Q2 2026 Funko Inc Earnings Call

August 6, 2026

[Analyst]: Hi, everyone. I'm here with Josh and Yves, we're here at San Diego Comic-Con. Seems like the perfect place to have this discussion about Funko and its business, because so much of Funko is here and has been here for the past 20 years.

Andrew David Oddie: Hi, everyone. I'm here with Josh and Yves, we're here at San Diego Comic-Con. Seems like the perfect place to have this discussion about Funko and its business, because so much of Funko is here and has been here for the past 20 years.

Josh Simon: Yeah. I often think there wouldn't be the Funko that exists today without Comic-Con, it's a massive highlight of the year for us. We're excited you were able to join us, excited to take a little bit of a walk around in a bit here.

[Analyst]: Well, I've been to your booth several times, several years.

Andrew David Oddie: Well, I've been to your booth several times, several years.

Josh Simon: Yeah.

[Analyst]: Now it makes sense to come together like this. Before we get into the nitty-gritty, that's something I wanted to talk about, because you've been here for 20 years. The booth has grown, the products have grown, the fandom has grown. Just what is that general feeling? Is this like a celebration when you come to San Diego every year?

Andrew David Oddie: Now it makes sense to come together like this. Before we get into the nitty-gritty, that's something I wanted to talk about, because you've been here for 20 years. The booth has grown, the products have grown, the fandom has grown. Just what is that general feeling? Is this like a celebration when you come to San Diego every year?

Speaker #2: It does. I mean, you'll see the folks who work in our booth are largely fans from all over the world who are taking time off of work and out of their lives to come and hang out here and help interact.

Josh Simon: It does. You'll see the folks who work in our booth are largely fans from all over the world, who are taking time off of work and out of their lives to come and hang out here and help interact. It's also a great way for just these community of fans from all across the country and the world to come and celebrate Funko, experience the brand, buy some incredibly coveted limited edition products. It's flattering and humbling and wild to see the lines at our booth for people who are here to get the exclusive product you can only get here at Comic-Con.

Speaker #2: incredibly coveted limited edition products. I mean, it's flattering and humbling and wild to see the lines at our booth for people who are here to kind of get the exclusive product. You can only get here at Comic Con.

Speaker #2: You can only get here at Comic Con. are here to kind of get the exclusive product.

Speaker #2: You can only get here at Comic Con. are here to kind of get the exclusive product. Absolutely.

[Analyst]: Absolutely. Well, it's obviously great to see this fandom that happens here, I've seen those exclusives get off those shelves, I know some finances happen here as well. Let's get into that. How has this quarter been for Funko?

Andrew David Oddie: Absolutely. Well, it's obviously great to see this fandom that happens here, I've seen those exclusives get off those shelves, I know some finances happen here as well. Let's get into that. How has this quarter been for Funko?

Speaker #1: that happens here, but I see those exclusives happen here as well. So let's get into that. How is this quarter been for Funko?

Speaker #2: Yes, numbers have been great, and it's really a reflection of our 'Make Culture Pop' strategy gaining traction. We were really pleased to report sales were up 7% in the quarter, and that's building on the growth from Q1.

Josh Simon: Numbers have been great, it's really a reflection of our Make Culture POP! strategy gaining traction. We're really pleased to report sales were up 7% in the quarter, that's building on the growth from Q1. For the H1 of the year, we were up 6%. The good news is it wasn't really one product or region or IP, it was really broad based. In the US, we were up 3%. In Europe, we were up 19%, then from a product perspective, our core collectibles were up 9%. Although Loungefly was down 2%, it was an improving trend from what we saw in Q1, we're really pleased with the better SKU productivity.

Speaker #2: So, for the first half of the year, we were up 6%. And the good news is, it wasn't really one product or region or IP.

Speaker #2: It was really broad-based, right? So in the U.S., we were up 3%. In Europe, we were up 19%. And then from a product perspective, our core collectibles were up 9%.

Speaker #2: And although Loungefly was down 2%, it was an improving trend from what we saw in Q1. And we're really pleased with the better SKU productivity.

Speaker #1: Very nice. I'm going to say that that increase in the U.S. about 0.045%, that might just be me. So yeah. But no, that's great to hear.

[Analyst]: Very nice. I'm going to say that increase in the US, about 0.04% or 0.05%. That might just be me. No, that's great to hear. Josh, what are some highlights of this quarter with Funko?

Andrew David Oddie: Very nice. I'm going to say that increase in the US, about 0.04% or 0.05%. That might just be me. No, that's great to hear. Josh, what are some highlights of this quarter with Funko?

Speaker #1: So Josh, what are some highlights of this quarter with Funko?

Speaker #2: Well, I mean, Eve mentioned the momentum that we're seeing, and I think a big part of that is we've talked a lot about the make culture pop strategy, and I think we're really seeing that go from strategy to execution and take form.

Josh Simon: Well, Yves mentioned the momentum that we're seeing, and I think a big part of that is we talked a lot about the Make Culture POP! strategy, and I think we're really seeing that go from strategy to execution and take form. It's really about culture sensing and creating demand across the entertainment and pop culture landscape, creativity, giving it form and products, and then commerce, putting it in fans' hands all over the world.

Speaker #2: It's really about culture, sensing and creating demand across the entertainment and pop culture landscape; creativity, giving it form in products; and then commerce, putting it in fans' hands all over the world.

[Analyst]: Yeah.

Andrew David Oddie: Yeah.

Speaker #2: On the culture side, it's really about how we get faster at sensing what's happening and then turning that into product. The last two quick things I'll mention is creativity on the product side.

Josh Simon: On the culture side, it's really about how we get faster at sensing what's happening and then turning that into product. The last two quick things I'll mention is creativity on the product side. We're going to take a walk around in a little bit, and you're going to get to see our brand new Pop! Mystery platform.

Speaker #2: We're going to take a walk around in a little bit, and you're going to get to see our brand new Pop Mystery platform. And that's really about taking what people love about pop and just turning it into kind of a broader experience and a new product format.

[Analyst]: Ooh.

Andrew David Oddie: Ooh.

Josh Simon: That's really about taking what people love about Pop! and just turning it into a broader experience, and a new product format. I'm so excited to show you how that's about to materialize. It's great to see that Make Culture POP! strategy coming together and really moving from idea to execution in the quarter.

Speaker #2: I'm so excited to show you how that's about to materialize. It's great to sort of see that make culture pop strategy coming together and really moving from idea to execution in the quarter.

Speaker #1: Yeah, and it's interesting because it seems like you obviously know there's some franchises you're ready and prepared for, like Avengers: Doomsday, for example, or something like that.

[Analyst]: Yeah. It's interesting because it seems like you, obviously there are some franchises you're ready and prepared for, like Avengers: Doomsday, for example, or something like that. You have these ones you've got to kind of predict the popularity. You have an Obsession or like last year with K-Pop! Demon Hunters where it's like, boom, this explosion out of nowhere. How do we jump on that as fast as possible? Is that a constant turning strategy between predicting versus following up on something?

Andrew David Oddie: Yeah. It's interesting because it seems like you, obviously there are some franchises you're ready and prepared for, like Avengers: Doomsday, for example, or something like that. You have these ones you've got to kind of predict the popularity. You have an Obsession or like last year with K-Pop! Demon Hunters where it's like, boom, this explosion out of nowhere. How do we jump on that as fast as possible? Is that a constant turning strategy between predicting versus following up on something?

Speaker #1: But then you have these ones you got to kind of predict the popularity. And then you have an obsession or, like last year with K-pop Demon Hunters, where it's like boom, this explosion out of nowhere.

Speaker #1: How do we jump on that as fast as possible? So is that a constant turning strategy between predicting versus following up?

Josh Simon: It is, and I think because we can't predict those things, what we really have to do is build this repeatable offense.

Speaker #2: It is. And I think because we can't predict those things, what we really have to do is build this repeatable offense. So having sort of upstream teams in place that are really ready, very quickly to make the licensing deals, the capacity internally to design the products and manufacture them and get them to shelves, and then those retail relationships, either with wholesale partners or our own D2C channel to get those out to consumers quickly.

[Analyst]: Yeah.

Andrew David Oddie: Yeah.

Josh Simon: Having upstream teams in place that are really ready very quickly to make the licensing deals, the capacity internally to design the products and manufacture them and get them to shelves, and then those retail relationships, either with wholesale partners or our own D2C channel to get those out to consumers quickly.

[Analyst]: Yeah.

Andrew David Oddie: Yeah.

Speaker #2: And I think the magic for us is that we've really sort of honed that engine of sensing demand, turning it into products, and getting it into our fans' hands in a really repeatable way. We're starting to see that happen more and more.

Josh Simon: I think the magic for us is that we've really honed that engine of sensing demand, turning it into products, and getting into our fans' hands in a really repeatable way, and we're starting to see that happen more and more.

Speaker #1: You only have to do that with movies, television, sports, anime.

[Analyst]: You only have to do that with movies, television, sports, anime.

Andrew David Oddie: You only have to do that with movies, television, sports, anime.

Josh Simon: Only. Exactly.

Speaker #2: Only. Exactly. Exactly.

[Analyst]: Video game.

Andrew David Oddie: Video game.

Josh Simon: Exactly.

[Analyst]: Pop! culture in general.

Andrew David Oddie: Pop! culture in general.

Speaker #1: Exactly. Yeah, yeah.

