Funko, Inc.

Previous wording

We sell our products in numerous countries across North America, Europe, Latin America, Asia and Africa, with approximately 42% of our net sales in the three months ended March 31, 2026 generated outside of the United States. We also source, procure and assemble inventory, primarily out of Vietnam, China, and Cambodia. As such, we are exposed to and impacted by global macroeconomic factors. Current macroeconomic factors remain very dynamic, such as greater political uncertainty, unrest or instability in the United States, Central and Eastern Europe (including the ongoing Russia-Ukraine War), the Middle East, and certain Southeast Asia regions as well as financial instability, new or increasing tariffs and general uncertainty over U.S. trade and tariff policies, rising interest rates and heightened inflation that could reduce our net sales or have impacts to our gross margin (as defined below), net income and cash flows.

Current wording

We sell our products in numerous countries across North America, Europe, Latin America, Asia and Africa, with approximately 41% of our net sales in the six months ended June 30, 2026 generated outside of the United States. We also source, procure and assemble inventory, primarily out of Vietnam, China and Cambodia. As such, we are exposed to and impacted by global macroeconomic factors. Current macroeconomic factors remain very dynamic, such as greater political uncertainty, unrest or instability in the United States, Central and Eastern Europe (including the ongoing Russia-Ukraine War), the Middle East, and certain Southeast Asia regions as well as financial instability, new or increasing tariffs and general uncertainty over U.S. trade and tariff policies, rising interest rates and heightened inflation that could reduce our net sales or have impacts to our gross margin (as defined below), net income and cash flows.

Previous wording

On February 20, 2026, the U.S. Supreme Court ruled that U.S. tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”) on goods imported into the U.S. were unauthorized. The Company’s total IEEPA tariffs paid as of the date of this report is approximately $20 million. The ruling did not address potential refunds, and therefore the ultimate availability, timing and amount of any potential refunds of these tariffs is highly uncertain. The federal government may attempt to impose new or similar tariffs under alternative statutory mechanisms. There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels, and whether further additional tariffs or other retaliatory actions may be imposed, modified, or suspended, and the impacts of such actions on our business. This has led and may lead to further continued uncertainty and volatility in U.S. and global financial and economic conditions and commodity markets, declining consumer confidence, significant inflation and diminished expectations for the economy, and ultimately reduced demand for our products. We will continue to monitor changes to the import and export policies of the U.S. and other countries that could impact our financial position, results of operations and cash flows.

Current wording

The federal government may attempt to impose new or similar tariffs under alternative statutory mechanisms. There remains substantial uncertainty regarding the duration of existing and newly announced tariffs, potential changes or pauses to such tariffs, tariff levels, and whether further additional tariffs or other retaliatory actions may be imposed, modified, or suspended, and the impacts of such actions on our business. This has led and may lead to further continued uncertainty and volatility in U.S. and global financial and economic conditions and commodity markets, declining consumer confidence, significant inflation and diminished expectations for the economy, and ultimately reduced demand for our products. We will continue to monitor changes to the import and export policies of the U.S. and other countries that could impact our financial position, results of operations and cash flows.

Previous wording

The following table sets forth information comparing the components of net loss for the three months ended March 31, 2026 and 2025:

Current wording

The following table sets forth information comparing the components of net income (loss) for the three months ended June 30, 2026 and 2025:

Previous wording

On a geographical basis, net sales in the United States decreased 3.7% to $117.4 million in the three months ended March 31, 2026 as compared to $121.9 million in the three months ended March 31, 2025. Net sales in Europe increased 25.6% to $68.1 million in the three months ended March 31, 2026 as compared to $54.2 million in the three months ended March 31, 2025. Net sales in other international locations increased 6.1% to $15.5 million in the three months ended March 31, 2026 as compared to $14.6 million in the three months ended March 31, 2025.

Current wording

On a geographical basis, net sales in the United States increased 3.4% to $121.8 million in the three months ended June 30, 2026 as compared to $117.9 million in the three months ended June 30, 2025. Net sales in Europe increased 19.4% to $69.0 million in the three months ended June 30, 2026 as compared to $57.8 million in the three months ended June 30, 2025. Net sales in other international locations decreased 5.1% to $16.9 million in the three months ended June 30, 2026 as compared to $17.8 million in the three months ended June 30, 2025.

