The Toy Book catches up with Funko CEO Cynthia Williams for a conversation about the company’s evolution, big wins, emerging trends, and the outlook for the future.
The Toy Book: When first spoke last year, you were excited about tapping into the Funko team’s passion to delight fans in new ways. How did that approach help shape the business?
Cynthia Williams: It’s true — Funko thrives on passion for creating communities through fandoms, but over the past year, we’ve sharpened our passion to focus on ways we can truly scale the business with intentionality. We’re using data-driven insights to guide our expansion into new fandoms, with sports leading the charge. By forging deeper partnerships in this space and leveraging the enthusiasm of die-hard collectors and casual fans, we’re unlocking fresh opportunities while staying true to our core community. Our approach isn’t just about broadening our reach — it’s about meeting fans where they are, in stores, online, and at live events, ensuring we create long-term, sustainable growth. That means refining our licensing strategy, innovating within product categories, and strengthening our commercialization approach for global scalability.
TB: At New York Comic Con last fall, we discussed connecting with fans at live events and how we’ve entered a relatively new era in which a company’s leadership becomes a visible face for a brand. In many ways, Funko pioneered that. How do you manage the day-to-day business while making time to connect directly with the fans?
CW: Engaging with our fan community is integral to our DNA, but so is ensuring Funko’s continued growth. Balancing both requires prioritization and building a strong leadership team that also feels comfortable engaging with fans at events. While I remain visible at key events like Comic-Con and interact on social media, my main focus is ensuring that we’re creating an organization that feels a sense of ownership at all levels in making strategic, forward-thinking decisions that propel Funko’s expansion. Everyone is expected to focus on the fan and create products and experiences that delight them to drive growth. That includes growth in fandoms like sports, gaming, music, and programs like Pop! Yourself. The passion of our core fans remains at the heart of what we do, and that must come through in everything we do, not just fan engagement events. I truly believe in the importance of empowering our teams and staying clear on our long-term vision because only then can we meaningfully scale Funko, which will keep delighting our fans for years to come.
TB: Speaking of refining the licensing strategy, what trends have emerged that are compelling for Funko?
CW: Consumer habits are shifting — fans spend less time watching traditional media and more time gaming with their friends, streaming music, and engaging with live entertainment. The numbers are compelling: more than 3 billion global gamers, 100 million people attending Live Nation concerts just last year, and a $35 billion sports memorabilia market. On top of that, the kidult market — a $7.6 billion opportunity — is growing rapidly, and Funko is leading the way. These trends indicate clear opportunities to expand our licensing footprint in gaming, music, and sports while reinforcing our leadership in nostalgia-driven collectibles. And I’m not just talking about Funko Pops! This strategic opportunity encompasses all the ways fans show the world who they are by what they display, wear, or carry.
TB: Micro collectibles remain hot, and Bitty Pop is no exception. How will Funko extend the brand?
CW: Bitty Pop has been a success so far, introducing Funko to new collectors and expanding our demographic reach. We’re taking that momentum and evolving the brand with new ways to engage. Introducing road and environment packs and Bitty Boxes enables fans to interact with their collections in fresh, dynamic ways that reflect what matters most to them. Some of these figures are currently unavailable in standard Pop! sizes, making Bitty Pop an even more exciting proposition. These innovations align with our broader strategy of expanding our audience while reinforcing the collectability of our products in all shapes and sizes.
TB: How has your retail mix evolved over the past year, and how can retailers best engage with you?
CW: We’re focused on meeting fans where they are — whether that’s in traditional retail, online, or at live events. We have ambitious plans to improve the in-store shopping experience with our wholesale partners, such as branded spaces or licensed retail locations while expanding our presence in non-traditional locations like music festivals, sporting events, and fan conventions. While mass retail remains a priority, our direct-to-consumer (DTC) business has grown to represent 25% of our total sales, offering unique products and exclusive activations like Pop! Yourself customization kits. Additionally, we’re expanding our Loungefly and Mondo lines to introduce new form factors and product silhouettes to help us reach new fans and retail partners.
TB: What are the biggest challenges and opportunities facing the overall industry right now, and how is Funko approaching them?
CW: The biggest challenge is navigating economic uncertainty while still delivering innovation that excites consumers. With shifting consumer spending habits, value perception is key — we need to ensure our products continue to resonate at the right price points and are available where fans shop. At the same time, this challenge presents an opportunity: by focusing on high-growth categories like sports and gaming, we can create meaningful connections with new audiences while deepening engagement with our existing fan base. Strategic licensing, thoughtful product development, and new exciting retail partnerships will be central to this year’s approach.
TB: Many initially thought that last year would be the year the toy industry normalized after a few chaotic years, but the results were mixed. What are your overall predictions for the toy industry and the state of toys and collectibles at retail this year?
CW: The industry remains in flux, but we see strong growth potential in targeted areas. Kidult collectibles continue to thrive, especially when tied to major entertainment and sports events. Retailers must be more strategic with inventory, aligning products with cultural moments and fan demand. We expect the industry to continue evolving toward a hybrid model — balancing mass-market accessibility with specialty-driven exclusivity — to keep fans engaged and excited.
TB: As you approach the one-year mark with Funko, what are the biggest learnings thus far?
CW: Every new role presents its own learning curve, but what’s stood out most to me is the sheer passion within the Funkoverse — not just among fans, but among our employees. I’ve worked with many enthusiastic consumer communities, but seeing that same level of dedication and focus on spurring joy is inspiring. Just this past January, our team initiated a fundraiser for Southern California wildfire relief, rapidly moving from idea, which actually stemmed from a suggestion by one of our Hollywood retail employees, to execution in days. My role, my responsibility, is to harness that energy and scale it with purpose. That means leveraging data to drive better decision-making, optimizing our commercialization strategies, and evolving our direct-to-consumer operations to support long-term growth. With a team that’s open to fresh perspectives and eager to try new approaches, I’m confident we can continue innovating on how best to surprise and delight our fans in everything we do.
For more of our annual State of the Industry Q&A series, click here!
A version of this feature was originally published in the 2025 edition of The BIG Toy Book. Click here to read the full issue! Want to receive The Toy Book in print? Click here for subscription options
