Funko Pop Warns It Could Struggle to Survive and Might Collapse Within the Next 12 Months Amid Falling Revenue

Funko, the company behind the popular Pop Vinyl collectibles, has warned investors that it may not survive the next year due to a steep drop in sales.

The company posted $250.9 million in net sales for the third quarter of 2025, down 14% compared to the same period last year, and reported a net loss of about $1 million, according to its latest financial filing.

Funko has cited falling demand, rising tariffs, and tighter retailer inventories as key challenges in what it called a “difficult retail environment.” Industry tracker ICv2 reports that U.S. sales fell 20% year-over-year, contributing to most of the revenue decline.

The company’s struggles come after years of rapid growth. Funko became popular thanks to its Pop Vinyl figures, which feature characters from movies, TV shows, comics, and video games.

The collectibles became a must-have for fans, selling at major retailers like Walmart, Target, and comic book shops. At its peak, Funko was a billion-dollar business, with its toys dominating store shelves. However, overproduction and declining consumer interest have led to falling profits in recent years.

In its SEC filing, Funko warned that there is “substantial doubt about our ability to continue as a going concern for the next 12 months.” The company said that without new funding or a potential acquisition, it could fail to meet debt obligations. Funko currently carries around $250 million in total debt and has amended its credit agreement twice in 2025 to avoid breaching loan covenants.

To adapt, Funko plans to focus on smaller product lines, including Bitty Pops, blind-box collectibles, and Pop Yourself kiosks. The company is also “exploring strategic alternatives,” which could include a sale or other financial restructuring.

Once a dominant player in pop-culture merchandise, Funko now faces one of its most uncertain years in company history.

Funko’s rise and sudden troubles show how quickly trends in collectibles can change. The company built a huge following with Pop Vinyls, but overproduction and changing consumer tastes have created serious challenges. It will be interesting to see if Funko can find a new path and regain its momentum.

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