Funko Inc (NASDAQ:FNKO) shares are plunging in Friday trading after the pop culture lifestyle brand reported second-quarter financial results that missed Wall Street expectations and provided a weak forecast.
What To Know: The company announced net sales of $193.5 million for the quarter, a 21.9% decrease from the $247.7 million recorded in the same period last year and below the consensus estimate of $203.2 million.
The miss extended to the bottom line, with an adjusted loss per share of 48 cents, wider than the anticipated loss of 32 cents. The GAAP net loss was $52.6 million, or $0.98 per share.
The sales decline was widespread across the company’s segments. Sales in the Core Collectibles category fell 15.2% to $157.5 million, while the Loungefly brand saw revenue drop 23.2% to $31.8 million.
By geography, U.S. sales were down 27.7%. Adding to investor concerns, the disappointing earnings report followed a Thursday filing for a $100 million mixed shelf offering of 12,626,024 shares.
For its outlook, Funko stated it expects financial performance to improve in the second half of 2025 compared to the first half, but still projects net sales to be down in the high single-digits compared to the second half of 2024. The combination of the second-quarter miss, soft guidance and the offering filing weighed heavily on the stock.
Price Action: According to data from Benzinga Pro, FNKO shares are trading lower by 35% to $2.38 Friday afternoon. The stock has a 52-week high of $14.65 and a 52-week low of $2.22.
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How To Buy FNKO Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Funko’s case, it is in the Consumer Discretionary sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
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