Is Funko Pop! In Trouble? Company Behind It Admits It May Not Survive Another Year

Once the darling of collectors and comic shops alike, Funko Pop! — the vinyl figure brand that turned fandom into a billion-dollar business — is now teetering on the verge of financial ruin. The company behind the figures has admitted that it may not survive another year as sales slump and losses mount.

Funko, which has become a symbol of pop culture merch for more than a decade, has revealed spiralling debts and catastrophic losses that paint a troubling picture for the company's future. These 'chibis' might say goodbye soon if the downward trend continues.

Sales Are Falling

Funko's latest financial report paints a grim picture. In the third quarter of 2025, sales dropped 14%, bringing in $250.9 million (approximately £205 million) but ending with a loss of $1 million (approximately £820,000).

The decline comes from falling demand, high tariffs, slow retail orders, and years of overproduction flooding the market. Reports show that the US sales suffer the most, dropping 20% compared to last year. That's a major blow for a company that relies heavily on domestic revenue.

Once a staple in Walmart, Target, and every comic book store, these blank-eyed, little figures are now gathering dust. The billion-dollar empire Funko built is struggling with overproduction and declining interest.

Over the past nine months, the company has reported a $68.1 million (approximately £55.7 million) loss. Fans might soon notice fewer Pop Vinyls on shelves — if Funko even survives.

Funko's Mounting Debt and 'Substantial Doubt'

Things are not looking good for the action figure company as they carry roughly $250 million (approximately £204 million) in debt, and profits are shrinking fast.

In its SEC filing, the company admitted there is 'substantial doubt about our ability to continue as a going concern for the next 12 months'.

Without new funding, an acquisition, or a miracle, Funko risks defaulting on its loans. The company has already amended its credit agreement twice this year to secure covenant relief, and cash on hand is only $39.2 million (approximately £32 million) — not exactly a safety net for a company of this size.

CEO Remains Optimistic

New CEO Josh Simon is keeping a positive outlook. 'I'm only 60 days into the role, but it's already clear how powerful the Funko brand is and how much growth opportunity lies ahead,' he said.

Proposed solutions include more financing, narrowing focus to smaller product lines, and even selling the company. But Simon and the board caution that there's no guarantee these strategies will succeed. Funko's future is far from certain.

Funko's Plan For The Future

Funko isn't giving up yet. It plans to focus on smaller product lines like Bitty Pops, blind-box collectibles, and Pop Yourself kiosks. The company is also 'exploring strategic alternatives,' including a potential sale.

But there are no guarantees. The filing warns that financing may fall through, a sale might not materialise, and even the best-laid plans may not save the company. It's a high-stakes game with no clear winner yet.

Funko's story is a cautionary tale that even the most beloved brands aren't immune to market forces. The walls of Funko Pop! boxes that once dominated stores could shrink, leaving only memories of the little vinyl figures that captured pop culture's heart.