Funko (FNKO) 10-Q 6 Aug 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jun. 30, 2020	Aug. 04, 2020
Document Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2020
Document Transition Report	false
Entity File Number	001-38274
Entity Registrant Name	FUNKO, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	35-2593276
Entity Address, Address Line One	2802 Wetmore Avenue
Entity Address, City or Town	Everett
Entity Address, State or Province	WA
Entity Address, Postal Zip Code	98201
City Area Code	425
Local Phone Number	783-3616
Title of 12(b) Security	Class A Common Stock,$0.0001 par value per share
Trading Symbol	FNKO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Shell Company	false
Amendment Flag	false
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001704711
Current Fiscal Year End Date	--12-31
Class A common shares outstanding
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		35,483,337
Class B common shares outstanding
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		14,040,296

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Net sales	$ 98,099	$ 191,199	$ 234,799	$ 358,264
Cost of sales (exclusive of depreciation and amortization shown separately below)	62,182	119,998	143,599	223,654
Selling, general, and administrative expenses	39,110	43,647	86,423	84,115
Depreciation and amortization	11,071	10,425	22,060	20,655
Total operating expenses	112,363	174,070	252,082	328,424
(Loss) income from operations	(14,264)	17,129	(17,283)	29,840
Interest expense, net	2,691	3,763	5,346	7,835
Other (income) expense, net	(243)	(219)	671	(154)
(Loss) income before income taxes	(16,712)	13,585	(23,300)	22,159
Income tax (benefit) expense	(1,703)	2,170	(2,559)	3,599
Net (loss) income	(15,009)	11,415	(20,741)	18,560
Less: net (loss) income attributable to non-controlling interests	(4,424)	6,283	(6,030)	11,233
Net (loss) income attributable to Funko, Inc.	$ (10,585)	$ 5,132	$ (14,711)	$ 7,327
(Loss) earnings per share of Class A common stock:
Basic (in dollars per share)	$ (0.30)	$ 0.17	$ (0.42)	$ 0.26
Diluted (in dollars per share)	$ (0.30)	$ 0.16	$ (0.42)	$ 0.24
Weighted average shares of Class A common stock outstanding:
Basic (in shares)	35,033,100	29,909,518	34,988,487	28,283,578
Diluted (in shares)	35,033,100	32,115,419	34,988,487	30,295,653

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (15,009)	$ 11,415	$ (20,741)	$ 18,560
Other comprehensive loss:
Foreign currency translation loss, net of tax effect of $10 and $129 for the three months ended June 30, 2020 and 2019, respectively, and $468 and $49 for the six months ended June 30, 2020 and 2019, respectively	(45)	(824)	(2,543)	(171)
Comprehensive (loss) income	(15,054)	10,591	(23,284)	18,389
Less: Comprehensive (loss) income attributable to non-controlling interests	(4,447)	5,900	(6,975)	11,231
Comprehensive (loss) income attributable to Funko, Inc.	$ (10,607)	$ 4,691	$ (16,309)	$ 7,158

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Foreign currency translation loss, tax	$ 10	$ 129	$ 468	$ 49

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Current assets:
Cash and cash equivalents	$ 41,127	$ 25,229
Accounts receivable, net	94,050	151,564
Inventory	60,354	62,124
Prepaid expenses and other current assets	11,602	20,280
Total current assets	207,133	259,197
Property and equipment, net	62,901	65,712
Operating lease right-of-use assets	57,715	62,901
Goodwill	124,320	124,835
Intangible assets, net	213,173	221,492
Deferred tax asset	58,435	57,547
Other assets	4,959	4,783
Total assets	728,636	796,467
Current liabilities:
Line of credit	29,099	25,822
Current portion of long-term debt, net of unamortized discount	19,498	13,685
Current portion of operating lease liabilities	12,172	11,314
Accounts payable	25,129	42,531
Income taxes payable	197	637
Accrued royalties	19,085	34,625
Accrued expenses and other current liabilities	21,949	28,955
Total current liabilities	127,129	157,569
Long-term debt, net of unamortized discount	191,284	202,816
Operating lease liabilities, net of current portion	56,924	61,622
Deferred tax liability	300	341
Liabilities under tax receivable agreement, net of current portion	62,369	61,554
Other long-term liabilities	6,998	7,421
Stockholders’ equity:
Additional paid-in-capital	210,735	204,174
Accumulated other comprehensive (loss) income	(807)	791
Retained earnings	5,731	20,442
Total stockholders’ equity attributable to Funko, Inc.	215,664	225,411
Non-controlling interests	67,968	79,733
Total stockholders’ equity	283,632	305,144
Total liabilities and stockholders’ equity	728,636	796,467
Class A common shares outstanding
Stockholders’ equity:
Class A common stock, par value $0.0001 per share, 200,000 shares authorized; 35,465 and 34,918 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	$ 4	$ 3
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	35,465,000	34,918,000
Common stock, shares outstanding (in shares)	35,465,000	34,918,000
Class B common shares outstanding
Stockholders’ equity:
Class A common stock, par value $0.0001 per share, 200,000 shares authorized; 35,465 and 34,918 shares issued and outstanding as of June 30, 2020 and December 31, 2019, respectively	$ 1	$ 1
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	14,040,000	14,515,000
Common stock, shares outstanding (in shares)	14,040,000	14,515,000

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2020	Dec. 31, 2019
Class A common shares outstanding
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares issued (in shares)	35,465,000	34,918,000
Common stock, shares outstanding (in shares)	35,465,000	34,918,000
Class B common shares outstanding
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, shares issued (in shares)	14,040,000	14,515,000
Common stock, shares outstanding (in shares)	14,040,000	14,515,000

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
Operating Activities
Net (loss) income	$ (20,741,000)	$ 18,560,000
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation, amortization and other	23,342,000	21,054,000
Equity-based compensation	5,038,000	6,115,000
Amortization of debt issuance costs and debt discounts	655,000	711,000
Other	695,000	327,000
Changes in operating assets and liabilities:
Accounts receivable, net	54,599,000	14,357,000
Inventory	218,000	11,342,000
Prepaid expenses and other assets	12,267,000	(191,000)
Accounts payable	(17,494,000)	(3,395,000)
Income taxes payable	(419,000)	(3,437,000)
Accrued royalties	(15,531,000)	(9,201,000)
Accrued expenses and other liabilities	(10,421,000)	(8,288,000)
Net cash provided by operating activities	32,208,000	47,954,000
Investing Activities
Purchases of property and equipment	(11,676,000)	(11,730,000)
Acquisitions of businesses and related intangible assets, net of cash	0	(6,369,000)
Net cash used in investing activities	(11,676,000)	(18,099,000)
Financing Activities
Borrowings on line of credit	28,267,000	22,543,000
Payments on line of credit	(25,281,000)	(23,383,000)
Debt issuance costs	(569,000)	(272,000)
Payments of long-term debt	(5,876,000)	(5,875,000)
Distributions to continuing equity owners	(2,675,000)	(18,121,000)
Payments under tax receivable agreement	(166,000)	0
Proceeds from exercise of equity-based options	41,000	1,387,000
Net cash used in financing activities	(6,259,000)	(23,721,000)
Effect of exchange rates on cash and cash equivalents	1,625,000	(135,000)
Net increase in cash and cash equivalents	15,898,000	5,999,000
Cash and cash equivalents at beginning of period	25,229,000	13,486,000
Cash and cash equivalents at end of period	$ 41,127,000	$ 19,485,000

