JAKKS Pacific Reports First Quarter 2025 Financial Results

Sales up 26% vs. prior year; Board approves 25 cent quarterly dividend

SANTA MONICA, Calif., April 29, 2025 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the first quarter ended March 31, 2025.

First Quarter 2025

• Net sales were $113.3 million, a year-over-year increase of $23.2 million or 26%, driven in part by demand for product related to last quarter’s film releases

• Gross margin of 34.4% vs. 23.4% in Q1 2024, driven by improved margin of new product launches along with significantly reduced inventory obsolescence expense and retailer markdowns

• Gross profit of $39.0 million, up $17.9 million compared to $21.1 million in Q1 2024

• Operating loss of $3.8 million, compared to an operating loss of $21.3 million in Q1 2024

• Adjusted net loss attributable to common stockholders (a non-GAAP measure) of $0.4 million (or $0.03 per share), compared to an adjusted net loss attributable to common stockholders of $11.3 million (or $1.09 per share) in Q1 2024

• Adjusted EBITDA (a non-GAAP measure) of $0.4 million vs. $(17.2) million in Q1 2024

Management Commentary
“We are happy to share our results after a strong start to the year at JAKKS. We’ve seen great consumer reaction year-to-date with solid consumer sales across major accounts and major markets.” said Stephen Berman, Chairman and CEO of JAKKS Pacific. ““It has certainly been a moment of reflection to see our industry’s long-standing tradition of building substantial global partnerships come under scrutiny. Yet rather than viewing this as a setback, we see it as an opportunity to showcase the agility, innovation, and resilience that define not only our industry — but especially JAKKS as a nimble, focused company.

We’re proud to have restored our fortress balance sheet — a critical milestone for our long-term success. We have maintained a strong liquidity position and a prudent capital structure that not only shields us in times of volatility but also positions us to move swiftly on growth opportunities. This disciplined approach gives us the confidence to invest in our future with a flexible financial foundation — even when the external environment is less predictable. In 2023, we eliminated all long-term debt and completed the repurchase of our preferred stock, giving us a clean and stable balance sheet. This not only enhances our ability to respond quickly to market shifts but also allows us to dedicate more energy and focus to driving our core business forward and pursuing new, high-potential opportunities.

We continue to create products that resonate with consumers globally, and we’re especially excited about what’s coming to market over the next twelve months. While the current environment in the United States has presented some unique challenges — particularly in the month of April — our foresight in building up strong infrastructure and capable teams in Europe and Latin America is already paying off. These regions are delivering real growth, and we see significant runway ahead.

We remain actively engaged in monitoring the evolving situation in the U.S. and are positioning ourselves to maximize performance in 2025, while keeping our medium- and long-term goals firmly in sight. We believe our seasoned team, global presence, and financial strength give us a clear advantage in navigating uncertainty — and ultimately emerging stronger.”

The Board of Directors has declared a quarterly dividend of $0.25 per share on the company’s common stock, payable June 27, 2025, to shareholders of record May 30, 2025.

First Quarter 2025 Results
Net sales for the first quarter of 2025 were $113.3 million, up 26% versus $90.1 million last year. The Toys/Consumer Products segment sales were up 30% globally to $107.4 million and sales of Costumes were down 19% to $5.8 million compared to last year. North America sales were $92.2 million, up from $73.8 million last year. International sales were $21.0 million, up from $16.3 million last year, led by a 100+% increase from Europe, which grew from $5.7 million to $11.8 million.

The Company’s cash and cash equivalents (including restricted cash) totaled $59.4 million as of March 31, 2025, compared to $35.5 million at the same time last year, and to $70.1 million as of December 31, 2024. Inventory was $53.2 million, compared to $46.3 million in total inventory as of March 31, 2024, and $52.8 million as of December 31, 2024.

Use of Non-GAAP Financial Information
In addition to the preliminary results reported in accordance with U.S. GAAP included in this release, the Company has provided certain non-GAAP financial information including Adjusted EBITDA and Adjusted Net Income (Loss) that exclude various items that are detailed in the financial tables and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures.

We define Adjusted EBITDA as income (loss) from operations before depreciation, amortization and adjusted for certain non-recurring and non-cash charges, such as reorganization expenses and restricted stock compensation expense. Net income (loss) is similarly adjusted and tax-effected to arrive at Adjusted Net Income (Loss). Adjusted EBITDA and Adjusted Net Income (Loss) are not recognized financial measures under GAAP, but we believe that they are useful in measuring our operating performance, enhance an overall understanding of the Company’s past financial performance, and provides useful information to the investor by comparing our performance across reporting periods on a consistent basis. Investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining the Company’s operating performance that is calculated in accordance with GAAP. In addition, because these measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies.

The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures. See “Use of Non-GAAP Financial Information” for additional disclosures with respect to the use of non-GAAP financial information.

This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific’s business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially form what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS specifics products, product mix, the timing of customers orders and deliveries, the imposition, threat or uncertainty of tariffs, including reciprocal or retaliatory tariffs, the impact of competitive products and pricing, or that any future transactions will result in future growth or success of JAKKS. The “forward-looking statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.

Conference Call Live Webcast
JAKKS Pacific, Inc. invites analysts, investors, and media to listen to the teleconference scheduled for 5:00 p.m. ET / 2:00 p.m. PT on April 29, 2025. A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at www.jakks.com/investors. To access the call by phone, please go to this link (1Q25 Registration link), and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at (www.jakks.com/investors).

About JAKKS Pacific, Inc.:
JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include: AirTitans®, Disguise®, Fly Wheels®, JAKKS Wild Games®, Moose Mountain®, Maui®, Perfectly Cute®, ReDo® Skateboard Co., Sky Ball®, SportsZone™, Xtreme Power Dozer®, WeeeDo®, and Wild Manes™ as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through our products and our charitable donations, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkspacific.toys), X (@jakkstoys) and Facebook (@jakkspacific.toys).

Forward Looking Statements
This press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific's business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS Pacific's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, or that any future transactions will result in future growth or success of JAKKS. The “forward-looking statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release.