Funko’s second quarter looked nothing like the one it posted a year ago.
Net sales increased 7% to $207.7 million, topping the company’s <a href="https://comicvibe.com/square-enix-teases-octopath-traveler-3-aware-of-high-expectations-for-the-game/” title=”Square Enix teases Octopath Traveler 3, aware of high expectations for the game”>expectations as Core Collectibles grew 9% and Other (including Mondo) spiked 15%. Funko also swung to net income of $15.4 million, or $0.27 per diluted share, from a $40.5 million loss in the prior-year quarter.
Adjusted EBITDA reached $40.9 million, compared with a negative adjusted EBITDA of $16.5 million last year. Adjusted net income improved to $15 million, or $0.26 per diluted share, reversing an adjusted loss of $26.7 million.
Margin showed a significant improvement, with gross profit nearly doubling to $117.6 million and gross margin climbing to 56.6% from 32.1%. The quarter included a $25.4 million pre-tax benefit tied to expected tariff refunds and the release of previously accrued tariffs.
Funko also kept expenses moving in the right direction. SG&A declined to $79.7 million from $82.3 million and fell more than 400 basis points as a percentage of sales.
Beyond the numbers, management pointed to broad sell-through momentum across theatrical properties, anime, gaming, and sports. Rapid-response and “Hyper Strike” products tied to live cultural moments also contributed, along with the launch of POP! Mystery.
“These results are evidence that Make Culture Pop! is becoming a more deliberate and disciplined growth engine,” the company said.
That discipline extends to the product line. Funko is tightening assortments, trimming underperforming SKUs, and directing more re demand and returns
The company updated its full-year outlook on gross margin and adjusted EBITDA following the stronger quarter. Funko expects continued growth in Core Collectibles while reducing Loungefly’s SKU count by 50% and concentrating the brand around higher-performing products. Sales for the year are expected to be flat to up 3%.