Speaker #2: Pop culture in general. And maybe Jimothy, the raccoon that's taking the world by storm right now.

Josh Simon: Yeah. Maybe Jimothy, the raccoon.

[Analyst]: Yeah.

Andrew David Oddie: Yeah.

Josh Simon: taking the world by storm right now. Well, should we go take a look at?

Speaker #1: Well, should we go take a look at.

[Analyst]: I think we should. I'm very excited to see what you have here on the show floor.

Andrew David Oddie: I think we should. I'm very excited to see what you have here on the show floor.

Speaker #2: I'm very excited to Yes,

Speaker #2: see what you have here on the show floor.

Josh Simon: All right, great. Let's go check it out. After you.

Speaker #1: All right, great. Let's go check it out. After you. All right, let's check out what's over here.

[Analyst]: All right, let's check out what's over here.

Andrew David Oddie: All right, let's check out what's over here.

Speaker #2: So this is Husnal, our chief product officer.

Josh Simon: This is Husnal, our chief product officer.

[Analyst]: Hi, Husnal. Nice to meet you.

Andrew David Oddie: Hi, Husnal. Nice to meet you.

Speaker #1: Hi, Husnal. Nice to meet you. Pleasure. All right, so obviously you've got some great products here, but there's a special one here—this Pop! Mystery.

Husnal Shah: Hi. Nice to meet you.

[Analyst]: Pleasure. All right. Obviously got some great products here, but there's a special one here, this Pop! Mystery.

Andrew David Oddie: Pleasure. All right. Obviously got some great products here, but there's a special one here, this Pop! Mystery.

Husnal Shah: Oh, yes.

[Analyst]: Can you tell us about that?

Andrew David Oddie: Can you tell us about that?

Speaker #1: that?

Husnal Shah: Yes. At San Diego Comic-Con over here, we are launching our Pop! Mystery line.

Speaker #3: Yes. At San Diego Comic-Con over here, we are launching our Pop Mystery line.

Speaker #1: Oh, yes. And I assume this is the floral pack right here.

[Analyst]: Oh, yeah. Let's see if this is the Flora pack right here?

Andrew David Oddie: Oh, yeah. Let's see if this is the Flora pack right here?

Speaker #3: this is the floral pack.

Husnal Shah: Yes, this is the Flora pack.

[Analyst]: Okay, tell us about Flora.

Andrew David Oddie: Okay, tell us about Flora.

Speaker #1: Okay, so tell us about Flora.

Speaker #3: Flora is a plant line that we started off as a regular standard pop, and now we've made it into a Mystery Collection piece. And it is absolutely fabulous.

Husnal Shah: Flora is a plant line that we started off as a regular standard Pop!, now we've made it into a mystery collection piece.

[Analyst]: Oh.

Andrew David Oddie: Oh.

Husnal Shah: It is absolutely fabulous.

Speaker #1: I love that. And it seems here that you can get one of six possible ones that are common.

[Analyst]: I love that. It seems here that you can get one of six possible ones that are common.

Andrew David Oddie: I love that. It seems here that you can get one of six possible ones that are common.

Husnal Shah: Yes. Each drop has six commons.

Speaker #3: Yes, so each drop has six commons with varying colors, and then we have the chafe as well as a global one-of-one chafe, which is what different shades have from the market, and it's extremely exciting.

[Analyst]: Yeah

Andrew David Oddie: Yeah

Husnal Shah: With rare cards, then we have the chase, as well as a global one of one chase, which is what differentiates us from the market and is extremely exciting.

Speaker #1: Did you say one-of-one?

[Analyst]: Did you say one of one?

Andrew David Oddie: Did you say one of one?

Speaker #3: One-of-one. Only one of these. And imagine if you're a fan with the one.

Husnal Shah: One of one.

[Analyst]: There's only one of these out there.

Andrew David Oddie: There's only one of these out there.

Husnal Shah: Only one of these. Imagine if you're a fan, you're the one.

[Analyst]: Oh my gosh.

Andrew David Oddie: Oh my gosh.

Speaker #1: Oh my gosh, that's wild. Well, I’ve got to see which one is inside, right?

Husnal Shah: Yes.

[Analyst]: That's wild. Well, I got to see which one is inside, right?

Andrew David Oddie: That's wild. Well, I got to see which one is inside, right?

Speaker #3: Let's open it.

Husnal Shah: Let's open it.

[Analyst]: Okay. What if this is the worldwide chase? That'd be wild, wouldn't it? All right, let's open this one up.

Andrew David Oddie: Okay. What if this is the worldwide chase? That'd be wild, wouldn't it? All right, let's open this one up.

Speaker #1: Okay, what if this is the worldwide chafe? That'd be wild. All right, let's open this one up.

Speaker #2: Lucky guy. Let's see.

Josh Simon: Lucky guy. Let's see.

Speaker #1: Ooh, it's pretty. I like that. Oh, it's a tooler. Oh, there's a lot of cute.

[Analyst]: Ooh, it's pretty. I like that. Oh, it's a tulip.

Andrew David Oddie: Ooh, it's pretty. I like that. Oh, it's a tulip.

Josh Simon: Tulip.

[Analyst]: Oh, that's cute. Oh.

Josh Simon: Tulip.

Andrew David Oddie: Oh, that's cute. Oh.

Josh Simon: See, it's not the one of one, but it's still cute.

Speaker #2: Cute, not the one-of-one, but it's.

[Analyst]: It's not the one of one, but I still like it a lot.

Andrew David Oddie: It's not the one of one, but I still like it a lot.

Speaker #1: It's not the one-of-one, but I still like it.

Speaker #2: And that was what I think is great, and we're obviously revealing this here at Comic Con, but there's other sort of licensing partners. This is, you mentioned, is original IP.

Josh Simon: That was what I think is great, and we're obviously revealing this here at Comic-Con, but there's other sort of licensing partners. This, as you mentioned, is original IP.

Speaker #1: Yes.

[Analyst]: Yeah

Andrew David Oddie: Yeah

Josh Simon: That we created.

Speaker #2: We've created, and then, of course, we're also launching with some of the biggest IP in the world.

[Analyst]: Yeah.

Andrew David Oddie: Yeah.

Josh Simon: Of course, we're also launching with some of the biggest IP in the world as well.

Speaker #1: Yeah, like Hoo purchasing.

[Analyst]: Yeah. Like who, perchance?

Andrew David Oddie: Yeah. Like who, perchance?

Husnal Shah: Like with One Piece, as well as with the Warner Bros., with the Horrors line.

Speaker #3: It's with One Piece as well as with the Warner Brothers with the horror line.

Speaker #1: Yeah. And speaking of Warner Brothers horror, One Piece and Flora, they have a little bit of an activation going on over here, right?

[Analyst]: Yeah. Speaking of Warner Bros. Horror, One Piece, and Flora, they have a little bit of an activation going over here, right?

Andrew David Oddie: Yeah. Speaking of Warner Bros. Horror, One Piece, and Flora, they have a little bit of an activation going over here, right?

Speaker #3: Yes, and we are giving away the Flora line in that activation, so you might want to go check it out.

Husnal Shah: Yes. We are giving away the Flora line in that activation, so you might want to go check it out.

Speaker #1: I think I do want to check that out. All right, let's see what this is here. Oh, I got a knock.

[Analyst]: I think I do want to check it out.

Andrew David Oddie: I think I do want to check it out.

Josh Simon: Yeah. Let's go take a look.

[Analyst]: Let's do it. Let's see what this is here. Oh, I got a knock.

Andrew David Oddie: Let's do it. Let's see what this is here. Oh, I got a knock.

Speaker #2: Give it a knock. Yeah, let's see.

Josh Simon: Give it a knock. Yeah, let's see.

Speaker #1: Flora. Flora. Flora.

[Analyst]: Flora? Flora? Flora?

Andrew David Oddie: Flora? Flora? Flora?

Nik Rupp: Hello.

Speaker #2: Oh, look at this.

[Analyst]: Oh, hey.

Andrew David Oddie: Oh, hey.

Speaker #1: Oh, hey.

Speaker #2: I'll tell you, this is Nick, our head of marketing and brand.

Nik Rupp: Andre, this is Nik, our head of-

[Analyst]: Hey, what's up?

Andrew David Oddie: Hey, what's up?

Nik Rupp: marketing and brand. Yeah.

[Analyst]: Oh, nice to meet you.

Andrew David Oddie: Oh, nice to meet you.

Speaker #1: Oh, nice to meet you. Oh my gosh.

Nik Rupp: You going to come in? Come on in.

[Analyst]: Oh my gosh. Wow, this is beautiful.

Andrew David Oddie: Oh my gosh. Wow, this is beautiful.

Speaker #2: Wow, this is beautiful.

Speaker #1: Welcome to the Pop Flora Greenhouse.

Nik Rupp: Welcome to the Pop! Flora Greenhouse.

[Analyst]: Tell me about what it's like to create experiences for people at San Diego Comic-Con when it comes to Funko. Obviously, they're getting the Pops!, but you're giving a more immersive experience of the brand, right?

Andrew David Oddie: Tell me about what it's like to create experiences for people at San Diego Comic-Con when it comes to Funko. Obviously, they're getting the Pops!, but you're giving a more immersive experience of the brand, right?

Speaker #2: Tell me about what it's like to create experiences for people at San Diego Comic Con when it comes to Funko. Obviously, they're getting the pops, but you're giving a more immersive experience to the brand, right?

Nik Rupp: 100%. This is such a special opportunity to be at San Diego Comic-Con. We really consider this sort of our World Cup, our Super Bowl all in one.

Speaker #1: 100%. You know, this is such a special opportunity to be at San Diego Comic-Con. We really consider this sort of our World Cup, our Super Bowl, all in one.

[Analyst]: Yeah.

Andrew David Oddie: Yeah.

Nik Rupp: It just provides us an amazing opportunity to be on the ground with our fans. As part of the launch of Pop! Mystery, we created these mystery game rooms. This is the Pop! Flora Greenhouse, and we really wanted to bring our own IP and our fandom to life. This isn't just a banner ad. This isn't a shelf display. This is a greenhouse that you can stand in to experience this world yourself.

Speaker #1: It just provides us an amazing opportunity to be on the ground with our fans as part of the launch of Pop Mystery. We created these mystery game rooms.

Speaker #1: This is the Pop Flora Greenhouse. And we really wanted to bring our own IP and our fandom to life. This isn't just a banner ad.

Speaker #1: This isn't a shelf display. This is a greenhouse that you can stand into experience this world yourself.

Speaker #2: I really like that because it almost like brings more into the fandom when you're able to do some kind of experience along with the product.

[Analyst]: I really like that because it almost brings more into the fandom.

Andrew David Oddie: I really like that because it almost brings more into the fandom.

Nik Rupp: Exactly

[Analyst]: when you're able to do some kind of experience along with the product.

Andrew David Oddie: when you're able to do some kind of experience along with the product.

Nik Rupp: 100%.

Speaker #2: Now, let's see some more stuff here. All right.

[Analyst]: Now let's see some more stuff here.

Andrew David Oddie: Now let's see some more stuff here.

Nik Rupp: Let's get you out of here.

Speaker #1: Let's get you out here. Thank you for stopping by.

[Analyst]: All right.

Andrew David Oddie: All right.

Nik Rupp: Thank you for stopping by.

Speaker #2: Yes. This is really cool. We also have a One Piece one here and a WB horror and K-pop Demon Hunters.

[Analyst]: Yes. This is really cool. We also have a One Piece one here, and WB Horror, and K-Pop! Demon Hunters. Thanks again, Nik. That was really cool.

Andrew David Oddie: Yes. This is really cool. We also have a One Piece one here, and WB Horror, and K-Pop! Demon Hunters. Thanks again, Nik. That was really cool.

Speaker #1: Thanks again, Nick.

Speaker #2: That was really cool. Yeah.

Josh Simon: Oh, good. Doing good.

[Analyst]: Yeah.

Andrew David Oddie: Yeah.

Speaker #1: All right, let's take a look around this way. You know, obviously, we talked about this earlier, but you know selling a lot of exclusive products that you can only get here.

Josh Simon: All right. Let's take a look around this way.

[Analyst]: Okay.

Andrew David Oddie: Okay.

Josh Simon: Obviously, we talked about this earlier, selling a lot of exclusive products that you can only get here.

Speaker #2: Yes.

[Analyst]: Yes.

Andrew David Oddie: Yes.

Josh Simon: Obviously, massive lines of people which is super humbling. Look, I think what you experienced and saw over in the mystery room is our first step into doing something that's more experiential.

Speaker #1: Obviously, kind of massive lines of people, which is like super humbling. And look, I think what you experience and saw over in the mystery room is sort of our first step into doing something that's more experiential.

Speaker #2: Yes.

[Analyst]: Yes.

Andrew David Oddie: Yes.

Speaker #1: And then one of like the most compelling experiences that you know we've become known for, both online and soon rolling out into some wholesale partners is the Pop Yourself.

Josh Simon: One of the most compelling experiences that we've become known for, both online and soon rolling out into some wholesale partners, is the Pop! Yourself.

Speaker #2: Yes.

[Analyst]: Yeah

Andrew David Oddie: Yeah

Speaker #1: Experience.

Josh Simon: experience.

Speaker #2: I've been able to do that in the Funko Hollywood story.

[Analyst]: I've been able to do that at the Funko Hollywood store. It's really fun.

Andrew David Oddie: I've been able to do that at the Funko Hollywood store. It's really fun.

Josh Simon: You can do it at the Hollywood store. There's a couple stores we'll announce soon where you'll be able to start doing it as well. You can do it at the Inter Miami Stadium.

Speaker #1: You can do it at the Hollywood store. There's a couple of stores we'll announce soon where you'll be able to start doing it as well.

Speaker #1: You can do it at the Inner Miami Stadium with the football club there. And then, of course, here, celebrating the upcoming launch of Spider-Man Brand New Day, we have a great Pop Yourself experience as well for folks here at Comic Con.

[Analyst]: Oh, nice.

Andrew David Oddie: Oh, nice.

Josh Simon: with the football club there.

[Analyst]: Okay.

Andrew David Oddie: Okay.

Josh Simon: Of course, here, celebrating the upcoming launch of Spider-Man: Brand New Day.

[Analyst]: Wow

Andrew David Oddie: Wow

Josh Simon: We have a great Pop! Yourself experience as well for folks.

[Analyst]: Wait.

Andrew David Oddie: Wait.

Josh Simon: Here at Comic-Con.

Speaker #2: Wait, so you tell me I can pop myself a Spider-Man right now?

[Analyst]: You're telling me I can Pop! Myself as Spider-Man right now?

Andrew David Oddie: You're telling me I can Pop! Myself as Spider-Man right now?

Speaker #1: You sure can. A limited edition. You can only get it here. But obviously, it's sort of a version of our kiosk experience. Where you can pick your body type, your skin tone, your hair, your clothes.

Josh Simon: You sure can.

[Analyst]: Oh.

Andrew David Oddie: Oh.

Josh Simon: A limited edition. You can only get it here.

[Analyst]: Okay.

Andrew David Oddie: Okay.

Josh Simon: Obviously, sort of a version of our kiosk experience, where you can pick your body type, your skin tone, your hair-

[Analyst]: Yeah

Andrew David Oddie: Yeah

Josh Simon: your clothes, and like I said, some very specific Spidey outfits that you can only get here at Comic-Con. All right. You want to give it a try?

Speaker #1: And like I said, some very specific Spidey outfits that you can only get here at Comic-Con.

Speaker #2: All right. I have to pop myself here. Okay, let me start building. So you said this is an exclusive Spider-Man Brand New Day Pop Yourself, right?

[Analyst]: I have to pop myself here.

Andrew David Oddie: I have to pop myself here.

Josh Simon: All right. Yep.

[Analyst]: Okay. Let me start building. You said this is an exclusive Spider-Man: Brand New Day Pop! Yourself, correct?

Andrew David Oddie: Okay. Let me start building. You said this is an exclusive Spider-Man: Brand New Day Pop! Yourself, correct?

Josh Simon: Exclusive, only here to Comic-Con.

Speaker #1: Exclusive only here to Comic Con.

Speaker #2: All right, let me pick my body type here. Nice. Okay, let's go with some skin tone. Love that.

[Analyst]: All right. Let me pick my body type here. Nice. Okay, let's go with some skin tone. Love that. All right.

Andrew David Oddie: All right. Let me pick my body type here. Nice. Okay, let's go with some skin tone. Love that. All right.

Speaker #1: Yeah, you get to really customize it here. Your lashes. Your hair.

Josh Simon: Yeah, you get to really customize it here. Your lashes-

[Analyst]: Yeah

Andrew David Oddie: Yeah

Josh Simon: your hair.

Speaker #2: Lots of different hairstyles. Oh, there we go. This looks like me. I like that. I like that very nice.

[Analyst]: Lots of different hairstyles. Oh, there we go. This looks like me. I like that. Very nice.

Andrew David Oddie: Lots of different hairstyles. Oh, there we go. This looks like me. I like that. Very nice.

Josh Simon: Okay.

Speaker #1: Okay.

Speaker #2: Got to do the glasses. Glad you had some glasses options.

[Analyst]: Got to do the glasses.

Andrew David Oddie: Got to do the glasses.

Josh Simon: Of course.

[Analyst]: Glad you have some glasses options.

Andrew David Oddie: Glad you have some glasses options.

Josh Simon: At Comic-Con, it's your trademark.

Speaker #1: It's your trademark.

Speaker #2: Yeah, there we go. Okay, let me see.

[Analyst]: Yeah, there we go. Okay, let me pick some accessories.

Andrew David Oddie: Yeah, there we go. Okay, let me pick some accessories.

Josh Simon: Yeah, some exclusive accessories as well.

Speaker #1: accessories as well.

Speaker #2: So we got a VIP badge. Perfect for Spider-Man going to Comic Con. All right. You can hold the mask and his hand.

[Analyst]: We got a VIP badge. Perfect for Spider-Man going to Comic-Con. All right. He can hold the mask in his hand.

Andrew David Oddie: We got a VIP badge. Perfect for Spider-Man going to Comic-Con. All right. He can hold the mask in his hand.

Josh Simon: Like it, yep.

Speaker #1: Like it, yep.

Speaker #2: And then we also got some web shooting here. All right, I'm going to go with that mask. And then I can pick another one, right?

[Analyst]: We also got some web shooting here. All right, I'm going to go with that mask. I can pick another one, right? Yeah.

