Popular toy company Funko is reportedly experiencing several financial struggles, with a recent report suggesting the company may not be able to survive the next calendar year. Few names have become as synonymous with collectible figures in recent years as Funko, with the toy brand collaborating with a variety of pop culture brands. Funko fans can pick up everything from Power Rangers and WWE superstars to Pokémon and everything in between through the “Funko Pop” line of figures. Now Funko as a brand may experience greater financial difficulties than the company had let on.
Funko has continued to push new limited editions of some of its most popular brands, with the company often releasing special collaboration figures. Funko dropped a massive 14-inch figure Transformers' Optimus Prime earlier this year, with a cartoonish design based on the 1980s animated series. Funko has even dabbled in adapting its wide range of figures into an entire game, with Funko Fusion acts as a huge crossover with more than 20 different brands. However, Funko's future may now be up in the air, according to a recent report.
Funko is reportedly in serious 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 are down 20% year-over-year and posted a $1 million loss in the third quarter of 2025. Funko acknowledges the company's usual financial woes in the report, suggesting it has “significant doubt about its ability to continue” as a business in the next year. Funko's financial struggles have reportedly seen the company rack up nearly $250 million in debt.
Funko's potential downfall comes as the company has continued to push new product lines in an effort to stay afloat. Funko introduced its “Bitty Pop” line in early 2023, with miniature versions of its pop culture-focused figures sold at a lower price to customers. Funko has also continued to capitalize on new releases from major franchises, such as its new line of Superman figures as a tie-in to James Gunn's Superman movie during the summer.
The uncertainty surrounding Funko's future would likely leave a large void in the collectible space the company has filled with its pop culture figures. The aforementioned Funko Fusions weak post-launch reception 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 revenue, with more than 1,000 brands available under the Funko Pop line. The next twelve months look set to be a pivotal time for the Funko brand and its ability to withstand its financial struggles.
Source: Dexerto
