[144] ZipRecruiter, Inc. SEC Filing

Rhea-AI Filing Summary

Funko, Inc. (FNKO) has filed an 8-K announcing a leadership change effective July 5, 2025. Current CEO Cynthia Williams will step down and resign from the Board. The Board has appointed director Michael Lunsford (age 58) as Interim Chief Executive Officer. Williams will receive severance benefits in line with her May 20 2024 employment agreement. Funko will amend this report within four business days to disclose any material compensation arrangements for Lunsford.

The filing does not indicate the reasons for Williams’s departure or provide details on a permanent CEO search. Continuity is partially addressed by elevating an existing director, but the use of an interim structure signals strategic and operational uncertainty until a permanent leader is selected.

Positive

• Swift appointment of an interim CEO limits operational disruption and signals board oversight.
• Severance governed by pre-existing contract, avoiding unanticipated payouts.

Negative

• CEO departure after approximately one year suggests potential strategic or performance issues.
• Interim leadership introduces uncertainty until a permanent CEO is named.
• Lack of disclosed reasons and pending compensation terms may erode investor confidence.

Insights

Corporate Governance Expert

TL;DR: Sudden CEO exit raises governance and strategy concerns; interim appointment limits near-term disruption.

Williams exits after roughly one year in the role, suggesting possible misalignment with the Board or performance challenges. An interim CEO drawn from the Board provides immediate oversight but underscores that succession planning was not fully settled. Investors typically view short-tenured CEO departures as a negative signal, often leading to uncertainty in product roadmaps, cost-control initiatives, and employee morale. The absence of disclosed cause, coupled with pending compensation details for Lunsford, increases opacity. Overall, this is a governance risk event that could pressure valuation multiples until a permanent leader and strategy are articulated.

Portfolio Manager

TL;DR: Management turnover is disruptive but impact on near-term cash flow appears limited; watch for strategic reset.

Funko’s interim solution mitigates operational gaps, and no guidance changes or financial restatements accompanied the announcement. However, CEO instability can defer long-term brand and inventory initiatives pivotal to margin recovery. Until the Board communicates a permanent hire and strategy, risk-adjusted discount rates may rise. If Lunsford’s interim tenure stabilizes sales trends, shares could rebound, but clarity is required. For now, maintain a neutral stance while monitoring additional disclosures.

Form 144 Filer Information	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 144 NOTICE OF PROPOSED SALE OF SECURITIES PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933
FORM 144

144: Filer Information

Filer CIK
Filer CCC
Is this a LIVE or TEST Filing?	LIVE TEST
Submission Contact Information
Name
Phone
E-Mail Address

144: Issuer Information

Name of Issuer

SEC File Number

Address of Issuer

Phone

Name of Person for Whose Account the Securities are To Be Sold

See the definition of "person" in paragraph (a) of Rule 144. Information is to be given not only as to the person for whose account the securities are to be sold but also as to all other persons included in that definition. In addition, information shall be given as to sales by all persons whose sales are required by paragraph (e) of Rule 144 to be aggregated with sales for the account of the person filing this notice.

Relationship to Issuer

144: Securities Information

Title of the Class of Securities To Be Sold	Name and Address of the Broker	Number of Shares or Other Units To Be Sold	Aggregate Market Value	Number of Shares or Other Units Outstanding	Approximate Date of Sale	Name the Securities Exchange
Common	Morgan Stanley Smith Barney LLC Executive Financial Services 1 New York Plaza 8th Floor New York NY 10004	15148	80132.92	79873424	07/07/2025	NYSE

Furnish the following information with respect to the acquisition of the securities to be sold and with respect to the payment of all or any part of the purchase price or other consideration therefor:

144: Securities To Be Sold

Title of the Class	Date you Acquired	Nature of Acquisition Transaction	Name of Person from Whom Acquired	Is this a Gift?	Date Donor Acquired	Amount of Securities Acquired	Date of Payment	Nature of Payment *
Common	06/15/2025	Restricted Stock Units	Issuer			15148	06/15/2025	N/A

* If the securities were purchased and full payment therefor was not made in cash at the time of purchase, explain in the table or in a note thereto the nature of the consideration given. If the consideration consisted of any note or other obligation, or if payment was made in installments describe the arrangement and state when the note or other obligation was discharged in full or the last installment paid.

Furnish the following information as to all securities of the issuer sold during the past 3 months by the person for whose account the securities are to be sold.

144: Securities Sold During The Past 3 Months

Name and Address of Seller	Title of Securities Sold	Date of Sale	Amount of Securities Sold	Gross Proceeds
10b5-1 Sales Plan for YARBROUGH FAMILY TRUST 604 Arizona Avenue Santa Monica CA 90401	Common	06/05/2025	5819	37507.53
10b5-1 Sales Plan for YARBROUGH FAMILY TRUST 604 Arizona Avenue Santa Monica CA 90401	Common	05/05/2025	5598	30783.40

144: Remarks and Signature

Remarks

Date of Notice

Date of Plan Adoption or Giving of Instruction, If Relying on Rule 10b5-1

ATTENTION:

The person for whose account the securities to which this notice relates are to be sold hereby represents by signing this notice that he does not know any material adverse information in regard to the current and prospective operations of the Issuer of the securities to be sold which has not been publicly disclosed. If such person has adopted a written trading plan or given trading instructions to satisfy Rule 10b5-1 under the Exchange Act, by signing the form and indicating the date that the plan was adopted or the instruction given, that person makes such representation as of the plan adoption or instruction date.

Signature

ATTENTION: Intentional misstatements or omission of facts constitute Federal Criminal Violations (See 18 U.S.C. 1001)

FAQ

Why did Funko (FNKO) file an 8-K on July 2 2025?

The 8-K discloses CEO Cynthia Williams’s departure and the appointment of Michael Lunsford as interim CEO.

When will Cynthia Williams step down as Funko’s CEO?

July 5 2025 is the effective date for her transition.

Who is Funko’s new interim CEO?

Board member Michael Lunsford, age 58, will serve as interim CEO while retaining his directorship.

Will Cynthia Williams receive severance payments?

Yes. She is entitled to severance benefits under her May 20 2024 employment agreement.

Does the filing include Michael Lunsford’s compensation details?

No. Funko will amend the 8-K within four business days once compensation arrangements are determined.

Is Funko searching for a permanent CEO?

The filing implies a search by naming an interim CEO, but no timeline for a permanent replacement is provided.