Andrew David Oddie: We also got some web shooting here. All right, I'm going to go with that mask. I can pick another one, right? Yeah.

Speaker #1: Yeah, there you go.

Josh Simon: Yeah, there you go.

[Analyst]: Let's definitely do the webs. Very nice. What's really cool.

Andrew David Oddie: Let's definitely do the webs. Very nice. What's really cool.

Speaker #2: Let's definitely do the webs. Very nice.

Speaker #1: What's really cool, I see you have a little Hulk here. Is that also exclusive to here?

Josh Simon: You name it

[Analyst]: I see you have a little Hulk here. Is that also exclusive to here?

Andrew David Oddie: I see you have a little Hulk here. Is that also exclusive to here?

Speaker #2: Yeah, it comes with the VidiPop Hulk.

Josh Simon: It comes with a Bitty Pop! Hulk.

[Analyst]: Oh, that's awesome.

Andrew David Oddie: Oh, that's awesome.

Speaker #1: Oh, that's awesome. All right, so I get a VidiPop Hulk with my Spider-Man outfit here. All right, got to package that Pop. There you go.

Josh Simon: Yeah.

[Analyst]: All right, so I get a Bitty Pop! Hulk with my Spider-Man outfit here. All right, got to package that Pop!. Pop!.

Andrew David Oddie: All right, so I get a Bitty Pop! Hulk with my Spider-Man outfit here. All right, got to package that Pop!. Pop!.

Josh Simon: There we go. Look at that little guy.

Speaker #2: Look at that look.

[Analyst]: Wow. It's me in the Spider-Man outfit. There's the web shooting. There's the mask. There's the exclusive Hulk Bitty Pop! in there. Oh, that is great. That's a really cool experience to come here.

Andrew David Oddie: Wow. It's me in the Spider-Man outfit. There's the web shooting. There's the mask. There's the exclusive Hulk Bitty Pop! in there. Oh, that is great. That's a really cool experience to come here.

Speaker #1: Wow, it's me in the Spider-Man outfit. There's the web shooting. There's the mask. There's the exclusive Hulk VidiPop in there. Oh, that is great.

Speaker #1: And that's a really cool experience to come here if you're excited for Spider-Man Brand New Day, if you're excited for Pop Yourself. And you get to have this experience right here at San Diego Comic Con.

Josh Simon: Yeah.

[Analyst]: If you're excited for Spider-Man: Brand New Day, if you're excited for Pop! Yourself, you get to have this experience right here at San Diego Comic-Con. All right.

Andrew David Oddie: If you're excited for Spider-Man: Brand New Day, if you're excited for Pop! Yourself, you get to have this experience right here at San Diego Comic-Con. All right.

Josh Simon: Obviously, the ability to create these sort of geo-specific experiences is something that we'll start to roll out and test later this year with some retail partners.

Speaker #2: And obviously, the ability to create these sort of geo-specific experiences is something that will start to roll out and test later this year with some retail partners.

[Analyst]: Oh.

Andrew David Oddie: Oh.

Speaker #2: So you can imagine something like this starting to kind of pop up in other parts of the world. And really create something unique and specific to a location, which is really great.

Josh Simon: You can imagine something like this starting to pop up in other parts of the world and really create something unique and specific to a location, which is really great.

[Analyst]: Oh, that's interesting.

Andrew David Oddie: Oh, that's interesting.

Josh Simon: Yeah.

[Analyst]: I was thinking you could do this at the Funko store, but now you're saying there might be other stores.

Josh Simon: Yeah.

Andrew David Oddie: I was thinking you could do this at the Funko store, but now you're saying there might be other stores.

Speaker #2: So that was something you could do this at the Funko stores, but now you're saying there might be other stores.

Josh Simon: Some other places as well, yeah.

Speaker #1: Some other places as well.

Speaker #2: ...around the world to do this, too.

[Analyst]: Around the world to do this, too?

Andrew David Oddie: Around the world to do this, too?

Josh Simon: Yeah.

Speaker #1: Yeah. All right, let's go. Let's check out the next part of the booth here.

[Analyst]: All right. Stay tuned for that, huh?

Andrew David Oddie: All right. Stay tuned for that, huh?

Josh Simon: All right. Let's go. Let's check out the next part of the booth here.

[Analyst]: All right.

Andrew David Oddie: All right.

Speaker #2: All right.

Speaker #1: All right, let's go buy the Mondo booth. I don't know, as you know, like Mondo is sort of our premium collector toy line.

Josh Simon: All right. Let's go by the Mondo booth.

[Analyst]: Oh, yes.

Andrew David Oddie: Oh, yes.

Josh Simon: As you know, Mondo is sort of our premium collector toy line.

Speaker #2: Yes.

[Analyst]: Yes.

Andrew David Oddie: Yes.

Speaker #1: These guys are amazing artists.

Josh Simon: These guys are amazing artists.

Speaker #2: I've got some of their figures in my home right now.

[Analyst]: I've got some of their figures in my home right now.

Andrew David Oddie: I've got some of their figures in my home right now.

Josh Simon: Okay, great. We're going to cut through the crowds here.

Speaker #1: Okay, great. And we're going to kind of cut through the crowds here.

[Analyst]: Hey, what's going on?

Andrew David Oddie: Hey, what's going on?

Speaker #2: Hey, what's up? How's it going, man?

[Company Representative] (Mondo): Hey, how's it going? How's it going, man?

[Analyst]: Good to see you.

Andrew David Oddie: Good to see you.

Speaker #1: Good to see you. Okay, I am a huge here.

[Company Representative] (Mondo): Yeah, yeah.

[Analyst]: Okay. I am a huge Ninja Turtles fan, so I'm very excited about what's going on here.

Andrew David Oddie: Okay. I am a huge Ninja Turtles fan, so I'm very excited about what's going on here.

Speaker #2: Yeah, this is a TMNT Mondo verse where our partnership with Paramount has given us permission and access to create our own what-if scenarios sequel story to the '90s film.

[Company Representative] (Mondo): Yeah. This is the TMNT Mondoverse, where our partnership with Paramount has given us permission and access to create our own what if scenario sequel story to the 1990s film.

Speaker #2: So we're bringing in all the characters and whimsy and wildness of the comics video games and cartoons into this real-world, gritty, like man-in-a-suit vibe.

[Analyst]: Nice.

Andrew David Oddie: Nice.

[Company Representative] (Mondo): we're bringing in all the characters and whimsy and wildness of the comics, video games, and cartoons into this real-world, gritty, man in a suit vibe-

[Analyst]: Yeah

Andrew David Oddie: Yeah

Speaker #2: For the movies have. Paramount hasn't given us the blessing to reimagine all of the character history. And so, for example, we're introducing new versions of the punk frogs as Kid Brothers to Mikey Fines in the sewers.

[Company Representative] (Mondo): that the movies have. Paramount has given us the blessing to reimagine all of the character history.

[Analyst]: Okay.

Andrew David Oddie: Okay.

[Company Representative] (Mondo): For example, we're introducing new versions of the Punk Frogs as kid brothers that Mikey finds in the sewers.

[Analyst]: Nice.

Andrew David Oddie: Nice.

[Company Representative] (Mondo): That's the kind of story expansion that we're able to do with the Mondoverse. It's our sandbox.

Speaker #2: And that's the kind of story expansion that we're able to do with the Mondo versus. Our sandbox.

[Company Representative] (Mondo): That's the kind of story expansion that we're able to do with the Mondoverse. It's our sandbox.

Speaker #1: And I was curious about that because you have Funko and Mondo under the same roof, but obviously, you're doing like different types of products.

[Analyst]: I was curious about that because you have Funko and Mondo under the same roof.

Andrew David Oddie: I was curious about that because you have Funko and Mondo under the same roof.

[Company Representative] (Mondo): Yeah

[Analyst]: Obviously, you're doing different types of products.

Andrew David Oddie: Obviously, you're doing different types of products.

[Company Representative] (Mondo): Yes.

Speaker #1: Have you seen this interesting transition in any kind of way of from Funko to Mondo as far as like getting figures more detailed or.

[Analyst]: Have you seen this interesting transition in any kind of way from Funko to Mondo, as far as getting figures more detailed or upgrades?

Andrew David Oddie: Have you seen this interesting transition in any kind of way from Funko to Mondo, as far as getting figures more detailed or upgrades?

[Company Representative] (Mondo): Oh. It's like we have the artists in-house to do all the techniques, right?

Speaker #2: Oh, well, it's like we have the artists in-house to do all the technique, right? What we get from Funko is the support, the credibility, and the doors being blasted open for us to get licenses and access and relationships that we otherwise might not be able to get.

[Analyst]: Right.

Andrew David Oddie: Right.

[Company Representative] (Mondo): What we get from Funko is the support, the credibility, and the doors being blasted open for us.

[Analyst]: Yes

Andrew David Oddie: Yes

[Company Representative] (Mondo): To get licenses and access and relationships that we otherwise might not be able to get.

[Analyst]: Yes.

Andrew David Oddie: Yes.

Speaker #2: So it's really an amazing pairing that creates another like collectible throughline. So you might have been collecting Funko Pops for a long time, and you have a beautiful collection of them, and you're just like, I'm a Turtles guy.

[Company Representative] (Mondo): It's really an amazing pairing that creates another collectible through line. You might have been collecting Funko Pop! for a long time, and you have a beautiful collection of them, and you're just like, I'm a Turtles guy. I got all the Turtles Pops.

