If you’ve been scrolling through collector forums, social media threads, or recent financial headlines, it’s understandable to feel concerned about Funko’s future.
Rumours about the company potentially going out of business in 2026 have been circulating widely. The reality, however, is more nuanced. Funko is not out of business, but it is navigating a period of significant financial pressure.
The company has issued a formal “going concern” warning, which signals internal concern about long-term stability without meaningful corrective action.
Rising debt, slower retail demand, and excess inventory have put pressure on leadership to act quickly. Despite this, Funko is actively restructuring and there are clear efforts underway to stabilise the business.
Key points at a glance:
- Funko holds over $450 million (over £329 million) in liabilities and reported a 14% drop in sales in late 2025
- The company continues to operate in the UK, the US, and international markets
- A new CEO and turnaround strategy are focused on restructuring and product realignment
- The outlook remains uncertain, but not terminal at this stage
Let’s take a closer look at Funko’s current position and what it means for UK collectors and fans moving forward.
Who Is Funko Pop and Where Do They Sell Their Products?
Founded in 1998, Funko began as a bobblehead company before evolving into a global collectibles giant with its flagship product line: Funko Pop! Vinyl figures. With their distinctive oversized heads and minimalist features, Funko Pops quickly became a staple in pop culture merchandising.
From Marvel and Disney to Stranger Things and obscure cult classics, Funko has licensed thousands of characters, releasing tens of thousands of different figures globally.
Marketplaces: United States vs United Kingdom
While Funko’s roots are in the United States, the UK has become a key international market, supported by Funko Europe, which services most of Europe including the UK.
| Region | Sales Channels | Availability |
| United States | Walmart, Target, Hot Topic, Amazon US | Wide selection including store exclusives |
| United Kingdom | Smyths Toys, HMV, Menkind, Amazon UK | Active through Funko Europe and local exclusives |
In the UK, Funko products are:
- Sold at major retailers like HMV, Smyths Toys, Argos, and Amazon UK
- Available via Funko Europe (funko.com/gb), which remains fully operational
- Supported with UK-exclusive releases
- Customisable with the “Pop! Yourself” service launched in 2025
Despite Funko’s financial turbulence, retail operations in the UK are unaffected at present.
What Is the Current Financial Status of Funko in 2026?
Funko is currently under financial distress. The company reported a 14% year-over-year sales decline and posted a $1 million loss in Q3 2025, compared to $8.6 million in profit during the same period in 2024.
According to their SEC filings, there is “substantial doubt about [Funko’s] ability to continue as a going concern”, with $241 million in loans maturing by September 2026.
Key Financial Metrics
| Financial Metric | Q3 2024 | Q3 2025 | Change |
| Net Sales | $291.6 million (£239.1 million) | $250.9 million (£205.7 million) | -14% |
| Net Income | $8.6 million (£7.05 million) | $948,000 (£778,000) | -89% |
| Mondo Division Revenue | $17.6 million (£14.43 million) | $5.8 million (£4.76 million) | -67% |
| Total Liabilities | $349 million (£286.2 million) | $457 million (£374.7 million) | +31% |
CFO Yves LePendeven said in a statement:
“Our future liquidity depends on refinancing or raising capital, both of which are actively being pursued.”
Despite the grim numbers, Funko continues to trade and has not filed for bankruptcy.
Why Is Funko Facing Financial Difficulties Now?
Funko’s financial struggles are not the result of a single issue. Instead, they’re the product of a converging set of internal missteps, shifting consumer behaviour, and external market pressures.
Together, these have created a perfect storm that has destabilised what was once one of the most recognisable names in pop culture collectibles.
Oversaturation of the Collectibles Market
Funko’s rapid-fire production model became its own undoing. The brand built its reputation on variety and pop culture relevance, but over time, that strategy spiralled into excess.
With multiple variants of the same characters flooding the market, the collectible nature of Pops began to diminish.
Collectors have grown increasingly fatigued. As one Reddit user noted:
“When there are 10 versions of the same Marvel character, it just stops feeling special.”
This sentiment has been echoed across fan forums and YouTube channels, highlighting how Funko’s overproduction reduced exclusivity and diluted consumer enthusiasm.
Declining Retail Confidence and Sales
Retail confidence in Funko has weakened noticeably as demand has softened across key markets. Many stockists are now taking a more cautious approach, limiting exposure rather than expanding orders.
