Company Overview
Funko, Inc. operates as a pop culture consumer products company dedicated to designing, manufacturing, and marketing licensed merchandise across the United States, Europe, and international markets. The firm specializes in offering media and entertainment content, including figures and hands related to movies, television shows, video games, music, and sports, targeting collectors and fans within the leisure sector. As a public entity within the consumer cyclical industry, this classification signifies that the company's revenue generation is directly tied to discretionary consumer spending habits on entertainment goods. The company's scale is defined by a market capitalization of $182.97M and annual revenue reaching $908.21M, supported by a workforce of 1104 employees. These valuation and revenue figures indicate that while the company maintains a significant presence in the licensed collectibles market, its market cap suggests a smaller enterprise compared to large-cap consumer staples, reflecting the volatile and niche nature of the pop culture product industry.
Financial Health
The company reported revenue of $908.21M for the trailing twelve months, yet this top-line activity resulted in a net income of $-67,360,000, while EBITDA stood at $13.55M. The substantial negative net income relative to positive revenue reveals a cost structure where operating expenses and interest charges significantly erode profitability before taxes and other adjustments. Furthermore, the free cash flow was $-2,740,500, indicating that the company is currently burning cash, which limits its immediate financial flexibility for capital expenditures or acquisitions without external financing. Profitability analysis shows a gross margin of 38.7%, an operating margin of 2.2%, and a profit margin of -7.4%, suggesting that while the core product sales retain nearly 40% of revenue, overhead costs and leverage are preventing the company from converting sales into net profit. The balance sheet presents a leveraged position with total debt of $292.78M against cash holdings of $42.15M, resulting in a debt-to-equity ratio of 157.30. This high leverage level implies that the company relies heavily on borrowed funds to finance its operations, increasing financial risk during periods of rising interest rates or declining revenue. Liquidity assessment via the current ratio of 1.19 indicates that the company holds just enough current assets to cover its short-term liabilities, suggesting a tight but manageable short-term liquidity position. Finally, the return on equity is -32.3% and the return on assets is -4.1%, metrics that reveal management is currently destroying shareholder value and utilizing assets inefficiently to generate returns.
Valuation Assessment
The valuation metrics present a forward P/E of 22.76, while the trailing P/E is listed as N/A, a discrepancy that implies the market is pricing in future earnings recovery rather than current profitability. The price-to-book ratio stands at 0.98, indicating that the stock is trading at a slight discount to its book value, suggesting the market does not currently assign a significant premium to the company's intangible assets or brand equity. Alternative valuation measures include a price-to-sales ratio of 0.20 and an EV/EBITDA of 32.01, which suggest the market is valuing the company based on its sales potential and enterprise earnings before interest, taxes, depreciation, and amortization rather than traditional earnings multiples. The stock has exhibited significant volatility within a 52-week range bounded by a high of $7.67 and a low of $2.22. Without a specific current share price provided in the source facts, the trading range establishes a wide band of $5.45 within which the stock has moved over the last year. The beta value of 0.39 indicates that the stock's price volatility is substantially lower than that of the broader market, moving with roughly 61% of the intensity of the overall market index.
Growth & Income
Revenue growth year-over-year is -7.0%, while earnings growth is N/A, meaning there is no positive earnings trajectory to compare against the shrinking revenue base. The absence of positive earnings growth relative to the negative revenue growth implies that the company is struggling to maintain profitability as its top line contracts. As a non-dividend payer, the company reports a dividend yield of N/A and a payout ratio of 0.0%, confirming that it does not distribute cash to shareholders and instead retains all earnings, though currently negative, for potential reinvestment. Since the company does not pay dividends, the income profile is entirely dependent on capital appreciation rather than yield, and the lack of a payout ratio highlights that no portion of earnings is allocated to shareholder distributions. The overall growth and income profile is characterized by negative revenue expansion and zero dividend distribution, reflecting a company in a contractionary phase that prioritizes survival and potential future restructuring over immediate shareholder returns or consistent growth.