Funko (FNKO) Stock Forecast & Price Target

Funko Inc. is positioned to leverage relatively easy comparisons in 2026 following headwinds in 2025, with expectations for a return to growth driven by its strong brand presence and exclusive product offerings as demonstrated by robust event attendance. The company has faced challenges related to tariffs and management transitions, but these factors are anticipated to create a more favorable growth environment in the near future. Additionally, potential improvements in management and efforts to address outstanding debt could serve as catalysts for enhancing shareholder value.

Funko Inc. faces significant headwinds, as evidenced by a notable 33.9% decline in point-of-sale data for 2Q25, alongside a 24% year-over-year decrease in the revised sales estimate, from $233 million to $188 million. The company's profitability projections have deteriorated, with new estimates indicating losses of $10.5 million and an EPS loss of $0.41, a stark contrast to prior expectations of a profit. Additionally, the reliance on China for about one-third of product purchases and the challenges in retail inventory management further amplify concerns regarding sales and operational efficiency.