Funko Q3 2026 net income rises to $7.5M from $0.9M
Full-year 2026 guidance remains unchanged, with the gross-margin and adjusted EBITDA outlook including a $25.4 million Q2 tariff-related benefit.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Funko, Inc. (FNKO) reported third-quarter 2026 net sales of $258.3 million, up 3.0% from a year earlier, and net income of $7.5 million versus $0.9 million. Gross margin was 45.2%, compared with 40.2%, while adjusted EBITDA, a non-GAAP measure, was $32.1 million versus $24.4 million. Core Collectibles sales increased 4.8%; Loungefly sales declined 9.8%. Total debt was $195.9 million at September 30, 2026, compared with $241.0 million at September 30, 2025.
For the nine months ended September 30, 2026, Funko reported $54.2 million of net cash provided by operating activities, compared with $33.2 million used in the 2025 period. It reiterated full-year 2026 guidance for net sales flat to up 3%, gross margin of 46% to 47%, and adjusted EBITDA of $100 million to $110 million. The gross-margin and adjusted EBITDA outlook includes a $25.4 million Q2 tariff-related benefit.
5 points · 0 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointQ3 net income rose to $7.5 million from $0.9 million.
- Moderate pointQ3 adjusted EBITDA was $32.1 million, versus $24.4 million.
- Moderate pointNine-month operating cash flow was $54.2 million, versus $33.2 million used.
- Moderate pointTotal debt declined to $195.9 million from $241.0 million year over year.
- Moderate pointQ3 gross margin was 45.2%, compared with 40.2%.
Negative
- Moderate pointLoungefly net sales declined 9.8% year over year.
Filing Explained
The 2026 sales outlook pairs expected Core Collectibles growth with a planned Loungefly assortment reduction and an expected decline in that brand.
Funko’s
Q3 adjusted EBITDA was
For full-year 2026, Funko expects Core Collectibles sales to grow at a high-single-digit rate, partly offset by a double-digit Loungefly decline, while reducing Loungefly’s SKU count and concentrating its assortment on products with stronger demand and return potential.
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, or exhibit attachments filed with this report.
Key Figures
Net sales: $258.3 million
Gross margin: 45.2%
Net income: $7.5 million
+5 more
8 metrics
Net sales
$258.3 million
Q3 2026; up 3.0% from $250.9 million in Q3 2025
Gross margin
45.2%
Q3 2026, compared with 40.2% in Q3 2025
Net income
$7.5 million
Q3 2026, compared with $0.9 million in Q3 2025
Adjusted EBITDA
$32.1 million
Q3 2026, compared with $24.4 million in Q3 2025; non-GAAP measure
Core Collectibles net sales
$210.080 million
Q3 2026; up 4.8% year over year
Loungefly net sales
$40.305 million
Q3 2026; down 9.8% year over year
Net cash provided by operating activities
$54.2 million
Nine months ended September 30, 2026, compared with $33.2 million used in the 2025 period
Total debt
$195.9 million
At September 30, 2026, compared with $241.0 million at September 30, 2025
Key Terms
Adjusted EBITDA, Tax Receivable Agreement, tariff receivable sales agreement, non-controlling interests
4 terms
Adjusted EBITDA financial
"Adjusted EBITDA are non-GAAP financial measures"
Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.
Tax Receivable Agreement financial
"Tax Receivable Agreement ("TRA")"
A contract in which a company agrees to pay a specified party (often former owners after a spinoff or IPO) a share of future tax savings the company realizes. Think of it like agreeing to share a future tax refund with someone who helped create the conditions for that refund. For investors it matters because those payments reduce the cash the company can use for dividends, buybacks, or reinvestment, and therefore affect valuation and returns.
tariff receivable sales agreement financial
"Payments under tariff receivable sales agreement"
non-controlling interests financial
"net income (loss) attributable to non-controlling interests"
An ownership stake in a subsidiary held by outside shareholders rather than the parent company, representing the portion of that subsidiary’s assets and profits the parent does not control. For investors, it shows what part of consolidated earnings and equity belongs to others — like a roommate who owns part of a house — which affects how much value and profit per share are truly attributable to the parent company’s shareholders.
