Funko’s recent financial report suggests the company is facing mounting financial pressure. The report highlights net sales of 2025 down by 14% from the same period last year. Additionally, the company is under a huge debt and is working to stabilize its performance.
Funko’s Q3 2025 Results Signal Growing Financial Pressure
The global pop culture collectible brand, Funko, recently reported its third quarter 2025 financial results, which pointed to deeper financial challenges ahead. According to the financial report, the company reported declining sales and weaker profitability.
The financial report underscored that in the third quarter of 2025, the brand made net sales of $250.9 million, which is down by 14% from the third quarter of 2024. Last year, the company registered net sales of $292.8 million.
Sales landed in line with internal expectations, though key categories like Core Collectibles and Loungefly continued to decline. However, US sales fell 20% year over year, hitting the company hardest. The net income of the company also dropped, pointing to the fact that the overall profitability of the brand remains under pressure.
Insights From the CEO
In the financial report, newly appointed Funko CEO Josh Simon shared, “We delivered a solid 2025 third-quarter performance, with net sales in line with internal expectations and gross margin and bottom-line profitability well ahead of expectations.”
“Sales of our Bitty Pop! line, which made Walmart’s 2025 Top Toy List, were a key contributor, and our strong gross margin benefited from the swift implementation earlier this year of our tariff mitigation plans,” he added.
Simon explained, “I’m only 60 days into the role, but it’s already clear how powerful the Funko brand is and how much growth opportunity lies ahead. Our Make Culture POP! Strategy is all about being at the center of the moments everyone is talking about. Beginning with lightning-fast launches like K-Pop Demon Hunters—where we’ll be one of the only licensees on shelves this holiday season—we’re moving fast to turn pop culture into products, expanding into new fandoms, delivering bold retail experiences, and celebrating the creativity that makes Funko unique.”
Key Details From Financial Report
The report also noted that Funko’s net income fell to $0.9 million, compared with $4.6 million last year, along with a fall of adjusted EBITDA to $24.4 million, down from $31 million.
The report pointed to added balance-sheet strain, with debt rising to $241 million. The amount is up sharply from $182.8 million at the end of 2024.
The cash flow of the company from the first nine months of 2025 has turned negative, while the brand’s inventory went up. The increase stems from slower sales.
The company’s future outlook projects that in the fourth quarter of 2025, Funko sales are expected to rise slightly, with a gross margin of almost 40%. In the report, the company also expects its adjusted EBITDA margin to fall in the mid-to-high single-digit range.
Given these falling numbers, negative cash flow, rising debt, and slower sales, Funko continues to face pressure from declining sales, rising debt, and negative cash flow. The report notes that Funko is focused on strategic initiatives aimed at improving performance.