Previous wording

On a branded category basis, net sales of the Core Collectible branded category increased 16.8% to $168.8 million in the three months ended March 31, 2026 as compared to $144.5 million in the three months ended March 31, 2025. Loungefly branded category net sales decreased 23.1% to $27.2 million in the three months ended March 31, 2026 as compared to $35.4 million in the three months ended March 31, 2025. Other branded category net sales decreased 54.7% to $4.9 million in the three months ended March 31, 2026 as compared to $10.9 million in the three months ended March 31, 2025.

Current wording

On a branded category basis, net sales of the Core Collectible branded category increased 9.0% to $171.6 million in the three months ended June 30, 2026 as compared to $157.5 million in the three months ended June 30, 2025. Loungefly branded category net sales decreased 1.7% to $31.3 million in the three months ended June 30, 2026 as compared to $31.8 million in the three months ended June 30, 2025. Other branded category net sales increased 15.2% to $4.8 million in the three months ended June 30, 2026 as compared to $4.1 million in the three months ended June 30, 2025.

Previous wording

Cost of sales (exclusive of depreciation and amortization) was $112.1 million for the three months ended March 31, 2026, a decrease of 1.6%, compared to $113.9 million for the three months ended March 31, 2025. Cost of sales (exclusive of depreciation and amortization) decreased primarily as a result of product mix, as discussed above.

Current wording

Cost of sales (exclusive of depreciation and amortization) was $90.1 million for the three months ended June 30, 2026, a decrease of 31.5%, compared to $131.4 million for the three months ended June 30, 2025. Cost of sales (exclusive of depreciation and amortization) decreased primarily as a result of product mix, as discussed above. In addition, cost of sales for the three months ended June 30, 2026 benefited from one-time items, including the recognition of a receivable for previously paid tariffs and the release of related tariff accruals.

Previous wording

Gross margin (exclusive of depreciation and amortization), calculated as net sales less cost of sales as a percentage of net sales, was 44.2% for the three months ended March 31, 2026, compared to 40.3% for the three months ended March 31, 2025. The increase in gross margin (exclusive of depreciation and amortization) for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was driven primarily by savings in product costs as a result of the product mix sold, price increases, and lower royalty impairment expense.

Current wording

Gross margin (exclusive of depreciation and amortization), calculated as net sales less cost of sales as a percentage of net sales, was 56.6% for the three months ended June 30, 2026, compared to 32.1% for the three months ended June 30, 2025. The increase in gross margin (exclusive of depreciation and amortization) for the three months ended June 30, 2026 compared to the three months ended June 30, 2025 was driven primarily by savings in product costs as a result of the product mix sold, price increases, and lower royalty impairment expense. In addition, gross margin for the three months ended June 30, 2026 benefited from one-time items, including the recognition of a receivable for previously paid tariffs and the release of related tariff accruals.

Previous wording

Depreciation and amortization expense was $14.8 million for the three months ended March 31, 2026, a decrease of 3.2%, compared to $15.3 million for the three months ended March 31, 2025, primarily related to the type and timing of assets placed in service.

Current wording

Depreciation and amortization expense was $15.8 million for the three months ended June 30, 2026, an increase of 8.5%, compared to $14.5 million for the three months ended June 30, 2025, primarily related to the type and timing of assets placed in service.

Previous wording

Interest expense, net was $4.9 million for the three months ended March 31, 2026, an increase of 26.9%, compared to $3.8 million for the three months ended March 31, 2025. The increase in interest expense, net was due primarily to higher interest rates under our Credit Agreement and higher average balance of debt outstanding during the three months ended March 31, 2026.

Current wording

Interest expense, net was $5.2 million for the three months ended June 30, 2026, an increase of 14.9%, compared to $4.5 million for the three months ended June 30, 2025. The increase in interest expense, net was due primarily to higher interest rates under our Credit Agreement and higher average balance of debt outstanding during the three months ended June 30, 2026.