Earnings Snapshot
Net sales: $258.3 million · Guidance included
Q3 2026
Net sales
$258.3 million
Up 3.0% from $250.9 million in Q3 2025
Gross margin
45.2%
Compared with 40.2% in Q3 2025
Net income
$7.5 million
Compared with $0.9 million in Q3 2025
Adjusted EBITDA
$32.1 million
Compared with $24.4 million in Q3 2025
Guidance
Reiterated full-year 2026 net sales guidance of flat to up 3%; gross margin of 46% to 47%, including the $25.4 million Q2 tariff-related benefit; adjusted EBITDA of $100 million to $110 million, including the $25.4 million Q2 tariff-related benefit.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were FNKO's Q3 2026 sales and earnings?
Funko reported net sales of $258.3 million for Q3 2026, up 3.0% from $250.9 million in Q3 2025. Net income was $7.5 million, compared with $0.9 million a year earlier.
What is FNKO's 2026 financial guidance?
Funko reiterated full-year 2026 net sales guidance of flat to up 3%, gross margin of 46% to 47%, and adjusted EBITDA of $100 million to $110 million. The gross-margin and adjusted EBITDA outlook includes the $25.4 million Q2 tariff-related benefit.
How did FNKO's Core Collectibles and Loungefly sales change?
Core Collectibles generated $210.080 million in Q3 2026 sales, up 4.8% year over year. Loungefly generated $40.305 million, down 9.8%.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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 November 5, 2026, Funko, Inc. (the “Company”) announced its financial results for the three and nine months ended September 30, 2026. 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 November 5, 2026. | |||||||
| 99.2 | Presentation of Funko, Inc. dated November 5, 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: November 5, 2026 | FUNKO, INC. | |||||||
| By: | /s/ Yves Le Pendeven | |||||||
| Yves Le Pendeven | ||||||||
| Chief Financial Officer | ||||||||
Funko Reports Strong Third Quarter 2026 Financial Results;
Reiterates Full-Year Net Sales and Adjusted EBITDA Guidance
-- Q3 Net Sales Grew 3.0%; Core Collectibles Sales Increased 4.8%; Gross Margin and
Adjusted EBITDA Above Expectations --
EVERETT, Wash. November 5, 2026 -- Funko, Inc. (Nasdaq: FNKO), a leading pop culture lifestyle brand, today reported its consolidated financial results for the third quarter ended September 30, 2026.
Third Quarter Financial Results Summary: 2026 vs 2025
•Net sales increased 3.0% to $258.3 million, compared with $250.9 million
•Gross profit was $116.9 million, equal to gross margin of 45.2%, compared with $100.8 million, equal to gross margin of 40.2%
•SG&A expenses were $86.9 million, equal to 33.6% of sales, compared with $79.8 million, equal to 31.8% of sales
•Net income was $7.5 million, or $0.13 per diluted share, compared with a net income of $0.9 million, or $0.02 per diluted share
•Adjusted net income* was $9.2 million, or $0.16 per diluted share*, compared with adjusted net income* of $3.2 million, or $0.06 per diluted share*
•Adjusted EBITDA* was $32.1 million, compared with adjusted EBITDA* of $24.4 million
* Adjusted net income (loss), adjusted net income (loss) per diluted share and adjusted EBITDA are non-GAAP financial measures.
"Q3 was another strong quarter for Funko, marked by net sales growth, continued gross margin strength and adjusted EBITDA above guidance, demonstrating that we are building a more focused and profitable business,” said Josh Simon, Chief Executive Officer of Funko, Inc.
"Core Collectibles grew nearly 5%, with international markets again a source of strength. The quarter provides further evidence that Make Culture Pop! is becoming a more deliberate and disciplined growth engine. We are sensing demand earlier, translating cultural moments and emerging fandoms into distinctive products, and expanding fan discovery through retail and experiences. From WWE integrating Funko into its storytelling and our expansion into A Court of Thorns and Roses, to the bidding frenzy around POP! 250 and our dedicated shop at FAO Schwarz, we are seeing the strategy come together and remain rigorously focused on scaling what works.”
