Funko's new CEO rebuilt the toy line around four-month production speed
After a $67.4M loss year, ex-Netflix exec Josh Simon moved production out of China and cut time-to-shelf — Q2 swung to $15.4M net income on 7% sales growth.
What was changed
Funko, the maker of Pop! collectible figures, entered 2025 under CEO Josh Simon — a former Netflix consumer-products executive — facing a $67.4 million loss on $908.2 million of sales in the prior year, roughly $225 million in debt, loan-covenant concerns, tariff pressure on its Chinese manufacturing base and canceled retail orders. Simon's turnaround rebuilt operations and supply chain around two levers: moving production out of China to Vietnam and other countries, and shortening the time from concept to retail shelf.
Speed became the competitive tool. Because collectibles demand spikes around franchises, music artists and cultural moments, Funko produced its KPop Demon Hunters figures in roughly four months, reaching shelves ahead of larger competitors while public interest was still peaking. The company also broadened its licensing approach to catch cultural moments earlier, accepting the added cost and complexity of a diversified manufacturing footprint in exchange for resilience against tariffs and faster responsiveness.
Early results showed progress with caveats: second-quarter sales rose 7% to $207.7 million and net income reached $15.4 million against a $40.5 million loss in the comparable period — but the quarter included a $25.4 million benefit from expected tariff refunds, without which Funko would have remained unprofitable. The turnaround, the reporting noted, remains incomplete while the company manages debt, manufacturing, retail relationships and inventory simultaneously.
Why it worked
Collectibles value decays fast: merchandise that lands after the cultural moment passes loses most of its commercial window.
Concentrating production in China exposed Funko to tariffs and slow replenishment at the same time.
A licensing portfolio only pays if the company can identify hot properties early and ship while interest is peaking.
What can be applied
In fandom-driven merchandise, speed is the product: cutting concept-to-shelf time to four months lets a mid-size toymaker beat bigger rivals to the moment a franchise is hot.
Aftermath
The company posted its first improving quarters under Simon, with the KPop Demon Hunters sprint as proof of the new model, but the tariff-refund windfall means underlying profitability is still unproven; debt, supply-chain shifts and retail conditions remain open fronts in the turnaround.