Previous wording

Other expense, net was $0.5 million and $0.2 million for the three months ended March 31, 2026 and 2025, respectively. Other expense, net for the three months ended March 31, 2026 and 2025 was primarily related to foreign currency gains and losses relating to transactions denominated in currencies other than the U.S. dollar.

Current wording

Other expense, net was $0.5 million and $0.9 million for the three months ended June 30, 2026 and 2025, respectively. Other expense, net for the three months ended June 30, 2026 and 2025 was primarily related to foreign currency gains and losses relating to transactions denominated in currencies other than the U.S. dollar.

Previous wording

Income tax expense was $3.2 million and $0.8 million for the three months ended March 31, 2026 and 2025, respectively. The Company’s tax expense primarily reflects foreign income taxes in jurisdictions where the Company generates taxable income under its transfer pricing arrangements. The U.S. operations continue to be in a full valuation allowance position, resulting in no material U.S. federal or state income tax expense.

Current wording

Income tax expense was $1.0 million and $0.8 million for the three months ended June 30, 2026 and 2025, respectively. The Company’s tax expense primarily reflects foreign income taxes in jurisdictions where the Company generates taxable income under its transfer pricing arrangements. The U.S. operations continue to be in a full valuation allowance position, resulting in no material U.S. federal or state income tax expense.

Previous wording

Net loss was $18.1 million for the three months ended March 31, 2026, compared to net loss of $28.1 million for the three months ended March 31, 2025. The 35.4% decrease in net loss was primarily due to the increase in net sales, in addition to the decrease in operating expenses as compared to the three months ended March 31, 2025.

Current wording

Net income was $15.4 million for the three months ended June 30, 2026, compared to net loss of $41.0 million for the three months ended 2025. The increase in net income was primarily due to the increase in net sales, in addition to the decrease in operating expenses as compared to the three months ended June 30, 2025. In addition, net income for the three months ended June 30, 2026 benefited from one-time items, including the recognition of a receivable for previously paid tariffs and the release of related tariff accruals.

Previous wording

Net sales were $200.9 million for the three months ended March 31, 2026, an increase of 5.3%, compared to $190.7 million for the three months ended March 31, 2025. The increase in net sales was due primarily to increased sales of core Pop! products and the impact of price increases that went into effect during the third-quarter of 2025, offset by a decline in sales of Loungefly products.

Current wording

Net sales were $408.6 million for the six months ended June 30, 2026, an increase of 6.4%, compared to $384.2 million for the six months ended June 30, 2025. The increase in net sales was due primarily to increased sales of core Pop! products and the impact of price increases that went into effect during the third-quarter of 2025, partially offset by a decline in sales of Loungefly products.

Previous wording

Selling, general, and administrative expenses were $83.7 million for the three months ended March 31, 2026, a decrease of 1.3%, compared to $84.8 million for the three months ended March 31, 2025. The decrease was driven primarily by a $2.1 million decrease in personnel and related costs (including salary and related taxes/benefits, commissions and equity-based compensation), a $1.1 million decrease in facilities and rent, related to decreased usage of third-party logistics sites, partially offset by an increase of $1.6 million in professional fees, primarily related to the third-party debt fees associated with the Fifth Amendment to our Credit Agreement. Selling, general and administrative expenses were 41.7% and 44.5% of net sales for each of the three months ended March 31, 2026 and 2025, respectively.

Current wording

Selling, general, and administrative expenses were $163.4 million for the six months ended June 30, 2026, a decrease of 2.2%, compared to $167.1 million for the six months ended June 30, 2025. The decrease was driven primarily by a $6.1 million decrease in personnel and related costs (including salary and related taxes/benefits, commissions and equity-based compensation), partially offset by an increase of $1.0 million in professional fees, primarily related to the third-party debt fees associated with the Fifth Amendment to our Credit Agreement. Selling, general and administrative expenses were 40.0% and 43.5% of net sales for each of the six months ended June 30, 2026 and 2025, respectively.