Organization and Operations

Organization and Operations	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Operations	Organization and Operations The unaudited condensed consolidated financial statements include Funko, Inc. and its subsidiaries (together, the “Company”) and have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). All intercompany balances and transactions have been eliminated. The Company was formed as a Delaware corporation on April 21, 2017. The Company was formed for the purpose of completing an initial public offering (“IPO”) of its Class A common stock and related transactions in order to carry on the business of Funko Acquisition Holdings, L.L.C. (“FAH, LLC”) and its subsidiaries. On November 6, 2017, the Company completed an IPO and related reorganization transactions that resulted in the Company being the sole managing member of FAH, LLC. As the sole managing member of FAH, LLC, Funko, Inc. operates and controls all of FAH, LLC’s operations and, through FAH, LLC and its subsidiaries, conducts FAH, LLC’s business. Accordingly, the Company consolidates the financial results of FAH, LLC and reports a non-controlling interest in its unaudited condensed consolidated financial statements representing the common units of FAH, LLC interests still held by other owners of FAH, LLC (collectively, the “Continuing Equity Owners”). Interim Financial Information In the opinion of management, all adjustments considered necessary for a fair presentation of the results as of the date of and for the interim periods presented have been included, and such adjustments consist of normal recurring adjustments. The unaudited condensed consolidated results of operations for the current interim period are not necessarily indicative of the results for the entire year ending December 31, 2020, due to seasonality and other factors. These unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2019, filed with the Securities and Exchange Commission on March 5, 2020.

Significant Accounting Policies

Significant Accounting Policies	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and assumptions. Significant Accounting Policies Cash equivalents. As of June 30, 2020, cash equivalents included $29.9 million of highly liquid money market funds, which are classified as Level 1 within the fair value hierarchy. Evaluation of goodwill and other long-lived assets for impairment. The Company evaluates goodwill for impairment annually on October 1 of each year and upon the occurrence of triggering events or substantive changes in circumstances that could indicate a potential impairment by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that the fair value of the net assets is below their carrying amounts. The Company has determined that it has one reporting unit for which discrete financial information is available and results are regularly reviewed by management. During the six months ended June 30, 2020, the market capitalization of the Company declined below the Company’s book value, which is a triggering event that could indicate potential impairment. The decline of the Company’s market capitalization below book value began on approximately March 11, 2020, the day in which the World Health Organization declared the COVID-19 outbreak to be a global pandemic. The fair value of the reporting unit was determined using a market approach which considered the current market capitalization of the Company as well as a control premium that was estimated based upon comparable market transactions to reflect the synergies and other benefits available to a market participant. As a result of its analysis, the Company has determined that the fair value of its goodwill reporting unit exceeded its carrying value and therefore an impairment charge was not recorded for the six months ended June 30, 2020. The Company’s long-lived asset group, which includes intangible assets, property and equipment and operating lease right-of use assets net of operating lease liabilities, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset (or asset group), a significant change in the extent or manner in which an asset (or asset group) is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. The Company has determined that the carrying amount of its long-lived asset group is recoverable as of June 30, 2020, based on the Company’s current financial forecasts. Therefore, no impairment charges relating to long-lived asset group were recorded for the six months ended June 30, 2020. Further declines in the Company’s market capitalization, or more prolonged effects of the COVID-19 pandemic than currently estimated could result in an impairment of the Company’s goodwill or long-lived assets in the future. The carrying value of the Company’s goodwill and long-lived asset group was $124.3 million and $264.7 million as of June 30, 2020, respectively. A further description of the Company’s significant accounting policies is included in the audited consolidated financial statements within its Annual Report on Form 10–K for the year ended December 31, 2019.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2020
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value MeasurementsThe Company’s financial instruments, other than those discussed below, include cash and cash equivalents, accounts receivable, accounts payable, and accrued liabilities. The carrying amount of these financial instruments approximate fair value due to the short-term nature of these instruments. For financial instruments measured at fair value on a recurring basis, the Company prioritizes the inputs used in measuring fair value according to a three-tier fair value hierarchy defined by U.S. GAAP. For a description of the methods and assumptions that the Company uses to estimate the fair value and determine the classification according to the fair value hierarchy for each financial instrument, see the Company’s audited consolidated financial statements and related notes included in its Annual Report on Form 10-K for the year ended December 31, 2019. Debt. The estimated fair value of the Company’s debt instruments, which are classified as Level 3 financial instruments, at June 30, 2020 and December 31, 2019, was approximately $243.5 million and $246.1 million, respectively. The carrying values of the Company’s debt instruments at June 30, 2020 and December 31, 2019, were $239.9 million and $242.3 million, respectively.

Debt

Debt	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Debt	Debt Debt consists of the following (in thousands): June 30, 2020 December 31, 2019 Revolving Credit Facility $ 29,099 $ 25,822 Term Loan Facility $ 214,421 $ 220,313 Debt issuance costs (3,639) (3,812) Total term debt 210,782 216,501 Less: current portion 19,498 13,685 Long-term debt, net $ 191,284 $ 202,816 Credit Facilities On October 22, 2018 (the “Closing Date”), the Company entered into a new credit agreement (as amended, the “Credit Agreement”) providing for a term loan facility in the amount of $235.0 million (the “Term Loan Facility”) and a revolving credit facility of $50.0 million (the “Revolving Credit Facility”) (together the “Credit Facilities”). On February 11, 2019, the Company amended the Credit Agreement to increase the Revolving Credit Facility to $75.0 million. On September 23, 2019, the Company entered into a second amendment to the Credit Agreement, which extended the maturity date of the Term Loan Facility and the Revolving Credit Facility under the Credit Facilities to September 23, 2024 (the “Maturity Date”), reduced the interest margin applicable to all loans under the Credit Agreement by 0.75% and reduced certain fees incurred under the Credit Agreement. The second amendment also allows the Company to request an additional $25.0 million increase to the Term Loan Facility. On May 5, 2020 the Company entered into a third amendment to the Credit Agreement (“Third Amendment”) which amended and modified the Credit Agreement, to, among other things, (i) waive the financial covenants under the Credit Agreement for the fiscal quarters ending June 30, 2020 and September 30, 2020 (the “Waiver Period”), (ii) add a requirement to maintain a minimum liquidity of at least $30.0 million until the Leverage Ratio (as defined in the Credit Agreement) is less than 2.50 to 1.00 for a period of four consecutive fiscal quarters, (iii) hold the incurrence ratios for certain restricted payments, investments and dispositions at the levels applicable prior to the effectiveness of the Third Amendment, (iv) increase the interest and fees payable under the Credit Agreement from the date of Third Amendment through (but excluding) the first date on which the Company receives cumulative net cash proceeds of at least $50.0 million from certain issuances of permitted equity or convertible subordinated debt and (v) allow that any calculation of Consolidated EBITDA (as defined in the Credit Agreement) that includes the fiscal quarter ended December 31, 2019 may include non-cash expenses for inventory write-downs incurred by the Company during such quarter. Following the Waiver Period, the Third Amendment adjusts the required leverage levels for the Leverage Ratio to provide the Company with additional flexibility when it is re-imposed at the end of the Waiver Period. The Term Loan Facility matures on the Maturity Date and amortizes in quarterly installments in aggregate amounts equal to 5.00% of the original principal amount of the Term Loan Facility (the “Original Principal Amount”) in the first and second years of the Term Loan Facility, 10.00% of the Original Principal Amount in the third and fourth years of the Term Loan Facility and 12.50% of the Original Principal Amount in the fifth and sixth years of the Term Loan Facility, with any outstanding balance due and payable on the Maturity Date. The first amortization payment was on December 31, 2018. The Revolving Credit Facility also terminates on the Maturity Date and loans thereunder may be borrowed, repaid, and reborrowed up to such date. As amended, loans under the Credit Facilities bear interest, at the Company’s option, at either the Euro-Rate (as defined in the Credit Agreement), or in the case of swing loans, the Swing Rate (as defined in the Credit Agreement), plus 3.00% or the Base Rate (as defined in the Credit Agreement) plus 2.00%, with 0.25% step-downs based on the achievement of certain leverage ratios following the Closing Date. The Euro-Rate is subject to a 1.00% floor and for loans based on the Euro-Rate, interest payments are due at the end of each applicable interest period. The Credit Facilities are secured by substantially all of the assets of the Company and any of its existing or future material domestic subsidiaries, subject to customary exceptions. As of June 30, 2020 and December 31, 2019, the Company was in compliance with all of the covenants in its Credit Agreement, as amended. At June 30, 2020, the Company had $214.4 million and $29.1 million of borrowings outstanding under the Term Loan Facility and Revolving Credit Facility, respectively. At December 31, 2019, the Company had $220.3 million and $25.8 million of borrowings outstanding under the Term Loan Facility and Revolving Credit Facility, respectively. At June 30, 2020 and December 31, 2019, the Company had $45.9 million and $49.2 million available under the Revolving Credit Facility, respectively. There were no outstanding letters of credit as of June 30, 2020 and December 31, 2019.

