Funko 2025 Q2 Earnings Sharp Net Loss Worsens by 856.7%

Funko reported its Q2 2025 earnings on August 8, 2025, missing expectations with a significant decline in revenue and a sharp swing to a net loss. The results underscored ongoing challenges in the collectibles market. While the company emphasized strategic priorities for long-term growth, the earnings report revealed deteriorating profitability and revenue pressures.

Funko’s Q2 revenue fell 21.9% to $193.47 million, missing expectations given the broader market headwinds. The company did not raise guidance, and its performance remained in line with the challenging environment it has faced in recent quarters.

Revenue for Q2 2025 totaled $193.47 million, with Core Collectibles contributing the bulk of sales at $157.48 million. The Loungefly segment added $31.85 million, while other products accounted for $4.14 million. The decline in total revenue reflected a broad slowdown across all product categories, with the company attributing this to market volatility and rising production costs.

Funko reported a net loss of $41 million in Q2 2025, a significant deterioration from a net income of $5.42 million in the same period of 2024. Earnings per share swung to a loss of $0.74, compared to a profit of $0.10 in Q2 2024, reflecting an 856.7% negative change. The sharp decline in profitability highlights the company’s struggle to maintain margins in a challenging economic environment. The earnings miss was substantial and signaled ongoing financial stress.

Funko’s stock price edged up 1.39% during the latest trading day but has underperformed in the medium term, dropping 4.69% during the most recent full week and plummeting 15.38% month-to-date. The underperformance contrasts with the company’s strategic focus on long-term growth.

The post-earnings price action for Funko was notably negative. A strategy of buying shares after the company’s Q2 revenue declined quarter-over-quarter and holding for 30 days yielded a return of -52.85% over the past three years. This was significantly worse than the benchmark return of 47.10%, resulting in an excess return of -99.95%. The compound annual growth rate (CAGR) for the strategy was -22.83%, highlighting a substantial loss in value and indicating poor investor sentiment following the earnings release.

CEO Vinny Lingham emphasized the company’s commitment to operational discipline and long-term value creation, stating that Funko remains focused on refining its product portfolio, accelerating digital transformation, and optimizing its supply chain. Despite challenges in market volatility and rising production costs, Lingham expressed confidence in the company’s core business model. He highlighted the team’s strategic positioning to capitalize on evolving consumer trends and expand the company’s global footprint, while emphasizing innovation, cost efficiency, and strengthening key partnerships to enhance market competitiveness.

The company provided forward-looking guidance indicating expected revenue and earnings pressures in the near term. While no specific financial targets were outlined in the 8-K filing, management reiterated a strategic focus on cost control, supply chain optimization, and leveraging digital platforms to drive revenue resilience. These priorities align with the reported Q2 2025 results, which showed revenue of $193.5 million and a net loss of $41.0 million, reflecting ongoing challenges in achieving profitability amid market headwinds.

In Nigeria, the Punch newspaper reported on several major news events on the same day as Funko’s earnings release. Among the most notable developments was a government initiative to address energy costs in public institutions, with a N100 billion solar funding plan aimed at reducing reliance on fossil fuels. Additionally, the Kaduna State Police Command arrested two individuals suspected of gun running and recovered several locally made firearms. In the education sector, the West African Examinations Council (WAEC) issued revised results for the 2025 WASSCE after acknowledging a grading error. Political developments also made headlines, including a faction of the African Democratic Congress distancing itself from a leadership candidate and a growing push for Southern leadership in the country’s political future.