📊 FNKO Key Takeaways
Is Funko, Inc. (FNKO) a Good Investment?
Funko faces severe operational deterioration with declining revenue (-13.5% YoY), deeply negative profitability (net margin -9.0%, operating margin -4.8%), and a $18.1M net loss. Weak liquidity ratios (Current: 1.15x, Quick: 0.78x) combined with $90.9M debt and minimal free cash flow margin (1.0%) provide insufficient financial flexibility for the business to recover or service obligations through a downcycle.
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.
Funko, Inc. Key Strengths (FNKO)
- Operating cash flow remains positive at $10.2M despite unprofitability
- Free cash flow is positive at $1.9M, demonstrating ability to avoid immediate insolvency
- Debt-to-equity ratio of 0.54x indicates moderate leverage relative to equity base
- 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
- Collapsing profitability with net income down 358.5% YoY while revenue declines 13.5%
- Inadequate liquidity with Current Ratio of 1.15x and Quick Ratio of 0.78x against $90.9M debt obligations
- Razor-thin free cash flow margin of 1.0% leaves no cushion for operational disruptions or debt service stress
- 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
- Revenue stabilization and gross margin recovery
- Operating cash flow sustainability and working capital trends
- Debt covenant compliance and refinancing risk maturity schedule
- 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
The relatively thin 1.0% FCF margin may limit capital allocation flexibility.
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 |
|---|---|---|---|
| Q1 2026 | $190.7M | -$14.7M | $-0.33 |
| 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 |
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 |
|---|---|---|---|
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780699275.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780699073.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780699050.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780699027.xml | View → |
| Jun 5, 2026 | 4 | xslF345X06/wk-form4_1780698850.xml | View → |
❓ Frequently Asked Questions about FNKO
What is the AI rating for FNKO?
Funko, Inc. (FNKO) has a Combined AI Grade of C from Claude (D) and ChatGPT (C) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FNKO's key strengths?
Claude: Operating cash flow remains positive at $10.2M despite unprofitability. Free cash flow is positive at $1.9M, demonstrating ability to avoid immediate insolvency. 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: Collapsing profitability with net income down 358.5% YoY while revenue declines 13.5%. Inadequate liquidity with Current Ratio of 1.15x and Quick Ratio of 0.78x against $90.9M debt obligations. 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 $200.9M.
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 $-0.33.
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 grade reflects both perspectives for balanced insights.
What is FNKO's fundamental grade?
Based on our AI fundamental analysis in June 2026, Funko, Inc. has a C grade with 84% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is FNKO stock overvalued or undervalued?
Valuation metrics for FNKO: ROE of -10.7% (sector avg: 15%), net margin of -9.0% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
What is FNKO's AI grade for 2026?
Our dual AI analysis gives Funko, Inc. a combined C grade 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 $10.2M, with capital expenditures of $8.2M. FCF margin is 1.0%.
How does FNKO compare to other Market stocks?
Vs Default sector averages: Net margin -9.0% (avg: 12%), ROE -10.7% (avg: 15%), current ratio 1.15 (avg: 1.8).