JAKKS Pacific Reports First Quarter 2025 Financial Results
Sales up 26% vs. prior year; Board approves 25 cent quarterly dividend
Santa Monica, CA JAKKS Pacific 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.
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||||||
| March 31, | December 31, | |||||||||||||||||
| 2025 | 2024 | 2024 | ||||||||||||||||
| (In thousands) | ||||||||||||||||||
| Assets | ||||||||||||||||||
| Current assets: | ||||||||||||||||||
| Cash and cash equivalents | $ | 59,188 | $ | 35,290 | $ | 69,936 | ||||||||||||
| Restricted cash | 207 | 202 | 201 | |||||||||||||||
| Accounts receivable, net | 95,611 | 79,875 | 131,629 | |||||||||||||||
| Inventory | 53,163 | 46,341 | 52,780 | |||||||||||||||
| Prepaid expenses and other assets | 19,854 | 19,087 | 14,141 | |||||||||||||||
| Total current assets | 228,023 | 180,795 | 268,687 | |||||||||||||||
| Property and equipment | 142,493 | 138,066 | 142,623 | |||||||||||||||
| Less accumulated depreciation and amortization | 124,592 | 122,694 | 126,981 | |||||||||||||||
| Property and equipment, net | 17,901 | 15,372 | 15,642 | |||||||||||||||
| Operating lease right-of-use assets, net | 52,721 | 22,965 | 53,254 | |||||||||||||||
| Deferred income tax assets, net | 70,404 | 68,142 | 70,394 | |||||||||||||||
| Goodwill | 35,085 | 34,997 | 35,111 | |||||||||||||||
| Other long-term assets | 1,737 | 2,063 | 1,781 | |||||||||||||||
| Total assets | $ | 405,871 | $ | 324,334 | $ | 444,869 | ||||||||||||
| Liabilities, Preferred Stock and Stockholders’ Equity | ||||||||||||||||||
| Current liabilities: | ||||||||||||||||||
| Accounts payable | $ | 44,489 | $ | 31,683 | $ | 42,560 | ||||||||||||
| Accounts payable – Meisheng (related party) | – | 8,689 | 13,461 | |||||||||||||||
| Accrued expenses | 37,200 | 37,201 | 48,456 | |||||||||||||||
| Reserve for sales returns and allowances | 26,229 | 27,859 | 35,817 | |||||||||||||||
| Income taxes payable | 1,093 | – | 1,035 | |||||||||||||||
| Short term operating lease liabilities | 9,806 | 8,237 | 8,091 | |||||||||||||||
| Total current liabilities | 118,817 | 113,669 | 149,420 | |||||||||||||||
| Long term operating lease liabilities | 47,110 | 15,961 | 48,433 | |||||||||||||||
| Accrued expenses – long term | 2,909 | 3,183 | 2,563 | |||||||||||||||
| Income taxes payable | 2,009 | 3,295 | 3,620 | |||||||||||||||
| Total liabilities | 170,845 | 136,108 | 204,036 | |||||||||||||||
| Stockholders’ equity: | ||||||||||||||||||
| Common stock, $.001 par value | 11 | 11 | 11 | |||||||||||||||
| Additional paid-in capital | 295,931 | 292,024 | 297,198 | |||||||||||||||
| Accumulated deficit | (44,860 | ) | (88,117 | ) | (39,692 | ) | ||||||||||||
| Accumulated other comprehensive loss | (16,556 | ) | (16,192 | ) | (17,184 | ) | ||||||||||||
| Total JAKKS Pacific, Inc. stockholders’ equity | 234,526 | 187,726 | 240,333 | |||||||||||||||
| Non-controlling interests | 500 | 500 | 500 | |||||||||||||||
| Total stockholders’ equity | 235,026 | 188,226 | 240,833 | |||||||||||||||
