Funko warns it may not survive the next year due to losses, debt, and declining sales despite new product efforts.

Funko warns it may not survive the next 12 months, citing a $41 million Q2 loss and a $1 million Q3 loss—down from an $8.9 million profit a year ago—due to declining U.S. sales, rising tariffs, and a tough retail environment. Despite some success with the Bitty Pop! line and plans to capitalize on pop culture hits like KPop Demon Hunters, the company faces $250 million in debt and "substantial doubt" about its future. Leadership is exploring strategic options, including a potential sale, as it seeks to stabilize operations amid overexpansion and shifting consumer demand.