FALSE2025Q3000170471112/31xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:purefnko:plaintifffnko:segment00017047112025-01-012025-09-300001704711us-gaap:CommonClassAMember2025-11-040001704711us-gaap:CommonClassBMember2025-11-0400017047112025-07-012025-09-3000017047112024-07-012024-09-3000017047112024-01-012024-09-3000017047112025-09-3000017047112024-12-310001704711us-gaap:CommonClassAMember2024-12-310001704711us-gaap:CommonClassAMember2025-09-300001704711us-gaap:CommonClassBMember2024-12-310001704711us-gaap:CommonClassBMember2025-09-3000017047112023-12-3100017047112024-09-300001704711us-gaap:CommonClassAMemberus-gaap:CommonStockMember2025-06-300001704711us-gaap:CommonClassBMemberus-gaap:CommonStockMember2025-06-300001704711us-gaap:AdditionalPaidInCapitalMember2025-06-300001704711us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-06-300001704711us-gaap:RetainedEarningsMember2025-06-300001704711us-gaap:NoncontrollingInterestMember2025-06-3000017047112025-06-300001704711us-gaap:AdditionalPaidInCapitalMember2025-07-012025-09-300001704711us-gaap:CommonClassAMemberus-gaap:CommonStockMember2025-07-012025-09-300001704711us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-07-012025-09-300001704711us-gaap:NoncontrollingInterestMember2025-07-012025-09-300001704711us-gaap:RetainedEarningsMember2025-07-012025-09-300001704711us-gaap:CommonClassAMemberus-gaap:CommonStockMember2025-09-300001704711us-gaap:CommonClassBMemberus-gaap:CommonStockMember2025-09-300001704711us-gaap:AdditionalPaidInCapitalMember2025-09-300001704711us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-09-300001704711us-gaap:RetainedEarningsMember2025-09-300001704711us-gaap:NoncontrollingInterestMember2025-09-300001704711us-gaap:CommonClassAMemberus-gaap:CommonStockMember2024-06-300001704711us-gaap:CommonClassBMemberus-gaap:CommonStockMember2024-06-300001704711us-gaap:AdditionalPaidInCapitalMember2024-06-300001704711us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001704711us-gaap:RetainedEarningsMember2024-06-300001704711us-gaap:NoncontrollingInterestMember2024-06-3000017047112024-06-300001704711us-gaap:AdditionalPaidInCapitalMember2024-07-012024-09-300001704711us-gaap:CommonClassAMemberus-gaap:CommonStockMember2024-07-012024-09-300001704711us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-07-012024-09-300001704711us-gaap:NoncontrollingInterestMember2024-07-012024-09-300001704711us-gaap:RetainedEarningsMember2024-07-012024-09-300001704711us-gaap:CommonClassAMemberus-gaap:CommonStockMember2024-09-300001704711us-gaap:CommonClassBMemberus-gaap:CommonStockMember2024-09-300001704711us-gaap:AdditionalPaidInCapitalMember2024-09-300001704711us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-09-300001704711us-gaap:RetainedEarningsMember2024-09-300001704711us-gaap:NoncontrollingInterestMember2024-09-300001704711us-gaap:CommonClassAMemberus-gaap:CommonStockMember2024-12-310001704711us-gaap:CommonClassBMemberus-gaap:CommonStockMember2024-12-310001704711us-gaap:AdditionalPaidInCapitalMember2024-12-310001704711us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001704711us-gaap:RetainedEarningsMember2024-12-310001704711us-gaap:NoncontrollingInterestMember2024-12-310001704711us-gaap:NoncontrollingInterestMember2025-01-012025-09-300001704711us-gaap:AdditionalPaidInCapitalMember2025-01-012025-09-300001704711us-gaap:CommonClassAMemberus-gaap:CommonStockMember2025-01-012025-09-300001704711us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-09-300001704711us-gaap:CommonClassBMemberus-gaap:CommonStockMember2025-01-012025-09-300001704711us-gaap:RetainedEarningsMember2025-01-012025-09-300001704711us-gaap:CommonClassAMemberus-gaap:CommonStockMember2023-12-310001704711us-gaap:CommonClassBMemberus-gaap:CommonStockMember2023-12-310001704711us-gaap:AdditionalPaidInCapitalMember2023-12-310001704711us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001704711us-gaap:RetainedEarningsMember2023-12-310001704711us-gaap:NoncontrollingInterestMember2023-12-310001704711us-gaap:NoncontrollingInterestMember2024-01-012024-09-300001704711us-gaap:AdditionalPaidInCapitalMember2024-01-012024-09-300001704711us-gaap:CommonClassAMemberus-gaap:CommonStockMember2024-01-012024-09-300001704711us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-09-300001704711us-gaap:CommonClassBMemberus-gaap:CommonStockMember2024-01-012024-09-300001704711us-gaap:RetainedEarningsMember2024-01-012024-09-300001704711us-gaap:FairValueInputsLevel1Member2025-09-300001704711us-gaap:FairValueInputsLevel1Member2024-12-310001704711us-gaap:EstimateOfFairValueFairValueDisclosureMembersrt:SubsidiariesMemberus-gaap:FairValueInputsLevel3Member2025-09-300001704711us-gaap:EstimateOfFairValueFairValueDisclosureMembersrt:SubsidiariesMemberus-gaap:FairValueInputsLevel3Member2024-12-310001704711us-gaap:RevolvingCreditFacilityMember2025-09-300001704711us-gaap:RevolvingCreditFacilityMember2024-12-310001704711fnko:TermLoanFacilityMember2025-09-300001704711fnko:TermLoanFacilityMember2024-12-310001704711fnko:EquipmentFinanceLoanMemberus-gaap:LoansPayableMember2025-09-300001704711fnko:EquipmentFinanceLoanMemberus-gaap:LoansPayableMember2024-12-310001704711us-gaap:SecuredDebtMember2021-09-170001704711us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2021-09-170001704711us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2022-07-290001704711us-gaap:RevolvingCreditFacilityMemberfnko:ThirdAmendmentMemberus-gaap:LineOfCreditMember2023-02-280001704711us-gaap:RevolvingCreditFacilityMemberfnko:ThirdAmendmentMemberus-gaap:LineOfCreditMember2023-12-310001704711us-gaap:RevolvingCreditFacilityMemberfnko:TermBenchmarkLoanOrRFRLoanMemberus-gaap:LineOfCreditMember2023-02-282023-02-280001704711us-gaap:RevolvingCreditFacilityMemberus-gaap:PrimeRateMemberfnko:CanadianPrimeLoanOrABRLoanMemberus-gaap:LineOfCreditMember2023-02-282023-02-280001704711us-gaap:RevolvingCreditFacilityMemberfnko:ThirdAmendmentMemberus-gaap:LineOfCreditMember2023-02-282023-02-280001704711us-gaap:RevolvingCreditFacilityMemberfnko:ThirdAmendmentMemberus-gaap:LineOfCreditMember2025-07-160001704711us-gaap:RevolvingCreditFacilityMemberfnko:ThirdAmendmentMemberus-gaap:LineOfCreditMemberus-gaap:SubsequentEventMember2025-12-310001704711us-gaap:RevolvingCreditFacilityMemberfnko:TermBenchmarkLoanOrRFRLoanMemberus-gaap:LineOfCreditMember2025-07-162025-07-160001704711us-gaap:SecuredDebtMember2021-09-172021-09-170001704711fnko:SONIARateMember2021-09-172021-09-170001704711us-gaap:RevolvingCreditFacilityMemberus-gaap:SecuredOvernightFinancingRateSofrMemberus-gaap:LineOfCreditMember2021-09-172021-09-170001704711us-gaap:PrimeRateMember2021-09-172021-09-170001704711us-gaap:PrimeRateMembersrt:MinimumMember2021-09-172021-09-170001704711us-gaap:RevolvingCreditFacilityMember