Funko (FNKO) Stock Forecast & Price Target

Funko Inc. is positioned to return to growth in 2026 due to the anticipated easing of headwinds faced in 2025, which will create relatively easy year-over-year comparisons. The company's strong brand recognition was evidenced by substantial panel attendance and customer engagement at events, particularly for exclusive products, indicating robust demand within its collectibles segment. Additionally, ongoing management changes and efforts to alleviate outstanding debt may serve as catalysts that positively impact the company’s financial performance in the near term.

Funko Inc. faces significant sales challenges, with a projected 24% year-over-year decline in 2Q25 sales, estimated at $188 million, largely attributable to shifting inventory purchasing patterns among retailers and a notable decrease in point-of-sale data, which plummeted by 33.9%. Additionally, the company's profitability is under pressure, with new estimates indicating an EBITDA loss of $10.5 million and an EPS loss of $0.41, a stark contrast to previous expectations of gains. The continued reliance on higher-cost products, particularly from the Loungefly subsidiary, which has seen a 32% decline in sales from its peak, further exacerbates Funko's financial outlook, raising concerns over its overall merchandise margins and profitability.