Speaker #2: I got all the Turtles Pops, but I also want a realistic 1/6 scale. So you can stay in-house at Funko through Mondo and have like a really diverse collectible.

[Analyst]: Yeah.

[Company Representative] (Mondo): I also want a realistic one-sixth scale.

Andrew David Oddie: Yeah.

[Company Representative] (Mondo): I also want a realistic one-sixth scale.

[Analyst]: Yeah.

Andrew David Oddie: Yeah.

[Company Representative] (Mondo): You can stay in-house at Funko through Mondo and have a really diverse collection.

[Analyst]: Awesome.

Andrew David Oddie: Awesome.

Speaker #1: Oh, thank you for stopping by, man. We're so proud of it. I can't wait to show you guys more.

[Company Representative] (Mondo): Thank you for stopping by, man.

[Analyst]: Dude.

Andrew David Oddie: Dude.

[Company Representative] (Mondo): We're so proud of it. I can't wait to show you guys more.

Speaker #2: This is awesome, man. Oh, my gosh. It's so much nostalgia here too, man. Real Ghostbusters: Massive Universe, Street Shark. All right. One more stop.

[Analyst]: This is awesome, man. Oh my gosh. It's so much nostalgia here, too, man. Real Ghostbusters, Masters of the Universe, Street Sharks?

Andrew David Oddie: This is awesome, man. Oh my gosh. It's so much nostalgia here, too, man. Real Ghostbusters, Masters of the Universe, Street Sharks?

[Company Representative] (Mondo): Yes.

Josh Simon: All right. One more stop.

[Analyst]: All right.

Andrew David Oddie: All right.

Josh Simon: One more stop on the tour.

Speaker #2: All right, we've seen the booth, we've seen the fans having a wonderful time buying the Pops and enjoying the experiences. This feels like a good out to go on in San Diego.

[Analyst]: All right. We've seen the booths. We've seen the fans having a wonderful time buying the Pops, enjoying the experiences. This feels like a good out to go on in San Diego.

Andrew David Oddie: All right. We've seen the booths. We've seen the fans having a wonderful time buying the Pops, enjoying the experiences. This feels like a good out to go on in San Diego.

Josh Simon: It does. We're in the big Pop! Mystery Box.

Speaker #1: It does. And we're in the big, you know, Pop mystery box. I think the mystery is going to be where we end up after this, after this box closes.

[Analyst]: Yeah.

Andrew David Oddie: Yeah.

Josh Simon: I think the mystery is going to be where we end up after this box closes. For now, should we go and take some investor questions?

Speaker #2: But for now, should we go and take some investor questions?

Speaker #1: I think we should. Thank you so much, bro.

[Analyst]: I think we should. Thank you so much, Robert.

Andrew David Oddie: I think we should. Thank you so much, Robert.

Speaker #2: Yeah, you ruined the mystery.

Josh Simon: Yeah, you ruined the mystery.

Speaker #1: Yeah.

[Analyst]: Yeah. Oh, I just remembered. They told me that one exclusive IP is coming up soon. Well, that was fast. One minute we are dodging crowds at Comic-Con, next we are here in the Funko office. Somehow, Josh, you made it all the way to London.

Andrew David Oddie: Yeah. Oh, I just remembered. They told me that one exclusive IP is coming up soon. Well, that was fast. One minute we are dodging crowds at Comic-Con, next we are here in the Funko office. Somehow, Josh, you made it all the way to London.

Speaker #2: Oh, I just remembered, they told me that one exclusive IP is coming up soon. It's going to be.

Speaker #1: Well, that was fast. One minute we're dodging crowds at Comic Con, and next we're here in the Funko office. And sometimes, Josh, you made it all the way to London.

Josh Simon: I am. I am across the pond spending some time with our EMEA team and partners. It is a late night, excited to be reunited with you here live.

Speaker #3: I am. I'm across the pond, spending some time with our EMEA team and partners, but it's a late night, but you know, excited to be reunited with you here live.

Speaker #1: Absolutely. The Magic Mystery Box can do multiple locations, apparently. Well, multiple drop-offs. So now that we've shared all the fun stuff at Comic Con, Eve, can you tell us a little bit more about the financials?

[Analyst]: Absolutely. The magic mystery box can do multiple locations apparently, multiple drop-offs. Now that you have shared all the fun stuff at Comic-Con, Yves, can you tell us a little bit more about the financials?

Andrew David Oddie: Absolutely. The magic mystery box can do multiple locations apparently, multiple drop-offs. Now that you have shared all the fun stuff at Comic-Con, Yves, can you tell us a little bit more about the financials?

Speaker #3: Sure. I'd be happy to. So like I mentioned earlier, sales were up 7% in Q2 and 6% in the first half. In addition to that, we reported a gross margin of 56.6% compared to 32.1% last year.

Yves Le Pendeven: Sure, I would be happy to. Like I mentioned earlier, sales were up 7% in Q2 and 6% in H1. In addition to that, we reported a gross margin of 56.6% compared to 32.1% last year. To be clear, our Q2 gross margin benefited from the recognition of a $25 million credit that was related to the expected tariff refunds and release of accrued tariffs. Just for sake of comparison, to our guidance range of 42% to 44%, our gross margin normalized for that $25 million credit was 44.4%, which was still a record high for Funko. SG&A expenses improved as a percentage of sales by over 400 basis points compared to last year. Finally, adjusted EBITDA was $40.9 million compared to -$16.5 million last year.

Speaker #3: And to be clear, our Q2 gross margin benefited from the recognition of a $25 million credit that was related to the expected tariff refunds and release of accrued tariffs.

Speaker #3: So just to, for sake of comparison, to our guidance range, of $42 to $44%, our gross margin normalized for that $25 million credit was $44.4%, which was still a record high for Funko.

Speaker #3: SG&A expenses improved as a percentage of sales by over $400 basis points compared to last year. And finally, adjusted EBITDA was $40.9 million, compared to negative adjusted EBITDA of $16.5 million last year.

Speaker #3: Again, excluding that tariff-related benefit, we delivered adjusted EBITDA of $15 million well above our guidance range. I'd also like to highlight that in the quarter, we executed a sale of our IEPA tariff claims, a total of $22 million for proceeds of $19 million.

Yves Le Pendeven: Excluding that tariff-related benefit, we delivered adjusted EBITDA of $15 million, well above our guidance range. I'd also like to highlight that in the quarter, we executed a sale of our IEEPA tariff claims, a total of $22 million, for proceeds of $19 million. We used that to pay down debt by a total of $15 million, making more progress on deleveraging our balance sheet.

Speaker #3: And we used that to pay down debt by a total of $15 million making more progress on deleveraging our balance sheet.

[Analyst]: Those are great results. What about the outlook?

Andrew David Oddie: Those are great results. What about the outlook?

Speaker #1: Wow, that sounds like great results. And what about the outlook?

Speaker #3: Yeah, so for the outlook, we're reiterating our net sales guidance, a flat to up 3%, and we're raising our adjusted EBITDA guidance to $100 to $110 million and that raise is driven by, again, that $25 million tariff credit from Q2 as well as $5 million from improved profitability.

Yves Le Pendeven: Yeah. For the outlook, we're reiterating our net sales guidance of flat to up 3%, and we're raising our adjusted EBITDA guidance to $100 to $110 million. That raise is driven by, again, that $25 million tariff credit from Q2, as well as $5 million from improved profitability.

Speaker #1: That's great. Thank you, Yves. Now, Josh, what can investors expect in the second half of the year from Funko?

[Analyst]: That's great. Thank you, Yves. Now, Josh, what can investors expect in H2 of the year from Funko?

Andrew David Oddie: That's great. Thank you, Yves. Now, Josh, what can investors expect in H2 of the year from Funko?

Speaker #2: Well, I mean, look, I think, you know, the results that Yves just talked about this quarter really highlight the model that we're building. You know, sensing demand earlier, creating more repeatable ways to sort of take that demand and, you know, create products that can scale selectively through the right retail channels around the world.

Josh Simon: Well, look, I think the results that Yves just talked about this quarter really highlight the model that we are building. Sensing demand earlier, creating more repeatable ways to sort of take that demand and create products that can scale selectively through the right retail channels around the world. Look, I think in H2, our consolidated sales will reflect more of a normalized year-over-year shipment comparison, and I think we will continue to be prudent, just sort of given some of the broader consumer environment that is out there. Also just to kind of double back on one of the things Yves mentioned earlier about Loungefly and the SKU reductions that we have discussed. We have made some meaningful progress in that area. I definitely would not declare the work there finished. We have exciting plans, but still a ways to go.

Speaker #2: Look, I think in the second half, our consolidated sales will reflect, you know, more of a normalized year-over-year shipment comparison and, you know, I think we'll continue to be prudent just sort of given some of the broader consumer environment that's out there.

Speaker #2: And I also just to kind of double back on one of the things Eve mentioned earlier about lounge fly and the SKU reductions that we've discussed.

Speaker #2: Now, we've made some meaningful progress in that area, I definitely would not declare the work there finished. We have an exciting plan, but still, you know, ways to go.

Speaker #2: But the encouraging signal in Q2 was that, you know, as Eve said, sales were down 2% with approximately 50% fewer SKUs. So really seeing that increased productivity.

