The Funko turnaround is starting to pop.
The company opened 2026 with improved first-quarter results as sales climbed and losses narrowed year over year.
Net sales reached $200.9 million in Q1, up 5.3% from $190.7 million in the prior-year period. Gross profit increased to $88.8 million, while gross margin expanded to 44.2%, compared with 40.3% last year.
“We kicked off the year with a strong Q1 performance, building on the positive momentum from the second half of 2025, with net sales, gross margin, and adjusted EBITDA all exceeding expectations,” said Funko CEO Josh Simon. “International sales were robust, particularly in Europe, and our Core Collectibles business increased 17% year-over-year, contributing to the highest reported gross margin in our history. As we focus on bringing the biggest cultural moments to life, we’re excited to continue executing against our strategic plan, moving at the speed of culture, meeting fans wherever they are and giving them new ways to connect with the stories they love.”
The pop culture lifestyle company also trimmed SG&A expenses to $83.7 million, down from $84.8 million in Q1 2025. Funko reported a net loss of $18.1 million, or $0.33 per share, improving from a net loss of $28.1 million, or $0.52 per share, a year ago.
Adjusted net loss improved to $6.3 million, or $0.11 per share, compared with $17.8 million, or $0.33 per share. Adjusted EBITDA swung to $11.3 million from a negative adjusted EBITDA of $4.7 million last year.
For the second time, Funko took an unconventional approach to its earnings call, held at its flagship retail location in Hollywood. For Q1, the company enlisted influencer Tristan Wigglesworth, known as Top Pops, to host the conversation with Simon, CFO Yves Le Pendeven, and Loungefly General Manager Jessica Kong, who joined Funko earlier this year.
In addition to the usual Q&A session with Wall St. analysts, the Funko team took questions from die-hard fans, further leaning into the strong connection with its core audience.
Notably, Funko joins much of the broader toy industry in looking forward to a massive entertainment year with high-profile titles such as Star Wars: The Mandalorian and Grogu, Supergirl, Toy Story 5, and Avengers: Doomsday poised to drive sales. Additionally, the continued popularity of streaming titles from Netflix, including One Piece, Stranger Things, and the Pulse of Play Award-winning KPop Demon Hunters (which accounted for 7% of net sales in Q1), should continue in the months ahead.
Funko reiterated its 2026 guidance, with net sales expected to be flat to up 3% year over year.
