Funko, Inc. (Nasdaq: FNKO) reported its second-quarter 2026 results on August 6, 2026. Net sales rose 7% year over year to $207.7 million, and the company posted a record gross margin of 56.6%. For anyone selling fan merchandise, the more useful signal sits inside the numbers: core collectibles keep growing, and anime and gaming demand is part of what is driving it.
What Funko Reported in Q2 2026
Funko's net sales reached $207.7 million in the second quarter of 2026, up 7% from $193.5 million in the same period of 2025, according to the company's official press release. Core Collectibles, the segment that covers the company's main figure and collectible lines, grew 9% to $171.6 million. Gross margin hit a record 56.6%, compared with 32.1% a year earlier, a figure that includes a $25.4 million pre-tax benefit from expected tariff refunds and the release of accrued tariffs. Adjusted EBITDA came in at $40.9 million, against a loss of $16.5 million in Q2 2025.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net sales | $207.7M | $193.5M | +7% |
| Core Collectibles sales | $171.6M | $157.5M | +9% |
| Gross margin | 56.6% | 32.1% | +24.5 pts |
| Adjusted EBITDA | $40.9M | -$16.5M | Returned to profit |
Elsewhere in the report, Loungefly sales slipped 1.7% to $31.3 million, while the smaller "Other" category grew 15.2% to $4.8 million. By region, the US grew 3.4% to $121.8 million and Europe grew 19.4% to $69.0 million, while Other International declined 5.1% to $16.9 million.
Management pointed to "broad-based POS momentum across theatrical, anime, gaming and sports" and credited rapid-response releases built around live cultural moments, plus the launch of POP! Mystery. Funko frames its current strategy as "Make Culture Pop!": spotting where fan demand is forming, then turning those signals into repeatable products with tighter assortments and better SKU productivity.
Why This Matters for Custom Merch Buyers
Funko is one of the largest publicly traded collectibles companies, so its segment data works as a rough proxy for the wider fan-merch market. Three signals stand out for artists, brands, and event organizers who order custom merchandise.
- Anime and gaming demand is real and growing. Funko explicitly named anime and gaming among the categories driving point-of-sale momentum. That matches what custom manufacturers see in order volumes for fan-oriented product lines.
- The demand-to-product cycle is getting shorter. Rapid-response releases around live cultural moments are now a stated strategy at a major collectibles company. Shorter cycles favor production models that can handle quick turnarounds and small initial runs.
- Tighter assortments are winning. Funko is cutting to fewer, more productive SKUs. Focused lineups and made-to-order production reduce inventory risk, which is exactly the math small brands and independent creators already work with.
What Buyers Can Do With This Signal
The practical read is straightforward. If you sell to anime or gaming audiences, the demand base Funko describes supports committing to collectible formats rather than treating them as side products. Small, focused drops tied to a release window, a convention, or a community moment fit the direction the big players are moving.
For physical formats, low-commitment items remain the easiest entry point. Custom acrylic keychains and custom button pins work well for short runs tied to a specific moment, and custom vinyl stickers add a low-cost way to extend a drop. Made-to-order production lets you test a design with a small batch, then reorder if the signal is strong, instead of holding stock on a guess.
One boundary worth stating plainly: Modori Works manufactures custom merchandise from original artwork or properly licensed designs.
Outlook
For the full year 2026, Funko reiterated net sales guidance of flat to up 3%, raised its gross margin outlook to 46–47%, and lifted Adjusted EBITDA guidance to a range of $100 million to $110 million. The company expects third-quarter net sales to be roughly flat year over year. All figures cited in this article come from Funko's official Q2 2026 press release and its syndicated distribution.
Sources
- Funko Reports Strong Second Quarter 2026 Financial Results (official press release, August 6, 2026)
- Business Wire syndication of Funko's Q2 2026 earnings release (August 6, 2026)
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Modori Works Team
Custom B2B Merchandise Manufacturer
Authored by the engineering and production specialists at Modori Works. We share deep manufacturing insights, material breakdowns, and workflow guides to help global brands, artists, and event organizers bring custom acrylics, keycaps, and collectibles to life with strict IP protection.
