Popular toy company Funko is reportedly experiencing several financial struggles, with a recent report suggesting that the company may not be able to survive the next calendar year. Few names have become as synonymous with collectible figures throughout recent years as Funko, with the toy brand collaborating with a wide variety of pop culture brands. Funko fans can pick up everything from Power Rangers and WWE superstars to Pokemon and everything in-between through the "Funko Pop" line of figures. Now, Funko as a brand may be experiencing greater financial hardship than the company had let on.
Funko has continued to push new limited variants of some of its most popular brands, with the company often releasing special collaboration figures. Funko released a massive 14-inch-tall figure of Transformers' Optimus Prime earlier this year, sporting a cartoonish design based on the 1980s animated series. Funko has even dabbled with adapting its wide array of figures into a full game, with Funko Fusion serving as a huge crossover sporting more than 20 different brands. However, Funko's future may now be up in the air, according to a recent report.
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Funko Is Reportedly in Severe Financial Trouble
A new report filed with the SEC by Funko shows that the company is experiencing significant financial struggles, to the point where its future is in question. The report shows that Funko's sales have tanked by 20% year-over-year, recording a loss of $1 million USD in the third quarter of 2025. Funko acknowledges the company's prevalent financial issues within the report, suggesting that it has "substantial doubt about its ability to continue" as a company throughout the next year. Funko's financial struggles have reportedly seen the company rack up nearly $250 million in debt.
The potential downfall of Funko comes as the company has continued to push new product lines in an attempt to stay float. Funko introduced its "Bitty Pop" line in early 2023, featuring miniature versions of its pop culture-focused figures sold at a lower price point to customers. Funko has also continued to capitalize on new releases from major franchises, like its new line of Superman figures as a tie-in with James Gunn's Superman movie during the summer.
The uncertainty of Funko's future would likely leave a massive void in the collectible space that the company has filled with its pop culture figures. The previously-mentioned Funko Fusion's lackluster reception following its release led to a wave of layoffs at developer 10:10 Games, with nearly 20 employees affected. Funko's licensing deals have also likely eaten into the company's potential earnings, with more than 1,000 brands available under the Funko Pop line. The next twelve months look to be a pivotal time for the Funko brand and its ability to withstand its financial struggles.
Source: Dexerto