Funko is in trouble, and it isn’t the usual retail slump or a bad quarter that some would shrug off as a temporary blip. The company behind Pop figures has laid out numbers that look ugly on their own and even worse when you compare them to last year.
The second quarter was the big hit. Funko lost about 41 million dollars, the kind of hole that takes time to climb out of.
The third quarter looked calmer but was still in the red, with losses just under a million — sounds gentler until you remember they were making almost 9 million in profit during the same stretch in 2024. Q3 revenue dropped, too, slipping from just under three hundred million to around two hundred fifty million year-over-year. Most of that decline came from the United States, the place that built Funko into what it is.
The collectibles company spelled out the situation in an SEC filing that did not sugarcoat the bad news. It said there is real doubt about whether the business can keep going over the next year. The brand had already reworked loan agreements twice in 2025 following the first-half losses, yet still faces substantial doubt about its ability to continue operations.
Retail partners haven’t helped. Big stores slowed down their restocking, kept less inventory, and in some cases stopped orders altogether. Tariffs have been another strain, cutting into margins and making forecasts shakier heading into the next season.
There is also the broader problem of Funko’s own universe. The endless waves of licensed figures once looked like a strength, covering every corner of pop culture from Marvel to Stranger Things. Now there is a sense of saturation. Collectors have only so much room, and the constant releases may be wearing people out.
The Optimistic Take
Josh Simon stepped into the CEO job about two months ago. He is staying upbeat and pointed out that the latest quarter matched their internal goals. He mentioned the Bitty Pop line making Walmart’s Top Toy List and highlighted the company’s fast turnaround strategy for products tied to trending shows. One of his examples was the Netflix series KPop Demon Hunters, with figures available for preorder online that will ship in 2026.
Even with that optimism, the company admitted it is looking at major options. A sale is on the table among other possibilities. There is no timeline, no buyer mentioned, just an acknowledgement that something significant may need to happen.
Collectors will be paying close attention through the holidays. Funko spent more than a decade becoming a fixture of shelves, desks, and display cases. Now it has to prove it can stay there.
Sources: Funko, Walmart, Rolling Out