Funko’s latest earnings release sent alarm bells throughout the industry and in the hearts of its fan base. The bad news delivered in its Nov. 6 earnings call was sobering to say the least.
A tough year for the Pop! Vinyls company, as it experienced a third quarter loss of $1 million following a $41 million loss in its second quarter. It also disclosed they hold nearly $250 million in debt. According to a statement from the company, it stated their future was unsure. “There is substantial doubt about our ability to continue as a going concern due to pressure on our financial covenants.”
There are multiple factors contributing to Funko’s current financial challenges. According to the company, it holds significant debt due to acquisitions and inventory issues. Funko purchased Loungefly in June of 2017 and acquired high-end collectible company Mondo in 2022 for undisclosed amounts.
Slowing sales due to challenging retail environments along with retailers restricting inventory and canceling orders didn’t help and finally the tariffs were a body blow that hampered its recovery.
Holding rights to almost 1,000 properties, the company’s 2025 third quarter earnings report stated that 34% of its sales come from the following 10 properties: “One Piece, Pokemon, Hello Kitty, Marvel, Lilo & Stitch, Mickey and Friends, Nightmare Before Christmas, Harry Potter and Funko.” There could be cause for alarm when looking at the fact that ½ these properties are not generating a great deal of newness, but they do have passionate fans.
Although the company did not publicly state this, Labubu could be having an impact on them as well. Good Morning America (GMA), NBC and Today covered the launch of the Labubu Urban Outfitters collab debuting early November and confirmed that 2025 was a banner year for Labubu dolls. GMA even covered the opening of a Labubu theme park in Beijing. What is unclear is if Labubu’s staying power will equal Funko’s.
Funko’s rise to fame started in Snohomish with Mike and Claudia Becker. As the company’s website tells the story, it all started with Mike wanting the Bob’s Big Boy figure and not finding it. That obsession turned into what ultimately became Funko, founded in 1998 with the launch of its first manufactured toy, the Bob’s Big Boy doll. From there the company continued to grow and by 2010, Funko was a thriving company making headlines with the selling of the most expensive Funko Pop! ever in 2016 with a price tag of $100,000. In 2022, Funko clipped $1 billion in sales, according to its previous earnings reports.
Funko calls Everett home with a HQ and retail store downtown, opening August 2017. Adorned with its giant Pop! figures outside of the historic Port Gardner Building on Wetmore Avenue, Funko is a source of pride and joy to many Everett residents and a tourist destination for fans of the brand.
This store is beyond anything you can expect. It is a playground for kids and adults alike. It has the power to invoke the joy of childhood, the passion of fandom and the excitement of discovery. No matter your age, you will find yourself wandering through the giant Pop! characters wondering if you might never want to leave. Funko “Pop!s give fans a way to display their fandom.
Everett resident Luca Guzman is in possession of what is referred to on eBay as one of the “Holy Grail” for collectors of Pop! Vinyls; the super limited-edition Silver Batman #01 of which only 108 were ever made and currently sells for $3,000 to $6,000 depending on condition.
“I would never sell it; it’s a special part of my childhood and always reminds me of my first Comic-Con in 2015.” Guzman said.
Funko has given back to the Everett community in many ways and most importantly by paying naming rights for Funko Field at Everett Memorial Stadium, home of the AquaSox.
Funko’s new CEO, Josh Simon, is not ready to throw in the towel just yet.
Simon, who recently came from the Netflix consumer products division, with past work history at Disney and Nike, is hopeful. He stated in a Nov. 6 earnings call, “We delivered a solid 2025 … with net sales in line with internal expectations.”
He said that Funko’s Bitty Pop! Line of minis made Walmart’s 2025 Top Toy List and K-pop Demon Hunters was also a great success.
Simon believes there is “unlocked potential in Asia and Latin America” as well as the AI-powered “Pop! Yourself,” where you can upload a picture of yourself and build a custom Pop!. They also plan to make Bitty Pop! products available in vending machines with “a surprise or mystery element to the purchase experience.”
Funko surpassed the 1 billion pop culture items sold milestone this past September, they have over 9 million followers across social media platforms and have seen 27% growth in their fan loyalty membership program this year. Simon also spent time speaking with Funko’s partners stating, “They see the growth opportunity … and are energized by the far-reaching scope of our brand and products.”
Despite Simon’s optimism the future of this iconic company is uncertain. Whatever the future holds for the company that transformed pop culture collecting, its fans and the Everett community will be rooting for them.
“No matter what you’re into, the Pop!s sit together and tell your story,” Guzman said.
