Cash flow generation remains erratic, evidenced by a swing from a $47.8M free cash flow peak in 2024Q4 to a $31.8M deficit in 2025Q2, highlighting significant operational volatility.
| Cash from Operations | 27.29M | -5.12M | 123.52M | 30.93M | -40.13M | 87.36M | 108.74M | 90.77M | 49.99M | 23.84M | 49.47M | 22.65M |
| Operating CF Margin % | - | -0.56% | 11.77% | 2.82% | -3.03% | 8.49% | 16.66% | 11.42% | 7.29% | 4.62% | 11.59% | 8.26% |
| Operating CF Growth % | 179.94% | -104.14% | 299.3% | 177.08% | -145.94% | -19.66% | 19.8% | 81.56% | 109.72% | -51.81% | 118.42% | - |
| Net Income | -57.85M | -68.3M | -15.07M | -164.44M | -5.24M | 67.85M | 9.76M | 27.82M | 25.06M | 5.6M | 26.88M | 11.94M |
| Depreciation & Amortization | 58.61M | 59.1M | 62.58M | 57.39M | 47.92M | 40.06M | 46.74M | 44.52M | 39.12M | 31.98M | 23.51M | 9.09M |
| Stock-Based Compensation | 10.69M | 11.54M | 13.6M | 10.53M | 16.59M | 12.99M | 10.12M | 13.04M | 9.14M | 5.57M | 2.37M | 14.41M |
| Deferred Taxes | 0 | 0 | -57K | 123.12M | -17.41M | -361K | 3.32M | -2.29M | -964K | -718K | 0 | 0 |
| Other Non-Cash Items | -2.6M | -1.88M | 3.72M | -94.36M | 6.15M | 3.2M | 3.3M | 1.84M | 10.96M | 9.55M | 6.9M | 17.52M |
| Working Capital Changes | 18.96M | -5.58M | 58.74M | 98.69M | -88.14M | -36.38M | 35.49M | 5.83M | -33.32M | -28.15M | -10.19M | -30.32M |
| Change in Receivables | 2.6M | 6.19M | 9.62M | 40.51M | 19.07M | -56.65M | 20.08M | -3.97M | -36.14M | -28.47M | -33.62M | -30.02M |
| Change in Inventory | 11.98M | 11.81M | 26.22M | 122.48M | -82.21M | -107.17M | 2.85M | 25.37M | -8.89M | -16.7M | 6.01M | -7.74M |
| Change in Payables | -3.81M | 426K | 9.28M | -17.97M | 11.04M | 26.93M | -13.3M | 4.63M | -16.38M | 19M | 14.65M | 0 |
| Cash from Investing | -33.75M | -31.9M | -25.23M | -39.8M | -78.06M | -27.38M | -18.48M | -48.63M | -27.5M | -65.22M | -22.11M | -254.46M |
| Capital Expenditures | -25.72M | -32.97M | -32.79M | -35.13M | -59.15M | -27.76M | -18.48M | -42.26M | -26.87M | -33.56M | -21.2M | -11.89M |
| CapEx % of Revenue | 2.8% | 3.63% | 3.12% | 3.21% | 4.47% | 2.7% | 2.83% | 5.32% | 3.92% | 6.5% | 4.97% | 4.34% |
| Acquisitions | 0 | 0 | 0 | -5.36M | -19.48M | 199K | 0 | -6.37M | -635K | -31.65M | -903K | -242.57M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -8.03M | 1.06M | 7.56M | 699K | 562K | 179K | 0 | 0 | -635K | -31.65M | 0 | 0 |
| Cash from Financing | 13.23M | 42.04M | -99.24M | 25.6M | 54.64M | -28.63M | -63.34M | -28.34M | -15.05M | 43.01M | -45.61M | 255.85M |
| Debt Issued (Net) | 13.14M | 41.87M | -91.6M | 27.92M | 72M | -18.38M | -53.27M | -6.05M | 7.87M | 11.41M | 46.76M | 149.21M |
| Equity Issued (Net) | 0 | 0 | 0 | 0 | 1.47M | 3.79M | 0 | 0 | 0 | 117.34M | 0 | 0 |
| Dividends Paid | 0 | 0 | 0 | -1.12M | -10.71M | -9.28M | -3.58M | -23.92M | -20.44M | -72.78M | -70.43M | -12.17M |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -2.22M | 0 | 0 | 0 | 0 |
| Other Financing | 84K | 171K | -7.64M | -1.21M | -8.12M | -4.77M | -6.49M | 1.63M | -2.48M | -12.96M | -21.94M | 118.81M |
| Net Change in Cash | 8.36M | 7.49M | -1.8M | 17.25M | -64.36M | 31.3M | 27.03M | 11.74M | 5.76M | 1.57M | -18.25M | 24.03M |
| Free Cash Flow | -7.33M | -38.09M | 90.73M | -4.2M | -99.28M | 59.6M | 90.26M | 48.5M | 23.13M | -9.72M | 28.27M | 10.75M |
| FCF Margin % | -0.8% | -4.19% | 8.64% | -0.38% | -7.51% | 5.79% | 13.83% | 6.1% | 3.37% | -1.88% | 6.62% | 3.92% |
| FCF Growth % | -114.22% | -141.97% | 2262.37% | 95.77% | -266.57% | -33.96% | 86.09% | 109.73% | 337.79% | -134.41% | 162.87% | - |
| FCF per Share | -0.13 | -0.70 | 1.74 | -0.09 | -2.23 | 1.47 | 2.52 | 1.47 | 0.90 | -0.38 | 1.21 | 0.46 |
| FCF Conversion (FCF/Net Income) | 0.13x | 0.08x | -8.39x | -0.20x | 4.99x | 1.99x | 27.45x | 7.74x | 6.70x | 5.39x | 1.84x | 1.90x |
