For many celebrities, having a Funko Pop! doll modeled after them signifies success in Hollywood. These 4-inch vinyl figurines, known for their oversized heads and black dot eyes, are an emblem of pop culture—desired by fans who purchase, celebrate, and display them. Funko’s Hollywood flagship store offers thousands, including NFL players, Disney princesses, and characters from ‘Bridgerton.’
However, Funko Inc., the company behind these dolls, has been facing significant challenges. Last year, Funko reported a loss of $67.4 million on $908.2 million in sales, a 13% drop from the previous year. The company revealed debts totaling $225 million. Funko warned investors of ‘substantial doubt’ about generating enough cash to meet debt payments, citing tariffs in China, canceled retail orders, and expected breaches of loan covenants.
Funko’s Chief Executive, Josh Simon, is now leading a turnaround effort. Simon, who previously managed global consumer products at Netflix, assumed his role at Funko in September 2025. He describes Funko’s situation as an ‘inflection point,’ acknowledging the ongoing passion from fans and retailers, despite the pressing internal problems. Simon sees this as an opportunity to restore Funko to its former glory of deep fan passion.
The Rise and Fall of Funko
Funko began in 1998 when Mike Becker shipped bobbleheads from his garage. After Brian Mariotti acquired Funko in 2005, the business expanded its licensing of characters, resulting in the 2010 launch of the ‘Pop!’ figurines. Funko’s ownership changed over time, with the introduction of backpacks and other products, leading to its public listing in 2017. The majority of its revenue still comes from licensed characters sold through various channels.
In 2025, Funko’s sales plummeted due to a global trade war. The company misjudged demand, choosing wrong characters and overproducing dolls. Trump’s tariffs on China raised production costs significantly. Amidst sluggish sales, marked-down figurines alienated collectors, who want their collections to appreciate in value. Gerrick Johnson, an analyst at Seaport Research Partners, noted the negative impact of discounted collectibles on collector enthusiasm.
The brand survived partly due to the rise of ‘kidults’—adults collecting toys. Simon himself partakes in collecting, having gathered figurines from ‘Toy Story’ and ‘Back to the Future’ before joining Funko. According to Simon, Funko encapsulates what people love about characters into stylized versions.
Turnaround Initiatives at Funko
Funko has shifted production from China to Vietnam and other countries, diversifying its supply chain under Simon’s leadership. To bolster cash flow, Funko renegotiated debt payments and expedited product market release. For instance, Funko launched ‘KPop Demon Hunters’ figurines swiftly after the Netflix film’s success, predating releases by competitors like Mattel.
Funko’s responsiveness impressed WWE, with Scott Zanghellini highlighting the rapid production of a John Cena figurine tied to his final match. Funko is also broadening its licensing scope, creating figures from Holly Black’s ‘The Folk of the Air’ series, popularized on TikTok, alongside original characters.
Engaging fans remains crucial. At PokémonXP, Funko featured a ‘Pop! Yourself’ booth, allowing convention attendees to create custom figures. Jeff Leu, an avid collector, embraced this opportunity, creating figurines of his children at the event.
Funko’s turnaround is showing positive signs. Second-quarter sales increased by 7% to $207.7 million, with a reported net income of $15.4 million. However, these results included a $25.4-million benefit from expected tariff refunds, without which Funko would have experienced a loss. The company’s share price, closing around $5.50, rose by 38% over the past year, yet remains 60% below January 2025 levels.
Gerrick Johnson appreciates Simon’s actions, noting the opportunity this juncture presents in Funko’s history.