financial stability.

Funko currently trades at $2.94, down from $3.66 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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