Liabilities under Tax Receivabl

Liabilities under Tax Receivable Agreement	6 Months Ended
	Jun. 30, 2020
Liabilities Under Tax Receivable Agreement [Abstract]
Liabilities under Tax Receivable Agreement	Liabilities under Tax Receivable Agreement On November 1, 2017, the Company entered into a tax receivable agreement with FAH, LLC (the “Tax Receivable Agreement”) and each of the Continuing Equity Owners that provides for the payment by the Company to the Continuing Equity Owners of 85% of the amount of tax benefits, if any, that it realizes, or in some circumstances, is deemed to realize, as a result of (i) future redemptions funded by the Company or exchanges, or deemed exchanges in certain circumstances, of common units of FAH, LLC for Class A common stock of Funko, Inc. or cash, and (ii) certain additional tax benefits attributable to payments made under the Tax Receivable Agreement. During both the three and six months ended June 30, 2020, the Company acquired 0.5 million common units of FAH, LLC, in connection with the redemption of common units, which resulted in an increase in the tax basis of the Company’s investment in FAH, LLC subject to the provisions of the Tax Receivable Agreement. As a result of these exchanges, during both the three and six months ended June 30, 2020, the Company recognized an increase to its net deferred tax assets in the amount of $0.4 million and corresponding Tax Receivable Agreement liabilities of $0.9 million. No payments were made pursuant to the Tax Receivable Agreement during the three months ended June 30, 2020. There were $0.2 million in payments made pursuant to the Tax Receivable Agreement during the six months ended June 30, 2020. During the three and six months ended June 30, 2019, the Company acquired an aggregate of 1.7 million and 5.0 million common units of FAH, LLC, respectively, in connection with the redemption of common units, which resulted in an increase in the tax basis of the Company’s investment in FAH, LLC subject to the provisions of the Tax Receivable Agreement. As a result of these exchanges, during the three and six months ended June 30, 2019 the Company recognized an increase to its net deferred tax assets in the amount of $8.4 million and $22.3 million, respectively, and corresponding Tax Receivable Agreement liabilities of $10.6 million and $29.2 million, respectively. There were no payments made pursuant to the Tax Receivable Agreement during the six months ended June 30, 2019. As of June 30, 2020, the Company’s total obligation under the Tax Receivable Agreement, including accrued interest, was $66.6 million, of which $4.2 million was included in accrued expenses and other current liabilities on the unaudited condensed consolidated balance sheets. There were no transactions

