Funko Names Netflix Executive to Lead Turnaround Efforts

Funko has appointed Netflix executive Josh Simon as its new CEO to lead the company's turnaround. Simon, who oversees consumer products at Netflix, will join Funko's board on Sept. 1 and succeed interim CEO Mike Lunsford. Funko's shares have dropped 80% this year amid losses and declining sales. Revenue has fallen for two straight years and is poised to slip again in 2025.

Funko Inc., the struggling maker of pop-culture figurines, has appointed Netflix executive Josh Simon as its new chief executive officer. Simon will take over on September 1 and join the company’s board, succeeding interim CEO Mike Lunsford. Simon brings extensive experience in consumer products, having served as vice president of consumer products at Netflix, overseeing its global merchandise business, live experiences, and the Roald Dahl Story Co. [1]

The appointment comes as Funko's shares have dropped 80% this year amid losses and declining sales of its big-headed toys and collectibles. Revenue at Funko, known for figurines from brands like the Power Rangers, has fallen for two straight years after a surge during the pandemic and is poised to slip again in 2025. In 2022, Hollywood moguls Peter Chernin and Bob Iger invested $263 million in the company [1].

Simon joins Funko following more than five years at Netflix, where he served as vice president of consumer products, overseeing its global merchandise business, live experiences, and the Roald Dahl Story Co. [1]

Funko reported Q2 net sales of $193.5 million, a 22% drop year over year, during a quarter that was “impacted by a dynamic and uncertain tariff environment,” said Mike Lunsford, interim CEO [2]. The company swung to a loss of $41 million from a net income of $5.4 million year over year [2].

Funko filed paperwork with the U.S. Securities and Exchange Commission regarding an at-the-market equity offering, which will allow the company to sell shares of its common stock up to $40 million. The company also hired an outside firm to advise it on refinancing its debt, which is due in September 2026 [2].

Funko worked to mitigate the financial impact of changing U.S. tariff policies during Q2, which included a workforce reduction of around 20%. The company also raised prices and accelerated its shift in production out of China to sourcing in other countries [2]. The past quarter saw a disruption in sales related to tariffs which paused orders out of China “by our direct import customers,” CFO Yves LePendeven said [2].

The toy company is expecting a turn in the second half of the year with improved performance. “Looking ahead, we expect headwinds to moderate and our business to improve as a result of the actions we've taken to cut costs, diversify product sourcing and adjust prices,” Lunsford said [2].

Funko’s most recent permanent CEO, Cynthia Williams, exited her role earlier in the summer after a little over a year. Lunsford was previously Funko’s interim chief between 2023 and 2024, following then-CEO Brian Mariotti taking a leave of absence and subsequently stepping down from the chief executive position [2].

Simon's appointment signals a significant change in leadership and strategy for Funko, which has been struggling with declining sales and financial losses. The new CEO will need to implement effective strategies to turn around the company's fortunes and restore growth.

References:
[1] https://www.bloomberg.com/news/articles/2025-08-12/funko-names-netflix-executive-to-lead-turnaround-of-toymaker
[2] https://www.retaildive.com/news/funko-layoffs-price-increases-tariffs-sales-declines-second-quarter-earnings/757367/