[8-K] Funko, Inc. Reports Material Event
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Funko, Inc. reported fourth-quarter 2025 net sales of $273.1 million, down from $293.7 million a year earlier, with gross margin at 40.9%. SG&A fell to $90.9 million, and net loss narrowed to $0.2 million, or $0.00 per share. Adjusted EBITDA was $23.3 million, or an 8.5% margin.
For full-year 2025, net sales were $908.2 million versus $1.05 billion and net loss widened to $67.4 million, or $1.24 per share. Adjusted EBITDA declined to $26.6 million from $94.7 million. The company ended 2025 with $42.1 million in cash, $83.1 million in inventories and total debt of $225.3 million.
Funko guided 2026 full-year net sales to be flat to up 3% versus 2025 and expects gross margin of about 41% to 43%. It projects 2026 adjusted EBITDA between $70 million and $80 million and first-quarter 2026 adjusted EBITDA around breakeven, assuming ongoing U.S. tariff rates of approximately 15%.
Positive
- None.
Negative
- None.
Insights
2025 was weak, but guidance implies a meaningful 2026 profit rebound.
Funko showed soft 2025 fundamentals: net sales fell to $908.2 million from $1.05 billion and adjusted EBITDA dropped to $26.6 million from $94.7 million. Full-year net loss widened to $67.4 million, highlighting pressure on scale and profitability.
The Q4 picture is more stable, with net sales of $273.1 million, gross margin of 40.9% and adjusted EBITDA of $23.3 million, suggesting recent operational improvements. Management cites better product mix, lower allowances and SG&A control as drivers.
For 2026, guidance targets flat to low-single-digit net sales growth but a large adjusted EBITDA increase to $70–$80 million. That hinges on executing price increases, cost reductions and lower royalty minimum guarantees while managing tariffs around 15%. Subsequent filings will show whether margins move toward the guided 41–43% range.
Leverage remains elevated but liquidity improved modestly in 2025.
At December 31, 2025, cash and equivalents were $42.1 million versus $34.7 million a year earlier. Inventories declined to $83.1 million, indicating progress in working capital. However, total debt rose to $225.3 million from $182.8 million, increasing balance sheet leverage.
Management notes paying down $16 million of debt in Q4 and amending the credit agreement, extending maturity to December 31, 2027. Net cash used in operating activities was $5.1 million for 2025, compared with $123.5 million provided in 2024, which constrains deleveraging capacity.
For 2026, expected interest expense of about $18 million underscores the importance of achieving the guided adjusted EBITDA of $70–$80 million. The ability to sustain positive operating cash flow while servicing higher term debt and the revolving facility will be a key credit consideration.
8-K Event Classification
3 items: 2.02, 7.01, 9.01
3 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
(Exact Name of Registrant as Specified in its Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||
(Address of Principal Executive Offices) (Zip Code)
(425 ) 783-3616
(Registrant’s telephone number, including area code)
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A Common Stock, $0.0001 par value per share | ||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On March 12, 2026, Funko, Inc. (the “Company”) announced its financial results for the quarter and fiscal year ended December 31, 2025. The full text of the press release (the “Press Release”) issued in connection with the announcement is furnished as Exhibit 99.1 to this report and is incorporated herein by reference. The information contained in the website cited in the Press Release is not incorporated herein.
Item 7.01. Regulation FD Disclosure.
The Company intends to participate in upcoming meetings with investors. The presentation materials for such meetings are furnished as Exhibit 99.2 of this report.
The information in Item 2.02 and 7.01 of this report (including Exhibit 99.1) shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such a filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits:
| Exhibit No. | Description | |||||||
| 99.1 | Press release of Funko, Inc. issued March 12, 2026. | |||||||
| 99.2 | Presentation of Funko, Inc. dated March 12, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: March 12, 2026 | FUNKO, INC. | |||||||
| By: | /s/ Yves Le Pendeven | |||||||
| Yves Le Pendeven | ||||||||
| Chief Financial Officer (Principal Financial Officer) | ||||||||
Funko Reports 2025 Fourth-Quarter, Full-Year Financial Results;
Provides Full-Year Outlook for 2026
--Q4 Net Sales Exceed Expectations, Gross Margin and Adjusted EBITDA at High End of Expectations--
EVERETT, Wash. March 12, 2026 -- Funko, Inc. (Nasdaq: FNKO), a leading pop culture and collectibles brand, today reported its consolidated financial results for the fourth quarter and full year ended December 31, 2025. The company also provided financial guidance for the 2026 first quarter and full year.
