Funko is pursuing a turnaround after reporting a $67.4 million loss on $908.2 million in sales last year, down 13% from the previous year, while disclosing $225 million in debt and warning of substantial doubt about its ability to generate enough cash for debt payments. Josh Simon, who became chief executive in September 2025 after running global consumer products at Netflix, is leading the effort. The company blamed tariffs affecting China-based production, canceled retail orders and expected loan-covenant breaches for its financial pressure. Funko has since shifted manufacturing to Vietnam and other countries, renegotiated debt-payment timing and accelerated product launches. Its second-quarter sales rose 7% to $207.7 million, with net income of $15.4 million versus a $40.5 million loss a year earlier, although the quarter benefited from $25.4 million in expected tariff refunds. The company is also expanding beyond established licenses, responding to fast-moving entertainment releases and cultivating kidults (adults who collect toys).