Funko, Inc.

Q2 net sales increased 7% year over year, and sales for the first half were up 6%. Gross margin was 6.6% versus 32.1% last year, though management said the quarter included a $25 million credit tied to expected tariff refunds and accrued tariffs; excluding that benefit, normalized gross margin was 44.4%, which they called a record high. Adjusted EBITDA was $40.9 million versus negative adjusted EBITDA of $16.5 million last year; excluding the tariff-related benefit, adjusted EBITDA was $15 million, above guidance. SG&A improved by over 400 basis points as a percentage of sales. For the full year, Funko reiterated net sales guidance of flat to up 3% and raised adjusted EBITDA guidance to $100 million to $110 million, driven by the tariff credit and $5 million from improved profitability.

Josh Simon said the quarter was early evidence that the “make culture pop” strategy is moving from concept to execution and becoming a more disciplined growth engine. He highlighted Funko’s ability to sense demand faster, create products quickly, and scale them through wholesale and DTC channels, with emphasis on new platforms such as Pop! Mystery, Pop! Yourself, and HP-enabled additive manufacturing. His tone was upbeat but measured, repeatedly noting that Q2 was a proof point rather than the end of the work.

Yves Le Pendeven focused on the financial improvement: sales up 7%, first-half sales up 6%, gross margin of 6.6% versus 32.1% last year, and adjusted EBITDA of $40.9 million versus negative $16.5 million. He clarified that Q2 gross margin benefited from a $25 million tariff-related credit and that, excluding it, gross margin was 44.4% and adjusted EBITDA was $15 million, both above guidance. He also said the company sold $22 million of IEEPA tariff claims for $19 million in proceeds and used $15 million to reduce debt, while updating full-year guidance to flat-to-up 3% net sales and $100 million to $110 million of adjusted EBITDA.

Analysts asked about wholesale order demand, shelf-space gains, strong entertainment slate demand, and the assumptions behind guidance. Management said wholesale customers still provide about 3 to 4 months of visibility, POS trends were healthy with wholesale POS up 6% globally in Q2 and 9% year to date, and inventory in the channel remained healthy. On shelf space, Josh Simon said Funko is seeing incremental displays and placement at retailers such as Smith’s, Hamleys, HMV, and Walmart, with Bitty Pop! and Spider-Man helping win space. On 2026 growth drivers, management said Pop! Mystery and Bitty Pop! are still early but promising platform formats, with about half a dozen new formats in development for next year and beyond.