Jakks Pacific Reports First Quarter 2026 Financial Results
akks Pacific Reports First Quarter 2026 Financial Results
Board approves 25 cent quarterly dividend
Santa Monica, CA — Jakks Pacific, reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026
- Net sales were $106.7 million, a year-over-year decrease of 6%
- Toys/Consumer Products net sales were $100.1 million, down 7% from $107.4 million last year
- Costumes net sales were $6.6 million, a year-over-year increase of 13%
- Gross margin of 33.4%, down 100 basis points vs. Q1 2025
- Gross profit of $35.6 million, down 9% compared to $39.0 million in Q1 2025
- Operating loss of $5.6 million in Q1 2026, compared to a loss of $3.8 million in Q1 2025
- Net loss attributable to common stockholders of $4.3 million or $0.37 per diluted share, compared to net loss attributable to common stockholders of $2.4 million or $0.21 per diluted share in Q1 2025
- Adjusted net loss attributable to common stockholders (a non-GAAP measure) of $1.9 million or $0.17 per diluted share, compared to adjusted net loss attributable to common stockholders of $0.4 million or $0.03 per diluted share in Q1 2025
- Adjusted EBITDA (a non-GAAP measure) of $(0.4) million vs. $0.4 million in Q1 2025
- Trailing-twelve-month Adjusted EBITDA of $34.6 million, down from $35.4 million as of Q4 2025
Management Commentary
“The first quarter for our company is always focused on working with customers to understand the implications of the year that has just closed. For companies like ours that can move quickly and are focused on meeting their customers’ needs that leads to uncovering new opportunities. From that perspective, this has been a very successful quarter, and we feel we are building momentum. Our persistent focus on international growth delivered well. On a trailing twelve-month basis, our International Net Sales have reached $138 million, the highest level we achieved over the past ten years. Customers in the U.S. remain cautious but we are rebuilding the base that was disrupted last year. Our Costumes business continues to steadily expand both its product line breadth as well as its customer footprint, globally.”
First Quarter 2026 Results
Net Sales in North America were down 16% in the quarter compared to the previous year but were up compared to the same quarter in 2024. International Sales were $29.0 million in the quarter, up from $21.0 million last year and $16.3 million in 2024. Globally, Action Play & Collectibles net sales were $55.3 million, up from $42.9 million and $33.0 million in 2025 and 2024, respectively. Dolls, Role-Play, Dress-Up net sales were $37.5 million, compared to $55.5 million and $40.6 million in 2025 and 2024, respectively.
Inventory was $52.9 million as of March 31, 2026, compared to $53.2 million as of March 31, 2025, and $59.8 million as of December 31, 2025.
Cash (including restricted cash and cash equivalents) was $64.0 million as of March 31, 2026, compared to $59.4 million as of March 31, 2025, and $54.1 million as of December 31, 2025.
The Board of Directors has declared a quarterly dividend of $0.25 per share on the company’s common stock, payable June 29, 2026, to shareholders of record May 29, 2026.
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||||
| March 31, | December 31, | |||||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||
| (In thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Current assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 62,849 | $ | 59,188 | $ | 52,197 | ||||||||||
| Restricted cash | 1,132 | 207 | 1,869 | |||||||||||||
| Accounts receivable, net | 93,244 | 95,611 | 138,341 | |||||||||||||
| Inventory, net | 52,854 | 53,163 | 59,805 | |||||||||||||
| Prepaid expenses and other assets | 18,749 | 19,854 | 16,873 | |||||||||||||
| Total current assets | 228,828 | 228,023 | 269,085 | |||||||||||||
| Property and equipment | 156,576 | 142,493 | 152,224 | |||||||||||||
| Less accumulated depreciation and amortization | 135,162 | 124,592 | 133,216 | |||||||||||||
| Property and equipment, net | 21,414 | 17,901 | 19,008 | |||||||||||||
| Operating lease right-of-use assets, net | 43,869 | 52,721 | 46,776 | |||||||||||||
| Deferred income tax assets, net | 69,578 | 70,404 | 69,569 | |||||||||||||