2025-01-012025-09-300001704711us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2025-09-300001704711us-gaap:RevolvingCreditFacilityMemberus-gaap:LineOfCreditMember2024-12-310001704711fnko:EquipmentFinanceLoanMemberus-gaap:LoansPayableMember2022-11-250001704711fnko:EquipmentFinanceLoanMemberus-gaap:LoansPayableMember2022-11-252022-11-250001704711fnko:FAHLLCMember2025-07-012025-09-300001704711fnko:FAHLLCMember2025-01-012025-09-300001704711fnko:FAHLLCMember2024-07-012024-09-300001704711fnko:FAHLLCMember2024-01-012024-09-300001704711fnko:FutureRoyaltyAuditsMember2025-09-300001704711srt:SubsidiariesMember2025-09-300001704711fnko:StudenV.FunkoInc.EtAlMember2023-08-172023-08-170001704711fnko:ReportableSegmentMember2025-07-012025-09-300001704711fnko:ReportableSegmentMember2024-07-012024-09-300001704711fnko:ReportableSegmentMember2025-01-012025-09-300001704711fnko:ReportableSegmentMember2024-01-012024-09-300001704711fnko:CoreCollectiblesMember2025-07-012025-09-300001704711fnko:CoreCollectiblesMember2024-07-012024-09-300001704711fnko:CoreCollectiblesMember2025-01-012025-09-300001704711fnko:CoreCollectiblesMember2024-01-012024-09-300001704711fnko:LoungeflyLLCMember2025-07-012025-09-300001704711fnko:LoungeflyLLCMember2024-07-012024-09-300001704711fnko:LoungeflyLLCMember2025-01-012025-09-300001704711fnko:LoungeflyLLCMember2024-01-012024-09-300001704711fnko:OtherProductsExcludingCoreCollectiblesAndLoungeflyBrandsMember2025-07-012025-09-300001704711fnko:OtherProductsExcludingCoreCollectiblesAndLoungeflyBrandsMember2024-07-012024-09-300001704711fnko:OtherProductsExcludingCoreCollectiblesAndLoungeflyBrandsMember2025-01-012025-09-300001704711fnko:OtherProductsExcludingCoreCollectiblesAndLoungeflyBrandsMember2024-01-012024-09-300001704711country:US2025-07-012025-09-300001704711country:US2024-07-012024-09-300001704711country:US2025-01-012025-09-300001704711country:US2024-01-012024-09-300001704711srt:EuropeMember2025-07-012025-09-300001704711srt:EuropeMember2024-07-012024-09-300001704711srt:EuropeMember2025-01-012025-09-300001704711srt:EuropeMember2024-01-012024-09-300001704711us-gaap:NonUsMember2025-07-012025-09-300001704711us-gaap:NonUsMember2024-07-012024-09-300001704711us-gaap:NonUsMember2025-01-012025-09-300001704711us-gaap:NonUsMember2024-01-012024-09-300001704711country:US2025-09-300001704711country:US2024-12-310001704711srt:EuropeMember2025-09-300001704711srt:EuropeMember2024-12-310001704711us-gaap:NonUsMember2025-09-300001704711us-gaap:NonUsMember2024-12-310001704711us-gaap:CommonClassAMembersrt:SubsidiariesMember2025-09-300001704711us-gaap:CommonClassAMembersrt:SubsidiariesMember2024-12-310001704711srt:SubsidiariesMember2025-01-012025-09-300001704711srt:SubsidiariesMember2024-01-012024-09-300001704711srt:SubsidiariesMember2025-07-012025-09-300001704711srt:SubsidiariesMember2024-07-012024-09-300001704711us-gaap:CommonClassAMember2025-07-012025-09-300001704711us-gaap:CommonClassAMember2024-07-012024-09-300001704711us-gaap:CommonClassAMember2025-01-012025-09-300001704711us-gaap:CommonClassAMember2024-01-012024-09-300001704711us-gaap:CommonClassAMembersrt:SubsidiariesMember2025-07-012025-09-300001704711us-gaap:CommonClassAMembersrt:SubsidiariesMember2024-07-012024-09-300001704711us-gaap:CommonClassAMembersrt:SubsidiariesMember2025-01-012025-09-300001704711us-gaap:CommonClassAMembersrt:SubsidiariesMember2024-01-012024-09-30