Josh Simon: The encouraging signal in Q2 was that, as Yves said, sales were down 2% with approximately 50% fewer SKUs, so really seeing that increased productivity. For the remainder of the year, importantly, I think the headline is that we definitely expect the core collectibles to continue growing in H2. When you step back from it, the core is growing, Loungefly is becoming healthier, our underlying earnings power is improving, and Q2 is really a strong and early proof point that everything we have talked about in the Make Culture POP! strategy is underway and our focus is now just about consistent execution.

Speaker #2: For the remainder of the year, importantly, you know, I think the headline is that we definitely expect a core collectibles to continue growing in the second half.

Speaker #2: So, you know, when you step back from it, the core is growing, lounge fly is becoming healthier, our underlying earnings power is improving, and you Q2 is really a strong and early proof point that, you know, everything we've talked about in the Make Culture Pop strategy is underway and our focus is now just about consistent execution.

Speaker #1: Nice. And what are you excited for for the rest of the year, particularly in terms of how the way the company is evolving?

[Analyst]: Nice. What are you excited for for the rest of the year, particularly in terms of how the way the company is evolving?

Andrew David Oddie: Nice. What are you excited for for the rest of the year, particularly in terms of how the way the company is evolving?

Speaker #2: Well, I mean, there's a lot to choose from. And I'm super excited about, I guess, a couple of things that I would highlight. First, overall is just speed.

Josh Simon: Well, there is a lot to choose from that I am super excited about. I guess a couple things that I would highlight. First, overall is just speed. I have talked about this a lot. How do we make sure that we are part of these really great cultural or entertainment moments while they are happening? Really the key to speed is being able to sort of sense demand earlier and respond quickly and hopefully in some cases with even less inventory exposure. One thing I have mentioned a couple times, but excited to kind of more formally announce now. We formalized a partnership with HP on the additive manufacturing front. This is part of our hyper strike strategy, which means we are able to create products in a matter of weeks instead of months or sometimes years that go into the traditional manufacturing process.

Speaker #2: You know, I've talked about this a lot. How do we make sure that we're part of these really great cultural or entertainment moments while they're happening?

Speaker #2: And, you know, really the key to speed is being able to sort of sense demand earlier, and respond quickly, and hopefully in some cases it would be even less inventory exposure.

Speaker #2: So, one thing I've mentioned a couple of times, but I'm excited to kind of more formally announce now: we have formalized a partnership with HP on the additive manufacturing front.

Speaker #2: This is part of our Hyperstrike strategy, which means we're able to create products in a matter of weeks instead of, you know, months or sometimes years that go into the traditional manufacturing process.

Speaker #2: We've already sort of launched our first product with this partnership at Fanatic Fest a couple of weeks ago. We did a really awesome mash-up between WWE and the garbage pail kids.

Josh Simon: We've already sort of launched our first product with this partnership at Fanatics Fest a couple of weeks ago. We did a really awesome mashup between WWE and the Garbage Pail Kids. The products sold out at Fanatics Fest. They're selling for multiples more than what we originally sold them for on eBay. We're really excited to work with HP on that front. Our normal quick strike offense from a speed standpoint has also continued to be off and running. We had pre-orders for Heated Rivalry, Off Campus, and Obsession. A lot of surprise entertainment hits out there that we've been able to get after pretty quickly, including a pre-order when the Knicks won the NBA championships. The night that they won, we went live with a championship five-pack. We're really kind of building that repeatable speed capability.

Speaker #2: The products sold out at Fanatic Fest. They're selling for multiples more than what we originally sold them for on eBay. So, you know, we're really excited to work with HP on that front.

Speaker #2: By the way, our normal QuickStrike offerings from a speed standpoint has also continued to be off and running. We had preorders for heated rivalry off campus.

Speaker #2: And obsession. So a lot of surprise entertainment hits out there that we've been able to get after pretty quickly, including a preorder when the Knicks won the NBA Championships the night that they won, we went live with a championship five-pack.

Speaker #2: So we're really kind of building that repeatable speed capability. The second thing I'll mention is we actually are announcing today that we're hiring a new Chief Commercial Officer. It's a role that we've had open for a little bit now—Kristen Hamilton.

Josh Simon: The second thing I'll mention is we actually are announcing today that we're hiring a new Chief Commercial Officer. It's a role that we've had open for a little bit now. Kristen Hamilton. She joins us most recently from Crunchyroll, where she was Senior Vice President, Head of Global E-commerce and Direct to Consumer. I'm obviously excited about her commercial experience there and her experience in the anime world, which is obviously a huge fandom for us. Before Crunchyroll, she spent about 15 years at Hasbro across a ton of different leadership roles, global e-commerce, consumer product strategy, transformation, brand management, marketing. She's done a ton there. She officially starts on 24 August, I guess that's another big exciting thing for me in the H2 of the year.

Speaker #2: She joins us most recently from Crunchyroll, where she was a senior vice president, head of global e-commerce and direct to consumer. Obviously, excited about her commercial experience there and her experience in the anime world, which is obviously a huge fandom for us.

Speaker #2: Before Crunchyroll, she spent about 15 years at Hasbro across a ton of different leadership roles, global e-commerce, consumer product strategy, transformation, brand management, marketing.

Speaker #2: She's done a ton there. She officially starts on August 24th. And so I guess that's another big exciting thing for me in the second half of the year.

Speaker #1: All right, well, the second half is looking promising. Nice. So we're going to take some questions from some analysts right now. First one is from Eric Wold at Texas Capital.

[Analyst]: Well, the H2's looking promising. Nice. We're going to take some questions from some analysts right now. First one is from Eric Wold at Texas Capital. How would you characterize the level of wholesale order demand in the Q3 of 2026 into the upcoming holiday season?

Andrew David Oddie: Well, the H2's looking promising. Nice. We're going to take some questions from some analysts right now. First one is from Eric Wold at Texas Capital. How would you characterize the level of wholesale order demand in the Q3 of 2026 into the upcoming holiday season?

Speaker #1: How would you characterize the level of wholesale order demand in the third quarter of 2026 into the upcoming holiday season?

Speaker #3: Sure. So I'll take that one. I think what we're seeing this year—you know, we continue to have about three to four months' visibility with our wholesale customers placing orders.

Yves Le Pendeven: Sure. I'll take that one. I think what we're seeing this year, we continue to have about three or four months visibility with our wholesale customers placing orders. I would say compared to last year, we're seeing a return of a little bit more normalized seasonality, like Josh mentioned. Last year, Q2 was pretty disrupted post-Liberation Day announcement, then there was an element of kind of catching up with people's orders in Q3 and into Q4. This year, obviously, we're kind of shipping orders as our customers want them. We're seeing great POS trends in our wholesale channel globally. Our POS sales were up 6% year-over-year, again, always looking for that balance between sell-in and sell-through, which we saw in Q2.

Speaker #3: I would say, compared to last year, we're seeing a return of a little bit more normalized seasonality, like Josh mentioned. Last year, Q2 was pretty disrupted.

Speaker #3: Post Liberation Day announcement. And then there was an element of kind of catching up with people's orders in Q3 and into Q4. This year, obviously, we're kind of shipping orders as our customers want them.

Speaker #3: We're seeing great POS trends. In our wholesale channel globally, our POS sales were up 6% year over year. So again, always looking for that balance between sell-in and sell-through, which we saw in Q2.

Speaker #3: So you know, by all the metrics that we gauged, the business is healthy, inventory in the channel is healthy. And we see that there's a good demand from our wholesale partners and from our end customers as well.

Yves Le Pendeven: By all the metrics that we gauge, the business is healthy, inventory in the channel's healthy, and we see that there's a good demand from our wholesale partners and from our end customers as well.

Speaker #1: Okay. Another question. What are you seeing from your major retail partners around shelf space allocation in recent quarters and into the holiday season? And what categories are likely to see the most benefit from those gains?

[Analyst]: Okay. Another question, What are you seeing from your major retail partners around shelf space allocation in recent quarters and into the holiday season, and what categories are likely to see the most benefit from those gains?

Andrew David Oddie: Okay. Another question, What are you seeing from your major retail partners around shelf space allocation in recent quarters and into the holiday season, and what categories are likely to see the most benefit from those gains?

Speaker #2: Let's see. Well, look, I think I'll start off just kind of by, you know, mentioning the fact that I'm here in Europe and I've been spending some time with our European retailers.

Josh Simon: Well, look, I think I'll start off just kind of by the fact that I'm here in Europe and have been spending some time with our European retailers. We've secured extra diorama displays in about 350 stores across Smyths, which is one of the most preeminent toy retailers in Europe and certainly even, I would say, in the world. HMV, Gift Universe, a bunch of independent retailers. Look, those are sort of like fully designed, kind of built-out displays that really showcase our product out of the packaging on shelves. We're also seeing increase, some endcap displays at Smyths for Bitty Pop! If you walk around the city right now, we have pretty high-profile windows at Hamleys, another iconic toy retailer that sort of is a Disney and Funko collaboration that's really giving us a lot of high visibility in prime tourist destinations.

Speaker #2: You know, we've secured extra diorama displays in about 350 stores across Smith's, which is, you know, one of the most preeminent toy retailers in Europe and certainly even, I would say, in the world.

Speaker #2: HMV Gift Universe, a bunch of independent retailers. And look, those are sort of like fully designed kind of built-out displays that are really showcase our product out of the packaging.

