Funko posted Q4 2025 results on March 12. Revenue came in at $273.1 million. That is down 7% from $293.7 million a year ago. Adjusted EPS hit $0.05, a penny above the $0.04 consensus. The stock dropped 4.44% on the day and kept sliding to $4.17 on March 13, touching an intraday low of $3.97.
When we previewed yesterday, the question was whether the turnaround was real. The answer: not yet. But the bleeding is slowing.
The Full-Year Damage
Full-year 2025 net sales: $908.2 million. Down roughly 13.5% from $1.05 billion in 2024.
Full-year net loss: $67.4 million.
Full-year adjusted EBITDA: $26.6 million. Down from $94.7 million. A 72% collapse.
Funko generated less than a third of the adjusted EBITDA it did the year before on a revenue base that only shrank 13.5%. The cost structure is not keeping up with the shrinking top line.
For context, LEGO just posted $13 billion in revenue and $2.6 billion in net profit. LEGO makes Funko's entire annual revenue in about three weeks. Same toy industry. Very different companies.
Q4 by the Numbers
Gross profit: $111.6 million on a 40.9% margin. That margin has held around 40% for several quarters now. It is one of the few genuinely stable metrics in the business.
SG&A dropped to $90.9 million from $102.8 million a year ago. A 12% cut. That is Josh Simon's playbook. Cut overhead. Protect margins. Buy time for the top line to stabilize.
Net loss for the quarter: $0.2 million. Essentially breakeven. That is the cleanest bottom line Funko has printed in a while. Q4 was not profitable. But it was close.
Every Segment Is Shrinking
Core Collectibles dropped 10% year over year. This is Pop! Vinyl. The flagship. Down double digits.
Loungefly fell 9.8%. This one is deliberate. Funko is cutting SKUs aggressively to reduce markdown risk. Jessica Kong was hired as the first dedicated Loungefly GM. The strategy is fewer products, better margins. But "fewer" shows up in the revenue line before "better" shows up anywhere else.
Other, which is primarily Mondo, collapsed 59.4%. Nearly cut in half. Mondo was always a niche brand inside the portfolio. It is becoming a rounding error.
The Debt Got Worse
Total debt at the end of 2025: $225.3 million. Up from $182.8 million at the end of 2024.
Funko paid down $16 million in Q4 alone. But for the full year, debt still grew by $42.5 million. The company borrowed more than it repaid. Revenue is falling. EBITDA is cratering. And the debt load is going the wrong direction. That combination does not fix itself.
The $40 Million Tariff Question
Funko estimated approximately $40 million in tariff-related costs for 2025. About half came from IEEPA tariffs that have since been struck down. Whether that reversal turns into a 2026 tailwind or just gets absorbed into the cost structure remains unclear.
The company is diversifying manufacturing away from China. That takes time and capital. Capital that a company carrying $225 million in debt and losing $67 million a year does not have in abundance.
Europe Is the One Bright Spot
European sales grew 20% year over year. Funko is now the number two collectible brand in Europe. Behind Pokemon.
Pop! Yourself launched in Europe during Q4. Andy Oddie was named Chief International Officer to push expansion into Asia and Latin America. If there is a growth story at Funko right now, it lives outside the United States.
2026 Guidance: Below Wall Street
Funko guided flat to 3% revenue growth for 2026. Adjusted EBITDA of $70 million to $80 million. Gross margins of 41% to 43%.
That EBITDA guidance is below the $81.11 million analyst estimate. The company is telling Wall Street to lower expectations. Again.
Core lines are expected to grow high single digits. Loungefly is expected to decline double digits as the SKU rationalization continues. The bet is that a leaner Loungefly generates better margins on lower revenue. That bet has not been proven yet.
What This Means for Collectors
CEO Josh Simon has been on the job six months. He came from Netflix. He brought in Kong for Loungefly and Oddie for international. The leadership team is new. The strategy is clear: cut the fat, grow internationally, stabilize Core Collectibles, hope tariffs don't get worse.
For Pop! collectors, the financial pressure matters. A healthy Funko invests in new licenses, limited runs, and convention exclusives. A Funko carrying $225 million in debt and losing $67 million a year plays it safe. Fewer risks. Fewer surprises. Fewer chase pieces worth chasing.
The stock is at $4.17. It was around $6 a year ago and north of $20 two years ago. Beating EPS by a penny and posting a nearly breakeven quarter are real improvements from where this company was in 2023. But revenue, EBITDA, and the stock price are all still pointed down. The turnaround story is getting more specific. The numbers just haven't confirmed it yet.
