Favorite toy company Funko is reportedly experiencing several financial problems, 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 as Funko in recent years, with the toy brand collaborating with a wide range of pop culture brands. Funko fans can pick up everything from Power Rangers and WWE superstars Pokemon and everything in between via the “Funko Pop” line of figures. Funko as a brand may now be experiencing more financial trouble than the company has admitted.
Funko has continued to push new limited editions of some of its most popular brands, with the company often releasing special collaboration figures. Funko has released a massive 14 inch tall figure TransformersOptimus Prime earlier this year with a cartoon design based on the 1980s animated series. Funko has even toyed with adapting its wide line of figures into a full game, with Funko Fusion serving as a huge crossover with more than 20 different brands. However, according to a recent report, Funk's future may be up in the air.
Funko is reportedly in serious financial trouble
A new report filed with the SEC by Funko shows that the company is experiencing significant financial problems, to the point where its future is in doubt. The report shows that Funko's sales fell 20% year-over-year and posted a loss of $1 million in the third quarter of 2025. In the report, Funko acknowledges the company's prevailing financial problems, indicating that it has “substantial doubt about its ability to continue” as a company over the next year. Funko's financial problems have reportedly caused the company to amass nearly $250 million in debt.
Funko's potential downfall comes as the company continues to push new product lines in an effort to stay afloat. Funko introduced its “Bitty Pop” line in early 2023, which features miniature versions of its pop culture characters sold to customers at a lower price. Funko also continued to benefit from new releases from major franchises, such as its new line of Superman figures as a tie-in with James Gunn. Superman movie in the summer.
The uncertainty of Funko's future would likely leave a huge void in the collectibles space that the company has filled with its pop culture characters. The aforementioned Funko FusionThe lackluster reception upon its release led to a wave of layoffs at developer 10:10 Games, affecting nearly 20 employees. Funko's licensing deals have also likely eaten into the company's potential profits, with over 1,000 brands available within the Funko Pop line. The next twelve months look set to be crucial for the Funko brand and its ability to weather financial woes.
Source: Dexerto
