Overview

* Funko Q2 2025 net sales fall 21.9% yr/yr but beat analyst expectations

* Company reports net loss of $41 mln, contrasting with last year's net income

* Adjusted EBITDA negative amid challenging tariff environment, per press release

Outlook

* Funko expects H2 net sales to decline high single-digits vs H2 2024

* Company anticipates improved financial performance in H2 2025

* Funko ( FNKO ) sees adjusted EBITDA margin in mid- to high single-digits for H2

* Company expects Q4 results to ramp up over Q3

Result Drivers

* TARIFF ENVIRONMENT - Co attributes Q2 performance challenges to a dynamic and uncertain tariff environment, per CEO Mike Lunsford

* COST CUTTING - Funko ( FNKO ) is taking actions to cut costs, diversify product sourcing, and adjust prices to stabilize the business

* GEOGRAPHIC DECLINE - Significant sales decline in the U.S. market, with a 27.7% drop in net sales compared to last year

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Sales Beat $193.47 $188.40

mln mln (3

Analysts

)

Q2 Net -$41 mln

Income

Q2 -$34.75

Income mln

from

Operatio

ns

Q2 $228.22

Operatin mln

g

Expenses

Q2 -$40.16

Pretax mln

Profit

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 ( FNKO ) is $7.00, about 48.7% above its August 6 closing price of $3.59

* The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 14 three months ago

Press Release:

(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.)