Funko Core Collectibles Sales Rise 4.8% as Third-Quarter Revenue Reaches $258.3 Million

Funko’s core collectibles business continued to grow during the third quarter of 2026, helping the company increase overall sales while posting significantly higher profit and improved gross margins compared with the same period last year. Funko reported net sales of $258.3 million for the three months ended September 30, an increase of 3% from $250.9 million in the third quarter of 2025. Core Collectibles remained the company’s largest category by a wide margin, generating $210.1 million in sales compared with $200.4 million a year earlier, an increase of 4.8%.

The results show Funko’s primary collectibles business growing faster than the company as a whole. Core Collectibles accounted for more than 81% of Funko’s third-quarter revenue and added approximately $9.7 million in sales compared with the same quarter last year.

“Q3 was another strong quarter for Funko, marked by net sales growth, continued gross margin strength and adjusted EBITDA above guidance, demonstrating that we are building a more focused and profitable business,” said Josh Simon, Chief Executive Officer of Funko, Inc. “Core Collectibles grew nearly 5%, with international markets again a source of strength. The quarter provides further evidence that Make Culture Pop! is becoming a more deliberate and disciplined growth engine. We are sensing demand earlier, translating cultural moments and emerging fandoms into distinctive products, and expanding fan discovery through retail and experiences. From WWE integrating Funko into its storytelling and our expansion into A Court of Thorns and Roses, to the bidding frenzy around POP! 250 and our dedicated shop at FAO Schwarz, we are seeing the strategy come together and remain rigorously focused on scaling what works.”

International sales were one of the strongest parts of the quarter. European revenue increased 11.5% to $82.7 million from $74.2 million a year earlier, while sales in other international markets rose 12.1% to $23.9 million from $21.3 million. Those gains helped offset a 2.4% decline in the United States, where sales fell to $151.7 million from $155.4 million.

Funko’s Loungefly business moved in the opposite direction from Core Collectibles. Loungefly sales declined 9.8% to $40.3 million from $44.7 million in the third quarter of 2025. Funko said its full-year outlook reflects a decision to reduce Loungefly’s SKU count and concentrate the assortment on products with stronger demand and return potential. The company’s smaller “Other” category posted the largest percentage increase, rising 37% to approximately $8 million from $5.8 million a year earlier.

Funko also reported a substantial improvement in profitability. Gross profit reached $116.9 million, up from $100.8 million in the year-ago quarter, while gross margin increased to 45.2% from 40.2%. Net income climbed to $7.5 million, or 13 cents per diluted share, compared with $900,000, or 2 cents per diluted share, during the third quarter of 2025.

Adjusted net income increased to $9.2 million, or 16 cents per diluted share, from $3.2 million, or 6 cents per diluted share, a year earlier. Adjusted EBITDA rose to $32.1 million from $24.4 million. Funko identifies adjusted net income and adjusted EBITDA as non-GAAP financial measures.

The company also ended the quarter with less debt than it carried at either the end of 2025 or the same point last year. Total debt stood at $195.9 million on September 30, compared with $225.3 million at the end of 2025 and $241 million on September 30, 2025. Funko had $41.6 million in cash and cash equivalents at the end of the quarter. Inventory stood at $91.6 million, up from $83.1 million at the end of 2025 but down from $99.8 million at the same point last year.

Following the stronger third-quarter results, Funko reiterated its full-year 2026 outlook. The company continues to expect annual net sales to finish between flat and 3% higher than 2025, with gross margin between 46% and 47%. Adjusted EBITDA is still expected to fall between $100 million and $110 million. Funko noted that both its gross-margin and adjusted EBITDA guidance include a $25.4 million tariff-related benefit recorded during the second quarter.

Through the first nine months of 2026, Funko generated $667 million in net sales, up from $635.1 million during the same period of 2025. The company also reported net income of $4.8 million for the nine-month period compared with a $68.1 million net loss during the first nine months of last year. Funko enters the final months of 2026 with its primary collectibles category still expanding despite weaker sales in the United States.