Fourth-Quarter Financial Results Summary: 2025 vs 2024
•Net sales were $273.1 million compared with $293.7 million
•Gross profit was $111.6 million, equal to gross margin of 40.9%, compared with $124.4 million, equal to gross margin of 42.4%
•SG&A expenses were $90.9 million compared with $102.8 million
•Net loss was $0.2 million, or $0.00 per share, compared with $1.5 million, or $0.03 per share
•Adjusted net income* was $2.5 million, or $0.05 per diluted share*, compared with $4.4 million, or $0.08 per diluted share*
•Adjusted EBITDA* was $23.3 million compared with $26.3 million
Full-Year Financial Results Summary: 2025 vs 2024
•Net sales were $908.2 million compared with $1.05 billion
•Gross profit was $351.3 million, equal to gross margin of 38.7%. This compares with $434.5 million, equal to gross margin of 41.4%
•SG&A expenses were $337.7 million compared with $359.0 million
•Net loss was $67.4 million, or $1.24 per share, compared with $14.7 million, or $0.28 per share
•Adjusted net loss* was $38.8 million, or $0.70 per diluted share*, versus adjusted net income* of $8.7 million, or $0.16 per share*
•Adjusted EBITDA* was $26.6 million compared with $94.7 million
"We closed the year with two consecutive quarters of solid financial results,” said Josh Simon, Chief Executive Officer of Funko. "Our fourth quarter performance was driven by strong sales of entertainment properties, notably KPop Demon Hunters and Stranger Things, as well as our Bitty Pop! franchise and the launch of Pop! Yourself in Europe.
"Turning to our balance sheet, we reduced our inventory levels and paid down $16 million of debt in Q4. And, as previously announced, we reached an agreement with our lender group to amend our credit agreement, which extends the maturity to December 31, 2027 and provides us with the financial flexibility to deliver on our long-term plans.
"Looking ahead, we’re excited about the 2026 entertainment slate and executing our 'Make Culture POP!' strategy -- winning the moments that shape culture, scaling storytelling across new products and platforms, expanding our touchpoints with fans and driving profitable growth.”
Fourth Quarter 2025 Net Sales by Category and Geography
The tables below show the breakdown of net sales on a brand category and geographical basis (in thousands):
| Three Months Ended December 31, | Period Over Period Change | |||||||||||||||||||||||||
| 2025 | 2024 | Dollar | Percentage | |||||||||||||||||||||||
| Net sales by product brand: | ||||||||||||||||||||||||||
| Core Collectible | $ | 220,957 | $ | 232,703 | $ | (11,746) | (5.0) | % | ||||||||||||||||||
| Loungefly | 43,125 | 42,364 | 761 | 1.8 | % | |||||||||||||||||||||
| Other | 9,014 | 18,662 | (9,648) | (51.7) | % | |||||||||||||||||||||
| Total net sales | $ | 273,096 | $ | 293,729 | $ | (20,633) | (7.0) | % | ||||||||||||||||||
| Three Months Ended December 31, | Period Over Period Change | |||||||||||||||||||||||||
| 2025 | 2024 | Dollar | Percentage | |||||||||||||||||||||||
| Net sales by geography: | ||||||||||||||||||||||||||
| United States | $ | 156,719 | $ | 178,183 | $ | (21,464) | (12.0) | % | ||||||||||||||||||
| Europe | 96,238 | 94,694 | 1,544 | 1.6 | % | |||||||||||||||||||||
| Other International | 20,139 | 20,852 | (713) | (3.4) | % | |||||||||||||||||||||
| Total net sales | $ | 273,096 | $ | 293,729 | $ | (20,633) | (7.0) | % | ||||||||||||||||||
Balance Sheet Highlights - At December 31, 2025 vs December 31, 2024
•Total cash and cash equivalents were $42.1 million at December 31, 2025 versus $34.7 million at December 31, 2024
•Inventories were $83.1 million at December 31, 2025 versus $92.6 million at December 31, 2024
•Total debt was $225.3 million at December 31, 2025 versus $182.8 million at December 31, 2024. Total debt includes the amount outstanding under the company's term loan facility, net of unamortized discounts, revolving line of credit and the company's equipment finance loan
Outlook for 2026
The company provided its 2026 full-year outlook and 2026 first-quarter guidance, which assumes ongoing tariff rates of approximately 15%, as follows:
| Current Outlook | ||||||||
| 2026 Full Year | ||||||||
| Net Sales | flat to up 3% vs 2025 | |||||||
| Gross Margin % | ~41% to 43% | |||||||
| Adjusted EBITDA* | $70 million to $80 million | |||||||
| 2026 First Quarter | ||||||||
| Net sales | flat to down 2% vs Q1 2025 | |||||||
| Gross margin % | ~41% to 43% | |||||||
| Adjusted EBITDA* | ~breakeven | |||||||
*Adjusted net income (loss), adjusted net income (loss) per diluted share and adjusted EBITDA are non-GAAP financial measures. For a reconciliation of historical adjusted net income (loss), adjusted income (loss) per diluted share, and adjusted EBITDA, to the most directly comparable U.S. GAAP financial measures, please refer to the “Non-GAAP Financial Measures” section of this press release. A reconciliation of adjusted net income (loss), adjusted net income (loss) per diluted share and adjusted EBITDA outlook to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to certain items. However, for the first quarter of 2026 the company expects equity-based compensation of approximately $4 million, depreciation and amortization of approximately $15 million and interest expense of approximately $5 million. For the full year 2026, the company expects equity-based compensation of approximately $15 million, depreciation and amortization of approximately $60 million and interest expense of approximately $18 million, each of which is a reconciling item to net loss. See "Use of Non-GAAP Financial Measures" and the attached reconciliations for more information.