Key factors driving this shift include:
- Reduced shelf space, as retailers prioritise faster-moving products
- Unsold inventory, which ties up capital and valuable floor space
- Lower reorder volumes, reflecting uncertainty around demand
Where Funko products were once seen as reliable sellers, they are now viewed as a higher-risk commitment. This change in retailer behaviour has directly impacted Funko’s revenue and highlights the growing challenges facing the brand in traditional retail environments.
Rising Operational Costs and Tariffs
Funko’s reliance on overseas production, especially in Vietnam, has exposed the company to geopolitical and economic vulnerabilities. Tariffs on imported goods into the US and EU have risen to as much as 20%, squeezing already thin margins.
Combined with increased warehousing and logistics costs, these tariffs have chipped away at profitability. The business model that worked during its meteoric rise is now being tested against economic realities Funko seems ill-prepared to face.
What Role Did Leadership Changes Play in Funko’s Crisis?
Leadership instability has further weakened Funko during this critical time. The company has cycled through three CEOs in less than a year, causing confusion both internally and externally.
Strategic shifts lacked consistency, and this lack of leadership continuity hurt investor and employee confidence.
Timeline of Executive Turnover
| CEO | Tenure | Outcome |
| Cynthia Williams | Nov 2024 – July 2025 | Let go following poor financial performance |
| Michael Lunsford | July 2025 – Aug 2025 | Interim CEO during leadership search |
| Josh Simon | Aug 2025 – Present | Hired to stabilise and lead restructuring |
This turnover coincided with the period in which Funko posted some of its most worrying financial results, including an 89% drop in net income year-over-year.
Josh Simon’s Entry and Early Strategy
Josh Simon, formerly of Netflix, stepped into the role in August 2025 with a clear-eyed view of Funko’s challenges. He quickly assessed the company’s strengths, brand recognition, licensing partnerships, and fan engagement, and began reworking the product strategy.
In an earnings call, Simon said:
“I’m only 60 days into the role, but it’s already clear how powerful the Funko brand is and how much growth opportunity lies ahead.”
His tone marked a shift from panic to potential, a move welcomed by some shareholders and fans.
Introduction of the “Make Culture Pop” Turnaround Plan
Simon’s signature strategy, “Make Culture Pop”, is all about realigning Funko with current consumer trends while fixing past mistakes.
Key elements of the plan include:
- Shortening product development cycles to match pop culture buzz
- Launching Bitty Pops, miniature, affordable figures aimed at younger demographics
- Implementing a preorder-first sales model to reduce excess inventory
- Expanding further into international markets, especially Asia and Latin America
A promising start came with the KPop Demon Hunters line, which was released just weeks after the Netflix show premiered. It went on to land on Walmart’s Top Toy List, validating the strategy’s potential.
Has Funko Filed for Bankruptcy or Announced a Closure?
No, Funko has not filed for bankruptcy as of early 2026. However, that doesn’t mean the business is on stable ground. In November 2025, Funko filed an SEC report issuing a “going concern” warning.
This is a formal signal that the company may not be able to meet its financial obligations in the next 12 months without intervention.
To manage the crisis, Funko hired Moelis & Company, a leading financial advisory firm. Their task is to explore options such as:
- Debt refinancing
- Partial or full acquisition
- Formal restructuring plans
There’s no public indication yet of a buyer or completed deal, but the company continues to weigh all possible scenarios as its debt deadline in September 2026 draws closer.
How Are Collectors and Retailers Reacting to the Situation?
The impact of Funko’s financial uncertainty is being felt well beyond its balance sheet, influencing behaviour across both retail and collector communities.
Shifts in ordering patterns and sentiment highlight how confidence in the brand has changed in recent months.
Retailers vs Collectors: Current Reactions
| Group | Key Reactions | Market Impact |
| Retailers | Reduced order volumes, focus on evergreen and top-selling Pops only, limited shelf space | Lower wholesale demand and cautious restocking |
| Collectors (Optimistic) | Speculation around vaulted and rare figures increasing in value | Selective appreciation in niche secondary markets |
| Collectors (Critical) | Complaints about repetitive designs, excessive variants, and declining creativity | Weaker demand for common releases |
| Resale Market | Oversupply of standard figures on resale platforms | Stagnant or declining prices for most Pops |
For retailers, slow-moving inventory has become a financial risk many can no longer justify. Collectors, meanwhile, remain divided between speculation and frustration.