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies License Agreements The Company enters into license agreements with various licensors of copyrighted and trademarked characters and design in connection with the products that it sells. The agreements generally require royalty payments based on product sales and in some cases may require minimum royalty and other related commitments. Employment Agreements The Company has employment agreements with certain officers. The agreements include, among other things, an annual bonus based on certain performance metrics of the Company, as defined by the board of directors, and up to one year’s severance pay beyond termination date. Debt The Company has entered into a Credit Agreement which includes a Term Loan Facility and a Revolving Credit Facility. See Note 4, Debt. Tax Receivable Agreement The Company is party to the Tax Receivable Agreement with FAH, LLC and each of the Continuing Equity Owners that provides for the payment by the Company to the Continuing Equity Owners under certain circumstances. See Note 5, Liabilities under Tax Receivable Agreement. Legal Contingencies The Company is involved in claims and litigation in the ordinary course of business, some of which seek monetary damages, including claims for punitive damages, which are not covered by insurance. For certain pending matters, accruals have not been established because such matters have not progressed sufficiently through discovery, and/or development of important factual information and legal information is insufficient to enable the Company to estimate a range of possible loss, if any. An adverse determination in one or more of these pending matters could have an adverse effect on the Company’s condensed consolidated financial position, results of operations or cash flows. The Company is, and may in the future become, subject to various legal proceedings and claims that arise in or outside the ordinary course of business. For example, on March 10, 2020, a purported stockholder of the Company filed a putative class action lawsuit in the United States District Court for the Central District of California against the Company and certain of its officers, entitled Ferreira v. Funko, Inc. et al . The complaint alleges that the Company and officers violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as well as Rule 10b-5 promulgated thereunder, by making allegedly materially misleading statements in the Company’s October 31, 2019 announcement of third quarter 2019 financial results and third quarter 2019 Form 10-Q, as well as by omitting material facts necessary to make the statements made therein not misleading. The lawsuit seeks, among other things, compensatory damages and attorneys’ fees and costs. Two additional complaints making substantially similar allegations— Nahas v. Funko, Inc. et al. and Dachev v. Funko, Inc. et al. —were filed April 3, 2020 in the United States District Court for the Central District of California and April 9, 2020 in the United States District Court for the Western District of Washington, respectively. On June 11, 2020, the Central District of California actions were consolidated for all purposes into one action, and a lead plaintiff and lead counsel were appointed pursuant to the Private Securities Litigation Reform Act. Lead plaintiff filed the consolidated complaint on July 31, 2020, and the Company intends to move to dismiss the consolidated action. On June 25, 2020, the Dachev action was voluntarily dismissed. Five shareholder derivative actions based on the earnings announcement and Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 have been brought on behalf of the Company against certain of its directors and officers. Specifically, on April 23, June 5, and June 10, 2020, the actions captioned Cassella v. Mariotti et al. , Evans v. Mariotti et al. , and Igelido v. Mariotti et al. , respectively, were filed in the United States District Court for the Central District of California. On July 6, 2020, these three actions were consolidated for all purposes into one action under the title In re Funko, Inc. Derivative Litigation . Additionally, on July 14 and July 31, 2020, the actions captioned Rubin v. Mariotti et al. and Fletcher v Mariotti et al., respectively, were filed in the United States District Court for the District of Delaware. The complaints filed in the shareholder derivative actions have alleged breaches of fiduciary duties, unjust enrichment, waste of corporate assets, insider trading, and violations of the Exchange Act. The actions seek, among other things, payment of damages to the Company and to disgorge the directors and officers from all profits and benefits they obtained due to their alleged wrongful conduct. Defendants intend to seek to dismiss or stay these actions. Defendants believe they have meritorious defenses to the claims in the above-referenced suits and the Company believes any liability for the alleged claims is not currently probable or reasonably estimable. Additionally, on November 16, 2017, a purported stockholder of the Company filed a putative class action lawsuit in the Superior Court of Washington in and for King County against the Company, certain of its officers and directors, and the underwriters of its IPO, entitled Robert Lowinger v. Funko, Inc., et al . In January and March 2018, five additional putative class action lawsuits were filed in Washington state court, four in the Superior Court of Washington in and for King County and one in the Superior Court of Washington in and for Snohomish County. Two of the King County lawsuits, Surratt v. Funko, Inc. et al. (filed on January 16, 2018) and Baskin v. Funko, Inc. et al. (filed on January 30, 2018), were filed against the Company and certain of its officers and directors. The other two King County lawsuits, The Ronald and Maxine Linde Foundation v. Funko, Inc. et al. (filed on January 18, 2018) and Lovewell v. Funko, Inc. et al. (filed on March 27, 2018), were filed against the Company, certain of its officers and directors, entities affiliated with ACON Funko Investors, L.L.C. (“ACON”), Fundamental Capital, LLC and Funko International, LLC (collectively, “Fundamental”) and certain other defendants. The Snohomish County lawsuit, Berkelhammer v. Funko, Inc. et al. (filed on March 13, 2018), was filed against the Company, certain of the Company’s officers and directors, and ACON. On May 8, 2018, the Berkelhammer action was voluntarily dismissed, and on May 15, 2018 a substantially similar action was filed by the same plaintiff in the Superior Court of Washington in and for King County. On April 2, 2018, a putative class action lawsuit entitled Jacobs v. Funko, Inc. et al. was filed in the United States District Court for the Western District of Washington against the Company, certain of its officers and directors, and certain other defendants. On May 21, 2018, the Jacobs action was voluntarily dismissed, and on June 12, 2018 a substantially similar action was filed by the same plaintiff in the Superior Court of Washington in and for King County. On July 2, 2018, all of the above-referenced suits were ordered consolidated for all purposes into one action under the title In re Funko, Inc. Securities Litigation in the Superior Court of Washington in and for King County. On August 1, 2018, plaintiffs filed a consolidated complaint against the Company, certain of its officers and directors, ACON, Fundamental, and certain other defendants. On October 1, 2018, the Company moved to dismiss the action. The motion was fully briefed as of November 30, 2018 and oral argument on the motion was held on May 3, 2019. On August 2, 2019, the Superior Court of Washington in and for King County dismissed the consolidated action, allowing plaintiffs leave to amend the complaint. The Court found, inter alia, that “Funko’s statements regarding its financial disclosures were not materially false or misleading” and that “plaintiffs have not shown that Funko’s ‘opinion statements’ were false or that such statements were not simply corporate optimism or puffery.” On October 3, 2019, plaintiffs filed a first amended consolidated complaint. The Company moved to dismiss that complaint on December 5, 2019. The motion was fully briefed as of March 17, 2020, and oral argument on the motion was held on May 15, 2020. On August 5, 2020, the Superior Court of Washington in and for King County dismissed the consolidated action with prejudice. Additionally, on June 4, 2018, a putative class action lawsuit entitled Kanugonda v. Funko, Inc. et al . was filed in the United States District Court for the Western District of Washington against the Company, certain of its officers and directors, and certain other defendants. On January 4, 2019, a lead plaintiff was appointed in that case. On April 30, 2019, the lead plaintiff filed an amended complaint against the previously named defendants. The parties to the federal action, now captioned Berkelhammer v. Funko, Inc. et al. , have agreed to a stay of that action pending developments in the state case. The complaints in Washington state court and Berkelhammer v. Funko, Inc. et al . allege that the Company violated Sections 11, 12, and 15 of the Securities Act of 1933, as amended, by making allegedly materially misleading statements and by omitting material facts necessary to make the statements made therein not misleading. The lawsuits seek, among other things, compensatory statutory damages and rescissory damages in account of the consideration paid for the Company’s Class A common stock by the plaintiffs and members of the putative class, as well as attorneys’ fees and costs. The Company believes it has meritorious defenses to the claims of the plaintiffs and members of the class and any liability for the alleged claims is not currently probable or reasonably estimable.

Segments

Segments	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Segments	Segments The Company identifies its reportable segments according to how the business activities are managed and evaluated and for which discrete financial information is available and regularly reviewed by its Chief Operating Decision Maker (the “CODM”) to allocate resources and assess performance. Because its CODM reviews financial performance and allocates resources at a consolidated level on a regular basis, the Company has one reportable segment. The following table is a summary of the Company’s main product categories as a percent of net sales: Three Months Ended June 30, Six Months Ended June 30, 2020 2020 2019 2020 2019 Figures 78.9 % 83.5 % 80.4 % 82.6 % Other 21.1 % 16.5 % 19.6 % 17.4 % The following tables present summarized geographical information (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2020 2019 2020 2019 Net sales: United States $ 77,904 $ 122,673 $ 176,413 $ 231,543 International 20,195 68,526 58,386 126,721 Total net sales $ 98,099 $ 191,199 $ 234,799 $ 358,264 June 30, 2020 December 31, 2019 Long-term assets: United States $ 75,487 $ 78,394 Vietnam and China 18,752 19,606 United Kingdom 31,336 35,396 Total long-lived assets $ 125,575 $ 133,396

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Funko, Inc. is taxed as a corporation and pays corporate federal, state and local taxes on income allocated to it from FAH, LLC based upon Funko, Inc.’s economic interest held in FAH, LLC. FAH, LLC is treated as a pass-through partnership for income tax reporting purposes. FAH, LLC’s members, including the Company, are liable for federal, state and local income taxes based on their share of FAH, LLC’s pass-through taxable income. The Company recorded $1.7 million of income tax benefit and $2.2 million of income tax expense for the three months ended June 30, 2020 and 2019, respectively, and $2.6 million of income tax benefit and $3.6 million of income tax expense for the six months ended June 30, 2020 and 2019, respectively. The Company’s effective tax rate for the six months ended June 30, 2020 was 11.0%. The Company’s effective tax rate is less than the statutory rate of 21% primarily because the Company is not liable for income taxes on the portion of FAH, LLC’s earnings that are attributable to non-controlling interests. The Company is party to the Tax Receivable Agreement with FAH, LLC and each of the Continuing Equity Owners that provides for the payment by the Company to the Continuing Equity Owners under certain circumstances. See Note 5, Liabilities under Tax Receivable Agreement.