| Interest Paid | 0 | 0 | 20.95M | 24.64M | 8.86M | 5.68M | 9.09M | 12.31M | 19.4M | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 3.9M | 1.06M | 22.36M | 1.46M | 4.17M | 14.13M | 2.31M | 0 | 0 | 0 |
Inventory Liquidation and Solvency
As reported in recent financial statements, the persistent gap between net income and operating cash flow suggests that Funko's earnings quality is significantly impaired, with the company frequently reporting negative net income while struggling to maintain consistent, positive cash generation from its core operational activities.
The frequent divergence between net losses and operating cash flow indicates that non-cash charges and working capital fluctuations are masking the underlying cash-burning nature of the business. Investors should monitor whether this disconnect reflects aggressive accounting for inventory or a fundamental inability to convert sales into actual liquidity.
Based on the provided cash flow data, Funko's free cash flow trajectory is highly erratic, swinging from a peak of $47.8M in 2024Q4 to a deficit of $31.8M in 2025Q2, highlighting the extreme sensitivity of the company's cash position to cyclical demand and inventory management challenges.
The inability to sustain positive free cash flow suggests that the company's capital requirements are currently outpacing its operational efficiency. This volatility warrants further investigation into whether the business can achieve a stable cash-generative state without significant structural changes to its product release and inventory cycles.
According to historical filings, Funko's capital expenditure as a percentage of revenue has trended upward, reaching 5.0% in 2025Q2, which appears disproportionate given the concurrent contraction in top-line growth and the company's ongoing struggle to maintain positive operating margins.
The persistent investment in capital assets despite declining revenue suggests that the company may be over-capitalizing its infrastructure relative to its current scale. This trend may indicate that maintenance capex is becoming a heavier burden on cash flow, limiting the flexibility needed to navigate a downturn.
As evidenced by the quarterly cash flow data, working capital changes have been a primary driver of cash flow instability, with swings ranging from a $38M inflow in 2024Q4 to a $13.4M outflow in 2025Q1, reflecting significant friction in inventory turnover and collection cycles.
These erratic working capital movements suggest that the company is struggling to align its production schedules with actual consumer demand. The reliance on these fluctuations to bolster cash flow may indicate that the company is vulnerable to sudden liquidity shocks if retail partners reduce their inventory intake.
Based on the provided financial data, the consistent use of stock-based compensation, averaging over $3M per quarter, serves to obscure the true cash cost of operations, effectively diluting shareholders while the company simultaneously faces significant cash outflows related to inventory and operational overhead.
The reliance on non-cash adjustments to reconcile operating cash flow warrants caution, as these figures do not reflect the actual economic cost of maintaining the company's workforce and licensing agreements. Investors should monitor whether these adjustments are masking a deeper, structural cash deficit that is not immediately apparent.
Quick answers to the most common questions about buying FNKO stock.
Funko, Inc. (FNKO) generated $-5.1M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Funko, Inc. (FNKO) reported negative free cash flow of $38.1M in 2025, indicating capital requirements exceeded cash from operations.
Funko, Inc. (FNKO) spent $33.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.