Third Quarter 2026 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 September 30, | Period Over Period Change | ||||||||||||||||||||||
| 2026 | 2025 | Dollar | Percentage | ||||||||||||||||||||
| Net sales by brand category: | |||||||||||||||||||||||
| Core Collectibles | $ | 210,080 | $ | 200,414 | $ | 9,666 | 4.8 | % | |||||||||||||||
| Loungefly | 40,305 | 44,685 | (4,380) | (9.8) | % | ||||||||||||||||||
| Other | 7,957 | 5,806 | 2,151 | 37.0 | % | ||||||||||||||||||
| Total net sales | $ | 258,342 | $ | 250,905 | $ | 7,437 | 3.0 | % | |||||||||||||||
| Three Months Ended September 30, | Period Over Period Change | ||||||||||||||||||||||
| 2026 | 2025 | Dollar | Percentage | ||||||||||||||||||||
| Net sales by geography: | |||||||||||||||||||||||
| United States | $ | 151,734 | $ | 155,415 | $ | (3,681) | (2.4) | % | |||||||||||||||
| Europe | 82,738 | 74,196 | 8,542 | 11.5 | % | ||||||||||||||||||
| Other International | 23,870 | 21,294 | 2,576 | 12.1 | % | ||||||||||||||||||
| Total net sales | $ | 258,342 | $ | 250,905 | $ | 7,437 | 3.0 | % | |||||||||||||||
Balance Sheet Highlights - At September 30, 2026 vs December 31, 2025 and September 30, 2025
•Total cash and cash equivalents were $41.6 million at September 30, 2026, compared with $42.1 million at December 31, 2025 and $39.2 million at September 30, 2025
•Inventories were $91.6 million at September 30, 2026, up from $83.1 million at December 31, 2025 and down from $99.8 million at September 30, 2025
•Total debt was $195.9 million at September 30, 2026, versus $225.3 million at December 31, 2025 and $241.0 million at September 30, 2025. 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 reiterated its 2026 full-year outlook based on its third quarter performance, expected continued growth in Core Collectibles, and its decision to rationalize Loungefly’s SKU count and concentrate the assortment behind products with stronger demand and return potential.
| Current Outlook | |||||
| 2026 Full Year | |||||
| Net Sales | Reiterating flat to up 3% | ||||
| Gross Margin % | Reiterating 46% to 47%, including the $25.4 million Q2 tariff-related benefit | ||||
| Adjusted EBITDA* | Reiterating $100 to $110M, including the $25.4 million Q2 tariff-related benefit | ||||
Webcast Conference Call
The company will host a webcast at 4:30 p.m. Eastern Time (1:30 p.m. Pacific Time) today, November 5, 2026, to further discuss its third quarter 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, as well as the Funko YouTube Channel at youtube.com/@FunkoIR. 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), 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 financial 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. A reconciliation of 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 fourth quarter of 2026 the company expects equity-based compensation of approximately $4 million, depreciation and amortization of approximately $14 million and interest expense of approximately $5 million. For the full year 2026, the company expects equity-based compensation of approximately $12 million, depreciation and amortization of approximately $60 million and interest expense of approximately $20 million, each of which is a reconciling item to net income. See “Use of Non-GAAP Financial Measures” and the attached reconciliations for more information.
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 Funko.com, Loungefly.com and MondoShop.com, and follow us on TikTok, X, and Instagram.
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 strategic plans, growth strategies, expectations in sales trends and anticipated financial results, including without limitation, our full year 2026 guidance. 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 quarterly report on Form 10-Q for the quarter ended September 30, 2026 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.