Stockholders_ Equity

Stockholders’ Equity	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Stockholders' Equity	. Stockholders’ EquityThe following is a reconciliation of changes in stockholders’ equity for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Class A common stock Beginning balance $ 3 $ 3 $ 3 $ 2 Shares issued 1 — 1 1 Ending balance $ 4 $ 3 $ 4 $ 3 Class B common stock Beginning balance $ 1 $ 2 $ 1 $ 2 Redemption of common units of FAH, LLC — — — — Ending balance $ 1 $ 2 $ 1 $ 2 Additional paid-in capital Beginning balance $ 206,570 $ 165,954 $ 204,174 $ 146,154 Equity-based compensation 2,625 3,367 5,038 6,115 Shares issued for equity-based compensation awards — 277 45 1,426 Shares withheld related to net share settlement of equity-based compensation awards (3) — (101) — Shares issued for purchase consideration — — — 2,221 Redemption of common units of FAH, LLC 2,078 9,233 2,115 27,651 Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets (535) (2,147) (536) (6,883) Ending balance $ 210,735 $ 176,684 $ 210,735 $ 176,684 Accumulated other comprehensive (loss) income Beginning balance $ (785) $ 104 $ 791 $ (167) Foreign currency translation loss, net of tax (22) (440) (1,598) (169) Ending balance $ (807) $ (336) $ (807) $ (336) Retained earnings Beginning balance $ 16,316 $ 10,912 $ 20,442 $ 8,717 Net (loss) income attributable to Funko, Inc. (10,585) 5,132 (14,711) 7,327 Ending balance $ 5,731 $ 16,044 $ 5,731 $ 16,044 Non-controlling interests Beginning balance $ 74,493 $ 117,407 $ 79,733 $ 138,546 Distributions to Continuing Equity Owners — (10,069) (2,675) (18,121) Redemption of common units of FAH, LLC (2,078) (9,270) (2,115) (27,688) Foreign currency translation loss, net of tax (23) (383) (945) (2) Net (loss) income attributable to non-controlling interests (4,424) 6,283 (6,030) 11,233 Ending balance $ 67,968 $ 103,968 $ 67,968 $ 103,968 Total stockholders’ equity $ 283,632 $ 296,365 $ 283,632 $ 296,365 The following is a reconciliation of changes in Class A and Class B common shares outstanding for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Class A common shares outstanding Beginning balance 34,953 28,522 34,918 24,960 Shares issued for equity-based compensation awards 37 22 64 131 Shares issued for purchase consideration — — — 127 Redemption of common units of FAH, LLC 475 1,670 483 4,996 Ending balance 35,465 30,214 35,465 30,214 Class B common shares outstanding Beginning balance 14,515 20,281 14,515 23,584 Redemption of common units of FAH, LLC (475) (1,541) (475) (4,844) Ending balance 14,040 18,740 14,040 18,740 Total Class A and Class B common shares outstanding 49,505 48,954 49,505 48,954

Non-controlling Interests

Non-controlling Interests	6 Months Ended
	Jun. 30, 2020
Noncontrolling Interest [Abstract]
Non-controlling Interests	Non-controlling interests Funko, Inc. is the sole managing member of FAH, LLC and as a result consolidates the financial results of FAH, LLC and reports a non-controlling interest representing the common units of FAH, LLC held by the Continuing Equity Owners. Changes in Funko, Inc.’s ownership interest in FAH, LLC while Funko, Inc. retains its controlling interest in FAH, LLC will be accounted for as equity transactions. As such, future redemptions or direct exchanges of common units of FAH, LLC by the Continuing Equity Owners will result in a change in ownership and reduce the amount recorded as non-controlling interest and increase or decrease additional paid-in capital when FAH, LLC has positive or negative net assets, respectively. Net (loss) income and comprehensive (loss) income are attributed between Funko, Inc. and noncontrolling interest holders based on each party’s relative economic ownership interest in FAH, LLC. As of June 30, 2020 and December 31, 2019, Funko, Inc. owned 35.5 million and 34.9 million of FAH, LLC common units, respectively, representing a 69.5% and 68.7% economic ownership interest in FAH, LLC, respectively. Net (loss) income and comprehensive (loss) income of FAH, LLC excludes certain activity attributable to Funko, Inc., including $2.6 million and $4.9 million of equity-based compensation expense for share-based compensation awards issued by Funko, Inc. for the three and six months ended June 30, 2020, respectively, and $2.8 million and $5.0 million of equity-based compensation expense for share-based compensation awards issued by Funko, Inc. for the three and six months ended June 30, 2019, respectively. Net (loss) income and comprehensive (loss) income of FAH, LLC also excludes $2.0 million and $3.2 million of income tax benefit for corporate, federal, state and local taxes attributable to Funko, Inc. for the three and six months ended June 30, 2020, respectively, and $1.6 million and $2.5 million of income tax expense for corporate, federal, state and local taxes attributable to Funko, Inc. for the three and six months ended June 30, 2019, respectively.

(Loss) Earnings per Share

(Loss) Earnings per Share	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
(Loss) Earnings per Share	(Loss) Earnings per Share Basic (loss) earnings per share of Class A common stock is computed by dividing net (loss) income attributable to Funko, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted (loss) earnings per share of Class A common stock is computed by dividing net (loss) income attributable to Funko, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities. The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted (loss) earnings per share of Class A common stock (in thousands, except shares and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net (loss) income $ (15,009) $ 11,415 $ (20,741) $ 18,560 Less: net (loss) income attributable to non-controlling interests (4,424) 6,283 (6,030) 11,233 Net (loss) income attributable to Funko, Inc. — basic and diluted $ (10,585) $ 5,132 $ (14,711) $ 7,327 Denominator: Weighted-average shares of Class A common stock outstanding — basic 35,033,100 29,909,518 34,988,487 28,283,578 Add: Effect of dilutive equity-based compensation awards and common units of FAH, LLC that are convertible into Class A common stock — 2,205,901 — 2,012,075 Weighted-average shares of Class A common stock outstanding — diluted 35,033,100 32,115,419 34,988,487 30,295,653 (Loss) earnings per share of Class A common stock — basic $ (0.30) $ 0.17 $ (0.42) $ 0.26 (Loss) earnings per share of Class A common stock — diluted $ (0.30) $ 0.16 $ (0.42) $ 0.24 For the three and six months ended June 30, 2020 and 2019, an aggregate of 21.0 million and 20.5 million, respectively, and 21.2 million and 22.4 million, respectively, of potentially dilutive securities were excluded from the weighted-average in the computation of diluted (loss) earnings per share of Class A common stock because the effect would have been anti-dilutive. For the three and six months ended June 30, 2020 and 2019, anti-dilutive securities included 16.0 million and 15.9 million, respectively, and 20.0 million and 21.6 million, respectively, of common units of FAH, LLC that are convertible into Class A common stock, but were excluded from the computations of diluted (loss) earnings per share because the effect would have been anti-dilutive under the if-converted method. Shares of the Company’s Class B common stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted (loss) earnings per share of Class B common stock under the two-class method has not been presented.

