What drove the increase in SG&A expenses to $82.3 million, and is this expected to be a recurring expense?

Answer Overview

The press‑release that announced Fun‑Co’s (FNKO) second‑quarter 2025 results gives the following numbers for SG&A (Selling, General & Administrative) expenses:

Thus, SG&A expenses rose $4.4 million year‑over‑year.

However, the release does not detail the specific drivers behind that increase, nor does it discuss whether the higher expense level is expected to recur.

Below is a concise answer to your two questions, based solely on the information supplied.

1. What drove the increase in SG&A expenses to $82.3 million?

• The news release does not specify the underlying causes (e.g., higher marketing spend, new hiring, increased logistics costs, or one‑time items). The only information provided is the total amount ($82.3 M) and the comparison to the prior‑year figure ($77.9 M).
  
• No breakdown (such as “marketing”, “R&D”, “distribution”, or “one‑time acquisition costs”) is mentioned in the excerpt you provided.

Bottom line: The specific reasons for the $4.4 million increase in SG&A are not disclosed in the posted news article.

2. Is this expected to be a recurring expense?

• The release does not include any forward‑looking statements, guidance, or commentary about the future trajectory of SG&A or whether the higher level is expected to recur, be higher, lower, or remain stable.
• In general, SG&A includes ongoing operating costs (salaries, marketing, distribution, etc.) that are typically recurring from quarter to quarter. However, without explicit guidance from Fun‑Co’s management, we cannot confirm whether the $4.4 million increase reflects a temporary, one‑time event or a new ongoing level of expense.

Bottom line: There is no explicit statement in the news release that indicates whether the higher SG&A expense is expected to recur. It is therefore impossible to definitively answer this part of the question from the information provided.

Summary of What We Can Conclude

What You Can Do Next

1. Check the full press release (often a few paragraphs after the financial summary). Companies typically provide a brief narrative about SG&A in the “Management Discussion & Analysis” (MD&A) section that may explain:

• Increased marketing campaigns (e.g., new product launches, licensing deals, seasonal promotions).
• Increased staff or logistics costs (e.g., new hires, warehouse expansion).
• One‑time items (e.g., legal settlements, acquisition-related costs).

1. Look at the accompanying investor presentation or the Q2 2025 earnings call transcript, which typically includes a Q&A where analysts ask about SG&A and management provides forward‑looking comments.

2. Review prior‑year and prior‑quarter reports for trends. If SG&A has been trending upward, that may indicate an ongoing increase. Conversely, a spike may be a one‑off.

3. Consult analyst notes (e.g., from Bloomberg, FactSet, or analyst reports) which often interpret the reasons behind SG&A movements and give expectations about future expense levels.

Final Take‑away

Based on the information you supplied, the news release does not disclose the specific drivers behind the $4.4 million increase in SG&A, nor does it indicate whether that increase is expected to be a recurring expense. Additional sources—full earnings release, management commentary, or analyst coverage—would be required to answer those aspects definitively.