Overview

• Funko's Q4 net sales fell 7% but beat analyst expectations

• Company cited strong sales of entertainment properties and Bitty Pop! for Q4 performance

• Company reduced inventory and paid down $16 mln of debt in Q4

Outlook

• Funko sees 2026 net sales flat to up 3% vs 2025

• Company expects 2026 gross margin of 41% to 43%

• Funko forecasts 2026 adjusted EBITDA of $70 mln to $80 mln

Result Drivers

• ENTERTAINMENT PROPERTIES - Co said strong sales of KPop Demon Hunters, Stranger Things, Bitty Pop! and Pop! Yourself in Europe drove Q4 performance

• CATEGORY MIX - Loungefly sales rose 1.8% while core collectibles fell 5% and 'Other' dropped 51.7% in Q4

Company press release: ID:nBw7hkkhba

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q4 Sales	Beat	$273.10 mln	$260.67 mln (3 Analysts)
Q4 Adjusted Net Income	Beat	$2.50 mln	$800,000 (1 Analyst)
Q4 Net Income		-$180,000
Q4 Adjusted EBITDA		$23.30 mln
Q4 Income from Operations		$5.97 mln
Q4 Operating Expenses		$267.12 mln

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 is $5.00, about 11.2% above its March 11 closing price of $4.50

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