Everett-based Funko says its future is in ‘substantial doubt’ after latest earnings report

Funko, an Everett-based company that manufactures licensed and limited-edition pop culture collectibles, sounded the alarm, stating that the future of the company is at stake over the next 12 months.

According to Funko’s latest quarterly earnings report, “there is substantial doubt about the company’s ability to continue as a going concern for the next twelve months” without extra funding or an acquisition.

Funko suffered a loss of $1 million in the third quarter of 2025, as company sales have tanked by 20% year-over-year. Funko previously reported a $41 million loss in the second quarter of 2025. The third-quarter losses may seem like a positive compared to the first two quarters of this year, but in the third quarter of 2024, Funko earned $8.9 million in profit.

According to its latest earnings report, Funko has nearly $250 million in debt. Funko already renegotiated terms on several outstanding loans, but even the revised arrangements may not be enough to steady the ship, according to Dexerto.

Leadership changes amid financial woes

The company decided to change its leadership earlier this year, appointing Josh Simon,  Netflix‘s head of consumer products, as the newest CEO at Funko after interim CEO Michael Lunsford replaced then-CEO Cynthia Williams on July 5. Simon officially took over on Sept. 1.

Funko appointed Williams to the CEO position just over a year ago, at the time touting her “nearly two decades of senior leadership experience across the consumer product, gaming, and e-commerce industries.” She had most recently worked as an executive at Hasbro.

“The Board of Directors thanks Cynthia for her many accomplishments during her tenure at Funko,” Denson said without elaborating.

In the statement, Lunsford acknowledged, “The recent changes to the global business environment have constrained our growth initiatives, and we intend to first address those challenges.”

Funko raises prices over tariffs

In a May blog post, Funko noted the need to raise prices due to tariffs, as well as the rising costs of shipping and raw materials.

“I believe we have yet to achieve the full potential of Funko,” Lunsford said. “We have an iconic brand, passionate fans, great licensing and retail partners, and a dedicated team of highly capable employees.”

Lunsford was the company’s interim CEO in 2023-2024 and continues to serve as a member of the company’s Board of Directors.

Contributing: Heather Bosch, KIRO Newsradio

Follow Frank Sumrall on X. Send news tips here.