For many celebrities, being featured as a Funko Pop! doll signifies achievement in Hollywood. These 4-inch vinyl figures, recognized for their large heads and simplistic eyes, represent iconic status in pop culture. Fans purchase them enthusiastically. At Funko’s flagship store in Hollywood, thousands of these figurines are available, showcasing a range from NFL players to Disney characters and personalities from Netflix’s ‘Bridgerton.’
Despite their popularity, Funko Inc. is encountering substantial hurdles. In the previous year, the company recorded a $67.4 million loss with sales at $908.2 million, a 13% decline compared to the year before. Funko, headquartered in Everett, Wash., revealed $225 million in debt, warning investors about significant uncertainties concerning its ability to generate required cash for debt repayments. The difficulties stem from tariffs in China, canceled orders from retailers, and potential breaches of loan agreements.
Now, Funko seeks recovery under Josh Simon’s leadership, who stepped in as Chief Executive in September 2025. Simon, formerly leading global consumer products at Netflix, is the third executive to hold this position within two years. He noted that Funko was at a critical juncture, with substantial fandom juxtaposed with notable internal challenges. Simon’s aim is to address these issues, revitalizing the company’s standing and passionate fan base.
“Funko was at an interesting inflection point,” Simon remarked. “There’s a lot of fan enthusiasm and also significant problems that need resolving.”
Funko’s journey began in 1998 when Mike Becker ventured into producing bobbleheads. Brian Mariotti took over in 2005, expanding licensing agreements and unveiling the successful Pop! figurines in 2010. Over time, ownership shifted, and the company went public in 2017. Revenue predominantly arises from making licensed characters, sold through various channels.
Sales plummeted in 2025 amidst a global trade war. Funko overestimated demand, inaccurately selecting characters and producing excessive quantities, according to analyst Gerrick Johnson from Seaport Research Partners. The tariffs under President Trump heightened production costs substantially.
Retailers reduced prices to move inventory, displeasing collectors who prefer appreciating items.
“Collectors dislike finding items on sale,” Johnson explained. “A bargain bin undermines collectible value.”
The rise of ‘kidults’—adults collecting toys—sustained Funko through this downturn. Simon, himself a collector, emphasized Funko’s task as capturing beloved character essence in a stylized form.
“Receiving requests from celebrities and athletes for their own Funko Pop! underlines its cultural significance,” Simon said.
A turnaround strategy involves diversifying production from China to Vietnam among other locations. Funko has renegotiated debt terms to enhance cash flow and accelerated product launches. They swiftly produced figures from Netflix’s film ‘KPop Demon Hunters,’ releasing them ahead of competitors like Mattel.
Funko expanded its licensing scope, issuing figures from Holly Black’s series ‘The Folk of the Air,’ popularized on TikTok, and creating original characters alongside licensed ones. Engaging fans is a priority, evident at events like the PokémonXP convention where attendees create custom figures.
Jeff Leu from San Francisco, a fervent Funko collector, expressed his intent to acquire more Pokémon figures following the convention.
“I feel there’s a Funko for every interest,” Leu shared.
Funko’s recent initiatives have shown promise. Second-quarter sales increased by 7% to $207.7 million, with net income at $15.4 million compared to the previous year’s loss. A benefit of expected tariff refunds contributed to these positive results.
Though Funko’s stock has risen by 38% over the past year, it remains well below earlier peaks. Analyst Johnson sees this period as a pivotal opportunity, appreciating Simon’s efforts.
“It’s an interesting point in Funko’s history, offering Simon a unique opportunity to advance the business,” Johnson commented.
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