Conference Call and Webcast
The company will host a webcast at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) today, March 12, 2026, to further discuss its fourth-quarter and full-year results and business update. A live webcast, presentation materials and a replay of the event will be available on the Investor Relations section on the Company’s website at investor.funko.com. The replay of the webcast will be available for one year.
Use of Non-GAAP Financial Measures
This release contains references to non-GAAP financial measures, including adjusted net income (loss), including per share amounts, adjusted EBITDA, adjusted EBITDA margin and adjusted net income (loss) margin, which are financial measures that are not prepared in conformity with United States generally accepted accounting principles (U.S. GAAP). Management uses these measures internally for evaluating its operating performance, for planning purposes, including the preparation of our annual operating budget and financials projections, to assess incentive compensation for our employees, and to evaluate our capacity to expand our business. The company's management believes that the presentation of non-GAAP financial measures provides useful supplementary information regarding operational performance because it enhances an investor's overall understanding of the financial results for the company's core business. Additionally, it provides a basis for the comparison of the financial results for the company's core business between current, past and future periods as they remove the impact of items not directly resulting from our core operations. The company also believes that including adjusted EBITDA and the other non-GAAP financial measures presented in this release is appropriate to provide additional information to investors and help to compare against other companies in our industry. Non-GAAP financial measures have limitations as analytical tools and should be considered only as a supplement to, and not as a substitute for or as a superior measure to, financial measures prepared in accordance with U.S. GAAP. We caution investors that amounts presented in accordance with our definitions of adjusted net income (loss), including per share amounts, adjusted EBITDA and adjusted EBITDA margin may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate these measures in the same manner.
Detailed reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the financial tables following this release.
About Funko
Headquartered in Everett, Washington, Funko is a leading pop culture and collectibles brand. Funko designs, sources and distributes licensed pop culture products across multiple categories, including vinyl figures, action toys, plush, apparel, housewares and accessories for consumers who seek tangible ways to connect with their favorite pop culture brands and characters. Learn more at www.funko.com and follow us on X (Twitter) (@OriginalFunko) and Instagram (@OriginalFunko).
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our product offerings, our strategic plan and speed to market, anticipated financial results, including without limitation, full-year and first-quarter 2026 guidance, equity-based compensation, refinancing of our debt and financial position, and the impact of and anticipated trends in the macroeconomic environment, including tariffs and potential tariff refunds, on the company’s business. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: impacts from economic downturns; changes in the retail industry and markets for our consumer products; risks associated with our international operations, including risk related to tariffs and trade restrictions; risks relating to our indebtedness, including our ability to comply with financial and negative covenants under our Credit Agreement, as amended; our ability to execute our business strategy; our ability to manage our inventories and growth; our ability to identify or complete any strategic alternative transaction; our dependence on content development and creation by third parties; our ability to obtain, maintain and protect our intellectual property rights or those of our licensors; fluctuations in our gross margin and seasonal impacts; our dependence on vendors and outsourcers; risks relating to government regulation; risks relating to litigation, including products liability claims and securities class action litigation; risk resulting from our e-commerce business and social media presence; our ability to successfully operate our information systems and implement new technology; our ability to secure additional financing on favorable terms or at all; the influence of our significant stockholder, TCG, and the possibility that TCG’s interests may conflict with the interests of our other stockholders; risks relating to our organizational structure; including the Tax Receivable Agreement ("TRA") which confers certain benefits upon the parties to the TRA ("TRA Parties") that will not benefit Class A common stockholders to the same extent as it will benefit the TRA Parties; and volatility in the price of our Class A common stock. These and other important factors discussed under the caption “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2025 and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
Investor Relations:
investorrelations@funko.com
Media:
pr@funko.com
Funko, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations
(Unaudited)
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||
