Earnings per Share

9 Months Ended

Sep. 30, 2023

Earnings per ShareBasic (loss) earnings per share of Class A common stock is computed by dividing net (loss) income attributable to Funko, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted (loss) earnings per share of Class A common stock is computed by dividing net (loss) income attributable to Funko, Inc. by the weighted-average number of shares of Class A common stock outstanding adjusted to give effect to potentially dilutive securities.

The following table sets forth reconciliations of the numerators and denominators used to compute basic and diluted (loss) earnings per share of Class A common stock (in thousands, except shares and per share amounts):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2023		2022		2023		2022
Numerator:
Net (loss) income	$	(16,224)	$	11,149	$	(153,230)	$	41,460
Less: net (loss) income attributable to non-controlling interests	(1,215)		1,519		(9,912)		7,276
Net (loss) income attributable to Funko, Inc. — basic and diluted	$	(15,009)	$	9,630	$	(143,318)	$	34,184
Add: Reallocation of net (loss) income attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock	—		—		—		5,397
Net (loss) income attributable to Funko, Inc. — diluted	$	(15,009)	$	9,630	$	(143,318)	$	39,581
Denominator:
Weighted-average shares of Class A common stock outstanding — basic	48,236,867		46,874,285		47,640,974		43,670,297
Add: Dilutive common units of FAH, LLC that are convertible into Class A common stock	—		146,109		—		8,005,100
Add: Dilutive Funko, Inc. equity compensation awards	—		2,665,985		—		2,315,109
Weighted-average shares of Class A common stock outstanding — diluted	48,236,867		49,686,379		47,640,974		53,990,506
(Loss) earnings per share of Class A common stock — basic	$	(0.31)	$	0.21	$	(3.01)	$	0.78
(Loss) earnings per share of Class A common stock — diluted	$	(0.31)	$	0.19	$	(3.01)	$	0.73

For the three months ended September 30, 2023 and 2022, an aggregate of 10.3 million and 6.0 million, respectively, and for the nine months ended September 30, 2023 and 2022, an aggregate of 10.6 million and 1.9 million, respectively, of potentially dilutive securities were excluded from the weighted-average in the computation of diluted (loss) earnings per share of Class A common stock because the effect would have been anti-dilutive. For the three months ended September 30, 2023 and 2022, anti-dilutive securities included 4.4 million and 4.3 million, respectively, and for the nine months ended September 30, 2023 and 2022, anti-dilutive securities included 4.4 million and 0.0 million, respectively, common units of FAH, LLC that are convertible into Class A common stock, but were excluded from the computations of diluted (loss) earnings per share because the effect would have been anti-dilutive under the if-converted method.

Shares of the Company’s Class B common stock do not participate in the earnings or losses of the Company and are therefore not participating securities. As such, separate presentation of basic and diluted earnings per share of Class B common stock under the two-class method has not been presented.