Previous wording

EBITDA, Adjusted EBITDA, Adjusted Net Loss and Adjusted Loss per Diluted Share (collectively the “Non-GAAP Financial Measures”) are supplemental measures of our performance that are not required by, or presented in accordance with, U.S. GAAP. The Non-GAAP Financial Measures are not measurements of our financial performance under U.S. GAAP and should not be considered as an alternative to net loss, loss per share or any other performance measure derived in accordance with U.S. GAAP. We define EBITDA as net loss before interest expense, net, income tax expense, depreciation and amortization. We define Adjusted EBITDA as EBITDA further adjusted for non-cash charges related to equity-based compensation programs, acquisition transaction costs and other expenses, certain severance, relocation and related costs, foreign currency transaction gains and losses and other unusual or one-time items. We define Adjusted Net Loss as net loss attributable to Funko, Inc. adjusted for the reallocation of loss attributable to non-controlling interests from the assumed exchange of all outstanding common units and options in FAH, LLC for newly issued-shares of Class A common stock of Funko, Inc. and further adjusted for the impact of certain non-cash charges and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, non-cash charges related to equity-based compensation programs, acquisition transaction costs and other expenses, certain severance, relocation and related costs, foreign currency transaction gains and losses and the income tax expense effect of these adjustments. We define Adjusted Loss per Diluted Share as Adjusted Net Loss divided by the weighted-average shares of Class A common stock outstanding, assuming (1) the full exchange of all outstanding common units and options in FAH, LLC for newly issued-shares of Class A common stock of Funko, Inc. and (2) the dilutive effect of stock options and unvested common units, if any. We caution investors that amounts presented in accordance with our definitions of the Non-GAAP Financial Measures may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate the Non-GAAP Financial Measures in the same manner. We present the Non-GAAP Financial Measures because we consider them to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Management believes that investors’ understanding of our performance is enhanced by including these Non-GAAP Financial Measures as a reasonable basis for comparing our ongoing results of operations.

Current wording

EBITDA, Adjusted EBITDA, Adjusted Net Income (Loss) and Adjusted Earnings (Loss) per Diluted Share (collectively the “Non-GAAP Financial Measures”) are supplemental measures of our performance that are not required by, or presented in accordance with, U.S. GAAP. The Non-GAAP Financial Measures are not measurements of our financial performance under U.S. GAAP and should not be considered as an alternative to net income (loss), income (loss) per share or any other performance measure derived in accordance with U.S. GAAP. We define EBITDA as net income (loss) before interest expense, net, income tax expense, depreciation and amortization. We define Adjusted EBITDA as EBITDA further adjusted for non-cash charges related to equity-based compensation programs, acquisition transaction costs and other expenses, certain severance, relocation and related costs, foreign currency transaction gains and losses and other unusual or one-time items. We define Adjusted Net Income (Loss) as net income (loss) attributable to Funko, Inc. adjusted for the reallocation of income (loss) attributable to non-controlling interests from the assumed exchange of all outstanding common units and options in FAH, LLC for newly issued-shares of Class A common stock of Funko, Inc. and further adjusted for the impact of certain non-cash charges and other items that we do not consider in our evaluation of ongoing operating performance. These items include, among other things, non-cash charges related to equity-based compensation programs, acquisition transaction costs and other expenses, certain severance, relocation and related costs, foreign currency transaction gains and losses and the income tax expense (benefit) effect of these adjustments. We define Adjusted Earnings (Loss) per Diluted Share as Adjusted Net Income (Loss) divided by the weighted-average shares of Class A common stock outstanding, assuming (1) the full exchange of all outstanding common units and options in FAH, LLC for newly issued-shares of Class A common stock of Funko, Inc. and (2) the dilutive effect of stock options and unvested common units, if any. We caution investors that amounts presented in accordance with our definitions of the Non-GAAP Financial Measures may not be comparable to similar measures disclosed by our competitors, because not all companies and analysts calculate the Non-GAAP Financial Measures in the same manner. We present the Non-GAAP Financial Measures because we consider them to be important supplemental measures of our performance and believe they are frequently used by securities analysts, investors, and other interested parties in the evaluation of companies in our industry. Management believes that investors’ understanding of our performance is enhanced by including these Non-GAAP Financial Measures as a reasonable basis for comparing our ongoing results of operations.