| Total liabilities, preferred stock and stockholders’ equity | $ | 405,871 | $ | 324,334 | $ | 444,869 | ||||||||||||
| Supplemental Balance Sheet and Cash Flow Data (Unaudited) | ||||||||||||||||||
| March 31, | ||||||||||||||||||
| Key Balance Sheet Data: | 2025 | 2024 | ||||||||||||||||
| Accounts receivable days sales outstanding (DSO) | 76 | 81 | ||||||||||||||||
| Inventory turnover (DSI) | 64 | 61 | ||||||||||||||||
| Three Months Ended March 31, | ||||||||||||||||||
| Condensed Cash Flow Data: | 2025 | 2024 | ||||||||||||||||
| Cash flows used in operating activities | $ | (1,700 | ) | $ | (12,863 | ) | ||||||||||||
| Cash flows used in investing activities | (3,065 | ) | (3,634 | ) | ||||||||||||||
| Cash flows used in financing activities and other | (5,977 | ) | (20,565 | ) | ||||||||||||||
| Increase in cash, cash equivalents and restricted cash | $ | (10,742 | ) | $ | (37,062 | ) | ||||||||||||
| Capital expenditures | $ | (2,070 | ) | $ | (2,228 | ) | ||||||||||||
| JAKKS Pacific, Inc. and Subsidiaries | |||||||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | |||||||||||||||
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | Δ (%) | |||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Net sales | $ | 113,253 | $ | 90,076 | 26 | % | |||||||||
| Less: Cost of sales | |||||||||||||||
| Cost of goods | 54,626 | 53,821 | 1 | ||||||||||||
| Royalty expense | 18,168 | 13,776 | 32 | ||||||||||||
| Amortization of tools and molds | 1,446 | 1,427 | 1 | ||||||||||||
| Cost of sales | 74,240 | 69,024 | 8 | ||||||||||||
| Gross profit | 39,013 | 21,052 | 85 | ||||||||||||
| Direct selling expenses | 8,696 | 8,097 | 7 | ||||||||||||
| General and administrative expenses | 33,961 | 34,192 | (1 | ) | |||||||||||
| Depreciation and amortization | 113 | 87 | 30 | ||||||||||||
| Selling, general and administrative expenses | 42,770 | 42,376 | 1 | ||||||||||||
| Loss from operations | (3,757 | ) | (21,324 | ) | (82 | ) | |||||||||
| Other income (expense): | |||||||||||||||
| Other income (expense), net | 5 | 138 | (96 | ) | |||||||||||
| Interest income | 362 | 376 | (4 | ) | |||||||||||
| Interest expense | (155 | ) | (143 | ) | 8 | ||||||||||
| Loss before benefit from income taxes | (3,545 | ) | (20,953 | ) | (83 | ) | |||||||||
| Benefit from income taxes | (1,163 | ) | (6,728 | ) | (83 | ) | |||||||||
| Net loss | (2,382 | ) | (14,225 | ) | (83 | ) | |||||||||
| Net loss attributable to non-controlling interests | – | 280 | nm | ||||||||||||
| Net loss attributable to JAKKS Pacific, Inc. | $ | (2,382 | ) | $ | (14,505 | ) | (84 | ) | % | ||||||
| Net loss attributable to common stockholders | $ | (2,382 | ) | $ | (13,175 | ) | (82 | ) | % | ||||||
| Loss per share – basic & diluted | $ | (0.21 | ) | $ | (1.27 | ) | |||||||||
| Shares used in loss per share – basic & diluted | 11,146 | 10,354 | |||||||||||||
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | Δ bps | |||||||||||||
| Fav/(Unfav) | |||||||||||||||
| Net sales | 100.0 | % | 100.0 | % | – | ||||||||||
| Less: Cost of sales | |||||||||||||||
| Cost of goods | 48.3 | 59.7 | 1,140 | ||||||||||||
