📊 FNKO Key Takeaways
Is Funko, Inc. (FNKO) a Good Investment?
Funko faces severe operational distress with negative profitability across all margins, burning cash operationally while maintaining high capital expenditures. Revenue contraction of 13.5% YoY combined with a net loss of $67.4M and deteriorating free cash flow of -$38.1M signals structural challenges in the collectibles market. The company's equity cushion is eroding rapidly given negative ROE of -36.3% and negative operating cash flow, creating unsustainable financial dynamics.
Funko’s fundamentals show a business under pressure, with double-digit revenue decline, negative operating and net margins, and negative free cash flow. While leverage appears manageable and equity remains positive, weak profitability, deteriorated EPS, and limited liquidity cushion suggest the turnaround is still unproven. The overall quality of growth is poor because contraction is being accompanied by continued losses rather than improving efficiency.
Why Buy Funko, Inc. Stock? FNKO Key Strengths
- Positive current ratio of 1.19x provides basic near-term liquidity runway
- Moderate debt-to-equity ratio of 0.54x leaves some deleveraging capacity
- Significant insider activity with 13 Form 4 filings suggests management engagement
- Balance sheet leverage is moderate, with debt/equity at 0.54x and positive stockholders’ equity of $185.81M
- Liquidity is still above minimum solvency thresholds, with a 1.19x current ratio
- The company maintains a meaningful revenue base at $908.21M, which provides operating scale if margins recover
FNKO Stock Risks: Funko, Inc. Investment Risks
- Accelerating revenue decline of 13.5% YoY indicates loss of market demand or competitive pressure
- Negative operating cash flow of -$5.1M with free cash flow of -$38.1M demonstrates unsustainable cash burn despite $42.1M cash position
- Operating margin of -5.0% and net margin of -7.4% show fundamental unprofitability with no visible path to breakeven
- Negative ROE of -36.3% and ROA of -9.8% indicate severe capital inefficiency and shareholder value destruction
- Quick ratio of 0.85x below 1.0x signals potential liquidity stress if operations continue deteriorating
- Long-term debt of $100.3M against deteriorating cash generation creates refinancing risk
- Revenue declined 13.5% year over year, indicating weakening demand or sell-through pressure
- Profitability is weak, with operating margin at -5.0%, net margin at -7.4%, and ROE at -36.3%
- Cash generation is negative, with operating cash flow of -$5.12M and free cash flow of -$38.09M
Key Metrics to Watch
- Quarterly revenue trends and same-store sales to assess demand stabilization
- Operating cash flow trajectory and path to positive FCF within 2-4 quarters
- Gross margin recovery potential given N/A reporting suggests operational restructuring
- Cash balance depletion rate relative to operating burn to assess runway before covenant breaches
- Debt refinancing capability and any covenant compliance metrics
- Revenue growth stabilization and return to positive operating margin
- Operating cash flow and free cash flow improvement
Funko, Inc. (FNKO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Funko, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
FNKO Profit Margin, ROE & Profitability Analysis
FNKO vs Market Sector: How Funko, Inc. Compares
How Funko, Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Funko, Inc. Stock Overvalued? FNKO Valuation Analysis 2026
Based on fundamental analysis, Funko, Inc. shows some fundamental concerns relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Funko, Inc. Balance Sheet: FNKO Debt, Cash & Liquidity
FNKO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Funko, Inc.'s revenue has shown modest growth of 6% over the 5-year period. The most recent EPS of $-3.19 indicates the company is currently unprofitable.
FNKO Revenue Growth, EPS Growth & YoY Performance
FNKO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $250.9M | $901.0K | $0.02 |
| Q2 2025 | $193.5M | $5.1M | $0.10 |
| Q1 2025 | $190.7M | -$22.7M | $-0.45 |
| Q3 2024 | $292.8M | $4.3M | $0.08 |
| Q2 2024 | $240.0M | $5.1M | $0.10 |
| Q1 2024 | $215.7M | -$22.7M | $-0.45 |
| Q3 2023 | $312.9M | $9.6M | $0.19 |
| Q2 2023 | $240.0M | $14.7M | $0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Funko, Inc. Dividends, Buybacks & Capital Allocation
FNKO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Funko, Inc. (CIK: 0001704711)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773957834.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773957761.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773957677.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773957580.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773699914.xml | View → |
❓ Frequently Asked Questions about FNKO
What is the AI rating for FNKO?
Funko, Inc. (FNKO) has a Combined AI Rating of SELL from Claude (STRONG SELL) and ChatGPT (SELL) with 86% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FNKO's key strengths?
Claude: Positive current ratio of 1.19x provides basic near-term liquidity runway. Moderate debt-to-equity ratio of 0.54x leaves some deleveraging capacity. ChatGPT: Balance sheet leverage is moderate, with debt/equity at 0.54x and positive stockholders’ equity of $185.81M. Liquidity is still above minimum solvency thresholds, with a 1.19x current ratio.
What are the risks of investing in FNKO?
Claude: Accelerating revenue decline of 13.5% YoY indicates loss of market demand or competitive pressure. Negative operating cash flow of -$5.1M with free cash flow of -$38.1M demonstrates unsustainable cash burn despite $42.1M cash position. ChatGPT: Revenue declined 13.5% year over year, indicating weakening demand or sell-through pressure. Profitability is weak, with operating margin at -5.0%, net margin at -7.4%, and ROE at -36.3%.
What is FNKO's revenue and growth?
Funko, Inc. reported revenue of $908.2M.
Does FNKO pay dividends?
Funko, Inc. does not currently pay dividends.
Where can I find FNKO SEC filings?
Official SEC filings for Funko, Inc. (CIK: 0001704711) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FNKO's EPS?
Funko, Inc. has a diluted EPS of $-1.24.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FNKO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Funko, Inc. has a SELL rating with 86% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FNKO stock overvalued or undervalued?
Valuation metrics for FNKO: ROE of -36.3% (sector avg: 15%), net margin of -7.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FNKO stock in 2026?
Our dual AI analysis gives Funko, Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FNKO's free cash flow?
Funko, Inc.'s operating cash flow is $-5.1M, with capital expenditures of $33.0M. FCF margin is -4.2%.
How does FNKO compare to other Market stocks?
Vs Default sector averages: Net margin -7.4% (avg: 12%), ROE -36.3% (avg: 15%), current ratio 1.19 (avg: 1.8).