Funko Is about to Pop
The post-pandemic slowdown within the broader collectibles industry continues apace. Funko, Inc. has published its earnings report, and it’s not pretty. Their total, period-over-period net sales is down 14.3% according to Yahoo!Finance. The Interim CEO, Mike Lunsford, strikes a stolid tone: "As expected, our 2025 second quarter performance was impacted by a dynamic and uncertain tariff environment." From a public relations standpoint, it’s never a bad idea to blame external forces when speaking to the press.
I’m not predicting catastrophic failure for the company, but the present economy is not conducive to discretionary spending. Any company trying to capitalize on the pop-culture memorabilia market in specific or the hobbyist market in general is going to experience anemic cash flow in the coming year.
Long term, the national economy probably won’t experience the sharpest recession pains until Trump exits the While House. Not because of the dynamic tariff policies necessarily but because of certain 20- and 40-year market cycles that may coalesce around that time.
Longer term, you can take solace in knowing that the Funkos decorating your coding desk will stand resolute until the end.