Condensed Consolidated Statements of Operations
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||
| Net sales | $ | 258,342 | $ | 250,905 | $ | 666,980 | $ | 635,113 | |||||||||||||||
| Cost of sales (exclusive of depreciation and amortization) | 141,481 | 150,154 | 343,663 | 395,451 | |||||||||||||||||||
| Selling, general, and administrative expenses | 86,882 | 79,794 | 250,292 | 246,860 | |||||||||||||||||||
| Depreciation and amortization | 15,026 | 14,529 | 45,567 | 44,319 | |||||||||||||||||||
| Total operating expenses | 243,389 | 244,477 | 639,522 | 686,630 | |||||||||||||||||||
| Income (loss) from operations | 14,953 | 6,428 | 27,458 | (51,517) | |||||||||||||||||||
| Interest expense, net | 4,819 | 5,611 | 14,901 | 13,982 | |||||||||||||||||||
| Other expense (income), net | 1,322 | (1,359) | 2,258 | (304) | |||||||||||||||||||
| Income (loss) before income taxes | 8,812 | 2,176 | 10,299 | (65,195) | |||||||||||||||||||
| Income tax expense | 1,296 | 1,228 | 5,465 | 2,920 | |||||||||||||||||||
| Net income (loss) | 7,516 | 948 | 4,834 | (68,115) | |||||||||||||||||||
Less: net income (loss) attributable to non-controlling interests | 33 | 47 | 42 | (938) | |||||||||||||||||||
| Net income (loss) attributable to Funko, Inc. | $ | 7,483 | $ | 901 | $ | 4,792 | $ | (67,177) | |||||||||||||||
| Income (loss) per share of Class A common stock: | |||||||||||||||||||||||
| Basic | $ | 0.13 | $ | 0.02 | $ | 0.09 | $ | (1.24) | |||||||||||||||
| Diluted | $ | 0.13 | $ | 0.02 | $ | 0.08 | $ | (1.24) | |||||||||||||||
| Weighted average shares of Class A common stock outstanding: | |||||||||||||||||||||||
| Basic | 56,093 | 54,649 | 55,795 | 54,184 | |||||||||||||||||||
| Diluted | 58,110 | 54,707 | 57,111 | 54,184 | |||||||||||||||||||
Funko, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
| September 30, 2026 | December 31, 2025 | ||||||||||
| (In thousands, except per share data) | |||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 41,605 | $ | 42,148 | |||||||
| Accounts receivable, net | 131,952 | 117,018 | |||||||||
| Inventories | 91,632 | 83,136 | |||||||||
| Prepaid expenses and other current assets | 28,979 | 48,094 | |||||||||
| Total current assets | 294,168 | 290,396 | |||||||||
| Property and equipment, net | 61,454 | 68,679 | |||||||||
| Operating lease right-of-use assets, net | 41,050 | 46,928 | |||||||||
| Goodwill | 133,841 | 133,900 | |||||||||
| Intangible assets, net | 123,984 | 135,826 | |||||||||
| Other assets | 14,583 | 9,505 | |||||||||
| Total assets | $ | 669,080 | $ | 685,234 | |||||||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current liabilities: | |||||||||||
| Revolving credit facility | $ | 1,500 | $ | 1,125 | |||||||
| Current portion of term debt | 15,707 | 21,932 | |||||||||
| Current portion of operating lease liabilities | 16,022 | 18,792 | |||||||||
| Accounts payable | 86,852 | 64,748 | |||||||||
| Accrued royalties | 55,695 | 59,821 | |||||||||
| Accrued expenses and other current liabilities | 70,544 | 77,499 | |||||||||
| Total current liabilities | 246,320 | 243,917 | |||||||||
| Long-term debt | 178,657 | 202,246 | |||||||||
| Operating lease liabilities | 42,082 | 48,680 | |||||||||
| Other long-term liabilities | 3,953 | 4,261 | |||||||||
| Commitments and Contingencies | |||||||||||
| Stockholders’ equity: | |||||||||||
Class A common stock, par value $0.0001 per share, 200,000 shares authorized; 56,341 and 55,327 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively | 5 | 5 | |||||||||
Class B common stock, par value $0.0001 per share, 50,000 shares authorized; 91 shares issued and outstanding as of September 30, 2026 and December 31, 2025, respectively | — | — | |||||||||
| Additional paid-in-capital | 365,096 | 357,330 | |||||||||
| Accumulated other comprehensive income | 3,965 | 4,621 | |||||||||
| Accumulated deficit | (171,350) | (176,142) | |||||||||
| Total stockholders’ equity attributable to Funko, Inc. | 197,716 | 185,814 | |||||||||
| Non-controlling interests | 352 | 316 | |||||||||
| Total stockholders’ equity | 198,068 | 186,130 | |||||||||
| Total liabilities and stockholders’ equity | $ | 669,080 | $ | 685,234 | |||||||
Funko, Inc.
