Funko: The Storm Has Passed

Daniel JonesInvesting Group LeaderFollow5ShareSavePlay(11min)CommentsSummaryFunko remains a 'strong buy' despite a 21.6% post-earnings selloff and recent underperformance versus the S&P 500.Management forecasts flat to 3% revenue growth in 2026, with core collectibles expected to grow high single digits and EBITDA projected at $70–80 million.Net debt has fallen to $183.2 million, inventories are down, and near-term 'going concern' risk has been alleviated through credit agreement extension.Tariff mitigation, cost cuts, and anticipated entertainment releases position FNKO for significant profitability improvement and positive cash flow in 2026.Looking for a helping hand in the market? Members of Crude Value Insights get exclusive ideas and guidance to navigate any climate. Learn More » kipgodi/iStock Editorial via Getty Images The last few days have been a particularly brutal time for shareholders of toy company Funko (FNKO). Since management announced financial results for the final quarter of the company's 2025 fiscalThis article was written byDaniel Jones36.82K FollowersFollowDaniel is an avid and active professional investor. He runs Crude Value Insights, a value-oriented newsletter aimed at analyzing the cash flows and assessing the value of companies in the oil and gas space. His primary focus is on finding businesses that are trading at a significant discount to their intrinsic value by employing a combination of Benjamin Graham's investment philosophy and a contrarian approach to the market and the securities therein. Learn more.Analyst’s Disclosure: I/we have a beneficial long position in the shares of FNKO either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.