New York, June 2, 2026, 11:19 (EDT)
Funko Inc. dropped in Tuesday trading, down 2.3% at $5.46 on Nasdaq. The pullback came as investors looked for evidence that the collectibles maker’s recent bounce could last. Market cap for Funko was around $303 million.
Why it’s in focus now: there’s no new company announcement behind the move. Funko’s latest post on its investor-relations page is still the May 7 Q1 earnings release, so the shares are moving with the tape, sentiment, and investors’ read on Funko’s profit turnaround, still in early days.
S&P 500 and Nasdaq were down early Tuesday, retreating from records. Alphabet pulled on the indexes as news around its $80 billion plan for AI infrastructure raised fresh questions over spending, Reuters said.
Toy and entertainment stocks slipped, with Funko’s drop looking tied to the wider group more than a solo move. Mattel shares slid roughly 3.4%. Hasbro was down about 1.4% during the same stretch.
Funko is counting on its May quarter to push the stock. The company posted first-quarter net sales of $200.9 million, up from $190.7 million the previous year. Gross margin was 44.2%. Net loss came in at $18.1 million, less than the $28.1 million loss last year.
CEO Josh Simon said it was a “strong Q1 performance” as Core Collectibles jumped 16.8% year-on-year. But Loungefly sales fell 23.1%, showing the comeback is still mixed. SEC
Traders are watching for adjusted EBITDA of $70 million to $80 million in 2026. That number takes earnings and removes interest, tax, depreciation, amortization, and some one-off or non-cash items; it does not match net profit or cash. Funko is also looking for second-quarter sales between $195 million and $205 million.
Funko CFO Yves Le Pendeven said on the call, “We expect that momentum to continue in Q2.” He also told investors the team is “watching the news about oil prices pretty closely.” Management kept its full-year sales guidance of flat to up 3%. Investing
There’s some demand to back that up. Le Pendeven said point-of-sale sales were up 6% worldwide in the quarter, with Europe seeing a 28% jump. He called both sell-in and sell-through healthy.
Margins are now in focus for analysts. On the earnings call, Stephen Laszczyk from Goldman Sachs asked about point-of-sale trends and tariffs. Keegan Cox at D.A. Davidson pressed on what’s driving gross margins. Both were looking for answers beyond just cost cuts, tying the outlook to real demand and input costs.
Still, the risks for Funko are clear. The company reported $34.3 million in cash and $215.9 million in total debt as of March 31. In its own filings, it named pressures from retail demand, tariffs, trade restrictions, debt, inventory, licensors, and stock swings. If sales slow, shipping or oil prices go up, or Loungefly needs more time to recover, it will be tougher to justify the $70 million to $80 million profit goal.
