Funko Pop Warns of Potential Collapse as Revenue Drops, The Company Might Not Survive Another Year

Funko, the company behind the popular Pop Vinyl collectibles, has warned investors that it may not survive the next year after reporting a steep drop in sales. The company cited falling demand, rising tariffs, and tighter retailer inventories as key challenges.

For the third quarter of 2025, Funko reported net sales of $250.9 million, down 14% from the same period last year.

The company also recorded a net loss of about $1 million, according to its latest financial filing. In its SEC filing, Funko admitted there is “substantial doubt about our ability to continue as a going concern for the next 12 months.”

The company said it could face trouble meeting debt obligations without new funding or a potential acquisition. Funko currently holds roughly $250 million in total debt and has already amended its credit agreement twice this year to avoid breaching loan covenants.

Funko rose to prominence thanks to its Pop Vinyl figures, which became a cultural phenomenon in the mid-2010s. The collectible toys, featuring characters from movies, TV shows, comics, and video games, were sold in major retailers like Walmart, Target, and comic book stores.

At its peak, Funko’s products were nearly impossible to miss on store shelves, and the company became a billion-dollar business almost overnight. However, overproduction and a decline in consumer interest have led to falling sales and shrinking profits in recent years. Industry data shows U.S. sales fell 20% year-over-year, which accounts for most of the company’s revenue drop.

In response, Funko plans to focus on smaller product lines, including Bitty Pops, blind-box collectibles, and its Pop Yourself kiosks. The company is also “exploring strategic alternatives,” which may include a potential sale or other financial moves.

Funko’s story is a reminder that even the most popular brands can struggle when consumer interest fades and the market becomes oversaturated. The company built a cultural phenomenon with Pop Vinyls, but now it faces a challenging period that could redefine its future. It will be interesting to see if Funko can reinvent itself or if this marks the beginning of a decline for the collectible giant.

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