Overview
- Funko reported Q3 net sales of $250.9 million, down 14% year over year, and a net loss of roughly $1 million.
- An SEC filing raised “substantial doubt” about its ability to continue as a going concern, with roughly $250 million in debt and two covenant amendments this year.
- Domestic sales fell about 20% in the quarter, according to ICv2 data cited in coverage, making up most of the revenue decline.
- Management blamed falling demand, higher tariffs, and tighter retailer inventories that led to slower restocks and some order cancellations.
- Funko is exploring strategic alternatives, including a potential sale, and is shifting focus to smaller lines such as Bitty Pops, blind-box items, and Pop Yourself kiosks, with no set timetable or assurance of results.