Funko shares fall 6% on weak guidance despite Q4 beat

Published 06/03/2025, 22:18
Funko shares fall 6% on weak guidance despite Q4 beat

EVERETT, Wash. - Funko, Inc. (NASDAQ:FNKO) reported better-than-expected fourth quarter results but saw its shares plunge 6.5% in after-hours trading on Thursday as the pop culture collectibles maker issued weak guidance for the first quarter and full year 2025.

The company posted adjusted earnings per share of $0.08 for Q4, beating analyst estimates of breakeven. Revenue came in at $293.7 million, surpassing expectations of $285.41 million and up 0.9% year-over-year.

However, Funko’s outlook disappointed investors. For Q1 2025, the company expects a loss per share of $0.48 to $0.40, significantly wider than the $0.10 loss analysts were projecting. Q1 revenue guidance of $188-198 million also fell short of the $227.5 million consensus.

For the full year 2025, Funko forecasts revenue of $1.05-1.082 billion, below Wall Street’s estimate of $1.092 billion.

"2024 was a pivotal year for Funko. We strengthened our business, delivered on key financial goals and positioned the company for long-term success," said CEO Cynthia Williams. She noted Q4 net sales were at the top end of guidance while adjusted EBITDA exceeded expectations.

Gross margin expanded to 42.4% in Q4 from 37.6% a year ago. The company reduced total debt by $90 million in 2024.

Despite the Q4 beat, Funko’s cautious outlook for 2025 appears to have overshadowed the positive results, leading to the sharp stock decline in extended trading.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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