Q2 2026 Funko Inc Earnings Call Transcript

Aug 6, 2026 / 08:30 PM GMT

Release Date Price: €4.8 (-2.84%)

Transcript 10-Q8-K

Key Points

Positve

Net sales increased 7% in Q2 and 6% in the first half, with broad-based growth across regions and product lines.
Gross margin reached a record 44.4% (normalized for tariff credit), up from 32.1% last year.
Adjusted EBITDA improved significantly to $40.9 million (or $15 million excluding tariff benefit), beating guidance.
Core collectibles grew 9%, and Loungefly sales improved with 50% fewer SKUs, showing better productivity.
New initiatives like Pop Mystery, Bitty Pop, and the HP partnership for rapid manufacturing are expanding growth platforms.
Point-of-sale trends are strong, with wholesale POS up 6% in Q2 and 9% year-to-date, and Europe POS up over 20%.
The company raised its adjusted EBITDA guidance to $100-$110 million, reflecting improved profitability.
Debt reduction progress was made, using $19 million in proceeds from tariff claims to pay down $15 million in debt.
Strong entertainment slate (e.g., Spider-Man, Avengers Doomsday) and new retail placements are expected to drive second-half growth.
New Chief Commercial Officer with experience at Crunchyroll and Hasbro will strengthen commercial and anime strategies.

Negative

Loungefly sales declined 2% in Q2, though the trend improved from Q1.
Gross margin guidance of 42-44% is below the normalized Q2 level, indicating potential pressure ahead.
Tariffs remain a downside risk, with management noting potential surprises that could impact margins.
The company has limited visibility into Q4 holiday demand, creating uncertainty for the full-year outlook.
Freight and raw material costs could rise if oil prices increase, posing a risk to profitability.
The company is being prudent with guidance due to a broader consumer environment that remains uncertain.
Pop Mystery is too early to size, and its revenue contribution is not yet clear.
The company is still working on Loungefly SKU reductions, indicating ongoing challenges in that segment.
The sale of tariff claims for $19 million (vs. $22 million face value) resulted in a slight loss.
The business remains dependent on a strong entertainment slate, which can be unpredictable.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

FNKO.OQ - Funko, Inc.
Q2 2026 Funko Inc Earnings Call
Aug 06, 2026 / 08:30PM GMT

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Presentation
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Unidentified_1 [1]
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Hi everyone, I'm here with Josh and Eve, and we're here at San Diego ComicCon.

It seems like the perfect place to have this discussion about Funko and his business because so much of Funko is here and has been here for the past 20 years ago that exist without Comic Con, so it's a massive highlight of the year for us.

We're excited you were able to join us and excited to take a little bit of a walk around in a bit here.

Well, I've been to your booth several times, several years, and it makes sense to come together like this, but before we get to the nitty gritty, that's something I want to talk about because you've been here for 20.

Years, the booth has grown, the product has grown, the fandom has grown.

So

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