Condensed Consolidated Statements of Cash Flows
(Unaudited)
| Nine Months Ended September 30, | |||||||||||
| 2026 | 2025 | ||||||||||
| (In thousands) | |||||||||||
| Operating Activities | |||||||||||
| Net income (loss) | $ | 4,834 | $ | (68,115) | |||||||
| Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
| Depreciation and amortization | 45,567 | 44,319 | |||||||||
| Equity-based compensation | 7,766 | 8,906 | |||||||||
| Other, net | 2,549 | (2,298) | |||||||||
| Changes in operating assets and liabilities: | |||||||||||
| Accounts receivable, net | (15,071) | (5,617) | |||||||||
| Inventories | (9,041) | (4,755) | |||||||||
| Prepaid expenses and other assets | 20,904 | 13,847 | |||||||||
| Accounts payable | 20,460 | (153) | |||||||||
| Accrued royalties | (4,126) | (3,567) | |||||||||
| Accrued expenses and other liabilities | (19,664) | (15,773) | |||||||||
| Net cash provided by (used in) operating activities | 54,178 | (33,206) | |||||||||
| Investing Activities | |||||||||||
| Purchases of property and equipment | (24,761) | (24,064) | |||||||||
| Other, net | — | 1,042 | |||||||||
| Net cash used in investing activities | (24,761) | (23,022) | |||||||||
| Financing Activities | |||||||||||
| Borrowings on revolving credit facility | — | 85,000 | |||||||||
| Payments on line of credit | — | (10,000) | |||||||||
| Debt amendment costs | (3,648) | — | |||||||||
| Payments of term debt | (27,171) | (17,323) | |||||||||
| Proceeds from sale of tariff receivable | 19,248 | — | |||||||||
| Payments under tariff receivable sales agreement | (17,379) | — | |||||||||
| Payments under tax receivable agreement | (249) | — | |||||||||
| Other, net | (5) | 171 | |||||||||
| Net cash (used in) provided by financing activities | (29,204) | 57,848 | |||||||||
| Effect of exchange rates on cash and cash equivalents | (756) | 2,902 | |||||||||
| Net change in cash and cash equivalents | (543) | 4,522 | |||||||||
| Cash and cash equivalents at beginning of period | 42,148 | 34,655 | |||||||||
| Cash and cash equivalents at end of period | $ | 41,605 | $ | 39,177 | |||||||
The following tables reconcile the Non-GAAP Financial Measures to the most directly comparable U.S. GAAP financial performance measure, which is net income (loss), for the periods presented:
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||
| Net income (loss) attributable to Funko, Inc. | $ | 7,483 | $ | 901 | $ | 4,792 | $ | (67,177) | |||||||||||||||
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) | 33 | 47 | 42 | (938) | |||||||||||||||||||
Equity-based compensation (2) | 2,570 | 2,529 | 7,766 | 8,906 | |||||||||||||||||||
Acquisition costs and other expenses (3) | — | 1,029 | — | 1,029 | |||||||||||||||||||
Foreign currency transaction loss (gain) (4) | 894 | (1,442) | 1,998 | 197 | |||||||||||||||||||
Tax receivable agreement liability adjustments (5) | — | — | 112 | — | |||||||||||||||||||
Third-party debt amendment fees (6) | 20 | — | 3,675 | — | |||||||||||||||||||
Income tax (benefit) expense (7) | (1,778) | 155 | (498) | 16,686 | |||||||||||||||||||
| Adjusted net income (loss) | $ | 9,222 | $ | 3,219 | $ | 17,887 | $ | (41,297) | |||||||||||||||
Adjusted net income (loss) margin (8) | 3.6 | % | 1.3 | % | 2.7 | % | (6.5) | % | |||||||||||||||
| Weighted-average shares of Class A common stock outstanding - basic | 56,093 | 54,649 | 55,795 | 54,184 | |||||||||||||||||||
| Equity-based compensation awards and common units of FAH, LLC that are convertible into Class A common stock | 2,204 | 808 | 1,503 | 854 | |||||||||||||||||||
| Adjusted weighted-average shares of Class A stock outstanding - diluted | 58,297 | 55,457 | 57,298 | 55,038 | |||||||||||||||||||
| Adjusted earnings (loss) per diluted share | $ | 0.16 | $ | 0.06 | $ | 0.31 | $ | (0.75) | |||||||||||||||
| Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | ||||||||||||||||||||
| (amounts in thousands) | |||||||||||||||||||||||
| Net income (loss) | $ | 7,516 | $ | 948 | $ | 4,834 | $ | (68,115) | |||||||||||||||
| Interest expense, net | 4,819 | 5,611 | 14,901 | 13,982 | |||||||||||||||||||
| Income tax expense | 1,296 | 1,228 | 5,465 | 2,920 | |||||||||||||||||||
| Depreciation and amortization | 15,026 | 14,529 | 45,567 | 44,319 | |||||||||||||||||||
| EBITDA | $ | 28,657 | $ | 22,316 | $ | 70,767 | $ | (6,894) | |||||||||||||||
| Adjustments: | |||||||||||||||||||||||