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2020
Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of the Company’s unaudited condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements as well as the reported amounts of revenues and expenses during the reporting period. Actual results could differ from these estimates and assumptions.
Evaluation of goodwill impairment	The Company evaluates goodwill for impairment annually on October 1 of each year and upon the occurrence of triggering events or substantive changes in circumstances that could indicate a potential impairment by assessing qualitative factors or performing a quantitative analysis in determining whether it is more likely than not that the fair value of the net assets is below their carrying amounts. The Company has determined that it has one reporting unit for which discrete financial information is available and results are regularly reviewed by management.During the six months ended June 30, 2020, the market capitalization of the Company declined below the Company’s book value, which is a triggering event that could indicate potential impairment. The decline of the Company’s market capitalization below book value began on approximately March 11, 2020, the day in which the World Health Organization declared the COVID-19 outbreak to be a global pandemic. The fair value of the reporting unit was determined using a market approach which considered the current market capitalization of the Company as well as a control premium that was estimated based upon comparable market transactions to reflect the synergies and other benefits available to a market participant. As a result of its analysis, the Company has determined that the fair value of its goodwill reporting unit exceeded its carrying value and therefore an impairment charge was not recorded for the six months ended June 30, 2020.
Evaluation of other long-lived assets for impairment	The Company’s long-lived asset group, which includes intangible assets, property and equipment and operating lease right-of use assets net of operating lease liabilities, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset group might not be recoverable. Conditions that would necessitate an impairment assessment include a significant decline in the observable market value of an asset (or asset group), a significant change in the extent or manner in which an asset (or asset group) is used, or any other significant adverse change that would indicate that the carrying amount of an asset or group of assets may not be recoverable. The Company has determined that the carrying amount of its long-lived asset group is recoverable as of June 30, 2020, based on the Company’s current financial forecasts. Therefore, no impairment charges relating to long-lived asset group were recorded for the six months ended June 30, 2020. Further declines in the Company’s market capitalization, or more prolonged effects of the COVID-19 pandemic than currently estimated could result in an impairment of the Company’s goodwill or long-lived assets in the future. The carrying value of the Company’s goodwill and long-lived asset group was $124.3 million and $264.7 million as of June 30, 2020, respectively.

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2020
Debt Disclosure [Abstract]
Summary of Debt	Debt consists of the following (in thousands): June 30, 2020 December 31, 2019 Revolving Credit Facility $ 29,099 $ 25,822 Term Loan Facility $ 214,421 $ 220,313 Debt issuance costs (3,639) (3,812) Total term debt 210,782 216,501 Less: current portion 19,498 13,685 Long-term debt, net $ 191,284 $ 202,816

Segments (Tables)

Segments (Tables)	6 Months Ended
	Jun. 30, 2020
Segment Reporting [Abstract]
Summary of Main Product Categories as Percent of Sales	The following table is a summary of the Company’s main product categories as a percent of net sales: Three Months Ended June 30, Six Months Ended June 30, 2020 2020 2019 2020 2019 Figures 78.9 % 83.5 % 80.4 % 82.6 % Other 21.1 % 16.5 % 19.6 % 17.4 %
Summary of Net Sales and Long-Lived Assets	The following tables present summarized geographical information (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2020 2020 2019 2020 2019 Net sales: United States $ 77,904 $ 122,673 $ 176,413 $ 231,543 International 20,195 68,526 58,386 126,721 Total net sales $ 98,099 $ 191,199 $ 234,799 $ 358,264 June 30, 2020 December 31, 2019 Long-term assets: United States $ 75,487 $ 78,394 Vietnam and China 18,752 19,606 United Kingdom 31,336 35,396 Total long-lived assets $ 125,575 $ 133,396

Stockholders_ Equity (Tables)

Stockholders’ Equity (Tables)	6 Months Ended
	Jun. 30, 2020
Equity [Abstract]
Reconciliation of Changes in Stockholders' Equity	The following is a reconciliation of changes in stockholders’ equity for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Class A common stock Beginning balance $ 3 $ 3 $ 3 $ 2 Shares issued 1 — 1 1 Ending balance $ 4 $ 3 $ 4 $ 3 Class B common stock Beginning balance $ 1 $ 2 $ 1 $ 2 Redemption of common units of FAH, LLC — — — — Ending balance $ 1 $ 2 $ 1 $ 2 Additional paid-in capital Beginning balance $ 206,570 $ 165,954 $ 204,174 $ 146,154 Equity-based compensation 2,625 3,367 5,038 6,115 Shares issued for equity-based compensation awards — 277 45 1,426 Shares withheld related to net share settlement of equity-based compensation awards (3) — (101) — Shares issued for purchase consideration — — — 2,221 Redemption of common units of FAH, LLC 2,078 9,233 2,115 27,651 Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets (535) (2,147) (536) (6,883) Ending balance $ 210,735 $ 176,684 $ 210,735 $ 176,684 Accumulated other comprehensive (loss) income Beginning balance $ (785) $ 104 $ 791 $ (167) Foreign currency translation loss, net of tax (22) (440) (1,598) (169) Ending balance $ (807) $ (336) $ (807) $ (336) Retained earnings Beginning balance $ 16,316 $ 10,912 $ 20,442 $ 8,717 Net (loss) income attributable to Funko, Inc. (10,585) 5,132 (14,711) 7,327 Ending balance $ 5,731 $ 16,044 $ 5,731 $ 16,044 Non-controlling interests Beginning balance $ 74,493 $ 117,407 $ 79,733 $ 138,546 Distributions to Continuing Equity Owners — (10,069) (2,675) (18,121) Redemption of common units of FAH, LLC (2,078) (9,270) (2,115) (27,688) Foreign currency translation loss, net of tax (23) (383) (945) (2) Net (loss) income attributable to non-controlling interests (4,424) 6,283 (6,030) 11,233 Ending balance $ 67,968 $ 103,968 $ 67,968 $ 103,968 Total stockholders’ equity $ 283,632 $ 296,365 $ 283,632 $ 296,365
Reconciliation of Changes in Class A and Class B Common Shares Outstanding	The following is a reconciliation of changes in Class A and Class B common shares outstanding for the three and six months ended June 30, 2020 and 2019: Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 (In thousands) Class A common shares outstanding Beginning balance 34,953 28,522 34,918 24,960 Shares issued for equity-based compensation awards 37 22 64 131 Shares issued for purchase consideration — — — 127 Redemption of common units of FAH, LLC 475 1,670 483 4,996 Ending balance 35,465 30,214 35,465 30,214 Class B common shares outstanding Beginning balance 14,515 20,281 14,515 23,584 Redemption of common units of FAH, LLC (475) (1,541) (475) (4,844) Ending balance 14,040 18,740 14,040 18,740 Total Class A and Class B common shares outstanding 49,505 48,954 49,505 48,954