| Net sales | $ | 273,096 | $ | 293,729 | $ | 908,209 | $ | 1,049,850 | |||||||||||||||
| Cost of sales (exclusive of depreciation and amortization shown separately below) | 161,489 | 169,326 | 556,940 | 615,318 | |||||||||||||||||||
| Selling, general, and administrative expenses | 90,855 | 102,804 | 337,715 | 358,958 | |||||||||||||||||||
| Depreciation and amortization | 14,778 | 16,174 | 59,097 | 62,583 | |||||||||||||||||||
| Total operating expenses | 267,122 | 288,304 | 953,752 | 1,036,859 | |||||||||||||||||||
Income (loss) from operations | 5,974 | 5,425 | (45,543) | 12,991 | |||||||||||||||||||
| Interest expense, net | 5,199 | 4,212 | 19,181 | 20,575 | |||||||||||||||||||
Other (income) expense, net | (481) | 928 | (785) | 2,922 | |||||||||||||||||||
Income (loss) before income taxes | 1,256 | 285 | (63,939) | (10,506) | |||||||||||||||||||
Income tax expense | 1,436 | 1,705 | 4,356 | 4,564 | |||||||||||||||||||
Net loss | (180) | (1,420) | (68,295) | (15,070) | |||||||||||||||||||
Less: net income (loss) attributable to non-controlling interests | 3 | 80 | (935) | (352) | |||||||||||||||||||
Net loss attributable to Funko, Inc. | $ | (183) | $ | (1,500) | $ | (67,360) | $ | (14,718) | |||||||||||||||
Loss per share of Class A common stock: | |||||||||||||||||||||||
| Basic | $ | — | $ | (0.03) | $ | (1.24) | $ | (0.28) | |||||||||||||||
| Diluted | $ | — | $ | (0.03) | $ | (1.24) | $ | (0.28) | |||||||||||||||
| Weighted average shares of Class A common stock outstanding: | |||||||||||||||||||||||
| Basic | 54,988 | 52,826 | 54,387 | 52,043 | |||||||||||||||||||
| Diluted | 55,501 | 52,826 | 54,387 | 52,043 | |||||||||||||||||||
Funko, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
| December 31, | |||||||||||
| 2025 | 2024 | ||||||||||
| (in thousands, except per share data) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 42,148 | $ | 34,655 | |||||||
| Accounts receivable, net | 117,018 | 119,882 | |||||||||
| Inventories | 83,136 | 92,580 | |||||||||
| Prepaid expenses and other current assets | 48,094 | 39,942 | |||||||||
| Total current assets | 290,396 | 287,059 | |||||||||
| Property and equipment, net | 68,679 | 78,357 | |||||||||
| Operating lease right-of-use assets, net | 46,928 | 52,846 | |||||||||
| Goodwill | 133,900 | 133,652 | |||||||||
| Intangible assets, net | 135,826 | 151,547 | |||||||||
| Other assets | 9,505 | 3,793 | |||||||||
| Total assets | $ | 685,234 | $ | 707,254 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of revolving credit facility | $ | 1,125 | $ | 60,000 | |||||||
| Current portion of term debt | 21,932 | 22,512 | |||||||||
| Current portion of operating lease liabilities | 18,792 | 17,102 | |||||||||
| Accounts payable | 64,748 | 63,130 | |||||||||
| Accrued royalties | 59,821 | 61,362 | |||||||||
| Accrued expenses and other current liabilities | 77,499 | 81,688 | |||||||||
| Total current liabilities | 243,917 | 305,794 | |||||||||
| Long-term debt | 202,246 | 100,303 | |||||||||
| Operating lease liabilities | 48,680 | 60,390 | |||||||||
| Other long-term liabilities | 4,261 | 4,414 | |||||||||
| Commitments and contingencies | |||||||||||
| Stockholders' equity: | |||||||||||
| Class A common stock, par value $0.0001 per share, 200,000 shares authorized; 55,327 shares and 52,967 shares issued and outstanding as of December 31, 2025 and 2024, respectively | 5 | 5 | |||||||||
| Class B common stock, par value $0.0001 per share, 50,000 shares authorized; 91 shares and 1,430 shares issued and outstanding as of December 31, 2025 and 2024, respectively | — | — | |||||||||
| Additional paid-in-capital | 357,330 | 343,472 | |||||||||
| Accumulated other comprehensive income (loss) | 4,621 | (1,676) | |||||||||
| Accumulated deficit | (176,142) | (108,782) | |||||||||
| Total stockholders' equity attributable to Funko, Inc. | 185,814 | 233,019 | |||||||||
| Non-controlling interests | 316 | 3,334 | |||||||||
| Total stockholders' equity | 186,130 | 236,353 | |||||||||
| Total liabilities and stockholders' equity | $ | 685,234 | $ | 707,254 | |||||||
Funko, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| (in thousands) | |||||||||||||||||
| Operating Activities | |||||||||||||||||
| Net loss | $ | (68,295) | $ | (15,070) | $ | (164,438) | |||||||||||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||||||
| Depreciation and amortization | 59,097 | 62,583 | 57,389 | ||||||||||||||
| Equity-based compensation | 11,536 | 13,602 | 10,534 | ||||||||||||||
| Loss on debt extinguishment | — | — | 494 | ||||||||||||||
| Gain on tax receivable agreement liability adjustment | — | — | (100,223) | ||||||||||||||
| Deferred tax (benefit) expense | — | (57) | 123,124 | ||||||||||||||
| Other, net | (1,877) | 3,722 | 5,364 | ||||||||||||||
| Changes in operating assets and liabilities, net of amounts acquired: | |||||||||||||||||
| Accounts receivable, net | 6,192 | 9,624 | 40,513 | ||||||||||||||
| Inventories | 11,812 | 26,216 | 122,479 | ||||||||||||||
| Prepaid expenses and other assets | (3,437) | 17,076 | (1,969) | ||||||||||||||
| Accounts payable | 426 | 9,280 | (17,968) | ||||||||||||||
| Income taxes payable | (274) | (597) | 75 | ||||||||||||||
| Accrued royalties | (1,542) | 6,987 | (14,723) | ||||||||||||||
| Accrued expenses and other liabilities | (18,758) | (9,842) | (29,716) | ||||||||||||||
| Net cash (used in) provided by operating activities | (5,120) | 123,524 | 30,935 | ||||||||||||||
| Investing Activities | |||||||||||||||||
| Purchase of property and equipment | $ | (32,965) | $ | (32,791) | $ | (35,131) | |||||||||||