Equity-based compensation (2) | 2,570 | 2,529 | 7,766 | 8,906 | |||||||||||||||||||
Acquisition costs and other expenses (3) | — | 1,029 | — | 1,029 | |||||||||||||||||||
Foreign currency transaction loss (gain) (4) | 894 | (1,442) | 1,998 | 197 | |||||||||||||||||||
Tax receivable agreement liability adjustments (5) | — | — | 112 | — | |||||||||||||||||||
Third-party debt amendment fees (6) | 20 | — | 3,675 | — | |||||||||||||||||||
| Adjusted EBITDA | $ | 32,141 | $ | 24,432 | $ | 84,318 | $ | 3,238 | |||||||||||||||
Adjusted EBITDA margin (9) | 12.4 | % | 9.7 | % | 12.6 | % | 0.5 | % | |||||||||||||||
| (1) | Represents the reallocation of net income attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock 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 the timing of awards. | ||||
| (3) | Represents charges related to fair market value adjustments for certain assets held for sale. | ||||
| (4) | Represents both unrealized and realized foreign currency losses on transactions denominated other than in U.S. dollars, including derivative gains and losses on foreign currency forward exchange contracts. | ||||
| (5) | Represents recognized adjustments to the tax receivable agreement liability. | ||||
| (6) | Represents non-recurring third-party debt fees paid as part of the Fifth Amendment to the Credit Agreement. | ||||
| (7) | Represents the income tax expense effect of the above adjustments, including adding back the valuation allowance to the net income (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. | ||||
Q3 2026 EARNINGS November 5, 2026
Q3'26 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 strategic plans and partnerships, launch of new product lines, expected sales trends, expected tariff refunds and anticipated financial results, including without limitation, our full year 2026 guidance. 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 quarterly report on Form 10-Q for the quarter ended September 30, 2026 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. Any such forward-looking statements represent management’s estimates as of the date of this presentation. 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 presentation. 2
Q3'26 EARNINGS | Table of Contents 3 Executive Summary Financial Summary Strategic Progress Appendix 4 6 11 19 Harry Potter Marauder’s Map Series
Q3'26 EARNINGS | Executive Summary 3’26 EARNINGS | 4 The Real Ghostbusters - Louis Tully & Grundel 1/12 Scale Figure Set - Timed Edition
Q3'26 EARNINGS | Executive Summary Sales Growth Drivers in Q3 2026 ▪ Net sales +3% exceeded expectation ▪ Year-over-year growth was driven by Core Collectibles +5% and Europe +12%, offset by Loungefly -10% due to SKU rationalization Profitability ▪ Gross margin was 45.2% compared to 40.2% in Q3 2025, thanks to lower tariffs, lower minimum guaranteed royalties, and adjustments to the royalty audit accrual ▪ Net income was $7.5 million, or $0.13 per diluted share, compared to $0.9 million, or $0.02 per diluted share, in Q3 2025 ▪ Adjusted EBITDA1 exceeded guidance, with adjusted EBITDA1 margin improving 270 basis points year-over-year, from 9.7% to 12.4% Balance Sheet ▪ Inventory down 8% year-over-year ▪ Total debt reduced by $29 million year-to-date, including $5 million in Q3 Outlook ▪ Reiterating 2026 net sales guidance of flat to up 3% year-over-year ▪ Reiterating adjusted EBITDA1 outlook of $100 million - $110 million, which includes a $25.4 million benefit from the recognition of expected tariff refunds and the release of accrued tariffs recognized in Q2 2026 5 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 EARNINGS | 2025 Financial Summary Q3’26 EARNINGS | 6 X-Men: The Animated Series - Jean Grey 1/6 Scale Figure - Limited Edition
Q3'26 EARNINGS | Q3’26 Results vs Guidance 7 Guidance Actual Commentary Net sales Approximately flat YoY compared to Q3 2025 Q3 sales ($258M) were UP 3% Sales growth driven by Core collectibles, notably in International markets. Loungefly sales were down 10% but benefited from increased SKU productivity. Gross margin ~43% to 44% 45% Gross margin above expectation, thanks in part to lower than expected freight and shipping costs as well as favorable reserve adjustments. Adj. EBITDA1 $25M to $30M $32M Beat to guidance, driven by the net sales beat, gross margin performance, and ongoing SG&A discipline. 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.
