Funko’s Q3 2026 results reflected ongoing momentum in its core collectibles business and operational improvements. Management cited robust performance in core product lines and highlighted growth in the European market as notable drivers. CEO Josh Simon pointed to the successful execution of the “Make Culture POP!” strategy, which emphasizes sensing demand for pop culture moments and quickly translating them into new product launches and experiences. CFO Yves Le Pendeven also called out a significant improvement in gross margin, attributing it to better product mix and reduced discounting, while noting continued balance sheet deleveraging.
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Funko (FNKO) Q3 2026 highlights:
- Revenue $258.3 million vs S&P analyst consensus of $249.6 million (3% year-on-year growth, 3.5% beat)
- Adjusted EPS $0.16 vs S&P analyst consensus of $0.10 (60% beat)
- Adjusted EBITDA $32.14 million vs analyst estimates of $26.83 million (12.4% margin, 19.8% beat)
- EBITDA guidance $105 million at the midpoint for the full year, below analyst estimates of $112.3 million
- Operating margin 5.8%, up from 2.6% in the same quarter last year
- Market capitalization $378.7 million
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from Funko’s Q3 earnings call
- Stephen Laszczyk (Goldman Sachs) asked about the sustainability of global point-of-sale trends, especially given double-digit growth in Europe and a U.S. decline; CFO Yves Le Pendeven cited last year’s tariff timing and inventory as factors, and stated that holiday predictions remain uncertain but they are hopeful for continued growth.
- Stephen Laszczyk (Goldman Sachs) also inquired about the revenue potential of new formats such as Bitty Pop! and Pop! Mystery; CEO Josh Simon stated that Pop! Mystery is just beginning and that upcoming launches across multiple intellectual properties are expected to drive future growth.
- Eric Wold (Texas Capital Securities) questioned whether Funko could further improve gross margins by capturing secondary market value in limited editions; Head of Marketing Nik Rupp replied that the company’s focus is on broadening the fan base rather than extracting higher prices from collectors.
- Eric Wold (Texas Capital Securities) followed up on opportunities in live selling and online auctions; Rupp responded that their recent eBay Live event was a successful test and that Funko is gearing up to expand this retail stream.
- Stephen Laszczyk (Goldman Sachs) asked about new product pipeline visibility; Chief Product Officer Husnal Shah highlighted several launches set for key toy fairs and teased further expansion in both product and channel diversity.
Catalysts in upcoming quarters
In the coming quarters, the StockStory team will be closely tracking (1) the rollout and consumer response to new Pop! Mystery and plush product lines, (2) the effectiveness of live commerce and online auction strategies in driving incremental revenue, and (3) signs of recovery or stabilization in U.S. unit sales, particularly during the holiday season. Progress on channel diversification and international market momentum will also be important indicators of future growth.
Funko currently trades at $6.64, up from $6.13 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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