Previous wording

By providing these Non-GAAP Financial Measures, together with reconciliations, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. The Non-GAAP Financial Measures have limitations as analytical tools, and should not be considered in isolation, or as an alternative to, or a substitute for net loss or other financial statement data presented in our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q as indicators of financial performance. Some of the limitations are:

Current wording

By providing these Non-GAAP Financial Measures, together with reconciliations, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing our strategic initiatives. The Non-GAAP Financial Measures have limitations as analytical tools, and should not be considered in isolation, or as an alternative to, or a substitute for net income (loss) or other financial statement data presented in our unaudited condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q as indicators of financial performance. Some of the limitations are:

Previous wording

The following tables reconcile the Non-GAAP Financial Measures to the most directly comparable U.S. GAAP financial performance measure, which is net loss, for the periods presented:

Current wording

The following tables reconcile the Non-GAAP Financial Measures to the most directly comparable U.S. GAAP financial performance measure, which is net income (loss), for the periods presented:

Previous wording

The following table shows summary cash flow information for the three months ended March 31, 2026 and 2025 (in thousands):

Current wording

The following table shows summary cash flow information for the six months ended June 30, 2026 and 2025 (in thousands):

Previous wording

Operating Activities. Net cash provided by operating activities was $10.2 million for the three months ended March 31, 2026, compared to net cash used in operating activities of $22.3 million for the three months ended March 31, 2025. Changes in net cash provided by or used in by operating activities resulted primarily from cash received from net sales and cash payments for product costs and royalty expenses paid to our licensors. Other drivers of the changes in net cash provided by operating activities include cash outlays for shipping and freight costs, selling, general and administrative expenses (including personnel expenses and commissions and rent and facilities costs) and interest payments made for our short-term borrowings and long-term debt. Our accounts receivable typically are short term and settle in approximately 30 to 90 days (average 61 days).

Current wording

Operating Activities. Net cash provided by operating activities was $23.6 million for the six months ended June 30, 2026, compared to net cash used in operating activities of $44.4 million for the six months ended June 30, 2025. Changes in net cash provided by or used in operating activities resulted primarily from cash received from net sales and cash payments for product costs and royalty expenses paid to our licensors. Other drivers of the changes in net cash provided by operating activities include shipping and freight costs, selling, general and administrative expenses (including personnel expenses and commissions and rent and facilities costs) and interest payments made for our short-term borrowings and long-term debt. Our accounts receivable typically are short term and settle in approximately 30 to 90 days (average 50 days).

Previous wording

The increase in net cash provided by operating activities for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 was primarily due to changes in working capital that increased net cash used in operating activities by $24.5 million and a decrease in net loss of $9.9 million and changes in depreciation and amortization, equity-based compensation and other, net of $2.1 million. Within working capital, the primary drivers were lower cash outflows from accrued expenses and other current liabilities of $21.4 million, and accrued royalties of $9.1 million, lower cash inflows from accounts receivable of $3.6 million and higher cash outflows from accounts payable of $4.2 million.

Current wording

The increase in net cash provided by operating activities for the six months ended June 30, 2026 compared to the six months ended June 30, 2025 was primarily due to a decrease in net loss of $66.4 million and changes in working capital that increased net cash provided by operating activities by $2.3 million. Within working capital, the primary drivers were increases in accrued expenses and other liabilities of $6.3 million and accrued royalties of $9.9 million, partially offset by decreases in prepaid expenses and other assets of $3.0 million and accounts payable of $9.2 million.

Previous wording

Investing Activities. Our net cash used in investing activities primarily consists of purchases of property and equipment. For the three months ended March 31, 2026 and 2025, net cash used in investing activities was $8.2 million and $6.4 million, respectively, and was primarily related to purchases of tooling and molds used for production of our product lines.

Current wording

Investing Activities. Our net cash used in investing activities primarily consists of purchases of property and equipment. For the six months ended June 30, 2026 and 2025 net cash used in investing activities was $19.0 million and $15.2 million and was primarily related to purchases of tooling and molds used for production of our product lines.

Previous wording

For the three months ended March 31, 2026, net cash used in financing activities was $9.5 million, primarily related to payments on the Term Loan Facility and Equipment Finance Loan of $5.8 million and payment for debt issuance costs of $3.6 million. For the three months ended March 31, 2025, net cash provided by financing activities was $19.3 million, primarily related to borrowings on the revolving credit facility of $25.0 million, offset by payments on the Term Loan Facility and Equipment Finance Loan of $5.8 million.

