Funko’s Resurgence Under CEO Josh Simon

For many celebrities, being immortalized as a Funko Pop! figurine marks Hollywood success. These 4-inch vinyl dolls, characterized by their oversized heads and black dot eyes, have become symbols of pop culture, purchased and displayed by fans. At Funko’s Hollywood flagship store, thousands of options are available, ranging from NFL players to Disney princesses and characters from the Netflix drama ‘Bridgerton.’ However, Funko Inc., the company behind these beloved figurines, has recently faced severe challenges.

Last year, Funko reported a $67.4 million loss on $908.2 million in sales, experiencing a 13% decline from the previous year. The company, headquartered in Everett, Washington, revealed $225 million in debt and warned investors of ‘substantial doubt’ regarding its ability to generate sufficient cash to meet debt payments. This uncertainty was attributed to tariffs in China, where most toys were manufactured, canceled retail orders, and breached loan covenants.

The turnaround effort is led by Josh Simon, who took on the role of CEO in September 2025 after leaving his position at Netflix. Simon believes Funko was at a critical juncture and saw potential despite challenges. He expressed enthusiasm to restore the company’s previous fan-driven glory.

The Rise and Fall of Funko

Funko’s journey began in 1998 when Mike Becker started making bobbleheads. Under Brian Mariotti’s ownership from 2005, the company expanded its licensing of characters. The introduction of big-headed ‘Pop!’ figurines in 2010 accelerated sales. Over time, Funko added various products and went public in 2017, primarily generating revenue from licensed character sales.

However, in 2025, a global trade war and misjudged demand led to a sales slump. Heavy tariffs on Chinese products inflated Funko’s manufacturing costs. Discounted figurines by retailers devalued the collectibles, alienating collectors who preferred appreciating items.

Despite these setbacks, adults dubbed ‘kidults’ who collect toys like Pop! figures helped maintain brand interest. Simon himself had been a collector before joining Funko, noting the significance of the brand. Musicians, athletes, and celebrities often request Funko Pop! figures, considering them cultural milestones akin to receiving a star on the Hollywood Walk of Fame.

Crafting a Comeback

Funko, while based in Washington, maintains a significant presence in Los Angeles. Under Simon, the company diversified its production, moving operations from China to Vietnam and other locations. To boost cash flow, Funko renegotiated debt payments and accelerated product launches.

A notable success was the quick production of figures from the Netflix film ‘KPop Demon Hunters,’ released mere months after the film’s debut. Similarly, a John Cena Funko figure coincided with his final WWE match, receiving swift pre-orders.

Funko widened its licensing approach by making figures from ‘The Folk of the Air’ fantasy series, popular on TikTok, and developing original characters. Simon emphasized the importance of participating in cultural moments in real-time.

Engagement with fans is crucial. At PokémonXP, the first official Pokémon fan convention, Funko offered a ‘Pop! Yourself’ booth where fans customized figures. Jeff Leu, a San Francisco resident, spent $100 on two figures resembling his children. Owning a substantial collection of ‘The Simpsons’ Pop! figures, Leu finds the expanding product line compelling.

Early signs of Funko’s recovery have emerged. Second-quarter sales increased by 7% to $207.7 million with a reported net income of $15.4 million, a significant improvement from the previous year’s $40.5 million loss. The period included a one-time tariff refund benefit of $25.4 million. Funko’s stock, recently closing at approximately $5.50, has risen 38% over the past year, although it remains 60% below its January 2025 level.

While it’s early to fully evaluate Simon’s leadership, industry experts like Gerrick Johnson are optimistic about Funko’s future. They recognize this as a unique period in the company’s history and a chance for Simon to revive the business.