| Acquisitions of business and intangible assets, net of cash acquired | — | — | (5,364) | ||||||||||||||
| Sale of Funko Games inventory and certain intellectual property | — | 6,754 | — | ||||||||||||||
| Other, net | 1,063 | 809 | 699 | ||||||||||||||
| Net cash used in investing activities | (31,902) | (25,228) | (39,796) | ||||||||||||||
| Financing Activities | |||||||||||||||||
| Borrowings on revolving credit facility | $ | 85,000 | $ | 40,000 | $ | 71,000 | |||||||||||
| Payments on revolving credit facility | (20,000) | (100,500) | (20,500) | ||||||||||||||
| Payment of term debt | (23,134) | (31,104) | (22,581) | ||||||||||||||
| Distributions to continuing equity owners | — | — | (1,118) | ||||||||||||||
| Payments under tax receivable agreement | — | (8,960) | (4) | ||||||||||||||
| Other, net | 171 | 1,322 | (1,201) | ||||||||||||||
| Net cash provided by (used in) financing activities | 42,037 | (99,242) | 25,596 | ||||||||||||||
| Effect of exchange rates on cash and cash equivalents | 2,478 | (852) | 518 | ||||||||||||||
| Net change in cash and cash equivalents | 7,493 | (1,798) | 17,253 | ||||||||||||||
| Cash and cash equivalents at beginning of period | 34,655 | 36,453 | 19,200 | ||||||||||||||
| Cash and cash equivalents at end of period | $ | 42,148 | $ | 34,655 | $ | 36,453 | |||||||||||
| Supplemental Cash Flow Information | |||||||||||||||||
| Cash paid for interest | $ | 18,343 | $ | 20,953 | $ | 24,635 | |||||||||||
| Income tax payments | 5,355 | 3,899 | 1,059 | ||||||||||||||
| Establishment of liabilities under tax receivable agreement | — | 547 | — | ||||||||||||||
The following tables reconcile the Non-GAAP Financial Measures to the most directly comparable U.S. GAAP financial performance measure, which is net loss, for the periods presented:
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in thousands, except per share data) | |||||||||||||||||||||||
| Net loss attributable to Funko, Inc. | $ | (183) | $ | (1,500) | $ | (67,360) | $ | (14,718) | |||||||||||||||
Reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock (1) | 3 | 80 | (935) | (352) | |||||||||||||||||||
Equity-based compensation (2) | 2,630 | 3,072 | 11,536 | 13,602 | |||||||||||||||||||
Acquisition transaction costs and other expenses (3) | (302) | 1,583 | 727 | 3,449 | |||||||||||||||||||
Certain severance, relocation and related costs (4) | — | 12 | — | 2,093 | |||||||||||||||||||
Foreign currency transaction loss (5) | 208 | 380 | 405 | 2,398 | |||||||||||||||||||
Tax receivable agreement liability adjustments (6) | (427) | 547 | (427) | 547 | |||||||||||||||||||
Income tax effect of adjustments and valuation allowance reversal (7) | 595 | 235 | 17,281 | 1,668 | |||||||||||||||||||
Adjusted net income (loss) | $ | 2,524 | $ | 4,409 | $ | (38,773) | $ | 8,687 | |||||||||||||||
Adjusted net income (loss) margin (8) | 0.9 | % | 1.5 | % | (4.3) | % | 0.8 | % | |||||||||||||||
| Weighted-average shares of Class A common stock outstanding-basic | 54,988 | 52,826 | 54,387 | 52,043 | |||||||||||||||||||
| Equity-based compensation awards and common units of FAH, LLC that are convertible into Class A common stock | 513 | 1,653 | 768 | 2,049 | |||||||||||||||||||
| Adjusted weighted-average shares of Class A stock outstanding - diluted | 55,501 | 54,479 | 55,155 | 54,092 | |||||||||||||||||||
| Adjusted earnings (loss) per diluted share | $ | 0.05 | $ | 0.08 | $ | (0.70) | $ | 0.16 | |||||||||||||||
| Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||
| (in thousands) | |||||||||||||||||||||||
Net loss | $ | (180) | $ | (1,420) | $ | (68,295) | $ | (15,070) | |||||||||||||||
| Interest expense, net | 5,199 | 4,212 | 19,181 | 20,575 | |||||||||||||||||||
| Income tax expense | 1,436 | 1,705 | 4,356 | 4,564 | |||||||||||||||||||
| Depreciation and amortization | 14,778 | 16,174 | 59,097 | 62,583 | |||||||||||||||||||
| EBITDA | $ | 21,233 | $ | 20,671 | $ | 14,339 | $ | 72,652 | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Equity-based compensation (2) | 2,630 | 3,072 | 11,536 | 13,602 | |||||||||||||||||||
Acquisition transaction costs and other expenses (3) | (302) | 1,583 | 727 | 3,449 | |||||||||||||||||||
Certain severance, relocation and related costs (4) | — | 12 | — | 2,093 | |||||||||||||||||||
Foreign currency transaction loss (gain) (5) | 208 | 380 | 405 | 2,398 | |||||||||||||||||||
Tax receivable agreement liability adjustments (6) | (427) | 547 | (427) | 547 | |||||||||||||||||||
Adjusted EBITDA | $ | 23,342 | $ | 26,265 | $ | 26,580 | $ | 94,741 | |||||||||||||||
Adjusted EBITDA margin (9) | 8.5 | % | 8.9 | % | 2.9 | % | 9.0 | % | |||||||||||||||
| (1) | Represents the reallocation of net income (loss) attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC in periods in which income was attributable to non-controlling interests. | ||||
| (2) | Represents non-cash charges related to equity-based compensation programs, which vary from period to period depending on timing of awards. | ||||
(3) | For the three months ended December 31, 2025, includes gain on the sale of certain assets held for sale. For the year ended December 31, 2025, includes gain on sale and charges related to fair market value adjustments for certain assets held for sale. For the three months ended December 31, 2024, includes charges related to fair market value adjustments of certain assets held for sale, related to a potential business initiative. For the year ended December 31, 2024, includes a net one-time legal settlement gain of $1.4 million related to a previously-disclosed Loungefly customs-related matter and costs of $4.8 million related to contract settlement agreements and related services for assets held for sale (including fair market value adjustments of $1.3 million) related to a potential business initiative and the sale of certain assets under Funko Games. | ||||