(Loss) Earnings per Share (Tabl

(Loss) Earnings per Share (Tables)	6 Months Ended
	Jun. 30, 2020
Earnings Per Share [Abstract]
Schedule of Reconciliations of Numerators and Denominators Used to Compute Basic and Diluted Earnings Per Share	The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted (loss) earnings per share of Class A common stock (in thousands, except shares and per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator: Net (loss) income $ (15,009) $ 11,415 $ (20,741) $ 18,560 Less: net (loss) income attributable to non-controlling interests (4,424) 6,283 (6,030) 11,233 Net (loss) income attributable to Funko, Inc. — basic and diluted $ (10,585) $ 5,132 $ (14,711) $ 7,327 Denominator: Weighted-average shares of Class A common stock outstanding — basic 35,033,100 29,909,518 34,988,487 28,283,578 Add: Effect of dilutive equity-based compensation awards and common units of FAH, LLC that are convertible into Class A common stock — 2,205,901 — 2,012,075 Weighted-average shares of Class A common stock outstanding — diluted 35,033,100 32,115,419 34,988,487 30,295,653 (Loss) earnings per share of Class A common stock — basic $ (0.30) $ 0.17 $ (0.42) $ 0.26 (Loss) earnings per share of Class A common stock — diluted $ (0.30) $ 0.16 $ (0.42) $ 0.24

Significant Accounting Polici_3

Significant Accounting Policies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020USD ($)number_of_reporting_units	Dec. 31, 2019USD ($)
Accounting Policies [Abstract]
Cash equivalents	$ 29,900
Number of reporting units | number_of_reporting_units	1
Goodwill	$ 124,320	$ 124,835
Intangible assets and other, net	$ 264,700

Fair Value Measurements - Addit

Fair Value Measurements - Additional Information (Detail) - Funko Acquisition Holdings, L.L.C. - Level 3 - USD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated fair value of debt instruments	$ 243.5	$ 246.1
Term Loan Facility	$ 239.9	$ 242.3

Debt - Summary of Debt (Detail)

Debt - Summary of Debt (Detail) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Oct. 22, 2018
Debt Instrument [Line Items]
Line of credit	$ 29,099	$ 25,822
Debt issuance costs	(3,639)	(3,812)
Total term debt	210,782	216,501
Current portion of long-term debt, net of unamortized discount	19,498	13,685
Long-term debt, net	191,284	202,816
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit	29,099	25,822
Term Loan Facility
Debt Instrument [Line Items]
Term Loan Facility	$ 214,421	$ 220,313	$ 235,000

Debt - New Credit Facilities -

Debt - New Credit Facilities - Additional Information (Detail) - USD ($)	May 05, 2020	Sep. 23, 2019	Oct. 22, 2018	Jun. 30, 2020	Dec. 31, 2019	Feb. 11, 2019
Debt Instrument [Line Items]
Minimum liquidity requirement	$ 30,000,000
Leverage ratio	250.00%
Net cash proceeds requirement	$ 50,000,000
Line of credit				$ 29,099,000	$ 25,822,000
Remaining borrowing capacity				45,900,000
Term Loan Facility
Debt Instrument [Line Items]
Term Loan Facility			$ 235,000,000	214,421,000	220,313,000
Increase in principal balance under second amendment		$ 25,000,000
Long term debt maturity percentage first and second year			5.00%
Long term debt maturity percentage third and fourth year			10.00%
Long term debt maturity percentage fifth and sixth year			12.50%
Term Loan Facility | Euro Rate
Debt Instrument [Line Items]
Interest rate margins		3.00%
Interest rate of borrowings		1.00%
Term Loan Facility | Base Rate Loans
Debt Instrument [Line Items]
Interest rate margins		2.00%
Supplementary leverage ratio		0.25%
Term Loan Facility | Swing Rate
Debt Instrument [Line Items]
Interest rate margins		2.00%
Supplementary leverage ratio		0.25%
Revolving Credit Facility
Debt Instrument [Line Items]
Line of credit			$ 50,000,000			$ 75,000,000
Reduction in interest margin applicable to all loans		0.75%
Line of credit				29,099,000	25,822,000
Remaining borrowing capacity					49,200,000
Letters of Credit
Debt Instrument [Line Items]
Outstanding letters of credit				$ 0	$ 0

Liabilities under Tax Receiva_2

Liabilities under Tax Receivable Agreement - Additional information (Detail) - USD ($) shares in Millions	Nov. 01, 2017	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Liabilities Under Tax Receivable Agreement [Line Items]
Percentage of tax benefit paid to equity owner	85.00%
Common units acquired (in shares)		0.5	1.7	0.5	5
Increase in deferred tax assets		$ 400,000	$ 8,400,000	$ 400,000	$ 22,300,000
Increase in tax receivable agreement liabilities		900,000	$ 10,600,000	900,000	29,200,000
Payments under tax receivable agreement		0		166,000	$ 0
Funko Acquisition Holdings, L.L.C.
Liabilities Under Tax Receivable Agreement [Line Items]
Penalties and Interest Accrued		66,600,000		66,600,000		$ 65,800,000
Funko Acquisition Holdings, L.L.C. | Accrued Expenses and Other Current Liabilities
Liabilities Under Tax Receivable Agreement [Line Items]
Penalties and Interest Accrued		$ 4,200,000		$ 4,200,000		$ 4,300,000

Commitments and Contingencies -

Commitments and Contingencies - Additional information (Detail) - Lawsuit	Jun. 10, 2020	Apr. 09, 2020	Jul. 02, 2018	Jan. 16, 2018	Mar. 31, 2018	Jun. 30, 2020
Lessee, Lease, Description [Line Items]
Severance payment period						1 year
Nahas v. Funko, Inc. et al. and Dachev v. Funko, Inc. et al.
Lessee, Lease, Description [Line Items]
Number of additional putative class action lawsuits filed		2
In re Funko, Inc. Derivative Litigation
Lessee, Lease, Description [Line Items]
Number of additional putative class action lawsuits filed	5
Robert Lowinger v. Funko Inc et. al.
Lessee, Lease, Description [Line Items]
Number of additional putative class action lawsuits filed					5
Robert Lowinger v. Funko Inc et. al. | King County
Lessee, Lease, Description [Line Items]
Number of additional putative class action lawsuits filed					4
Robert Lowinger v. Funko Inc et. al. | Snohomish County
Lessee, Lease, Description [Line Items]
Number of additional putative class action lawsuits filed					1
Surratt v. Funko, Inc. et. al. and Baskin v. Funko, Inc. et. al.
Lessee, Lease, Description [Line Items]
Number of additional putative class action lawsuits filed				2
Ronald and Maxine Linde Foundation v. Funko, inc. et. al. And Lovewell v. Funko, inc. et. al.
Lessee, Lease, Description [Line Items]
Number of additional putative class action lawsuits filed					2
Berkelhammer v. Funko, inc. et. al.
Lessee, Lease, Description [Line Items]
Number of additional putative class action lawsuits filed			1

Segments - Additional Informati

Segments - Additional Information (Detail)	6 Months Ended
	Jun. 30, 2020Segment
Segment Reporting [Abstract]
Number of reportable segments	1

Segments - Summary of Main Prod

Segments - Summary of Main Product Categories as Percent of Sales (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Schedule of Property and Equipment Net by Country [Line Items]
Net sales	$ 98,099	$ 191,199	$ 234,799	$ 358,264
United States
Schedule of Property and Equipment Net by Country [Line Items]
Net sales	77,904	122,673	176,413	231,543
International
Schedule of Property and Equipment Net by Country [Line Items]
Net sales	$ 20,195	$ 68,526	$ 58,386	$ 126,721
Sales Revenue | Product Concentration Risk | Figures
Schedule of Property and Equipment Net by Country [Line Items]
Percent of sales	78.90%	83.50%	80.40%	82.60%
Sales Revenue | Product Concentration Risk | Other
Schedule of Property and Equipment Net by Country [Line Items]
Percent of sales	21.10%	16.50%	19.60%	17.40%

