The 5 Most Interesting Analyst Questions From Funko’s Q3 Earnings Call

Funko’s third quarter saw a positive market reaction despite revenue falling short of Wall Street expectations, as management’s cost control and product strategy drove adjusted profitability above consensus. CEO Josh Simon highlighted the impact of SKU rationalizations, a reduction in clearance sales, and ongoing price increases that offset tariff pressures. Management underscored the resilience of Funko’s diverse fan base and pointed to recent multiyear licensing renewals with major entertainment studios as instrumental in maintaining brand relevance. Simon noted, “Our gross margin trend has largely improved... we have a stronger retail footprint.”

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While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From Funko’s Q3 Earnings Call

• Stephen Laszczyk (Goldman Sachs) asked CEO Josh Simon about the top priorities for the next 12 months and how the Make Culture POP! strategy will unlock longer-term growth. Simon emphasized operationalizing trend-sensing and quick strike capabilities to better align with emerging fandoms and accelerate product launches.
• Stephen Laszczyk (Goldman Sachs) inquired about retailer stocking patterns heading into the holiday season and any differences from prior years. CFO Yves Le Pendeven noted a cautious U.S. retail environment, with stronger momentum in Europe and mass market channels, and highlighted lingering effects from tariff-related uncertainty.
• Keegan Tierney Cox (D.A. Davidson) questioned Funko’s approach to kiosks and vending machines amid increased competition. Simon responded that Pop! Yourself offers a unique customization experience and that the company is working with major retail partners to scale this offering.
• Keegan Tierney Cox (D.A. Davidson) asked about European sales trends and the impact of production shifts. Simon acknowledged minor production delays due to the move from China to Vietnam but expects Europe to return to growth with upcoming product launches.
• Keegan Tierney Cox (D.A. Davidson) requested insight into the effect of price increases on U.S. demand. Simon said unit sales remained within expectations and that price increases were fully absorbed, helping to offset tariff costs.

Catalysts in Upcoming Quarters

In the coming quarters, the StockStory team will be monitoring (1) the sales trajectory of new launches like Pop! Yourself in Europe and KPop Demon Hunters, (2) Funko’s ability to grow international retail partnerships—especially in Asia and Latin America, and (3) the company’s progress in expanding its digital and direct-to-consumer channels through innovations like AI-powered customization. Execution in these areas will be critical to validating Funko’s turnaround strategy.

Funko currently trades at $3.69, up from $3.02 just before the earnings. Is there an opportunity in the stock?Find out in our full research report (it’s free for active Edge members).

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