v3.25.4
Prepaid Expenses and Other Current Assets
12 Months Ended
Dec. 31, 2025
Prepaid Expense and Other Assets, Current [Abstract]  
Prepaid Expenses and Other Current Assets Prepaid Expenses and Other Current Assets
Prepaid expenses and other current assets consisted of the following (in thousands):
December 31,
20252024
Prepaid deposits for inventory and molds
$2,286 $1,839 
Prepaid royalties, net
18,605 6,115 
Assets held-for-sale— 1,682 
Other prepaid expenses and current assets
27,203 30,306 
Prepaid expenses and other current assets
$48,094 $39,942 

In January 2024, the Company sold all outstanding inventory and certain intellectual property marketed under and related to Funko Games, to an independent third-party. The Company also entered into a multi-year exclusive worldwide license and distribution agreement with the purchaser, whereby the Company will earn minimum guaranteed royalty payments for the continued use of the Funko brand. Proceeds from the transaction were utilized to pay down a portion of the outstanding balance of the Term Loan Facility (as defined below).