Debts amounting to 250 million US dollars, the specter of bankruptcy and a known enemy

Empire that dummies Funko Pop! Built over a decade and a half, it is one breath away from collapse. Funko admitted in its latest financial report that it could declare bankruptcy and disappear within less than a year, according to the conclusions of its financial report for the third quarter of 2025.

the Perfect stormwhich threatens to bring down the kingdom of annoying heads, includes a scary red number: nearly $250 million in debt.

“In connection with the preparation of the unaudited consolidated financial statements for the quarter ended September 30, 2025, management evaluated the Company’s future liquidity, forecasts regarding the expected effects of the announced tariffs and other events and conditions, as well as its ability to comply with its credit agreement covenants,” begins one of the most damning passages in the latest report filed with the SEC.

It continues: “Management has determined that there are material doubts about the company’s ability to continue as a going concern during the next twelve months from the date of issuance of these financial statements.”

Later, they warn that if you do not get debt renegotiation facilities or some additional financial assistance, “we may have to… Reducing or discontinuing some or all of our operations To reduce costs or benefit from protection Bankruptcy“.

That specter is what hovers over this financial report, as the company explained that sales fell 14% in the third quarter. According to estimates, Funko’s total debt rises to $241 million.

It seems unbelievable: at the end of September, the company celebrated World Day Billion Funko Pop! Selling it since the beginning of its activity.

But times are changing. The company warned that it would not be able to commit to repaying the debts and expressed concern that creditors might begin to enforce the guarantees of these financial agreements. He also indicated that he may face difficulties in paying the expenses of his daily activities.

“Our board of directors has initiated a formal review process to evaluate strategic alternatives for the company, including a potential sale,” they added in the report submitted to the US authorities.

Although they stress that there is no set “deadline or calendar” for the company’s “review” process, the report makes clear that the next twelve months will be crucial.

In the third quarter of 2024, Funko had sales of $292.8 million. A year later, that number had fallen to 251 million.

They attributed this decline to the tariff crisis and “general macroeconomic uncertainty.”

In the United States, interest in the dolls collapsed: sales there fell by 20.1%. In Europe, on the other hand, it remained stable (barely -0.4% y/y). But the American trend was confirmed in the rest of the world: sales fell by 10.8%.

At least five clues that explain the looming threat to Funko POP! Dolls, according to the official report.

At this stage the company includes the dynamics of interest rate increases, interest rates and inflation.

It is one of the central keys and one of the tools that Trump has applied in the United States’ trade relations with the rest of the world. Funko has factories in Vietnam, China, and Mexico. “The effects of recently implemented tariffs and the potential imposition of revised or additional tariffs or export controls by other countries continue to have a negative impact on net sales, margins and profitability going forward,” they say.

“We have been and continue to operate in a difficult retail environment, where retailers have slowed restocking, prioritized low inventory levels, and, in some cases, canceled their orders,” the company acknowledges of the reason growing from below: the risk posed by Funko POP! Be a thing of the past.

The fourth reason, linked to low interest rates, is perhaps the most shocking. It’s about a mismatch between the company’s regular licenses and new media. The migration of the consumer heart.

“We’ve seen that as we move away from big movie franchises, consumer tastes are increasingly focused on streaming and other digital media. At Funko, they are wary of content that is not produced by the big movie studios.” “If these trends continue, or if we fail to license content that appeals to consumers, our operating results could be adversely affected,” they add.

Brian Mariotti He was the historic CEO of Funko. He left the company in 2023, when difficulties were already looming in the company, which fired 10 percent of its workers and destroyed the dolls, because storing them while waiting for sales was no longer a business.

Once she exited Funko, Mariotti launched a dual project: Thrill pix! These are dolls similar to the ones he helped create, targeting the hearts of nostalgia and collectors.

“Brian Mariotti and other former Funko executives have created a recently launched collectible products company with certain products that compete with our offerings,” Funko’s official report says.

“Mr. Mariotti could use the licenses, suppliers, marketing, and other relationships he has established during his time at Funko to produce, market, and sell his products. He could sell competing products at higher margins or at lower costs, and he could capitalize on demand for our products, especially from our collector customers, all of which could negatively impact our future sales and profitability,” he concludes.

In June 2024, Mariotti warned: “What is Thrilljoy? Stay tuned for fan-driven pop culture, presented in a whole new way!”