Amongst the many woes that the world has been facing lately, economic ones have been some of the most wide-ranging and diverse. A number of various factors have been piling up that are spelling bad news for individuals and businesses. We’re not just talking small businesses either, big name companies are hurting. The retail sector is specifically being hit hard right now, and Funko, alongside their large-headed figurines, may not see it through another year of business.
We’ve known Funko wasn’t in a good spot. Even before various economic factors (tariffs, etc.) started mounting, sales of Pops and other products had been falling since their peak during the pandemic. In May, the company announced they’d be hiking up prices. While they tried to spin it as a “continuing commitment to quality,” there’s no truly positive way to say that your products are becoming more expensive.
Six months after that announcement, and things have not improved. In recent financial statements, they noted sales for the third quarter of 2025 were down 14% from the same period last year, with a net loss of roughly $1 million. This isn’t good news, but one wouldn’t think it’s the end of the world… if not for the fact the company is already in debt by $250 million, and has had to negotiate credit arrangements twice this year already.
The end result of all this is Funko telling investors there is “substantial doubt” about their “ability to continue as a going concern for the next 12 months.”
In order to survive, the company is stating that they would either need some kind of infusion of cash or to be purchased outright by another entity. The latter of these is something the company has admitted to actively seeking to get out of this predicament. This is how potential bankruptcy proceedings start; a company can’t pay off their debts and something has to be done to appease the creditors. We’ll continue to report on this the story develops in the months to come.
