JAKKS Pacific Reports Third Quarter 2025 Financial Results

Board approves Quarterly Cash Dividend

SANTA MONICA, Calif., Oct. 30, 2025 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the third quarter ended September 30, 2025.

Third Quarter 2025

• Net sales were $211.2 million, a year-over-year decrease of $110.4 million or 34%, driven largely by a reduction in direct-import sales due to a combination of customers anticipating lower consumer demand in response to tariff-driven price increases and the lack of new theatrical release-related product vs. prior year

  • US net sales were $154.5 million, down 40% compared to Q3 2024

  • Rest of World net sales were $56.7 million, down 15% compared to Q3 2024

• Gross margin of 32.0% vs. 33.8% in Q3 2024, driven by US tariffs and higher royalty expense

• Gross profit of $67.6 million, down $41.2 million compared to $108.8 million in Q3 2024

• Operating income of $29.4 million, compared to operating income of $68.1 million in Q3 2024

• Adjusted net income attributable to common stockholders (a non-GAAP measure) of $20.6 million (or $1.80 per diluted share), compared to adjusted net income attributable to common stockholders of $54.0 million (or $4.79 per diluted share) in Q3 2024

• Adjusted EBITDA (a non-GAAP measure) of $36.5 million vs. $74.4 million in Q3 2024

First Nine Months 2025

• Net sales were $443.6 million compared to $560.3 million last year, a 21% decrease

  • US net sales were $330.5 million, down 27% compared to 2024

  • Rest of World net sales were $113.1 million, up 4% compared to 2024

  • Toys/Consumer Products net sales were $343.9 million, down 24% to prior year

  • Costumes net sales were $99.7 million, a year-over-year decrease of 8%

• Gross margin of 32.8% compared to 31.7% last year

• Gross profit of $145.7 million, down 18% compared to $177.5 million last year
  

Management Commentary

“While near-term volatility in tariffs and retail demand present challenges, this year they also highlight the value of running a disciplined, forward-looking business,” said Stephen Berman, Chairman and CEO of JAKKS Pacific. “We are not only protecting margins and supporting our retail partners with transparency today—we are laying the groundwork for a strong pipeline of products in a broad array of categories with some of the top licensed intellectual property that extends well into 2026 and beyond.

Our diversified sourcing network and ongoing supply chain cost reduction initiatives give us the agility to adapt to future shifts in trade and policy, while our strong balance sheet, conservative financial posture and strong inventory controls, both at retail and in our distribution centers, provide us with resilience through changing business environments.

We remain confident in our long-term trajectory. By sharpening operational efficiency, accelerating cash generation, and investing in product innovation, we are positioning JAKKS Pacific to capture new opportunities, deliver lasting value to shareholders and customers, and shape the future of play for years to come.”

Third Quarter & First Nine Months 2025 Results
Net sales for the third quarter of 2025 were $211.2 million, down 34% versus $321.6 million last year. The Toys/Consumer Products segment sales were down 41% globally to $156.1 million, and sales of Costumes were down 4% to $55.1 million compared to last year. United States sales were $154.5 million, down 40% from $255.3 million last year. Rest of World sales were $56.7 million, down 15% from $66.3 million last year.

Net sales for the first nine months of 2025 were $443.6 million, down 21% from $560.3 million last year. The Toys/Consumer Products segment’s sales were $343.9 million, down 24% from $451.8 million last year. Sales of Costumes were $99.7 million, down 8% from $108.5 million for the same time period last year. United States sales were $330.5 million, down 27% from $451.5 million last year. Rest of World sales were $113.1 million, up 4% from $108.8 million last year.

Trailing twelve-month EBITDA (a non-GAAP measure) was $29.0 million as of September 30, 2025, down from $58.5 million as of September 30, 2024.

The Company’s cash and cash equivalents (including restricted cash) totaled $27.8 million as of September 30, 2025, compared to $22.3 million at the same time last year, and $70.1 million as of December 31, 2024. Inventory was $71.5 million, compared to $63.5 million as of September 30, 2024, and $52.8 million as of December 31, 2024.

The Board of Directors has declared a quarterly dividend of $0.25 per share on the company’s common stock, payable December 29, 2025, to shareholders of record on November 28, 2025.

Use of Non-GAAP Financial Information and Forward-Looking Statements
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.

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 specific 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 October 30, 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 (3Q25 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).