Funko Inc. projects an adjusted EBITDA between $5 million and $10 million [1] for the second quarter of fiscal year 2026.
This guidance comes as the company attempts to balance a cautious short-term outlook with steady long-term growth targets. The figures indicate a potential cooling in immediate earnings following a strong start to the year.
Despite the modest Q2 projection, Funko reiterated its full-year 2026 EBITDA outlook of $70 million to $80 million [1]. This stability follows a first quarter characterized by significant margin improvements and growth in core earnings.
During the first quarter of 2026, the company reported a gross margin of 44 percent [3]. This record margin was attributed to a strategic reduction in discounting across its product lines [5].
Other Q1 2026 metrics showed a five percent increase in sales [4] and a 17 percent growth in core earnings [4]. The company's adjusted EBITDA for that period reached $11.28 million [6].
Management is utilizing the improved margin profile from the first quarter to sustain its annual targets while accounting for seasonal or market fluctuations in the second quarter. The company continues to operate its corporate reporting from the U.S. [1].
“Funko projects an adjusted EBITDA between $5 million and $10 million for the second quarter.”
The discrepancy between the strong Q1 performance and the more conservative Q2 guidance suggests Funko is managing investor expectations against potential volatility. By maintaining the full-year target despite a lower quarterly projection, the company is signaling confidence in its ability to recover earnings in the latter half of the year, supported by the higher gross margins established earlier this spring.
