Funko delivered net sales growth of 7% led by robust performance in Europe and core collectibles. Profitability surged as the company achieved a record gross margin, though results were significantly aided by a non-recurring $25.4 million tariff-related benefit.
Key Highlights
- Core Collectibles net sales rose 9% to $171.6 million, driven primarily by the Standard Pop! and Bitty Pop! product lines.
- Adjusted EBITDA reached $40.9 million, far exceeding the projected range of $5 million to $10 million, though $25.4 million of this was attributed to a tariff refund credit.
- Gross margin expanded significantly to 56.6% from 32.1% in the prior year, benefiting from price adjustments, lower licensing royalties, and the release of accrued tariffs.