Funko (FNKO) Q1 2026 earnings summary

Executive summary

• Q1 2026 net sales increased 5.3% year-over-year to $200.9 million, driven by strong Core Collectibles growth and international sales, especially in Europe.

• Gross margin reached a record 44.2%, the highest since IPO, reflecting favorable sales mix and operational execution.

• Adjusted EBITDA improved to $11.3 million from a loss of $4.7 million in Q1 2025, exceeding expectations.

• Net loss narrowed to $18.1 million from $28.1 million year-over-year; adjusted net loss was $6.3 million.

• Leadership strengthened with new executive appointments and Asia expansion advanced.

Financial highlights

• Net sales reached $200.9 million, up 5.3% year-over-year, with Core Collectibles up 16.8%.

• Gross margin (excluding D&A) rose to 44.2% from 40.3% year-over-year.

• Adjusted EBITDA was $11.3 million, a significant improvement from negative $4.7 million in Q1 2025.

• Adjusted net loss narrowed to $6.3 million from $17.8 million in Q1 2025.

• Free cash flow improved by $31 million year-over-year.

Outlook and guidance

• Q2 2026 net sales expected at $195–205 million (up 1–6% year-over-year), gross margin 42–44%, adjusted EBITDA $5–10 million.

• Full-year 2026 net sales expected to be flat to up 3% versus 2025; gross margin projected at 41–43%; adjusted EBITDA guidance is $70–80 million.

• Management expects sufficient liquidity for at least the next twelve months, supported by cost savings, price increases, and debt maturity extension.

• Monitoring oil prices and tariffs; current tariffs lower than planned, providing some upside.

• Core Pop! sales anticipated to grow high-single digits, offset by double-digit declines in Loungefly and other lines due to SKU rationalization.