Funko (FNKO, Financial) has revealed a groundbreaking collaboration with the WNBA to introduce its inaugural line of WNBA player Pop! figures. Scheduled for pre-sale on May 14, this initial collection will spotlight renowned athletes A’ja Wilson, Angel Reese, Breanna Stewart, and Caitlin Clark. This partnership underscores Funko's dedication to honoring the rising impact of women’s sports.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 2 analysts, the average target price for Funko Inc (FNKO, Financial) is $10.00 with a high estimate of $13.00 and a low estimate of $7.00. The average target implies an upside of 154.45% from the current price of $3.93. More detailed estimate data can be found on the Funko Inc (FNKO) Forecast page.
Based on the consensus recommendation from 2 brokerage firms, Funko Inc's (FNKO, Financial) average brokerage recommendation is currently 3.0, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Funko Inc (FNKO, Financial) in one year is $8.82, suggesting a upside of 124.43% from the current price of $3.93. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Funko Inc (FNKO) Summary page.
FNKO Key Business Developments
Release Date: March 06, 2025
- Net Sales: $293.7 million for Q4 2024, up 1% year over year.
- Gross Margin: 42.4% in Q4 2024, a 480-basis-point improvement from the previous year.
- Adjusted EBITDA: $26.3 million for Q4 2024, exceeding expectations.
- Adjusted Net Income: $4.4 million, or $0.08 per diluted share for Q4 2024.
- Direct-to-Consumer Sales: Increased 20% year over year, comprising 29% of gross sales in Q4 2024.
- Full Year Net Sales: $1.05 billion for 2024.
- Full Year Adjusted EBITDA: $94.7 million for 2024, a significant improvement from negative $11.8 million in 2023.
- Cash and Cash Equivalents: $34.7 million as of December 31, 2024.
- Total Debt: $182.8 million, reduced from $273.6 million at the end of 2023.
- Net Inventory: $92.6 million, down more than 20% from the end of 2023.
- Total Company Liquidity: Increased to $124.7 million from $57 million at the end of 2023.
- 2025 Full Year Net Sales Outlook: Expected to be up modestly over 2024.
- 2025 Full Year Adjusted EBITDA Outlook: Expected to be slightly lower than 2024 at the midpoint of the range.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Funko Inc (FNKO, Financial) stabilized net sales at over $1 billion and achieved gross profit and adjusted EBITDA growth by more than $100 million in 2024.
- The company delivered $294 million in net sales for Q4 2024, reaching the top end of its guidance range and marking a year-over-year increase.
- Direct-to-consumer sales grew to 29% of overall sales, contributing to higher margins and providing valuable consumer insights.
- Funko Inc (FNKO) experienced significant growth in its core Collectibles business, with a 10% increase, and a 23% rise in sales outside the US.
- The company's Bitty Pop! line saw an impressive 83% year-over-year growth in Q4, reflecting strong consumer interest in miniature collectibles.
Negative Points
- Funko Inc (FNKO) faces challenges from 20% tariffs on imports from China, impacting approximately one-third of its global product purchases.
- The company is experiencing softening consumer behavior in the US market, affecting sales and consumer spending patterns.
- Funko Inc (FNKO) anticipates a decline in net sales and adjusted EBITDA in the first half of 2025 due to tariffs and weakening US consumer sentiment.
- There are disruptions at the Mexico-US border affecting the delivery times of Pop! Yourself products, leading to increased shipping costs.
- The company is navigating uncertainties related to tariffs and inflation, which could impact future financial performance.