| Royalty expense | 16.0 | 15.3 | (70 | ) | |||||||||||
| Amortization of tools and molds | 1.3 | 1.6 | 30.0 | ||||||||||||
| Cost of sales | 65.6 | 76.6 | 1,100 | ||||||||||||
| Gross profit | 34.4 | 23.4 | 1,100 | ||||||||||||
| Direct selling expenses | 7.7 | 9.0 | 130 | ||||||||||||
| General and administrative expenses | 29.9 | 38.0 | 810 | ||||||||||||
| Depreciation and amortization | 0.1 | 0.1 | – | ||||||||||||
| Selling, general and administrative expenses | 37.7 | 47.1 | 940 | ||||||||||||
| Loss from operations | (3.3 | ) | (23.7 | ) | 2,040 | ||||||||||
| Other income (expense): | |||||||||||||||
| Other income (expense), net | – | 0.2 | |||||||||||||
| Interest income | 0.3 | 0.4 | |||||||||||||
| Interest expense | (0.1 | ) | (0.2 | ) | |||||||||||
| Loss before benefit from income taxes | (3.1 | ) | (23.3 | ) | |||||||||||
| Benefit from income taxes | (1.0 | ) | (7.5 | ) | |||||||||||
| Net loss | (2.1 | ) | (15.8 | ) | |||||||||||
| Net loss attributable to non-controlling interests | – | 0.3 | |||||||||||||
| Net loss attributable to JAKKS Pacific, Inc. | (2.1 | ) | % | (16.1 | ) | % | |||||||||
| Net loss attributable to common stockholders | (2.1 | ) | % | (14.6 | ) | % | |||||||||
| JAKKS Pacific, Inc. and Subsidiaries | |||||||||||||||
| Reconciliation of Non-GAAP Financial Information (Unaudited) | |||||||||||||||
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | Δ ($) | |||||||||||||
| (In thousands) | |||||||||||||||
| EBITDA and Adjusted EBITDA | |||||||||||||||
| Net loss | $ | (2,382 | ) | $ | (14,225 | ) | $ | 11,843 | |||||||
| Interest expense | 155 | 143 | 12 | ||||||||||||
| Interest income | (362 | ) | (376 | ) | 14 | ||||||||||
| Benefit from income taxes | (1,163 | ) | (6,728 | ) | 5,565 | ||||||||||
| Depreciation and amortization | 1,559 | 1,514 | 45 | ||||||||||||
| EBITDA | (2,193 | ) | (19,672 | ) | 17,479 | ||||||||||
| Adjustments: | |||||||||||||||
| Other (income) expense, net | (5 | ) | (138 | ) | 133 | ||||||||||
| Restricted stock compensation expense | 2,552 | 2,575 | (23 | ) | |||||||||||
| Adjusted EBITDA | $ | 354 | $ | (17,235 | ) | $ | 17,589 | ||||||||
| Adjusted EBITDA/Net sales % | 0.3 | % | (19.1 | ) | % | 1940 bps | |||||||||
| Trailing Twelve Months Ended March 31, |
|||||||||||||||
| 2025 | 2024 | Δ ($) | |||||||||||||
| (In thousands) | |||||||||||||||
| TTM EBITDA and TTM Adjusted EBITDA | |||||||||||||||
| TTM net income | $ | 46,043 | $ | 29,206 | $ | 16,837 | |||||||||
| Interest expense | 1,107 | 3,591 | (2,484 | ) | |||||||||||
| Interest income | (827 | ) | (1,603 | ) | 776 | ||||||||||
| Provision for income taxes | 11,097 | 1,488 | 9,609 | ||||||||||||
| Depreciation and amortization | 10,091 | 10,659 | (568 | ) | |||||||||||
| TTM EBITDA | 67,511 | 43,341 | 24,170 | ||||||||||||
| Adjustments: | |||||||||||||||
| Loss from joint ventures (JAKKS Pacific, Inc. – 51%) | – | 276 | (276 | ) | |||||||||||
| Loss from joint ventures (Meisheng – 49%) | – | 289 | (289 | ) | |||||||||||
| Other (income) expense, net | (169 | ) | (263 | ) | 94 | ||||||||||
