Earnings per Share

6 Months Ended

Jun. 30, 2024

Basic earnings (loss) per share of Class A common stock is computed by dividing net income (loss) attributable to Funko, Inc. by the weighted-average number of shares of Class A common stock outstanding during the period. Diluted earnings (loss) per share of Class A common stock is computed by dividing net income (loss) 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 earnings (loss) per share of Class A common stock (in thousands, except shares and per share data):


	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Numerator:
Net income (loss)	$	5,419	$	(75,862)	$	(18,247)	$	(137,006)
Less: net income (loss) attributable to non-controlling interests	304		(2,864)		(699)		(8,697)
Net income (loss) attributable to Funko, Inc. — basic	$	5,115	$	(72,998)	$	(17,548)	$	(128,309)
Add: Reallocation of net income attributable to non-controlling interests from the assumed exchange of common units of FAH, LLC for Class A common stock	—		—		—		—
Net income (loss) attributable to Funko, Inc. — diluted	$	5,115	$	(72,998)	$	(17,548)	$	(128,309)
Denominator:
Weighted-average shares of Class A common stock outstanding — basic	52,106,512		47,427,510		51,406,075		47,338,090
Add: Dilutive common units of FAH, LLC that are convertible into Class A common stock	—		—		—		—
Add: Dilutive Funko, Inc. equity compensation awards	498,437		—		—		—
Weighted-average shares of Class A common stock outstanding — diluted	52,604,949		47,427,510		51,406,075		47,338,090
Earnings (loss) per share of Class A common stock — basic	$	0.10	$	(1.54)	$	(0.34)	$	(2.71)
Earnings (loss) per share of Class A common stock — diluted	$	0.10	$	(1.54)	$	(0.34)	$	(2.71)

For the three months ended June 30, 2024 and 2023, an aggregate of 6.7 million and 10.9 million, respectively, and for the six months ended June 30, 2024 and 2023, an aggregate of 7.1 million and 10.7 million, respectively, of potentially dilutive securities were excluded from the weighted-average in the computation of diluted earnings per share of Class A common stock because the effect would have been anti-dilutive. For the three and six months ended June 30, 2024, there were 2.0 million and 2.4 million, respectively of common units of FAH, LLC that are convertible into Class A common stock and excluded from the computations of diluted (loss) earnings per share because the effect would have been anti-dilutive under the if-converted method. For the three and six months ended June 30, 2023 there were 4.4 million common units excluded, respectively.

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.