ALBAWABA - Funko, a renowned American collectibles manufacturer, released a concerning statement about its future due to devastating financial losses.
According to several reports, the company best known for its 'Pop!' figurine line-up suffered a $41 million loss in Q2. In contrast, it showed improvement in the third quarter, reporting only $1 million in losses. However, this still marked a devastating drop compared to the same period in 2024, which earned the figurine manufacturer $8.9 million in profit.
MovieWeb reports that Funko's profits declined from $292.8 million to $250.9 million year-on-year due to a drop in sales from its main customer base in the US.
Still, it seems that the company is not giving up on plans to hit massive profits in the upcoming Christmas holidays by targeting fans of popular franchises, such as those from Netflix and Sony Animation's popular animated movie, as well as KPop Demon Hunters.
The end of Pop! figurines? Funko shares concerning announcement
Newly appointed CEO Josh Simon said in a statement, "We delivered a solid 2025 third quarter performance, with net sales in line with internal expectations and gross margin and bottom-line profitability well ahead of expectations,” said Josh Simon, Chief Executive Officer of Funko. “Sales of our Bitty Pop! line, which made Walmart's 2025 Top Toy List, was a key contributor, and our strong gross margin benefited from the swift implementation earlier this year of our tariff mitigation plans."
He added, "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. Our Make Culture POP! strategy is all about being at the center of the moments everyone is talking about. Beginning with lightning-fast launches like KPop Demon Hunters—where we’ll be one of the only licensees on shelves this holiday season—we’re moving fast to turn pop culture into products, expanding into new fandoms, delivering bold retail experiences, and celebrating the creativity that makes Funko unique."
However, the company shared concerns about its survival in the next 12 months due to several caveats, including tariff issues and losses, as reported by MovieWeb. Moreover, despite the new CEO's optimistic statement, the company is exploring different strategies, including its potential sale.
Known for their affordable pricing and inviting design, Funko Pop! figurines gained traction among pop culture fans. Its line-up includes figurines from a wide variety of popular franchises, including DC, Marvel, anime, movies, games, and series. While it cultivated a strong fan base over the years, many others criticized Funko, describing its figurine designs as too basic and uninspired.
