American Trend Toy Giant Sold $6.3 Billion Last Year

Funko's net sales for the fourth quarter of 2025 were $273.1 million, a 7% decrease compared to $293.7 million in the same period of 2024, but the decline was significantly narrowed compared to the 14.3% drop in the third quarter. The gross profit during the same period was $111.6 million, with a gross margin of 40.9%, a decrease of 1.3 percentage points from the previous year. The decline was mainly due to channel optimization and the increase in profit per product being offset by tax expenses, which eroded approximately 4.1 percentage points of the gross margin. However, the gross margin for the fourth quarter increased slightly by 0.7 percentage points compared to the third quarter.

As for the full-year performance, net sales amounted to $908.2 million (approximately RMB 6.25 billion), down 13.5% year-on-year from $1.005 billion in 2024; gross profit for the same period was $351.3 million, with a gross margin of 38.7%, down 2.7 percentage points year-on-year; the full-year net loss was $67.4 million (primarily driven by a one-time tariff cost incurred in Q2).

Regarding the reasons for the performance improvement, CEO Josh Simon pointed out that it was mainly driven by K-Pop demon-slaying girl groups, Stranger Things, and the mini-series Bitty Pop!

It is reported that after the anime “K-Pop Demon Hunter Girl Group” debuted in June 2025 and ignited overseas popularity, Funko swiftly secured the licensing rights and efficiently launched products to seize the market opportunity.

In addition, following the release of the final season of the popular Netflix series "Stranger Things" in late November 2025, the traffic for related products rapidly increased, driving up sales of these products. The related product lines from Funko benefited significantly from this. These two IP product lines ranked third and fifth, respectively, in terms of sales contribution in the fourth quarter of 2025.

Another sales highlight is the Bitty Pop! mini series. In Q4 2025, the series officially expanded from the collectible toy channel to the mass toy channel, rolling out to 1,800 Walmart stores and boosting performance.

Looking solely at Q4 2025, all regions except Europe (+1.6%) saw year-over-year declines compared to 2024, with the U.S. down 12.0% and other regions down 3.4%. However, performance improved sequentially compared to Q3 2025. Specifically, the U.S. decline narrowed by 7.9 percentage points from Q3 2025’s 20.1%; Europe shifted from a decline to growth; and other regions saw their decline narrow significantly by 10.9 percentage points from Q3 2025’s 14.3%.

When talking about the performance expectations for 2026, the company remains cautiously optimistic, expecting a flat or a slight 2% decrease in net sales in the first quarter of 2026, but confident that the full year will achieve flat or a 3% growth in performance.

Company CEO Josh Simon said, "The company will continue to implement the 'Make Culture Popular' strategy, increase fan touchpoints, expand new categories and new platforms, and achieve profit growth."