Funko has warned investors that it may not survive another year after reporting a sharp decline in sales and issuing a formal notice about its financial stability.
The collectibles giant behind the Pop Vinyl brand posted net sales of $250.9 million for the third quarter of 2025, down 14% from the same period last year, and recorded a net loss of roughly $1 million, according to its latest financial filing. The company cited falling demand, higher tariffs, and tighter retailer inventories as major challenges in what it described as a “difficult retail environment.“
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Funko’s troubles follow years of explosive growth fueled by its vinyl collectibles, which once dominated shelves at Walmart, Target, and comic book stores. But as overproduction flooded the market and consumer interest waned, the company’s once-steady profits began to collapse. Reports from industry tracker ICv2 show that Funko’s U.S. sales plunged 20% year-over-year, accounting for most of its overall revenue drop.
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“Substantial doubt” over Funko’s future
In its latest SEC filing, Funko said there is “substantial doubt about our ability to continue as a going concern for the next 12 months,” acknowledging that without new funding or an acquisition, it could breach loan covenants and default on debt obligations. The company has roughly $250 million in total debt and has already amended its credit agreement twice in 2025 to secure covenant relief.
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Funko says it will focus on smaller product lines such as Bitty Pops, blind-box collectibles, and its Pop Yourself kiosks while “exploring strategic alternatives,” including a potential sale. Once a billion-dollar powerhouse of pop-culture merchandise, the company now faces its most uncertain year yet.
