Funko Loses $27 Million During the Fourth Quarter, and How Collectibles Are Going Up in the Kidult Market

On a call with investors last week, CEO Brian Mariotti said Funko had already filled its Arizona distributing center to the brim with dolls and was forced to rent excess storage containers for them. The cost of that extra storage, he said, was causing the company to lose money at a rapid clip.

The company’s loss in the fourth quarter was $47 million. The profit was lower than the year before, with a figure of $17 million.

“I was a bit surprised because the collectible market is one of the big stories for 2022. She told NPR that her collectibles were up 24%. Any other types of action figure collectibles will be included in that. But Funko, of course, is the biggest player in that space.”

She said that the avid interest in collectibles seen just a few years ago is still a thing of the past. The Kidult market has seen a lot of growth since the COVID-19 Pandemic began. Grown-ups seeking the comfort of nostalgia and a way to relieve stress picked up toys and collectibles.

“Adults are going to continue to be interested in collectibles,” she said. It’s going to take a while before they all go away because there are so many people buying into these categories.

The Power of the Macro Factors and Funko-Specific Issues in our QCD Optimum Performance: Comment on Mariotti

On our last earnings call it was clearly shown that the business and operations were at a tipping point, said Mariotti. “A combination of macro factors and Funko-specific issues have disrupted our financial and operating performance to an unacceptable degree.”