Despite 12% U.S. Sales Decline
Funko appears to have moved out of crisis mode as of Q4 2025 despite continuing U.S. sales declines of 12% in the quarter. For the first time in multiple quarters, Funko did not have a “going concern” opinion in its financials, indicating that it is expected to have enough money to meet its obligations with its current assets and credit structure. That was the result of declining losses and improved terms on its borrowing agreements.
While in a less risky place, Funko has still not returned to profitability. The company lost a modest $183,000 in the holiday quarter, an improvement from the $1.5 million loss in Q4 2024. Sales were $273.1 million, down around 7% from $293.7 million a year ago. Its sales by geographic location tell the story: the 12% sales decline in the U.S. compared to a 3.9% increase in Europe, and a 4% decline on much smaller sales in other territories. The U.S., of course, is the only territory that implemented sweeping tariffs on imports in 2025, causing price increases and supply disruptions.
Those tariffs also had a big impact on profitability: Funko reported nearly $40 million in tariffs paid in 2025. The good news is that about half of that amount was in tariffs levied under the IEEPA, which the Supreme Court declared illegal, and the lower court has ordered be refunded (see “Court Orders Refunds”).
The results for the year showed the difficult place the company was in earlier in the year: Funko lost $67.4 million in 2025, which it attributed to an inability to cut expenses fast enough to keep up with sales declines.
Source: ICV2
