Funko (FNKO) Stock Forecast & Price Target

Funko Inc. is poised for improved sales performance moving forward, with expectations of positive year-over-year growth in the latter half of 2025, attributed to several strategic initiatives including the introduction of Pop! Yourself in Europe and a robust entertainment lineup. The company demonstrated notable growth in direct-to-consumer (DTC) sales, anticipating a year-over-year increase in 4Q24 following a prior decline, reinforced by a 33% rise in debit/credit card sales, indicating strong consumer responsiveness. Additionally, Funko reported an operating profit of $10.6 million in 4Q24, significantly surpassing estimates, as sales reached $294 million, exceeding consensus expectations and reinforcing a favorable outlook on its revenue-generating capabilities.

Funko Inc. faces a challenging financial outlook primarily due to significant operational hurdles, including a double-digit sales decline in 2023 attributed to supply chain issues that severely impacted sales through major retailers like Walmart and Target. The company's guidance for 1Q25 indicates a substantial shortfall compared to consensus estimates, with revised projections showing a year-over-year sales decrease of 10% and a negative EBITDA forecast of $11.3 million, reflecting ongoing struggles with shipping disruptions and tariffs. Additionally, the potential loss or unfavorable renewal of key licensing agreements poses a significant risk that could further strain revenues, compounded by rapidly evolving consumer interests that could diminish demand for its product offerings.