Funko Says Financial Performance To Improve Compared With The First Half; Net Sales To Be Down High Single-digits Compared With The Second Half Of 2024; Adjusted EBITDA Margin To Be In The Mid- To High Single-Digits Range; Q4 Results To Ramp Up Over Q3

Outlook for 2025

The Company's current outlook includes the anticipated impact of the most recent tariff rates. However, it does not account for any further tariff actions, as the impacts of such actions remain uncertain.

The Company provided comments on the following expectations regarding its outlook for the second half of 2025, as follows:

•Financial performance to improve compared with the first half;

•Net sales to be down high single-digits compared with the second half of 2024;

•Adjusted EBITDA margin to be in the mid- to high single-digits range;

•Q4 results to ramp up over Q3.

*Adjusted net income (loss), adjusted net income (loss) per diluted share and adjusted EBITDA are non-GAAP financial measures. For a reconciliation of historical adjusted net income (loss), adjusted income (loss) per diluted share, and adjusted EBITDA, to the most directly comparable U.S. GAAP financial measures, please refer to the "Non-GAAP Financial Measures" section of this press release. A reconciliation of adjusted EBITDA outlook to the corresponding GAAP measure on a forward-looking basis cannot be provided without unreasonable efforts, as we are unable to provide reconciling information with respect to certain items. However, for the second half of 2025 the company expects equity-based compensation of approximately $8 million, depreciation and amortization of approximately $27 million and interest expense of approximately $11 million, each of which is a reconciling item to net loss. See "Use of Non-GAAP Financial Measures" and the attached reconciliations for more information.