Segments - Summary of Net Sales

Segments - Summary of Net Sales and Long-Lived Assets (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Segment Reporting Information [Line Items]
Net sales	$ 98,099	$ 191,199	$ 234,799	$ 358,264
Total long-lived assets	125,575		125,575		$ 133,396
United States
Segment Reporting Information [Line Items]
Net sales	77,904	122,673	176,413	231,543
Total long-lived assets	75,487		75,487		78,394
International
Segment Reporting Information [Line Items]
Net sales	20,195	$ 68,526	58,386	$ 126,721
Vietnam and China
Segment Reporting Information [Line Items]
Total long-lived assets	18,752		18,752		19,606
United Kingdom
Segment Reporting Information [Line Items]
Total long-lived assets	$ 31,336		$ 31,336		$ 35,396

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Income tax expense	$ (1,703)	$ 2,170	$ (2,559)	$ 3,599
Effective income tax rate			11.00%
Statutory income tax rate			21.00%

Stockholders' Equity - Reconcil

Stockholders' Equity - Reconciliation of Changes in Stockholders' Equity (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance			$ 305,144
Foreign currency translation loss, net of tax	$ (45)	$ (824)	(2,543)	$ (171)
Net (loss) income	(15,009)	11,415	(20,741)	18,560
Ending balance	283,632	296,365	283,632	296,365
Common Stock | Class A common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	3	3	3	2
Shares issued	1	0	1	1
Ending balance	4	3	4	3
Common Stock | Class B common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	1	2	1	2
Redemption of common units of FAH, LLC	0	0	0	0
Ending balance	1	2	1	2
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	206,570	165,954	204,174	146,154
Equity-based compensation	2,625	3,367	5,038	6,115
Shares issued for equity-based compensation awards	0	277	45	1,426
Shares withheld related to net share settlement of equity-based compensation awards	(3)	0	(101)	0
Shares issued for purchase consideration	0	0	0	2,221
Redemption of common units of FAH, LLC	2,078	9,233	2,115	27,651
Establishment of liabilities under tax receivable agreement and related changes to deferred tax assets	(535)	(2,147)	(536)	(6,883)
Ending balance	210,735	176,684	210,735	176,684
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	(785)	104	791	(167)
Foreign currency translation loss, net of tax	(22)	(440)	(1,598)	(169)
Ending balance	(807)	(336)	(807)	(336)
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	16,316	10,912	20,442	8,717
Net (loss) income	(10,585)	5,132	(14,711)	7,327
Ending balance	5,731	16,044	5,731	16,044
Non-Controlling Interests
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning balance	74,493	117,407	79,733	138,546
Distributions to Continuing Equity Owners	0	(10,069)	(2,675)	(18,121)
Redemption of common units of FAH, LLC	(2,078)	(9,270)	(2,115)	(27,688)
Foreign currency translation loss, net of tax	(23)	(383)	(945)	(2)
Net (loss) income	(4,424)	6,283	(6,030)	11,233
Ending balance	$ 67,968	$ 103,968	$ 67,968	$ 103,968

Stockholders' Equity - Reconc_2

Stockholders' Equity - Reconciliation of Changes in Class A and Class B Common Shares Outstanding (Detail) - shares	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Class A common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares outstanding (in shares)	34,953,000	28,522,000	34,918,000	24,960,000
Shares issued for equity-based compensation awards (in shares)	37,000	22,000	64,000	131,000
Shares issued for purchase consideration (in shares)	0	0	0	127,000
Redemption of common units of FAH, LLC (in shares)	475,000	1,670,000	483,000	4,996,000
Common shares outstanding (in shares)	35,465,000	30,214,000	35,465,000	30,214,000
Class B common stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares outstanding (in shares)	14,515,000	20,281,000	14,515,000	23,584,000
Redemption of common units of FAH, LLC (in shares)	(475,000)	(1,541,000)	(475,000)	(4,844,000)
Common shares outstanding (in shares)	14,040,000	18,740,000	14,040,000	18,740,000
Class A and Class B common shares outstanding
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Common shares outstanding (in shares)	49,505,000	48,954,000	49,505,000	48,954,000

Non-controlling Interests - Add

Non-controlling Interests - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019	Mar. 31, 2020	Mar. 31, 2019	Dec. 31, 2018
Noncontrolling Interest [Line Items]
Income tax (benefit) expense	$ (1,703)	$ 2,170	$ (2,559)	$ 3,599
FAH, LLC
Noncontrolling Interest [Line Items]
Ownership percentage			69.50%		68.70%
Class A common shares outstanding
Noncontrolling Interest [Line Items]
Common stock, shares outstanding (in shares)	35,465,000	30,214,000	35,465,000	30,214,000	34,918,000	34,953,000	28,522,000	24,960,000
Class A common shares outstanding | FAH, LLC
Noncontrolling Interest [Line Items]
Common stock, shares outstanding (in shares)	35,500,000		35,500,000		34,900,000
Funko Acquisition Holdings, L.L.C.
Noncontrolling Interest [Line Items]
Equity-based compensation	$ 2,600	$ 2,800	$ 4,900	$ 5,000
Income tax (benefit) expense	$ (2,000)	$ 1,600	$ (3,200)	$ 2,500

(Loss) Earnings per Share - Sch

(Loss) Earnings per Share - Schedule of Reconciliations of Numerators and Denominators Used to Compute Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Numerator:
Net (loss) income	$ (15,009)	$ 11,415	$ (20,741)	$ 18,560
Less: net (loss) income attributable to non-controlling interests	(4,424)	6,283	(6,030)	11,233
Net (loss) income attributable to Funko, Inc.	$ (10,585)	$ 5,132	$ (14,711)	$ 7,327
Denominator:
Weighted-average shares of Class A common stock outstanding — basic (in shares)	35,033,100	29,909,518	34,988,487	28,283,578
Add: Effect of dilutive equity-based compensation awards and common units of FAH, LLC that are convertible into Class A common stock (in shares)	0	2,205,901	0	2,012,075
Weighted-average shares of Class A common stock outstanding — diluted (in shares)	35,033,100	32,115,419	34,988,487	30,295,653
(Loss) earnings per share of Class A common stock — basic (in dollars per share)	$ (0.30)	$ 0.17	$ (0.42)	$ 0.26
(Loss) earnings per share of Class A common stock — diluted (in dollars per share)	$ (0.30)	$ 0.16	$ (0.42)	$ 0.24

(Loss) Earnings per Share - Add

(Loss) Earnings per Share - Additional Information (Detail) - Class A common shares outstanding - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Anti-dilutive shares excluded from weighted-average in computation of diluted earnings per share (in shares)	21	21.2	20.5	22.4
Funko Acquisition Holdings, L.L.C.
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Anti-dilutive shares excluded from weighted-average in computation of diluted earnings per share (in shares)	16	20	15.9	21.6