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EVERETT, Washington - Funko, Inc. (NASDAQ:FNKO) announced Monday that Michael Lunsford has been appointed as Interim Chief Executive Officer, effective July 5, 2025, following the departure of Cynthia Williams from the role. The announcement comes as the company’s stock trades near $4.86, having declined nearly 65% over the past six months, according to InvestingPro data.
Lunsford previously served as Funko’s Interim CEO in 2023-2024 and remains a member of the company’s Board of Directors. The pop culture lifestyle brand, known for its collectible figurines and accessories, is making the leadership change to "deliver full shareholder value," according to Board Chairman Charles Denson. The company currently maintains a Fair overall financial health rating, based on InvestingPro’s comprehensive analysis, though analysts have recently revised earnings expectations downward.
"I believe we have yet to achieve the full potential of Funko," Lunsford said in the press release statement. He noted that recent changes in the global business environment have constrained growth initiatives, which the company plans to address while focusing on long-term growth. The company’s next earnings report is scheduled for July 31, 2025, which investors will closely watch for signs of improvement in its $1 billion annual revenue business.
The Board has tasked Lunsford with accelerating organic growth, exploring financial and strategic options for the business, and helping to identify a new permanent chief executive officer.
Funko, founded in 1998 and headquartered in Washington state, operates through multiple brands including Funko, Loungefly, and Mondo. The company produces vinyl figures, fashion accessories, apparel, and other collectibles across numerous licensed properties.
The leadership transition comes as the company seeks to strengthen its position in what it refers to as the "Kidult economy" - the market for pop culture collectibles that appeal to both children and adults.
In other recent news, Funko reported its first-quarter 2025 financial results, revealing a significant earnings miss with an EPS of -$0.33, compared to the forecasted -$0.11. Despite this, revenue was in line with guidance at $190.7 million, and the company highlighted operational improvements, including a 20% global workforce reduction and supply chain diversification. Texas Capital Securities initiated coverage on Funko with a Buy rating and an $8 price target, citing confidence in the company’s valuation and potential growth opportunities, such as the Pop! Yourself platform. Meanwhile, Goldman Sachs upgraded Funko from Sell to Neutral, though it lowered the price target to $5.50 due to a balanced risk/reward outlook. DA Davidson also adjusted its price target to $7 while maintaining a Buy rating, acknowledging Funko’s challenges with tariffs but noting strategies like price increases and cost reductions. Funko’s management has taken steps to mitigate tariff impacts, such as reducing U.S. product sourcing from China and implementing cost-saving measures. The company withdrew its full-year 2025 outlook due to tariff uncertainties but remains focused on addressing these challenges through various strategic initiatives.
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