Funko, the company behind the ubiquitous collectibles that defined mid-2010s geek fandom, is facing serious financial trouble, according to its latest SEC filings.
In documents filed on Nov. 6, Funko raised “substantial doubt” about its ability to continue operating over the next 12 months. The report, which covers the third quarter ending Sept. 30, reveals mounting debt that the company attributes to a “challenging retail environment” — fallout from U.S. tariffs on imports from many countries.
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While Funko has secured some loan relief, it remains uncertain whether it can meet the conditions of its loan agreements. To stay afloat, the company may need to raise additional capital, renegotiate its loans, or risk default.
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Even with global and domestic sales dropping 14.3 percent and 20.1 percent year-over-year for the third quarter, there are a few bright spots. Funko reports strong sales for its Bitty POP! line, plans to expand its blind box offerings, and is set to be one of the few companies selling KPop Demon Hunters merchandise this holiday season.
Still, the broader picture looks grim. Many of Funko’s struggles in the filing are attributed to the ongoing U.S. tariffs — now being challenged before the Supreme Court — that have strained retailers. With stores scaling back or outright canceling restocks amid a weakening economy, Funko’s future remains uncertain.
