Income Taxes |
6 Months Ended |
|---|---|
Jun. 30, 2026 | |
| 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 $1.0 million and $4.2 million of income tax expense for the three and six months ended June 30, 2026, respectively, and $0.8 million and $1.7 million of income tax expense for the three and six months ended June 30, 2025, respectively. The Company’s effective tax rate for the six months ended June 30, 2026 was 280.4%, compared to (2.5)% for the six months ended June 30, 2025. The 2026 rate differs from the U.S. federal statutory rate of 21% primarily because the income tax provision consists principally of current foreign income taxes in profitable jurisdictions (primarily the United Kingdom) and state taxes, while no U.S. federal tax expense or benefit was recognized. The Company projects a U.S. tax loss for the year and maintains a full valuation allowance against its U.S. deferred tax assets. The magnitude of the rate reflects near-breakeven consolidated pre-tax income for the period relative to those foreign and state taxes and is not indicative of an annual rate. The prior-year rate was below the statutory rate for the same reasons applied to a consolidated pre-tax loss. The Company is party to the Tax Receivable Agreement that provides for the payment by the Company to the TRA Parties under certain circumstances. See Note 5, “Liabilities under Tax Receivable Agreement”.
|