EVERETT — Funko, the pop culture collectables brand based in Everett, reported Thursday a $41 million loss in the second quarter ending June 30, the latest in a series of continuing losses.
Funko Interim CEO Mike Lunsford reported the news during an earnings call to investors.
Funko has now lost $61 million in the first six months of 2025, more than four times its $14.7 million loss in the entire 2024.
The last time the company made a profit was in the second quarter of 2024 when it earned $5.4 million, the company’s financial reports show.
Lunsford blamed the second quarter loss on “ever changing and uncertain U.S. trade policies,” he said Thursday.
“As expected, our 2025 second quarter performance was impacted by a dynamic and uncertain tariff environment,” Lunsford said.
The company also faces repaying more than $250 million in debt by September 2026. And it wants to increase its cash on hand of $49.6 million to help it build reserves.
Yves LePendeven, Funko’s chief financial officer, said on the earnings call, that Funko had hired an outside financial firm to help it explore refinancing options for the debt and to explore other strategic alternatives.
He said the company had also filed notices with the SEC to give it the option to issue new stock shares to raise up to $4o million to add to its liquidity.
While a large portion of the conference call dealt with the impact of tariffs on the company, Funko also filed a second quarter financial report with the U.S. Securities and Exchange Commission on Thursday which cited a “challenging retail environment.”
The report said that “retailers have “slowed their restocking, prioritized lower inventory levels and, in some cases, have canceled their orders.”
Lunsford said during the conference call that the company had enacted a tariff mitigation plan including cutting costs, reducing the workforce reduction by approximately 20%, raising prices on merchandise and accelerating a shift in production out of China.
Lunsford did not say what company locations were impacted by the workforce reductions. Company officials did not respond to emails seeking comment.
In its annual report to federal security regulators in March, Funko listed employing more than 1,000 workers in the U.S.
In 2022, Funko laid off 258 workers in both its Everett and Puyallup Washington warehouses when it opened a distribution center in Arizona.
It’s main headquarters remains in downtown Everett as well as a retail store stocked with hundreds of different vinyl figurines and bobbleheads based on characters from movies, television and comic books.
LePendeven said that the company expected a better second half of 2025. He said Vietnam had become a new hub for manufacturing Funko products.
“We continue to expect to fully offset the financial impact of incremental tariffs within the current year,” he said.
The CFO said the increased tariffs will cost the company $40 million in 2025, down from its original estimate of $45 million.
The earnings call was held after the markets closed on Thursday. The company’s stock fell 35% in Friday afternoon on the NASDAQ stock exchange, dropping to $2.40 a share. The stock price has fallen by more than 70% in the last 12 months.
Lunsford also said during the conference call that Funko continues to search for a permanent CEO.
In July, the board named Lunsford as interim CEO after sudden departure of Cynthia Williams in July after just 14 months on the job.
In the statement at the time, Charles Denson, chairman of the board for Funko, said a “change in leadership is necessary to deliver full shareholder value.”
Despite financial troubles, the company still has enthusiastic fans of its collectables.
Aaron Estrada, wife Jessica Estrada, and his son Ezra, 11, visited the Everett store on Thursday, as part of their Seattle vacation.
They filled a bag of five collectables, spending nearly $100 dollars.
“My son loves the collectables,” said Aaron Estrada, who lives in Los Angeles.
Estrada said he is also a fan as an adult.
“I grew up collecting baseball cards,” he said.
Randy Diamond: 425-339-3097; randy.diamond@heraldnet.com.
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