(4) | Represents certain severance, relocation and related costs. For the three months ended December 31, 2024, includes true up severance and benefit costs for certain management departures. For the year ended December 31, 2024, includes severance and benefit costs related to certain management departures of $2.1 million. | ||||
| (5) | Represents both unrealized and realized foreign currency losses (gains) on transactions other than in U.S. dollars. | ||||
| (6) | Represents recognized adjustments to the tax receivable agreement liability. | ||||
| (7) | Represents the income tax expense (benefit) effect of the above adjustments including adding back the valuation allowance related to the net loss. This adjustment uses an effective tax rate of 25% for all periods presented. | ||||
| (8) | Adjusted net income (loss) margin is calculated as Adjusted net income (loss) as a percentage of net sales. | ||||
| (9) | Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of net sales. | ||||
Q4 EARNINGS | 2025 1 Q4 2025 EARNINGS March 12, 2026
Q4’25 EARNINGS | Presentation Disclosures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our product offerings, our strategic plan and speed to market, future financial results, including without limitation, full-year and first quarter 2026 guidance, equity based compensation, refinancing our debt and financial position, industry dynamics, business strategy and plans including international expansion, joint business planning, our relationship with Rideback, anticipated benefits of our collaborations, and our objectives for future operations are forward-looking statements. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to, the following: impacts from economic downturns; changes in the retail industry and markets for our consumer products; risks associated with our international operations, including risk related to tariffs and trade restrictions; risks related to our indebtedness, including our ability to comply with financial and negative covenants under our Credit Agreement, as amended; our ability to execute our business strategy; our ability to manage our inventories and growth; our dependence on content development and creation by third parties; our ability to obtain, maintain and protect our intellectual property rights or those of our licensors; fluctuations in our gross margin and seasonal impacts; our dependence on vendors and outsourcers; risks relating to government regulation; risks relating to litigation, including products liability claims and securities class action litigation; risk resulting from our e-commerce business and social media presence; our ability to successfully operate our information systems and implement new technology; our ability to secure additional financing on favorable terms or at all; the influence of our significant shareholder, TCG, and the possibility that TCG's interests may conflict with the interests of our other stockholders; risks relating to our organizational structure, including the Tax Receivable Agreement ("TRA") which confers certain benefits upon the parties to the TRA ("TRA Parties") that will not benefit Class A common stockholders to the same extent as it will benefit the TRA Parties; and volatility in the price of our Class A common stock. These and other important factors discussed under the caption “Risk Factors” in our Annual report on Form 10-K for the year ended December 31, 2025, and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this presentation. Unless otherwise indicated, information contained in this presentation concerning our industry, competitive position and the markets in which we operate is based on information from independent industry and research organizations, other third-party sources and management estimates. Management estimates are derived from publicly available information released by independent industry analysts and other third-party sources, as well as data from our internal research, and are based on assumptions made by us upon reviewing such data, and our experience in, and knowledge of, such industry and markets, which we believe to be reasonable. In addition, projections, assumptions and estimates of the future performance of the industry in which we operate and our future performance are necessarily subject to uncertainty and risk due to a variety of factors, including those described above. These and other factors could cause results to differ materially from those expressed in the estimates made by independent parties and by us. 2
Q4’25 EARNINGS | Table of Contents 3 Executive Summary Financial Summary Brand Highlights Appendix 4 8 13 18 Disney Hercules Limited Edition POP! Hades (Pottery Deco)
Q4 EARNINGS | 2025 Executive Summary Q4’25 EARNINGS | 4 DC Superman 2025 POP! Superman
Q4’25 EARNINGS | Josh Simon “We closed the year with two consecutive quarters of solid financial results. Our fourth quarter performance was driven by strong sales of entertainment properties, notably KPop Demon Hunters and Stranger Things, as well as our Bitty Pop! franchise and the launch of Pop! Yourself in Europe. "Looking ahead, we’re excited about the 2026 entertainment slate and executing our 'Make Culture POP!' strategy -- winning the moments that shape culture, scaling storytelling across new products and platforms, expanding our touchpoints with fans and driving profitable growth.” 5 CEO
