📊 FNKO Key Takeaways
Is FNKO a Good Investment? Thesis Analysis
Funko faces severe operational distress with negative profitability across all margins, burning cash operationally while maintaining high capital expenditures. Revenue contraction of 13.5% YoY combined with a net loss of $67.4M and deteriorating free cash flow of -$38.1M signals structural challenges in the collectibles market. The company's equity cushion is eroding rapidly given negative ROE of -36.3% and negative operating cash flow, creating unsustainable financial dynamics.
Why Buy FNKO? Key Strengths
- Positive current ratio of 1.19x provides basic near-term liquidity runway
- Moderate debt-to-equity ratio of 0.54x leaves some deleveraging capacity
- Significant insider activity with 13 Form 4 filings suggests management engagement
FNKO Investment Risks to Consider
- Accelerating revenue decline of 13.5% YoY indicates loss of market demand or competitive pressure
- Negative operating cash flow of -$5.1M with free cash flow of -$38.1M demonstrates unsustainable cash burn despite $42.1M cash position
- Operating margin of -5.0% and net margin of -7.4% show fundamental unprofitability with no visible path to breakeven
- Negative ROE of -36.3% and ROA of -9.8% indicate severe capital inefficiency and shareholder value destruction
- Quick ratio of 0.85x below 1.0x signals potential liquidity stress if operations continue deteriorating
- Long-term debt of $100.3M against deteriorating cash generation creates refinancing risk
Key Metrics to Watch
- Quarterly revenue trends and same-store sales to assess demand stabilization
- Operating cash flow trajectory and path to positive FCF within 2-4 quarters
- Gross margin recovery potential given N/A reporting suggests operational restructuring
- Cash balance depletion rate relative to operating burn to assess runway before covenant breaches
- Debt refinancing capability and any covenant compliance metrics
FNKO Financial Metrics
💡 AI Analyst Insight
Funko, Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
FNKO Profitability Ratios
FNKO vs Default Sector
How Funko, Inc. compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is FNKO Overvalued or Undervalued?
Based on fundamental analysis, Funko, Inc. shows some fundamental concerns relative to the Default 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.
FNKO Balance Sheet & Liquidity
FNKO 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
FNKO Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $240.0M | $14.7M | $0.28 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
FNKO Capital Allocation
FNKO SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for Funko, Inc. (CIK: 0001704711)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773957834.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773957761.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773957677.xml | View → |
| Mar 19, 2026 | 4 | xslF345X06/wk-form4_1773957580.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773699914.xml | View → |
❓ Frequently Asked Questions about FNKO
What is the AI rating for FNKO?
Funko, Inc. (FNKO) has an AI rating of STRONG SELL with 92% confidence, based on fundamental analysis of SEC EDGAR filings.
What are FNKO's key strengths?
Claude: Positive current ratio of 1.19x provides basic near-term liquidity runway. Moderate debt-to-equity ratio of 0.54x leaves some deleveraging capacity.
What are the risks of investing in FNKO?
Claude: Accelerating revenue decline of 13.5% YoY indicates loss of market demand or competitive pressure. Negative operating cash flow of -$5.1M with free cash flow of -$38.1M demonstrates unsustainable cash burn despite $42.1M cash position.
What is FNKO's revenue and growth?
Funko, Inc. reported revenue of $908.2M.
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 $-1.24.
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 rating reflects both perspectives for balanced insights.
Is FNKO a good stock to buy right now?
Based on our AI fundamental analysis in March 2026, Funko, Inc. has a STRONG SELL rating with 92% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FNKO stock overvalued or undervalued?
Valuation metrics for FNKO: ROE of -36.3% (sector avg: 15%), net margin of -7.4% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy FNKO stock in 2026?
Our dual AI analysis gives Funko, Inc. a combined STRONG SELL rating 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 $-5.1M, with capital expenditures of $33.0M. FCF margin is -4.2%.
How does FNKO compare to other Default stocks?
Vs Default sector averages: Net margin -7.4% (avg: 12%), ROE -36.3% (avg: 15%), current ratio 1.19 (avg: 1.8).