While some rare figures still hold value, collecting for most fans continues to be driven by personal enjoyment rather than profit alone.
Is Funko Still Operating in the UK?
Yes, Funko remains fully operational in the UK through Funko Europe, which continues to ship products and introduce new lines across the region. The brand maintains a strong retail and online presence, with its UK-specific store accessible via Funko.com/gb and ongoing partnerships with major retailers including HMV, Smyths Toys, Menkind, Argos, and Amazon UK.
Customisation services such as Pop! Yourself have been available in the UK and wider EMEA region since late 2025, reinforcing Funko’s commitment to the market. UK-exclusive releases also continue through selected stockists, particularly HMV.
At present, there are no indications that Funko plans to exit the UK. Stock levels remain healthy, retail displays are maintained, and customer engagement across the region continues, reassuring UK collectors that access to Funko products remains intact.
What Are the Most Likely Scenarios for Funko’s Future?
The months ahead will be critical for Funko’s long-term direction. With $241 million in loans maturing in September 2026, the company needs a clear strategy to manage its debt and stabilise operations.
How leadership responds will largely determine whether Funko emerges leaner and stronger, or faces deeper restructuring.
Several outcomes are viewed as realistic by industry observers:
- Refinancing, where Funko renegotiates loan terms to extend repayment timelines
- Acquisition, involving a buyout by a larger toy, media, or entertainment group
- Chapter 11 restructuring, allowing the business to reorganise debt while continuing to operate
- Partial shutdowns, including the closure of underperforming divisions such as Mondo
- Organic recovery, driven solely by internal improvements, which is seen as less likely
While no single path is guaranteed, analysts widely believe that refinancing or a strategic acquisition offers the strongest chance of recovery. Funko’s brand remains valuable, the challenge lies in fixing its business model rather than its popularity.
Should You Still Buy or Invest in Funko Products in 2026?
Whether buying or investing in Funko products in 2026 depends largely on your connection to the brand. For collectors who buy purely for enjoyment and fandom, there is little reason to stop.
Many fans continue to purchase figures they genuinely like, accepting that while some items may gain value if production slows, most releases should be enjoyed rather than treated as guaranteed investments.
As one long-time collector posted on Facebook:
“I’m buying what I like. If it becomes rare later, cool. If not, it still makes me smile.”
Casual buyers and gift shoppers can also feel reassured. Funko Pops remain easy to find across UK retailers and online stores, with no immediate concerns around availability or legitimacy.
Investors, however, should be more cautious. Funko’s stock remains volatile, and recent quarters have shown inconsistent earnings. Until there is clear confirmation of refinancing or an acquisition, the financial risk continues to outweigh potential short-term rewards.
Conclusion
Funko is not out of business, but it stands on unstable financial ground in 2026. With rising debt, leadership changes, and market fatigue, the company faces significant pressure to restructure or secure a buyer.
The new CEO’s turnaround efforts show promise, especially with Bitty Pops and faster product cycles. For now, Funko continues to operate in the UK and globally, but the next few months will be crucial.
Whether you’re a collector or casual buyer, it’s a time to watch closely and enjoy what the brand still offers.
Frequently Asked Questions
What does the term “going concern” mean for Funko?
It means Funko has expressed doubt about its ability to continue operating for the next 12 months without significant financial change.
Has Funko filed for bankruptcy yet?
No. As of early 2026, Funko has not filed for bankruptcy but has acknowledged it as a possible outcome.
Are Funko products still available in UK shops?
Yes. Funko Pops are available via Funko Europe, Amazon UK, Smyths Toys, HMV, and other outlets.
What is the Bitty Pops line and why is it important?
Bitty Pops are smaller, more affordable Funko figures aimed at a younger, broader audience. They’re part of Funko’s turnaround strategy.
Will Funko Pops become rare if the company goes under?
Some vaulted or exclusive figures might rise in value. However, most mass-market Pops are unlikely to appreciate significantly.
Is the Pop! Yourself service available in the UK?
Yes, the customisation service launched in the UK/EMEA region in 2025 and remains active.
What is happening to Funko’s Mondo division?
Mondo, Funko’s premium collectibles arm, saw a 67% revenue drop and may face shutdown as part of cost-cutting.