Speaker #2: On shelves, we're also seeing increased some end cap displays at Smith's. For Biddy Pop, you know, if you walk around the city right now, we have pretty high-profile windows at Hemley's, another iconic toy retailer that sort of is a Disney and Funko collaboration that's really giving us a lot of high visibility and like prime tourist destinations.

Speaker #2: And actually right now, even we have another partnership across Sony Disney with HMV on a big Spider-Man activation. At HMV Oxford Street, so you know, look, we things like Biddy Pop have continued to lead incremental shelf space for us.

Josh Simon: Actually, right now even, we have another partnership across Sony, Disney, with HMV, on a big Spider-Man activation at HMV Oxford Street. Look, things like Bitty Pop! have continued to leave incremental shelf space for us. Things like Spider-Man have led to incremental placement with pallet trains at Walmart. I think, alongside these big entertainment releases and alongside our new and growing product lines, we're seeing it generate incremental shelf space for us at retail.

Speaker #2: Things like Spider-Man have led to incremental placement, you know, with like pallet trains at, you know, at Walmart. So I think, you know, alongside these big entertainment releases and alongside our, you know, new and growing product lines, we're seeing it generate incremental shelf space for us at retail.

Speaker #1: Nice. Look forward to seeing people post some photos with photo ops with all those displays there. All right, well, now we have some questions from McKeeg and Cox at DA Davidson.

[Analyst]: Nice. Look forward to seeing people post some photos with photo ops with all those displays there. All right. Well, now we have some questions from Keegan Cox at D.A. Davidson. In regards to the strong entertainment slate we have had this year, which franchises or categories are generating the strongest demand? Any highlights this quarter, and what properties are you most excited for in the second half of the year?

Andrew David Oddie: Nice. Look forward to seeing people post some photos with photo ops with all those displays there. All right. Well, now we have some questions from Keegan Cox at D.A. Davidson. In regards to the strong entertainment slate we have had this year, which franchises or categories are generating the strongest demand? Any highlights this quarter, and what properties are you most excited for in the second half of the year?

Speaker #1: In regard to the strong entertainment slate we've had this year, which franchises or categories are generating the strongest demand? Any highlights this quarter?

Speaker #1: And what properties are you most excited for in the second half of the year?

Speaker #3: Well, thanks. Thank you, Keegan, for the question. Look, I mean, look, for us, obviously, a strong content slate always helps. And you know, we knew going into this year, at least suspected that there would be some big, you know, some big hits.

Josh Simon: Well, thanks. Thank you, Keegan, for the question. Look, for us, obviously, a strong content slate always helps. We knew going into this year, or at least suspected, that there would be some big hits, and I think you're really seeing that in box office attendance and box office records overall. We have been pretty, first I'll just say, broad-based across fandoms. We've seen momentum for us across anime, gaming, obviously theatrical, sports, and some of our own programs. I'll remind everyone, in this quarter, I think our top 10 franchises and programs represented about 32% of Q2 sales. Our business is not necessarily dependent on any one property, but they obviously help. Mando, Grogu was great for us. Toy Story 5, which was a massive hit for Disney, also doing really well for us. You saw our Spider-Man: Brand New Day activation at Comic-Con.

Speaker #3: And I think you're really seeing that in box office attendance. And box office records overall. But we have a pretty, first of all, just say like broad base across fandoms.

Speaker #3: We've seen momentum for us across anime, gaming, obviously, theatrical, sports, and some of our own programs. I'll remind everyone in this quarter, I think our top 10 franchises and programs represented about 32% of Q2 sales.

Speaker #3: So you know, our business is not necessarily dependent on like any one property. But they obviously help. So you know, Mando, Grogu was great for us.

Speaker #3: Toy Story 5, which was a massive hit for Disney, also doing really well for us. You saw our Spider-Man brand new day activation at Comic-Con.

Speaker #3: That has recently proven to be huge for us. And we're really glad that we made a bet on that film early on. And then, you know, couldn't it be more excited for Avengers: Doomsday and what the Russo brothers and Marvel and Disney are going to kind of bring to screens at the end of the year?

Josh Simon: That has recently proven to be huge for us, and we're really glad that we made a bet on that film early on. Couldn't be more excited for Avengers: Doomsday and what the Russo brothers and Marvel and Disney are going to kind of bring to screens at the end of the year. Look beyond that. One Piece and Pokémon in sort of the anime and gaming space continue to be huge. Sports delivered. I mentioned, the excitement around the Knicks was somewhat unprecedented for us in the certainly in the world of NBA championships compared to past seasons. The excitement around the World Cup, I think, was palpable and reflected in some strong sales for us.

Speaker #3: But look, beyond that, One Piece and Pokémon in sort of the anime and gaming space continue to be huge. Sports, delivered. I mentioned, I mean, the excitement around the Knicks was somewhat, you know, unprecedented for us in the sort of certainly in the world of NBA championships compared to past seasons.

Speaker #3: The excitement around the world cup, I think, was, you know, was palpable and reflected in some, you know, some strong sales for us. And then look, I have to just sort of mention again on the quick strike front, but you know, you have a movies like Obsession, which, you know, kind of came from out of nowhere as a surprise.

Josh Simon: Look, I have to just sort of mention it again on the quick strike front, but you have movies like Obsession, which kind of came from out of nowhere as a surprise, and was a major record-setting box office. We were able to very quickly go on presale for that film, along with things like Heated Rivalry and Off Campus. I'll even say, a personal favorite of mine in this past quarter, a great line of products celebrating the Spice Girls

Speaker #3: And you know, was a major record-setting box office. And so we were able to, you know, very quickly go on pre-sale for, you know, for that film, along with things like Heated Rivalry and Off Campus.

Speaker #3: And I'll even say a personal favorite of mine in this past quarter, a great line of products celebrating the Spice Girls. And I'm not just saying that because I'm over in the UK right now.

Josh Simon: I'm not just saying that because I'm over in the UK right now. I would've said that if I were in America as well. Across Loungefly and Funko, a dream come true, honestly, to be able to collaborate with those folks. A pretty broad representation of both franchises, Keegan.

Speaker #3: I would have said that if I were in America as well. But across Loungefly and Funko, you know, it's a dream come true, honestly, to be able to collaborate with those folks.

Speaker #3: So a pretty broad representation of franchises, Keegan.

Speaker #1: All right. Save me a Mel B Funko Pop. I need that. All right. And puts and takes on the guidance. What are the assumptions that you get to the high and low ends of your guidance?

[Analyst]: All right. Save me a MLB Funko Pop. I need that.

Andrew David Oddie: All right. Save me a MLB Funko Pop. I need that.

Yves Le Pendeven: Yeah.

Yves Le Pendeven: All right. Puts and takes on the guidance, what are the assumptions that you get to the high and low ends of your guidance? Have you seen any impact from higher input costs like freight?

Speaker #1: Have you seen any impact from higher input costs like freight?

Speaker #3: Sure. So I would start by, you know, to the upside, especially on sales. I mentioned our order book visibility in Q3. So we feel good about that.

Yves Le Pendeven: Sure. I would start by to the upside, especially on sales, I mentioned our order book visibility in Q3. We feel good about that. Obviously then the holiday period in Q4, we have a bit less visibility too. We're excited about the content slate. I think obviously any upside would depend on continued sell-through performance. We're hoping the consumer stays resilient through the holiday period. To the downside, I would call out tariffs. Obviously, we factored in the latest announced tariffs that are in effect of 10% to 12%. For everyone who's following the news, that there can continue to be surprises on that front. Again, chose to be prudent within our gross margin guidance in particular.

Speaker #3: Obviously, then the holiday period in Q4, we have a bit less visibility too, but we're excited about the content slate. You know, I think obviously any upside would depend on continued sell-through performance.

Speaker #3: We're hoping the consumer stays resilient through the holiday period. You know, to the downside, we've I would call out tariffs. Obviously, we've factored in the latest announced tariffs that are in effect of 10% to to 12%.

Speaker #3: But for everyone who's following the news that, you know, there can continue to be surprises on that front. So again, you know, chose to be prudent within our gross margin guidance in particular.

Speaker #3: And then, as far as, you know, freight costs or raw materials costs, we're cautiously optimistic. But obviously, any kind of, you know, higher oil prices and things like that could negatively impact us as well.

Josh Simon: As far as freight costs or raw materials costs, we're cautiously optimistic, but obviously any kind of higher oil prices and things like that could negatively impact us as well.

[Analyst]: Understood. All right. Here's some questions from Stephen Laszczyk at Goldman Sachs. Funko noted that point-of-sale tailwinds from the Q1 entertainment slate carried into early Q2. Did this positive trend continue through the remainder of the quarter, and what gives management confidence that these trends are sustainable through 2026?

Andrew David Oddie: Understood. All right. Here's some questions from Stephen Laszczyk at Goldman Sachs. Funko noted that point-of-sale tailwinds from the Q1 entertainment slate carried into early Q2. Did this positive trend continue through the remainder of the quarter, and what gives management confidence that these trends are sustainable through 2026?

Speaker #1: Understood. All right, here's some questions from Stephen Lachick at Goldman Sachs. So, Funko noted that point-of-sale tailwinds from the first-quarter entertainment slate carried into early second quarter.

Speaker #1: Did this positive trend continue through the remainder of the quarter? And what gives management confidence that these trends are sustainable through 2026?

