According to the financial report, the company that once redefined “collecting” could soon be coming to an end.
U.S. toy manufacturer Funko, best known for its iconic Funko Pop! figures, is facing one of the toughest crises in its history. In a recent financial report, the company warned there is “substantial doubt” about its ability to continue operating over the next year unless conditions improve significantly.
Falling Sales and Mounting Debt
In the third quarter of 2025, Funko reported a sharp 14% decline in net sales, dropping to around $250.9 million. At the same time, the company is burdened with approximately $250 million in debt, and has had to amend its loan agreements multiple times to stay in compliance with lenders.
Several factors have contributed to the downturn: weaker consumer demand, lower retailer inventory levels, and higher costs from tariffs and logistics. In addition, the market for collectible items – a core part of Funko’s business – has softened as consumers cut back on non-essential purchases.
No Immediate Collapse, But Serious Warning Signs
While Funko’s statement doesn’t necessarily mean bankruptcy is imminent, it serves as a serious warning signal for investors, partners, and collectors. Without new sources of financing or major strategic changes, the company could face significant financial distress in the coming year.
Outlook: Between Cult Status and Crisis
Funko rose to global fame through its Pop! figures, which depict beloved characters from movies, TV shows, and video games in a signature stylized design. Despite their continued popularity among fans, the company is now struggling with the effects of a saturated collectibles market and broader economic headwinds.
Whether Funko can turn things around will depend on securing new capital, adjusting its product strategy, and reigniting consumer interest. For now, the figures that once symbolized pop culture fandom have become a reflection of the fragile state of the pop culture economy itself.