Funko Sales Rise 3% as Loungefly Declines
The toy and collectibles company reported third-quarter net sales of $258.3 million, with gains led by its core collectibles line.
Updated on Nov. 5, 2026 in Retail
Funko reported third-quarter net sales increasing 3% to $258.3 million, with Core Collectibles growing nearly 5% or $9.7 million. The company also cut approximately half of its Loungefly SKUs during the quarter as sales of that line declined nearly 10%.
Why it matters
The results show Funko leaning on its core Pop! figure franchise and improved margins while pruning weaker product lines. Gross margin rose to 45.2% from 40.2% a year earlier, driven partly by lower tariffs and reduced royalty costs.
Net sales rose 3% to $258.3 million, with Europe sales up 12% and Core Collectibles adding $9.7 million. Adjusted EBITDA reached $32.1 million versus $24.4 million a year earlier, while the company maintained its full-year guidance of $100 million to $110 million.
The players
Funko
Funko is a collectibles company known for its Pop! vinyl figures and the Loungefly brand of bags and accessories.
The details
Funko's Core Collectibles gains came from standard Pop! figures, Mystery Minis, and the timing of Advent calendar releases. Loungefly sales fell nearly 10%, and the company said its SKU reduction reflected improving productivity and strong sales from exclusives, while its top 10 properties accounted for 34% of sales.
Timeline
Q2 2026: Funko recognized a $25.4 million tariff-related benefit.
Q3 2026: Funko reported quarterly results and cut Loungefly SKUs.
Full year 2026: Funko maintained its outlook calling for flat to 3% sales growth.
Market Landscape
Funko's strategy of pairing its mass-market Pop! line with one-of-one auction pieces, such as the Babe Ruth figure that sold for approximately $26,000 through Goldin, reflects a push into higher-value collectibles. The approach differentiates the company as it prunes weaker licensed lines like Loungefly.
Shoppers may see fewer Loungefly styles as the company cuts roughly half of its SKUs. Collectors of standard Pop! figures and Advent calendars are the main source of Funko's core growth, so product availability in those lines is likely to remain steady.
The takeaway
Funko's results show that trimming weaker lines and leaning on proven franchises can protect margins even when overall sales growth stays modest. Readers following the toy and collectibles sector can watch whether the company's full-year sales and EBITDA guidance holds.
Further reading
For more on how retailers and brands are adjusting their product lines, see Retail.
Source note: This article includes information reported by The Toy Book.
