Funko (FNKO) Q2 2026 earnings summary

Executive summary

• Net sales increased 7.4% year-over-year to $207.7 million in Q2 2026, driven by 9% growth in Core Collectibles and 19% growth in Europe.

• Gross margin reached a record 56.6%, including a $25.4M tariff refund benefit; normalized gross margin was 44.4%.

• Adjusted EBITDA was $40.9M (with tariff benefit), or $15M excluding it, both above guidance.

• Net income was $15.4M, reversing a net loss of $41.0M in Q2 2025, aided by one-time tariff recoveries.

• Debt reduced by $15M in Q2; inventory down 12% year-over-year.

Financial highlights

• Q2 2026 net sales: $207.7M (+7.4% YoY); six months: $408.6M (+6.4% YoY).

• Gross margin: 56.6% (44.4% excluding tariff refund); prior year 32.1%.

• Adjusted EBITDA: $40.9M (with tariff credit), $15M (excluding credit); six months: $52.2M.

• SG&A expenses improved to 38.4% of sales from 42.5% year-over-year.

• Cash and cash equivalents at June 30, 2026: $40.7M; inventories at $88.8M.

Outlook and guidance

• Full-year 2026 net sales guidance reiterated at flat to up 3%; adjusted EBITDA outlook raised to $100M–$110M (including $25.4M tariff benefit).

• Q3 2026 net sales expected to be approximately flat year-over-year; adjusted EBITDA guidance of $25M–$30M.

• Core Collectibles sales expected to grow high-single digits in H2, offset by double-digit declines in Loungefly and other lines.

• Management expects sufficient liquidity for at least the next twelve months, supported by improved cash flows and cost initiatives.

• Ongoing focus on cost control, inventory management, and product mix to sustain profitability.