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____________to _____________

Commission file number: 001-38274

FUNKO, INC.

(Exact name of registrant as specified in its charter)


Delaware			35-2593276
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)


2802 Wetmore Avenue		98201
Everett	Washington
(Address of principal executive offices)		(Zip Code)

(425) 783-3616

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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	FNKO	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☐	Accelerated Filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		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. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of November 4, 2025, the registrant had 54,742,995 shares of Class A common stock, $0.0001 par value per share, and 647,833 shares of Class B common stock, $0.0001 par value per share, outstanding.

INDEX


		Page
Part I	FINANCIAL INFORMATION

Item 1.	Financial Statements	4

	Condensed Consolidated Statements of Operations (unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	4

	Condensed Consolidated Statements of Comprehensive (Loss) Income (unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	5

	Condensed Consolidated Balance Sheets (unaudited) as of September 30, 2025 and December 31, 2024	6

	Condensed Consolidated Statements of Cash Flows (unaudited) for the Nine Months Ended September 30, 2025 and 2024	7

	Condensed Consolidated Statements of Stockholders’ Equity (unaudited) for the Three and Nine Months Ended September 30, 2025 and 2024	8

	Notes to Unaudited Condensed Consolidated Financial Statements	10

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	43

Item 4.	Controls and Procedures	44

Part II	OTHER INFORMATION

Item 1.	Legal Proceedings	45

Item 1A.	Risk Factors	46

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	93

Item 5.	Other Information	93

Item 6.	Exhibits	94

SIGNATURES		96

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. All statements contained in this Quarterly Report on Form 10-Q other than statements of historical fact, including statements regarding our future operating results and financial position, the expected impact of general economic and market conditions, including the imposition of tariffs and the uncertainty over U.S. trade and tariff policies, on our business, results of operations and financial condition, capital resources and our ability to generate cash to fund our operations, anticipated benefits from sales under our registration statement on Form S-3 and Sales Agreement, as defined herein, compliance with financial and negative covenants and related impacts to our business, our business strategy and plans, our review of strategic alternatives, our ability to continue as a going concern, potential acquisitions, market growth and trends, demand for our products, inventory expectations, anticipated future expenses and payments, efforts to remediate our material weaknesses in internal control over financial reporting and our objectives for future operations, are forward-looking statements. The words “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “could,” “would,” “project,” “plan,” “potentially,” “preliminary,” “likely,” and similar expressions are intended to identify forward-looking statements. We have based these forward-looking statements largely on our current expectations and projections about future events and trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements are subject to a number of risks, uncertainties, and assumptions, including the important factors described in this Quarterly Report on Form 10-Q under Part II. Item 1A. “Risk Factors,” and in our other filings with the Securities and Exchange Commission (“SEC”), that may cause our actual results, performance or achievements to differ materially and adversely from those expressed or implied by the forward-looking statements.

Any forward-looking statements made herein speak only as of the date of this Quarterly Report on Form 10-Q, and you should not rely on forward-looking statements as predictions of future events. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that the future results, performance, or achievements reflected in the forward-looking statements will be achieved or occur. We undertake no obligation to update any of these forward-looking statements for any reason after the date of this Quarterly Report on Form 10-Q or to conform these statements to actual results or revised expectations.

Summary of Risk Factors

Our business is subject to numerous risks and uncertainties, including those described in Part II, Item 1A. “Risk Factors” in this Quarterly Report on Form 10-Q. Some of the factors that could materially and adversely affect our business, financial condition, results of operations or prospects include, but are not limited to, the following:

•We are subject to risks related to the retail industry including, but not limited to, potential negative impacts of global and regional economic downturns, changes in retail practices, and our ability to maintain and further develop relationships with our retail customers and distributors.

