Funko Inc. Faces Challenges Amidst Tariff Issues and Strategic Adjustments
Funko Inc. (FNKO), a prominent designer, manufacturer, and marketer of pop culture consumer products, recently navigated through a challenging second quarter in 2025. The company, headquartered in Everett, Washington, reported a decline in net sales during this period. Despite these setbacks, Funko is focusing on international growth and operational adjustments to bolster future performance.
Earnings Call Highlights
On August 8, 2025, Funko Inc. held its Q2 2025 earnings call, where the company outlined its strategies to mitigate the impact of tariffs and other challenges. The call highlighted the company’s commitment to navigating these hurdles through strategic international expansion and operational refinements. Funko’s efforts are aimed at stabilizing its financial performance and positioning itself for future growth.
Sales Decline and CEO Search
In a further update, Funko projected a high single-digit sales decline for the second half of 2025. This forecast is attributed to ongoing tariff mitigation efforts and the search for a new CEO. The company is actively working to address these challenges to minimize their impact on its financial outlook.
Market Performance
As of August 6, 2025, Funko’s stock closed at $3.66, reflecting a significant drop from its 52-week high of $14.65 on January 7, 2025. The company’s market capitalization stands at approximately $210.95 million, with a price-to-earnings ratio of -10.715, indicating the challenges it faces in the current market environment.
Upcoming Events
In a positive development, Funko is set to participate in the NFTOPIA 5 Metaverse Convention, a groundbreaking Web3 expo scheduled for August 16-17, 2025. This virtual event, hosted on the FrameVR platform, offers a unique opportunity for Funko to engage with tech enthusiasts, artists, gamers, and blockchain innovators. The convention promises 48 hours of live content, customizable avatars, and “learn n’ earn” opportunities, providing a platform for Funko to explore new avenues for growth and innovation.
As Funko Inc. navigates through these challenges, its focus on strategic adjustments and international expansion remains pivotal to its efforts to recover and thrive in the competitive consumer discretionary sector.