Current wording

For the six months ended June 30, 2026, net cash used in financing activities was $5.8 million, primarily related to payments on the Term Loan Facility, Revolving Credit Facility and Equipment Finance Loan of $21.3 million and payment for debt amendment costs of $3.6 million, partially offset by $19.2 million in proceeds from the one-time sale of a tariff receivable. For the six months ended June 30, 2025, net cash provided by financing activities was $73.7 million, primarily related to borrowings on the Revolving Line of Credit Facility of $85.0 million, partially offset by payments on the Term Loan Facility and Equipment Finance Loan of $11.5 million.

Previous wording

As of March 31, 2026, we had $86.8 million of indebtedness outstanding under our Term Loan Facility (net of unamortized discount of $3.9 million) and $125.0 million outstanding borrowings under our Revolving Credit Facility, leaving $0.0 million of availability under our Revolving Credit Facility.

Current wording

As of June 30, 2026, we had $73.7 million of indebtedness outstanding under our Term Loan Facility (net of unamortized discount of $3.3 million) and $124.6 million outstanding borrowings under our Revolving Credit Facility, leaving no remaining funds available under the Revolving Credit Facility.

Previous wording

On March 31, 2026, an amortization payment in an amount equal to $4,500,000 was paid with respect to the Term Loan Facility. At the end of each fiscal quarter thereafter, commencing with the fiscal quarter ending June 30, 2026, (i) the Term Loan Facility, will amortize in quarterly installments equal to $4,125,000, with any outstanding balance due and payable on the Maturity Date and (ii) the revolving credit facility will amortize in quarterly installments equal to $375,000 (accompanied by permanent commitment reductions), with any outstanding balance due and payable on the Maturity Date.

Current wording

On March 31, 2026, an amortization payment in an amount equal to $4,500,000 was paid with respect to the Term Loan Facility. At the end of each fiscal quarter thereafter, commencing with the fiscal quarter ending June 30, 2026, (i) the Term Loan Facility, will amortize in quarterly installments equal to $4,125,000, with any outstanding balance due and payable on the Maturity Date and (ii) the revolving credit facility will amortize in quarterly installments equal to $375,000 (accompanied by permanent commitment reductions), with any outstanding balance due and payable on the Maturity Date. On June 30, 2026, we paid the required quarterly installment of $4,500,000, allocated between the debt facilities in accordance with the Credit Agreement.

Previous wording

On August 15, 2025, we entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with BTIG, LLC (the “Agent”) relating to shares of our Class A common stock. In accordance with the terms of the Sales Agreement, from time to time we may offer and sell shares of our Class A common stock having an aggregate gross sales price of up to $40.0 million through or to the Agent, acting as sales agent or principal, pursuant to the prospectus supplement. No sales were made under the Sales Agreement during the three months ended March 31, 2026.

Current wording

On August 15, 2025, we entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with BTIG, LLC (the “Agent”) relating to shares of our Class A common stock. In accordance with the terms of the Sales Agreement, from time to time we may offer and sell shares of our Class A common stock having an aggregate gross sales price of up to $40.0 million through or to the Agent, acting as sales agent or principal, pursuant to the prospectus supplement. No sales were made under the Sales Agreement during the six months ended June 30, 2026.

Previous wording

As of March 31, 2026, we had $34.3 million of cash and cash equivalents and $30.8 million of working capital, compared with $42.1 million of cash and cash equivalents and $46.5 million of working capital as of December 31, 2025. Working capital is impacted by the seasonal trends of our business and the timing of new product releases, as well as our current portion of long-term debt and any availability under our Revolving Credit Facility, which is currently $0.

Current wording

As of June 30, 2026, we had $40.7 million of cash and cash equivalents and $38.7 million of working capital, compared with $42.1 million of cash and cash equivalents and $46.5 million of working capital as of December 31, 2025. Working capital is impacted by the seasonal trends of our business and the timing of new product releases, as well as our current portion of long-term debt and any availability under our Revolving Credit Facility, which is currently $0.