Q3'26 EARNINGS | Q3’26 Net Sales Bridge 8 Core Collectibles: Net sales related to Core Collectibles increased $9.7M, led by Standard Pop!, Mystery Mini, and Advent Calendar launch timing. Loungefly: Net sales declined 9.8% despite an approximately 50% reduction in SKUs impacting Q3, reflecting ongoing improved assortment productivity and strong performance from exclusives. Other: Net sales increase driven by timing of Mondo shipments, partially offset by discontinued Digital NFT sales. +4.8% −9.8% +37.0% +3.0% $250.9M $258.3M$9.7M ($4.4M) $2.2M Q3-2025 Core Collectibles Loungefly Other Sales Q3-2026
Q3'26 EARNINGS | Q3’26 Top 10 Properties 9 34% of Q3 Net Sales 1. 2. 3. 4. 5. 6. 7. 8. 9. 10.
Q3'26 EARNINGS | 2026 Outlook 10 Full-Year Outlook Commentary on Full-Year Outlook Net sales (vs. LY) Flat to up 3% Reiterating net sales guidance of flat to up 3%. Core Collectibles sales are expected to grow at a high-single-digit rate, partially offset by a double-digit decline in Loungefly sales, reflecting a strategic reduction in SKU count and an assortment prioritizing products with stronger consumer demand and higher return potential. Gross margin 46%-47% Reiterating 46% to 47%. Note, full year outlook includes the $25.4 million Q2 tariff-related benefit. Adj. EBITDA1 $100M-$110M Reiterating Adj. EBITDA of $100M-$110M. Note, full year outlook includes the $25.4 million Q2 tariff-related benefit. 1 Adjusted EBITDA is a non-GAAP measure. A reconciliation of 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 fourth quarter of 2026 the company expects equity-based compensation of approximately $4 million, depreciation and amortization of approximately $14 million and interest expense of approximately $5 million. For the full year 2026, the company expects equity-based compensation of approximately $12 million, depreciation and amortization of approximately $60 million and interest expense of approximately $20 million, each of which is a reconciling item to net income. See “Use of Non-GAAP Financial Measures” and the attached reconciliations for more information.
Strategic Progress Q3’26 EARNINGS | 11 A Court of Thorns and Roses Ramiel Mountain Mini Backpack
Q3'26 EARNINGS | MAKE CULTURE POP! HIGHLIGHTS Connecting cultural sensing, repeatable product creation and disciplined channel execution to improve growth quality and returns. CULTURE GENERATES DEMAND Sense demand earlier • Rapid-response releases • New fandoms • Cultural moments CREATIVITY GIVES IT FORM Build repeatable platforms • Extend proven formats • Create new collecting behaviors OPERATE SMARTER TO GROW PROFITABLY Focused assortments | Responsive supply chain | Data-led decisions | World-class talent 12 COMMERCE PUTS IT IN FANS' HANDS Scale productive channels • Retail • DTC • International • Experiences
Q3'26 EARNINGS | 13 Culture moves fast, and we want Funko where the energy is. At ComplexCon, we partnered with music headliner Ken Carson on an ultra-limited Hyper Strike release that put us right in the middle of that cultural moment. Ken is one of the artists shaping the next generation of hip-hop and a passionate fan base that spans music, fashion and street culture. The response showed what can happen when we pair the right talent with the right product at exactly the right moment. KEN CARSON HYPER STRIKE CULTURE GENERATES DEMAND COMPLEXCON
Q3'26 EARNINGS | 14 Some of the world’s most passionate fandoms are built on the page. A Court of Thorns and Roses has become a cultural phenomenon, with BookTok helping fuel demand for the series and propel romantasy into the mainstream. Bringing ACOTAR to the Loungefly audience and to Pop! form allows Funko to meet that demand with something tangible and collectible, while introducing us to a highly engaged audience we have only begun to reach. CULTURE GENERATES DEMAND A COURT OF THORNS AND ROSES NEW FANDOM
Q3'26 EARNINGS | 15 CREATIVITY GIVES IT FORM POP!250 celebrates 250 years of American culture through one-of-one collectibles spanning generations, from founding figures like Benjamin Franklin and George Washington to icons like Babe Ruth, Jackie Robinson and Tina Turner. We partnered with Goldin, one of the leading names in high-end collectibles, to bring these pieces to auction and reach some of the most passionate collectors in the world. The response was incredible, with our one-of-one Babe Ruth Pop! selling for approximately $26,000 POP! 250 Reimagining the Collectible
