Overview
- Funko’s latest SEC filing states there is substantial doubt it can continue operating over the next 12 months and warns it may need to cut or suspend operations or seek bankruptcy protection if it cannot secure relief or new financing.
- Quarterly results show net sales down 14.3% year over year to $250.9 million, U.S. sales down 20.1%, inventories above $99 million, and total debt around $241 million.
- The board has initiated a formal strategic review that includes a possible sale of the company, with no set timetable disclosed.
- Management is shifting to smaller, more profitable lines such as Bitty Pops and Pop Yourself, introducing selective price increases to offset tariffs and import costs.
- Years of overproduction have eroded resale values—reports cite losses of up to 80%—as retailers tighten orders, consumers gravitate to streaming‑driven content, and new rivals like ex‑CEO Brian Mariotti’s Thrilljoy Pix enter the market.