| Restricted stock compensation expense | 9,512 | 8,513 | 999 | ||||||||||||
| Change in fair value of preferred stock derivative liability | – | 8,176 | (8,176 | ) | |||||||||||
| Molds and tooling capitalization | – | (1,751 | ) | 1,751 | |||||||||||
| Loss on debt extinguishment | – | 1,023 | (1,023 | ) | |||||||||||
| TTM Adjusted EBITDA | $ | 76,854 | $ | 59,604 | $ | 17,250 | |||||||||
| TTM Adjusted EBITDA/TTM Net sales % | 10.8 | % | 8.6 | % | 220 bps | ||||||||||
| Three Months Ended March 31, | |||||||||||||||
| 2025 | 2024 | Δ ($) | |||||||||||||
| (In thousands, except per share data) | |||||||||||||||
| Adjusted net loss attributable to common stockholders | |||||||||||||||
| Net loss attributable to common stockholders | $ | (2,382 | ) | $ | (13,175 | ) | $ | 10,793 | |||||||
| Restricted stock compensation expense | 2,552 | 2,575 | (23 | ) | |||||||||||
| Tax impact of additional charges | (524 | ) | (657 | ) | 133 | ||||||||||
| Adjusted net loss attributable to common stockholders | $ | (354 | ) | $ | (11,257 | ) | $ | 10,903 | |||||||
| Adjusted loss per share – basic & diluted | $ | (0.03 | ) | $ | (1.09 | ) | $ | 1.06 | |||||||
| Shares used in adjusted earnings (loss) per share – basic & diluted | 11,146 | 10,354 | 792 | ||||||||||||
| JAKKS Pacific, Inc. and Subsidiaries | |||||||||||
| Net Sales by Division and Geographic Region | |||||||||||
| (In thousands) | Q1 | ||||||||||
| Divisions | 2025 | 2024 | 2023 | % Change 2025 v 2024 |
% Change 2024 v 2023 |
||||||
| Toys/Consumer Products | $ | 107,438 | $ | 82,910 | $ | 97,893 | 29.6 | % | -15.3 | % | |
| Dolls, Role-Play/Dress Up | 55,463 | 40,574 | 47,843 | 36.7 | % | -15.2 | % | ||||
| Action Play & Collectibles | 42,881 | 33,008 | 37,846 | 29.9 | % | -12.8 | % | ||||
| Outdoor/Seasonal Toys | 9,094 | 9,328 | 12,204 | -2.5 | % | -23.6 | % | ||||
| Costumes | $ | 5,815 | $ | 7,166 | $ | 9,591 | -18.9 | % | -25.3 | % | |
| Total | $ | 113,253 | $ | 90,076 | $ | 107,484 | 25.7 | % | -16.2 | % | |
| (In thousands) | Q1 | ||||||||||
| Regions | 2025 | 2024 | 2023 | % Change 2025 v 2024 |
% Change 2024 v 2023 |
||||||
| United States | $ | 88,944 | $ | 70,430 | $ | 80,443 | 26.3 | % | -12.4 | % | |
| Europe | 11,810 | 5,735 | 10,162 | 105.9 | % | -43.6 | % | ||||
| Latin America | 7,459 | 7,996 | 9,204 | -6.7 | % | -13.1 | % | ||||
| Canada | 3,279 | 3,370 | 4,054 | -2.7 | % | -16.9 | % | ||||
| Asia | 751 | 965 | 1,380 | -22.2 | % | -30.1 | % | ||||
| Australia & New Zealand | 613 | 1,346 | 1,608 | -54.5 | % | -16.3 | % | ||||
| Middle East & Africa | 397 | 234 | 633 | 69.7 | % | -63.0 | % | ||||
| TOTAL JAKKS | $ | 113,253 | $ | 90,076 | $ | 107,484 | 25.7 | % | -16.2 | % | |
| (In thousands) | Q1 | ||||||||||
| Regions | 2025 | 2024 | 2023 | % Change 2025 v 2024 |
% Change 2024 v 2023 |
||||||
| North America | $ | 92,223 | $ | 73,800 | $ | 84,497 | 25.0 | % | -12.7 | % | |
| International | 21,030 | 16,276 | 22,987 | 29.2 | % | -29.2 | % | ||||
| Total | $ | 113,253 | $ | 90,076 | $ | 107,484 | 25.7 | % | -16.2 | % | |
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