Why Funko Stock Popped Today

Core Insights - Funko exceeded expectations in its second-quarter earnings report, resulting in a 9.6% increase in stock price [1] Financial Performance - Revenue increased by 3% to $247.7 million, surpassing estimates of $231 million [2] - Gross margin improved significantly from 29.2% to 42%, attributed to higher-than-expected sales and inventory reserve relief [2] - Selling, general, and administrative expenses decreased from $85.6 million to $77.9 million, contributing to improved profitability [3] - Adjusted EBITDA reached $27.9 million, a turnaround from a loss of $7.6 million [3] - Adjusted EPS was $0.10, compared to a loss of $0.43 in the same quarter last year [3] Management Commentary - New CEO Cynthia Williams highlighted strong demand for collectible products in Europe and other international markets as a key driver of performance [4] Future Guidance - For the third quarter, Funko projects revenue between $282 million and $297 million, indicating a potential decline of 7% and falling short of estimates of $319.2 million [4] - The adjusted EPS forecast for the third quarter is between $0.01 and $0.06, which is lower than the consensus estimate of $0.20 [4] Market Reaction - Despite the conservative guidance, investors are optimistic that the momentum from the second quarter will continue [5]