Q4’25 EARNINGS | Executive Summary Funko delivered better-than-expected Net Sales and Adjusted EBITDA and improved its Balance Sheet Net sales of $273M were above expectations, on strong sales of KPop Demon Hunters, Stranger Things, Bitty Pop!; launch of Pop! Yourself in Europe. Adjusted EBITDA of $23M or 8.5% of net sales was at the high end of guidance range. Paid down $16M of debt in Q4 and entered into Amendment #5 of our credit agreement in February, extending maturity to December 2027. Advanced “Make Culture Pop!” strategy, announced new partnerships, and renewed key licensing deals Continued to build out “Make Culture POP!” growth strategy, with initiatives to add new fandoms and new form factors, increase speed to market, nurture collector community and expand internationally. Met with key retail partners at the Toy Fairs in London, Nuremberg and New York for joint business planning discussions for 2026 and beyond. Renewed key licenses with major studio partners including Disney (Pixar, Marvel and Lucasfilm), Warner Brothers, NBC Universal, 20th Century Studios and Paramount. Announced new creative relationship with film and television production company Rideback to develop original film, TV and animated content. Positive outlook for 2026 FY’26 guidance includes net sales growth in the low-single-digits and substantial improvement in profitability Strong entertainment content slate across big studio franchises and properties in Funko’s wheelhouse 6 1 Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. For a reconciliation of adjusted EBITDA and adjusted EBITDA margin to the corresponding U.S. GAAP measure, please see Appendix. 1 1
Q4’25 EARNINGS | Turning pop culture into collectibles & collectibles into culture CULTURE generates demand MAKE CULTURE CREATIVITY gives it form COMMERCE puts it in fans’ hands 7 SKU discipline & assortment focus Supply chain as an advantage AI and analytics as force multipliers Operate efficiently to grow profitably Being at the center of moments fans care about, while they’re happening • Franchise selection across 900+ licenses • New & emerging fandoms • Rapid response sensing & drops Creating products that are a canvas for iconic & scalable collectibles and stories • Extensions of core franchises • New formats & categories • Original and owned IP • Core collectibles Meeting fans everywhere they are, turning shelves into stages • Direct-to-consumer • Retail partner expansion • International scale • Physical + digital experiences
Q4 EARNINGS | 2025 Financial Summary Q4’25 EARNINGS | 8
Q4’25 EARNINGS | Q4’25 Results Above Guidance 9 Guidance Actual Commentary Net sales Q4 sales up modestly vs. Q3 ($251M) Q4 sales ($273M) were up 9% vs. Q3 Better-than-expected on strong sales of KPop Demon Hunters, Stranger Things, Bitty Pop!; launch of Pop! Yourself in Europe Gross margin ~40% 40.9% Slightly better-than-expected on lower allowances for discounts Adj. EBITDA margin1 Mid-to-high single digits 8.5% At the upper-end of expectations on strong net sales and gross margin as well as SG&A management 1 Adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. For a reconciliation of adjusted EBITDA and adjusted EBITDA margin to the corresponding U.S. GAAP measure, please see Appendix.
Q4’25 EARNINGS | ($12M) $1M ($10M) ($273M) $294M Q4-2024 Core Collectibles Loungefly Other Q4-2025 Q4’25 Net Sales Bridge 10 Core Collectibles: Net sales related to core collectibles declined $12M, primarily in the United States, reflecting the continued impact of tariff disruption and macroeconomic uncertainty. The decline was partially offset by growth in Bitty Pop! Loungefly - Improved trend in Q4 across all channels. Other - The majority of the Other sales decline can be attributed to broader profit improvement plans, which included rationalizing underperforming SKUs and product lines. $273M
Q4’25 EARNINGS | 42.4% 1.4% 3.7% -1.0% -4.1% -1.4% Q4-2024 Channel & product sales mix shift Improved product margins (1) Royalty minimum guarantee shortfall Duties & tariffs Inventory reserves adjustments Q4-2025 Q4’25 Gross Margin Bridge 11(1) Product margin is equal to gross product sales less factory costs over gross product sales 40.9%
Q4’25 EARNINGS | 2026 Outlook 12 Q1’26 Guidance Full Year Guidance Commentary Net sales (vs. LY) Flat to down 2% Flat to up 3% Core Pop! sales expected to grow high-single-digit %, offset by a double-digit % decrease in Loungefly sales due to a significant reduction in less-profitable SKUs Gross margin ~41% to 43% ~41% to 43% Assumes ongoing tariff rates of ~15% in the U.S. Adj. EBITDA1 Approximately break-even $70 million to $80 million Substantial increase expected vs 2025 due to full year of price increases and cost reductions, materially lower royalty minimum guarantee payments 1 Adjusted EBITDA is a non-GAAP measure. A reconciliation of the adjusted EBITDA outlook to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to certain items. However, for the first quarter of 2026 the company expects equity-based compensation of approximately $4 million, depreciation and amortization of approximately $15 million and interest expense of approximately $5 million. For the full year 2026, the company expects equity-based compensation of approximately $15 million, depreciation and amortization of approximately $60 million and interest expense of approximately $18 million, each of which is a reconciling item to net loss.