Q3'26 EARNINGS | 16 COMMERCE PUTS IT IN FANS’ HANDS Our new experience at FAO Schwarz brings product discovery and Pop! Yourself together inside one of the world’s most iconic toy stores. We are also giving fans another reason to visit with Funko and Loungefly exclusives available only in New York City, making the store a true destination for collectors. Fans can discover something they cannot get anywhere else, create something personal and leave with a collectible connected to the experience. FAO SCHWARZ Expanding Fan Discovery
Q3'26 EARNINGS | 17 COMMERCE PUTS IT IN FANS’ HANDS D23 Expo Loungefly D23 2026 established Loungefly Pier as an immersive fan destination, welcoming more than 9,500 guests and generating strong influencer and media buzz. The experience translated into meaningful impact, delivering 8.59M in social reach and sales above expectations. Momentum extended well beyond the event itself, with Princess-led content overperforming and keeping fans engaged and the conversation going after D23.
Q3'26 EARNINGS | 18 MAKE CULTURE POP! COMES TO LIFE AT NEW YORK COMIC-CON New York Comic-Con is Make Culture Pop! in action. Fans come together around the characters, stories and communities they love, and Funko gives them another way to celebrate that passion. Exclusives and new product discovery create excitement on the show floor, but the opportunity extends well beyond the convention. Through Funko.com, our retail partners and our flagship stores, we can take the energy of NYCC and bring it to fans everywhere. It is our strategy coming together in one place: culture creates demand, creativity gives it form and commerce puts it in fans’ hands.
Q4 EARNINGS | 2025 Appendix Q3’26 EARNINGS | 19
Q3'26 EARNINGS | Reconciliation of Non-GAAP Financial Metrics 20 Three Months Ended September 30, 2026 2025 (In thousands, except per share data) Net income (loss) attributable to Funko, Inc. $ 7,483 $ 901 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) 33 47 Equity-based compensation (2) 2,570 2,529 Acquisition costs and other expenses (3) — 1,029 Foreign currency transaction loss (gain) (4) 894 (1,442) Tax receivable agreement liability adjustments (5) — — Third-party debt amendment fees (6) 20 — Income tax (benefit) expense (7) (1,778) 155 Adjusted net income (loss) $ 9,222 $ 3,219 Adjusted net income (loss) margin (8) 3.6% 1.3%
Q3'26 EARNINGS | Reconciliation of Non-GAAP Financial Metrics cont'd 21 Three Months Ended September 30, 2026 2025 (amounts in thousands) Net income (loss) $ 7,516 $ 948 Interest expense, net 4,819 5,611 Income tax expense 1,296 1,228 Depreciation and amortization 15,026 14,529 EBITDA $ 28,657 $ 22,316 Adjustments: Equity-based compensation (2) 2,570 2,529 Acquisition costs and other expenses (3) — 1,029 Foreign currency transaction loss (gain) (4) 894 (1,442) Tax receivable agreement liability adjustments (5) — — Third-party debt amendment fees (6) 20 — Adjusted EBITDA $ 32,141 $ 24,432 Adjusted EBITDA margin (9) 12.4% 9.7%
Q3'26 EARNINGS | Reconciliation of Non-GAAP Financial Metrics cont'd 22 (1) Represents the reallocation of net income attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock 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 the timing of awards. (4) Represents both unrealized and realized foreign currency losses on transactions denominated other than in U.S. dollars, including derivative gains and losses on foreign currency forward exchange contracts. (5) Represents recognized adjustments to the tax receivable agreement liability. (6) Represents non-recurring third-party debt fees paid as part of the Fifth Amendment to the Credit Agreement. (7) Represents the income tax expense effect of the above adjustments, including adding back the valuation allowance to the net income (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. (3) Represents charges related to fair market value adjustments for certain assets held for sale.