Funko (FNKO) rises after Q1 revenue beat, record margin offsets weak Q2 sales outlook

Funko (NASDAQ: FNKO) reported first-quarter 2026 revenue above Wall Street expectations, as stronger collectibles demand and margin gains outweighed softer guidance for the second quarter. Shares traded at $5.38 after the report, up from $4.45 before earnings. Revenue rose 5.3% year over year to $200.9 million, beating consensus estimates. The company posted a non-GAAP loss of $0.11 per share, 63.3% better than analysts expected. Gross margin reached 44%, which management said was a company record, helped by lower promotional activity, renewed licensing agreements and favorable channel mix. Funko said Core Collectibles revenue increased 17%, supported by product launches tied to major entertainment properties. For the second quarter of 2026, the company guided for revenue of $200 million, about 2% below analyst estimates. Management said it expects growth to moderate and cited uncertainty from tariffs and oil prices, while pursuing a reduction in Loungefly SKUs to improve profitability.