Speaker #3: Sure. I mean, I'll start with the trends that we saw in Q2. So again, I mentioned in the wholesale channel, 6% growth in units year over year in POS sales.

Yves Le Pendeven: Sure. I'll start with the trends that we saw in Q2. Again, I mentioned in the wholesale channel, 6% growth in units year over year in POS sales. For the year to date, it's 9% growth. Again, for the year to date in the US, up mid-single digit. In Europe, slightly over 20% POS growth. It's a really strong trend. We're loving to see that momentum. I believe based on the content slate and some of the products that we have coming up in the lineup, that we should see that trend continue.

Speaker #3: For the year to date, it's 9% growth. And again, for the year to date in the US, up mid-single digits; in Europe, slightly over 20% POS growth.

Speaker #3: So it's a really strong trend. We're loving to see that momentum. I believe, you know, based on the content slate, and some of the products that we have coming up in the lineup that we should see that trends continue.

Speaker #3: And that's kind of what we factored into our guidance.

Yves Le Pendeven: That's kind of what we factored into our guidance.

[Analyst]: Okay. Now, to what extent does management expect new formats like Bitty Pop!, Pop! Mystery, and the sports-related launches to be revenue contributors in 2026? What does management view as the key growth levers for Funko in 2026 and beyond, outside of the core Pop! products?

Andrew David Oddie: Okay. Now, to what extent does management expect new formats like Bitty Pop!, Pop! Mystery, and the sports-related launches to be revenue contributors in 2026? What does management view as the key growth levers for Funko in 2026 and beyond, outside of the core Pop! products?

Speaker #1: Okay. Now, to what extent does management expect new formats like Biddy Pop, Pop Mystery, and the sports-related launches to be revenue contributors in 2026?

Speaker #1: And what does management view as the key growth levers for Funko in 2026 and beyond, outside of the core Pop! products?

Speaker #3: Well, I'll jump in. I mean, I think first on Pop Mystery, it's a little bit too early to, you know, to sort of size that one responsibly.

Josh Simon: Well, I'll jump in. I think first on Pop! Mystery, it's a little bit too early to sort of size that one responsibly. What I think is most important about it, and I think kind of signals a lot of what we've been talking about as part of our strategy, is just sort of the platform potential of it. If you think about Pop! Mystery just as another dimension and extension of the core Pop! product, it can really extend across any entertainment franchise, sports. We're doing it with our own IP that you saw sort of down at Comic-Con with the Flora line. It can go in multiple channels, markets around the world. I would say sort of that blind box craze is showing no signs of slowing down.

Speaker #3: But what I think is most important about it, and I think kind of signals a lot of what we've been talking about as part of our strategy, is that it's just sort of the platform potential of it.

Speaker #3: So, you know, if you think about Pop Mystery, just as another dimension and extension of the core pop product, it can really extend across like any entertainment franchise, sports, we're doing it with our own IP that you saw sort of down at Comic-Con with the floor aligned.

Speaker #3: It can go in, you know, multiple channels, markets, you know, around the world. I would say sort of that blind box craze is showing no signs of slowing down.

Speaker #3: And for us, I think it's a unique way that kind of, you know, encourages what our fans have always loved, that like thrill of the chase, discovery.

Josh Simon: For us, I think it's a unique way that kind of encourages what our fans have always loved, that thrill of the chase, discovery, and then that sort of motivation for repeat participation. They want to try and seek out that one specific item that they love. We'll keep a close eye on sort of the initial launch and judge sell-through and reorders and consumer behavior and scale based on that. I'd say from a licensor standpoint, we have a pretty exciting and awesome lineup of Pop! Mystery products going all the way through next year. I am feeling encouraged about that one. Then you mentioned sort of, Stephen, your question, sort of Bitty is just sort of another example that I mentioned we're seeing incremental placement now at Smyths around Europe.

Speaker #3: And then that sort of motivation for, you know, repeat participation. Like they want to try and seek out the, you know, that one specific item that they love.

Speaker #3: So you know, we'll keep a close eye on sort of the initial launch and judge, you know, sell-through and reorders and consumer behavior and scale based on that.

Speaker #3: But I'd say from a license or standpoint, we have like a pretty exciting and awesome lineup of Pop Mystery products going all the way through next year.

Speaker #3: So I am feeling encouraged about that one. And then, you know, you mentioned sort of, you know, Stephen, your question, sort of Biddy is just sort of another example that, you know, I mentioned we're, you know, we're seeing incremental placement now at Smith's.

Speaker #3: Around Europe. Another extension of what people love about Pop and what makes it iconic, but it's sort of, it's becoming its own platform, appealing to a slightly different consumer, getting us incremental placement.

Josh Simon: Another extension of what people love about Pop! and what makes it iconic, but it's sort of becoming its own platform, appealing to a slightly different consumer, getting us incremental placement. We'll continue to look at new ways to dimensionalize Pop!. We have a few different ideas that are in development that we'll roll out end of this year and early next year. Then look, honestly, there's about, I would say, half a dozen totally brand-new formats that we have in development that we'll start to roll out early next year and beyond.

Speaker #3: We'll continue to look at new ways to dimensionalize Pop. We have a few different ideas that are in development that we'll roll out end of this year and early next year.

Speaker #3: And then look, honestly, there's about, I would say, half a dozen totally brand new formats that we have in development. That we'll start to roll out early next year and beyond.

Speaker #3: And the idea with all of those is, you know, trying to establish new, but new platforms for our fans to engage sort of capitalizing on what we know best around sort of, you know, culture and our licensor relationships, and being part of these iconic, you know, entertainment and cultural moments.

Josh Simon: The idea with all of those is trying to establish new platforms for our fans to engage, sort of capitalizing on what we know best around culture and our licensor relationships, and being part of these iconic entertainment and cultural moment events, but in new and exciting ways that I think hopefully will set the stage for hopefully the next Pop franchise to come.

Speaker #3: But in new and exciting ways that I think hopefully we'll, you know, we'll set the stage for hopefully the next, you know, pop franchise to come.

Speaker #1: All right. Well, we look forward to all of that. And I definitely look forward to seeing who gets a one-of-one worldwide chase out there with these Mystery Pops.

[Analyst]: All right. Well, we'll look forward to all of that, and I definitely look forward to seeing who gets a one-of-one worldwide chase out there with these Pop! Mystery. All right. Well, that's all the time we have for questions for today. Yves and Josh, thank you so much for all your information about the success as well as how you handle certain challenges. Josh, are there any thoughts before we let everyone go today?

Andrew David Oddie: All right. Well, we'll look forward to all of that, and I definitely look forward to seeing who gets a one-of-one worldwide chase out there with these Pop! Mystery. All right. Well, that's all the time we have for questions for today. Yves and Josh, thank you so much for all your information about the success as well as how you handle certain challenges. Josh, are there any thoughts before we let everyone go today?

Speaker #1: All right. Well, that's all the time we have for questions for today. Yves, Josh, thank you so much for all your information about the success as well as how you handle certain challenges.

Speaker #1: So Josh, are there any thoughts before we let everyone go today?

Speaker #2: Yes. Well, first of all, thank you for, you know, for being with us down at Comic-Con and in the office there in Burbank. And look, for me, I would just say the financial highlights that, you know, this quarter shows us is really early evidence that the Make Culture Pop strategy is beginning to take hold.

Josh Simon: Yes. Well, first of all, thank you for being with us down at Comic-Con and in the office there in Burbank. Look, for me, I would just say the financial highlights that this quarter shows us is really early evidence that the Make Culture POP!

Josh Simon: strategy is beginning to take hold, and it's really becoming a more deliberate and disciplined growth engine for us. Ultimately, I think we're getting better at sensing where fan demand is coming from, moving faster to turn those signals into distinctive products and in repeatable ways, building platforms like I was just talking about, then scaling them through channels all over the world. Look, this quarter, I think, was an early proof point, not the end of the work, but I think the growth and SKU productivity and certainly that record underlying gross margin gives us confidence that we're on the right track. Look, other than that, I just want to say thank you to our shareholders for your continued confidence. Most importantly, thank you to our fans for showing up in the way that you always do.

Speaker #2: And it's really becoming a more deliberate and, you know, disciplined growth engine for us. Ultimately, you know, we're, I think we're getting better at sensing, you know, where fan demand is, coming from, you know, moving faster to turn those signals into distinctive products and in repeatable ways and building platforms like I was just talking about.

Speaker #2: And then scaling them through, you know, channels all over the I think was an early proof point, not the end of the work. But I think, you know, the growth and SKU productivity and certainly that record underlying gross margin gives us confidence that we're on the right track.

Speaker #2: And so, and look, other than that, I just want to say thank you to our shareholders for your continued confidence. Most importantly, thank you to our fans for showing up in the way that you always do.

Speaker #2: I loved, you know, sort of the energy and everyone who made their way down to Comic-Con this year. I love talking with everyone and hearing their ideas.

Josh Simon: I loved sort of the energy and everyone who made their way down to Comic-Con this year. I love talking with everyone and hearing their ideas. It's just an awesome reminder of why we do this. We're certainly excited for the rest of the year. I'll just say again, Andre, thanks everyone for joining us, and we will see you all next quarter.

Speaker #2: It's just an awesome reminder of, you know, why we do this. And we're certainly excited for the rest of the year. So I'll just say again, Andre, thanks to everyone for joining us.