Q4 EARNINGS | 2025 Brand Highlights Q4’25 EARNINGS | 13
Q4’25 EARNINGS | Q4’25 Top 10 Properties 14 7% of Q4 Net Sales 41% of Q4 Net Sales 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Q4’25 EARNINGS | Topps – 2026 MLB Series One Baseball Super Box 15 Funko is collaborating with Topps Trading Cards on its 2026 MLB Series One Baseball SuperBox. The SuperBox, now being sold in Walmart, Target, GameStop, Dick's Sporting Goods, select Major League Baseball team retailers and others, includes a Bitty Pop! mystery figure of a star MLB player, as well as a chance at a rare Funko trading card.
Q4’25 EARNINGS | Embracing Pop Culture: By winning the 2026 Viral Hit of the Year award for KPop Demon Hunters, Funko remains a defining voice in the pop culture industry. Viral Hit of the Year 16Q4’25 EARNINGS |
Q4’25 EARNINGS | 17Q4’25 EARNINGS | In Q4’25, Bitty Pop! was officially introduced in the toy aisle of 1,800 Walmart stores, helping to expand and strengthen our relationship with a key wholesale partner. Bitty Pop! Expansion
Q4 EARNINGS | 2025 Appendix Q4’25 EARNINGS | 18 The Electric State POP! Cosmo
Q4’25 EARNINGS | Q4’25 Financial Summary 19 1 Adjusted net income, adjusted EBITDA and adjusted EBITDA margin are non-GAAP measures. For a reconciliation of adjusted net income, adjusted EBITDA and adjusted EBITDA margin to the corresponding U.S. GAAP measure, please see Appendix. Q4-2025 Q4-2024 Net sales $273.1 M $293.7 M Gross margin 40.9% 42.4% SG&A $90.9 M $102.8 M Adjusted net income1 $2.5 M $4.4 M Adj. EBITDA1 $23.3 M $26.3 M Adj. EBITDA margin1 8.5% 8.9%
Q4’25 EARNINGS | Reconciliation of Non-GAAP Financial Metrics 20 Three Months Ended December 31, 2025 2024 (in thousands) Net loss $ (180) $ (1,420) Interest expense, net 5,199 4,212 Income tax expense (benefit) 1,436 1,705 Depreciation and amortization 14,778 16,174 EBITDA $ 21,233 $ 20,671 Adjustments: Equity-based compensation (1) 2,630 3,072 Acquisition transaction costs and other expenses (2) (302) 1,583 Certain severance, relocation and related costs (3) — 12 Foreign currency transaction loss (gain) (4) 208 380 Tax receivable agreement liability adjustments (5) (427) 547 Adjusted EBITDA $ 23,342 $ 26,265 Adjusted EBITDA margin (7) 8.5% 8.9%
Q4’25 EARNINGS | Reconciliation of Non-GAAP Financial Metrics cont'd 21 Three Months Ended December 31, 2025 2024 (in thousands) Net loss $ (180) $ (1,420) Equity-based compensation (1) 2,630 3,072 Acquisition transaction costs and other expenses (2) (302) 1,583 Certain severance, relocation and related costs (3) — 12 Foreign currency transaction loss (gain) (4) 208 380 Tax receivable agreement liability adjustments (5) (427) 547 Income tax effect of adjustments and valuation allowance reversal (6) 595 235 Adjusted net income $ 2,524 $ 4,409
Q4’25 EARNINGS | Reconciliation of Non-GAAP Financial Metrics cont'd 22 (1) Represents non-cash charges related to equity-based compensation programs, which vary from period to period depending on timing of awards. (2) For the three months ended December 31, 2025, includes gain on the sale of certain assets held for sale. For the three months ended December 31, 2024, includes charges related to fair market value adjustments of certain assets held for sale, related to a potential business initiative. (3) Represents certain severance, relocation and related costs. (4) Represents both unrealized and realized foreign currency losses (gains) on transactions other than in U.S. dollars. (5) Represents recognized adjustments to the tax receivable agreement liability. (6) Represents the income tax expense (benefit) effect of the above adjustments including adding back the valuation allowance related to the net loss. This adjustment uses an effective tax rate of 25% for all periods presented. (7) Adjusted EBITDA margin is calculated as Adjusted EBITDA as a percentage of net sales.