As the craze of earnings season draws to a close, here’s a look back at some of the most exciting (and some less so) results from Q3. Today, we are looking at toys and electronics stocks, starting with Funko (NASDAQ: FNKO).

The toys and electronics industry presents both opportunities and challenges for investors. Established companies often enjoy strong brand recognition and customer loyalty while smaller players can carve out a niche if they develop a viral, hit new product. The downside, however, is that success can be short-lived because the industry is very competitive: the barriers to entry for developing a new toy are low, which can lead to pricing pressures and reduced profit margins, and the rapid pace of technological advancements necessitates continuous product updates, increasing research and development costs, and shortening product life cycles for electronics companies. Furthermore, these players must navigate various regulatory requirements, especially regarding product safety, which can pose operational challenges and potential legal risks.

The 4 toys and electronics stocks we track reported a slower Q3. As a group, revenues missed analysts’ consensus estimates by 1% while next quarter’s revenue guidance was in line.

In light of this news, share prices of the companies have held steady as they are up 1.2% on average since the latest earnings results.

Best Q3: Funko (NASDAQ: FNKO)

Boasting partnerships with media franchises like Marvel and One Piece, Funko (NASDAQ: FNKO) is a company specializing in creating and distributing licensed pop culture collectibles.

Funko reported revenues of $250.9 million, down 14.3% year on year. This print fell short of analysts’ expectations by 4.2%, but it was still a very strong quarter for the company with a beat of analysts’ EPS estimates and an impressive beat of analysts’ EBITDA estimates.

"We delivered a solid 2025 third quarter performance, with net sales in line with internal expectations and gross margin and bottom-line profitability well ahead of expectations,” said Josh Simon, Chief Executive Officer of Funko.

Interestingly, the stock is up 4.5% since reporting and currently trades at $3.16.

Is now the time to buy Funko? Access our full analysis of the earnings results here, it’s free for active Edge members.

Hasbro (NASDAQ: HAS)

Credited with the creation of toys such as Mr. Potato Head and the Rubik’s Cube, Hasbro (NASDAQ: HAS) is a global entertainment company offering a diverse range of toys, games, and multimedia experiences for children and families.

Hasbro reported revenues of $1.39 billion, up 8.3% year on year, outperforming analysts’ expectations by 3.2%. The business had a strong quarter with a decent beat of analysts’ Wizards & Digital Gaming revenue estimates and a decent beat of analysts’ revenue estimates.

Hasbro scored the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 8.6% since reporting. It currently trades at $81.63.

Is now the time to buy Hasbro? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: Bark (NYSE: BARK)

Making a name for itself with the BarkBox, Bark (NYSE: BARK) specializes in subscription-based, personalized pet products.

Bark reported revenues of $107 million, down 15.2% year on year, exceeding analysts’ expectations by 2.6%. Still, it was a softer quarter as it posted a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EBITDA estimates.

Bark delivered the slowest revenue growth in the group. As expected, the stock is down 16.6% since the results and currently trades at $0.67.

Read our full analysis of Bark’s results here.

Mattel (NASDAQ: MAT)

Known for the creation of iconic toys such as Barbie and Hotwheels, Mattel (NASDAQ: MAT) is a global children's entertainment company specializing in the design and production of consumer products.

Mattel reported revenues of $1.74 billion, down 5.9% year on year. This result missed analysts’ expectations by 5.5%. It was a softer quarter as it also recorded a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

Mattel had the weakest performance against analyst estimates among its peers. The stock is up 8.3% since reporting and currently trades at $20.39.

Read our full, actionable report on Mattel here, it’s free for active Edge members.

Market Update

As a result of the Fed’s rate hikes in 2022 and 2023, inflation has come down from frothy levels post-pandemic. The general rise in the price of goods and services is trending towards the Fed’s 2% goal as of late, which is good news. The higher rates that fought inflation also didn't slow economic activity enough to catalyze a recession. So far, soft landing. This, combined with recent rate cuts (half a percent in September 2024 and a quarter percent in November 2024) have led to strong stock market performance in 2024. The icing on the cake for 2024 returns was Donald Trump’s victory in the U.S. Presidential Election in early November, sending major indices to all-time highs in the week following the election. Still, debates around the health of the economy and the impact of potential tariffs and corporate tax cuts remain, leaving much uncertainty around 2025.

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