Funko warns it may not survive next year after major sales decline and rising financial pressures

Funko has warned investors that it may not survive another year following a sharp decline in global sales

Funko, the company best known for its Pop Vinyl collectables, has warned investors that it may not survive another year after reporting a sharp drop in sales and issuing a formal notice about its financial stability.

In its latest quarterly filing, the collectables maker posted net sales of $250.9 million for the third quarter of 2025, a 14% decline compared to the same period last year. The company also recorded a net loss of approximately $1 million.

Funko cited weakened consumer demand, higher tariffs, and lower retailer inventories as key factors behind the downturn, describing the current market as a “difficult retail environment.”

Funko’s recent struggles mark a dramatic shift from its earlier years of rapid expansion. Once a dominant presence in pop culture retail, with products lining the shelves of major stores such as Walmart, Target, and comic book retailers, the company has faced challenges linked to overproduction and declining consumer interest.

Industry tracker ICv2 reported that Funko’s U.S. sales fell 20% year-over-year, driving much of its overall revenue decrease.

In its latest U.S. Securities and Exchange Commission (SEC) filing, the company stated there is “substantial doubt about our ability to continue as a going concern for the next 12 months.”

Funko currently carries around $250 million in total debt and has amended its credit agreement twice this year to maintain compliance with lenders. Without additional financing or a potential acquisition, the company warned it could default on its debt obligations.

To stabilise operations, Funko said it plans to focus on smaller product lines, including Bitty Pops, blind-box collectables, and its Pop Yourself custom figurine kiosks, while “exploring strategic alternatives.”

The company added that it is assessing all options as it faces one of its most uncertain financial years to date.