Financial Data and Key Metrics Changes - For Q4, net sales were $273 million, up 9% compared to expectations, indicating better performance than anticipated [26] - Gross margin was reported at 41%, slightly higher than guidance, maintaining above 40% for seven of the last eight quarters [26] - SG&A expenses decreased by 12% year-over-year to $91 million [27] - Adjusted EBITDA for Q4 was $23 million, at the high end of expectations [27] Business Line Data and Key Metrics Changes - Funko's core product lines are expected to grow in high single digits year-over-year, while Loungefly is projected to decline in double digits due to SKU cuts [28][29] - The Bitty Pop! product line has shown strong growth, contributing positively to sales [31] Market Data and Key Metrics Changes - In the EU, sales increased by 20% from January 2025 to January 2026, outperforming market growth [22] - The company is the second largest collectible brand by market share in the EU, following Pokémon [22] Company Strategy and Development Direction - The "Make Culture POP!" strategy focuses on participating in cultural moments and expanding into new markets, particularly in Asia and Latin America [10][25] - A new Chief International Officer has been appointed to drive growth in Asia and Latin America, targeting significant toy markets [24] - The company is exploring original content creation as a long-term growth driver, leveraging partnerships with major studios [35][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing a strong entertainment slate and trends in collectibles, licensed IP, and kidult demographics as growth drivers [32][33] - The company expects net sales to be flat to up 3% in 2026, with a substantial improvement in profitability [28][30] Other Important Information - The company has launched a new program called HyperStrike to quickly design and manufacture products in response to pop culture moments [16] - Funko has renewed licenses with major studios, ensuring a strong lineup for the upcoming film slate [45] Q&A Session Summary Question: Describe the shape of the flat to +3% guidance past Q1 - The guidance is expected to be consistent throughout the year, with Q2 anticipated to show growth over last year [34] Question: To what extent does Funko view original content creation as a growth driver? - Original content creation is seen as a serious long-term growth driver, with a focus on storytelling through partnerships with major studios [35] Question: Does Funko need to use any of its extended credit agreement in 2026? - The company does not expect to need additional borrowing and plans to manage on operating cash flows [38] Question: Can you break out the POS trends and inventory restocking domestically versus Europe? - Double-digit growth in POS sales was observed in Europe, with improving trends in the U.S. throughout Q4 [39] Question: What would you highlight as the key initiatives to drive top line results and margin versus 2025? - Key initiatives include leveraging the content slate, expanding international growth, and launching new products [40]

Q4 2025 EARNINGS March 12, 2026 Q4 EARNINGS | 2025 1 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 ...

Core Insights - Funko reported Q3 CY2025 revenue of $250.9 million, falling short of analyst expectations of $262 million, representing a 14.3% year-on-year decline [5] - The company achieved a non-GAAP profit of $0.06 per share, significantly exceeding analysts' consensus estimates of -$0.09 [5] Revenue Performance - Revenue of $250.9 million was a 14.3% decline year-on-year and a 4.2% miss against expectations [5] - Adjusted EBITDA was $24.43 million, beating estimates of $15 million, with a margin of 9.7% [5] Management Strategy - Management emphasized cost control and product strategy as key drivers for adjusted profitability, despite revenue shortfalls [3] - The CEO highlighted SKU rationalizations, reduced clearance sales, and price increases as effective measures to offset tariff pressures [3][4] Licensing and Partnerships - Funko secured multiyear licensing agreements with major studios like Warner Bros, NBC Universal, and Disney, enhancing its portfolio of over 900 active licenses [6] - These partnerships are viewed as critical for maintaining access to popular franchises and supporting future product launches [6] International Growth - Management noted strong double-digit growth in Europe, contrasting with a more subdued U.S. market [6] - Recent production shifts from China to Vietnam are expected to improve supply chain flexibility, despite minor delays [6] Product Innovation - New product formats, such as Bitty Pop! mini vinyl figures, have gained traction, with early success noted in Walmart's holiday campaign [6][7] - The company plans to leverage its speed-to-market advantage to capitalize on emerging pop culture trends [7] Direct-to-Consumer Strategy - Funko is enhancing its e-commerce experience and rolling out customization kiosks, including AI-powered builders and vending machine pilots [7] - These initiatives are seen as differentiators in a competitive collectibles market [7]