•Our substantial sales and manufacturing operations outside the United States subject us to risks associated with international operations, including, but not limited to, changes in the global trade markets, as well as fluctuations in foreign currency or tax rates.

•Our indebtedness could adversely affect our financial health and competitive position, and we may not be able to secure additional financing on favorable terms, or at all, to meet our future capital needs.

•There is substantial doubt about our ability to continue as a going concern due to pressure on our financial covenants arising from the current tariff retail environment and potentially insufficient working capital and potential non-compliance with other covenants as defined within the Fourth Amendment, as defined herein.

•We are reviewing strategic alternatives. There can be no assurance that we will be successful in identifying or completing any strategic alternative, that any such strategic alternative will result in additional value for our stockholders or that the process will not have an adverse impact on our business.

•We are subject to risks related to the operation of our business, including, but not limited to, our ability to execute our business strategy, manage our growth and our inventories, and attract and retain qualified personnel.

•As a purveyor of licensed pop culture consumer products, we are largely dependent on content development and creation by third parties, and are subject to a number of related risks including, but not limited to, the creation of compelling content by licensors, and the market appeal of the properties we license and the products we create.

•We are subject to risks related to intellectual property, including our ability to obtain, protect and enforce our intellectual property rights and our ability to operate our business without violating the intellectual property rights of other parties.

•Our success is dependent on our ability to manage fluctuations in our business, including fluctuations in gross margin, seasonal impacts and fluctuations due to the timing and popularity of new product releases.

•Our business depends in large part on our vendors and outsourcers, and our reputation and ability to effectively operate our business may be harmed by actions taken by these third parties outside of our control.

•We are subject to potential legal risks including, but not limited to, ongoing securities class action litigation, future product liability suits or product recalls, or risks associated with failure to comply with the various laws and regulations to which we are subject, any of which could have a significant adverse effect on our financial condition and results of operations.

•We are subject to risks related to information technology including, but not limited to, risks related to the operation of our e-commerce business, our ability to operate our information systems and our compliance with laws related to privacy and the protection of data.

•TCG has significant influence over us, and its interests may conflict with the interests of our other stockholders.

•There are risks related to our organizational structure, including the Tax Receivable Agreement, which confers certain benefits upon the parties to the TRA (the "TRA Parties") that will not benefit other Class A common stockholders to the same extent as it will benefit the TRA Parties.

•There are risks associated with the ownership of our Class A common stock including, but not limited to, potential dilution by future issuances and volatility in the price of our Class A common stock.

Part I – FINANCIAL INFORMATION


Item 1.			Financial Statements

FUNKO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)


	Three Months Ended September 30,				Nine Months Ended September 30,
	2025		2024		2025		2024
	(In thousands, except per share data)
Net sales	$	250,905	$	292,765	$	635,113	$	756,121
Cost of sales (exclusive of depreciation and amortization)	150,154		172,956		395,451		445,992
Selling, general, and administrative expenses	79,794		92,662		246,860		256,154
Depreciation and amortization	14,529		15,411		44,319		46,409
Total operating expenses	244,477		281,029		686,630		748,555
Income (loss) from operations	6,428		11,736		(51,517)		7,566
Interest expense, net	5,611		4,971		13,982		16,363

Other (income) expense, net	(1,359)		998		(304)		1,994
Income (loss) before income taxes	2,176		5,767		(65,195)		(10,791)
Income tax expense	1,228		1,170		2,920		2,859
Net income (loss)	948		4,597		(68,115)		(13,650)
Less: net income (loss) attributable to non-controlling interests	47		267		(938)		(432)
Net income (loss) attributable to Funko, Inc.	$	901	$	4,330	$	(67,177)	$	(13,218)
Earnings (loss) per share of Class A common stock:
Basic	$	0.02	$	0.08	$	(1.24)	$	(0.26)
Diluted	$	0.02	$	0.08	$	(1.24)	$	(0.26)
Weighted average shares of Class A common stock outstanding:
Basic	54,649		52,523		54,184		51,781
Diluted	54,707		53,428		54,184		51,781

Funko, Inc. 10-Q