Funko (FNKO) Q3 2026 earnings summary

Executive summary

• Q3 net sales rose 3.0% YoY to $258.3M; gross margin reached 45.2% and Adjusted EBITDA was $32.1M, above expectations.

• Net income was $7.5M vs. $0.9M in Q3 2025; Core Collectibles grew while lower Loungefly sales partly offset gains.

• FY26 sales, gross-margin and Adjusted EBITDA guidance was reiterated; Adjusted EBITDA outlook includes a $25.4M tariff-related benefit.

Financial highlights

• Net sales were $258.3M vs. $250.9M; operating income was $15.0M vs. $6.4M, and diluted EPS was $0.13 vs. $0.02.

• Gross margin was 45.2% vs. 40.2%, helped by lower tariffs, minimum guaranteed royalties, royalty-audit accrual adjustments, and freight and shipping costs.

• Adjusted EBITDA was $32.1M vs. $24.4M, with a 12.4% margin vs. 9.7%; adjusted net income was $9.2M vs. $3.2M.

• Nine-month net income was $4.8M vs. a $68.1M loss; results included a $25.4M pre-tax tariff-recovery benefit in cost of sales.

Outlook and guidance

• FY26 net sales guidance remained flat to up 3%; Core Collectibles are expected to grow at a high-single-digit rate, partly offset by a double-digit Loungefly decline.

• FY26 gross-margin guidance remained 46%–47% and Adjusted EBITDA guidance $100M–$110M, including the $25.4M Q2 tariff-related benefit.

• Q4 expectations include ~$4M equity-based compensation, ~$14M depreciation and amortization, and ~$5M interest expense; FY26 estimates are ~$12M, ~$60M, and ~$20M.

• Q4 collectibles growth is expected; seasonal POS trends remain difficult to predict. Product plans include Pop! Mystery across 12 IPs, new Pop! Plush formats, further Bitty development, and live-selling expansion.