Funko Inc. has seen better days. Since the clock struck midnight on New Year’s Eve, the company’s stock has lost 47% in value. A pretty sad fall for a brand that once felt like an unstoppable force in pop culture collectibles. Funko’s signature Pop! figures have been a staple on the shelves of collectors, comic fans, and anyone who has ever wandered into a GameStop looking for a quick dopamine hit (right before realizing they still don’t give you anything for your old Xbox games). 

Yet, despite its devoted customer base, the company has been battling serious financial boo boos, including an inventory disaster so bad that it had to dump $30 million worth of unsold figurines into landfills (which, ironically, made those trashed figures rarer and probably more valuable).

But in a surprising turn of events, two of Funko’s top insiders just put a lot of cheddar on the company’s future, buying up over $213,000 worth of stock in the past week. If you’ve ever watched a corporate executive buy shares in their own struggling company, you know this usually means one of two things… either they’ve got some insider info that something big is just around the corner, or they’re about to make a very expensive mistake. So, let’s break it down.

The biggest problem plaguing Funko over the past couple of years has been inventory mismanagement of epic proportions. In the collectibles world, scarcity creates demand (basic economics, right?). But Funko went with the Costco sample table approach instead, flooding the market with new releases and failing to predict shifts in consumer interest. That’s how it ended up trashing millions of dollars’ worth of figures, a move that killed investor confidence and put the company’s ability to manage its own business into question (seriously, how do you screw up selling plastic toys of beloved characters?).

Yet, even with these blunders, Funko remains the leader in licensed collectibles, with its products spanning major franchises like Disney, Marvel, Star Wars, and even niche cult favorites (I’m literally writing this while a Derrick Henry Funko sits on my desk, silently judging me). In other words, Funko isn’t disappearing anytime soon. It still holds valuable partnerships and continues to churn out figures that fans can’t resist. What it needs now is momentum to restore profitability and cut waste before another round of Bob Ross figurines ends up buried in a landfill next to E.T. video game cartridges.

For all the doom and gloom, Funko actually shocked Wall Street with its most recent earnings report. The company posted an earnings per share of $0.08, beating analyst expectations of $0.00 (which, honestly, was about as low as the bar could be set). Revenue came in at $293.7 million, well above the expected $285.4 million. But the real jaw-dropper was a projected EPS growth of 413.6% for the year… an absurd number compared to the industry average 12.3% (someone needs to check if that’s a typo, because that’s almost meme-worthy).

But don’t go pants off just yet. Full-year net sales dipped from $1.1 billion in 2023 to $1.05 billion in 2024, proving that the company still has a long way to go. Funko has adjusted its 2025 sales guidance, expecting revenue between $1.05 billion and $1.082 billion… a slight downward revision that’s largely tied to external pressures, including a 20% tariff on Chinese goods that has squeezed the company’s profit margins like a lemon. To combat these issues, Funko is shifting its strategy towards direct-to-consumer sales and expanding into international markets.

If you’re looking for even more bullishness (if that’s a word), institutional investors are also making moves. A recent report shows that 74 institutional investors have increased their stakes in Funko, while 69 have reduced their holdings (make of that what you will).

Analysts have price targets ranging from $7 to $13, with some models indicating that Funko is currently undervalued. While that doesn’t guarantee a rebound, it suggests that the recent selloff may have been an overreaction rather than a fundamental collapse. The company still dominates a valuable niche market, and in my opinion if it can rein in spending, fix its inventory issues, capitalize on fan demand, and avoid dumping $30 million worth of figurines in the landfill… a comeback is definitely in play.

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Stock.News has positions in Disney.