Funko, Inc.FNKO

Funko, Inc. Segments Disclosure

10-KFiled Mar 12, 20262 min read
Segments
The Company identifies its 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 (“CODM”) to allocate resources and assess performance. The Company’s current CODM is our Chief Executive Officer, Josh Simon. Because the CODM reviews financial performance and allocates resources at a consolidated level on a regular basis, the Company has one segment.
The segment derives revenue from customers by providing a wide variety of branded categories, including Core Collectible (predominately figures), Loungefly (predominately softlines including bags, wallets, backpacks and accessories) and Other (predominately Mondo and other emerging brands). All product lines, designs, licenses, and marketing/sales strategies are centrally managed as a single operating entity rather than at a geographic or subsidiary level.
The accounting policies of the segment are the same as those described in the summary of significant accounting policies above. The CODM assesses performance for the segment and decides how to allocate resources (including employees, property, financial, and capital resources) based on consolidated net loss that also is reported on the Company's consolidated statements of operations.
The CODM uses consolidated net loss to monitor budget-to-actual results on a monthly basis. During the monthly finance review, consolidated net income (loss) along with other finance metrics are presented to the CODM to understand how branded categories are tracking to budget, specific to net sales. During the year ended December 31, 2025, there were no changes to the measures used for finance metrics utilized, other than product costs are now reported inclusive of all inventoriable costs.
The following table sets forth segment information for revenue, segment net loss and significant expenses:
 Year Ended December 31,
202520242023
(in thousands, except per share data)
Net sales$908,209 $1,049,850 $1,096,086 
Less (add):
Product, freight, duties, shipping and other inventoriable costs398,473 446,435 583,371 
License and royalty costs158,467 168,883 179,714 
Salaries, benefits, incentive and stock compensation145,687 145,593 157,940 
Warehouse labor and third-party logistics fees36,934 52,244 62,416 
Advertising and marketing 51,547 51,567 31,256 
Other selling, general and administrative fees103,547 109,554 125,453 
Depreciation and amortization59,097 62,583 59,763 
Other expense (income)18,396 23,497 (71,886)
Income tax expense4,356 4,564 132,497 
Net loss$(68,295)$(15,070)$(164,438)
The following table presents summarized product information:
Year ended December 31,
202520242023
Core Collectible$723,327 $804,407 $803,181 
Loungefly155,031 171,833 214,523 
Other
29,851 73,610 78,382 
Total net sales
$908,209 $1,049,850 $1,096,086 
The following tables present summarized geographical information, shipped to (net sales) and used in (long-term assets) (in thousands):
Year ended December 31,
202520242023
Net sales:
United States$546,328 $681,986 $755,620 
Europe288,348 283,792 268,496 
Other International73,533 84,072 71,970 
Total net sales
$908,209 $1,049,850 $1,096,086 
December 31,
20252024
Long-lived assets:
United States
$79,773 $88,705 
Europe13,086 15,055 
Other International32,253 31,236 
Total long-lived assets
$125,112 $134,996 

Historical Timeline

Fiscal YearFiled
2025Mar 12, 2026Showing above
2024Mar 13, 2025
2023Mar 7, 2024
2022Mar 1, 2023
2021Mar 3, 2022
2020Mar 11, 2021
2019Mar 5, 2020
2018Mar 6, 2019
2017Mar 19, 2018

About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

Income TaxesEarnings Per ShareFair ValuePP&EGoodwill & IntangiblesLeasesDebtCommitmentsNew StandardsPay vs Performance