| Goodwill | 34,970 | 35,085 | 35,077 | |||||||||||||
| Other long-term assets | 1,787 | 1,737 | 2,682 | |||||||||||||
| Total assets | $ | 400,446 | $ | 405,871 | $ | 442,197 | ||||||||||
| Liabilities and Stockholders’ Equity | ||||||||||||||||
| Current liabilities: | ||||||||||||||||
| Accounts payable | $ | 39,964 | $ | 44,489 | $ | 55,558 | ||||||||||
| Accrued expenses | 35,709 | 37,200 | 43,076 | |||||||||||||
| Reserve for sales returns and allowances | 26,737 | 26,229 | 33,569 | |||||||||||||
| Income taxes payable | 509 | 1,093 | 2,119 | |||||||||||||
| Short-term operating lease liabilities | 14,115 | 9,806 | 13,784 | |||||||||||||
| Total current liabilities | 117,034 | 118,817 | 148,106 | |||||||||||||
| Long-term operating lease liabilities | 35,913 | 47,110 | 39,578 | |||||||||||||
| Accrued expenses, long term | 4,555 | 2,909 | 4,463 | |||||||||||||
| Income taxes payable | 960 | 2,009 | 945 | |||||||||||||
| Total liabilities | 158,462 | 170,845 | 193,092 | |||||||||||||
| Stockholders’ equity: | ||||||||||||||||
| Common stock, $.001 par value | 11 | 11 | 11 | |||||||||||||
| Additional paid-in capital | 304,229 | 295,931 | 302,408 | |||||||||||||
| Accumulated deficit | (48,162 | ) | (44,860 | ) | (41,021 | ) | ||||||||||
| Accumulated other comprehensive loss | (14,094 | ) | (16,556 | ) | (12,293 | ) | ||||||||||
| Total JAKKS Pacific, Inc. stockholders’ equity | 241,984 | 234,526 | 249,105 | |||||||||||||
| Non-controlling interests | – | 500 | – | |||||||||||||
| Total stockholders’ equity | 241,984 | 235,026 | 249,105 | |||||||||||||
| Total liabilities and stockholders’ equity | $ | 400,446 | $ | 405,871 | $ | 442,197 | ||||||||||
| Supplemental Balance Sheet and Cash Flow Data (Unaudited) | |||||||||||||||||||
| March 31, | |||||||||||||||||||
| Key Balance Sheet Data: | 2026 | 2025 | |||||||||||||||||
| Accounts receivable days sales outstanding (DSO) | 79 | 76 | |||||||||||||||||
| Inventory turnover (DSI) | 67 | 64 | |||||||||||||||||
| Three Months Ended March 31, | Trailing Twelve Months (*) Ended March 31, | ||||||||||||||||||
| Condensed Cash Flow Data: | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| Cash flows from (used in) operating activities | $ | 21,795 | $ | (1,700 | ) | $ | 31,987 | $ | 50,110 | ||||||||||
| Cash flows used in investing activities | (5,812 | ) | (3,065 | ) | (15,091 | ) | (12,320 | ) | |||||||||||
| Cash flows used in financing activities and other | (6,068 | ) | (5,977 | ) | (12,310 | ) | (13,887 | ) | |||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 9,915 | $ | (10,742 | ) | $ | 4,586 | $ | 23,903 | ||||||||||
| Capital expenditures | $ | (5,589 | ) | $ | (2,070 | ) | $ | (13,082 | ) | $ | (11,088 | ) | |||||||
| (*) Trailing twelve months (TTM) amounts are calculated as the sum of the most recent four quarters, derived from reported GAAP results. | |||||||||||||||||||
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2026 | 2025 | Δ (%) | ||||||||||
| (In thousands, except per share data) | ||||||||||||
| Net sales | $ | 106,676 | $ | 113,253 | (6 | )% | ||||||
| Less: Cost of sales | ||||||||||||
| Cost of goods | 52,187 | 54,626 | (4 | ) | ||||||||
| Royalty expense | 16,913 | 18,168 | (7 | ) | ||||||||
| Amortization of tools and molds | 1,970 | 1,446 | 36 | |||||||||
| Cost of sales | 71,070 | 74,240 | (4 | ) | ||||||||
| Gross profit | 35,606 | 39,013 | (9 | ) | ||||||||
| Direct selling expenses | 8,164 | 8,696 | (6 | ) | ||||||||
| General and administrative expenses | 32,864 | 33,961 | (3 | ) | ||||||||
| Depreciation and amortization | 152 | 113 | 35 | |||||||||
| Selling, general and administrative expenses | 41,180 | 42,770 | (4 | ) | ||||||||
| Loss from operations | (5,574 | ) | (3,757 | ) | 48 | |||||||
| Other income (expense): | ||||||||||||
| Other income (expense), net | 25 | 5 | 400 | |||||||||
| Interest income | 480 | 362 | 33 | |||||||||
| Interest expense | (60 | ) | (155 | ) | (61 | ) | ||||||
| Loss before benefit from income taxes | (5,129 | ) | (3,545 | ) | 45 | |||||||
| Benefit from income taxes | (849 | ) | (1,163 | ) | (27 | ) | ||||||
| Net loss | $ | (4,280 | ) | $ | (2,382 | ) | 80 | % | ||||
| Loss per share – basic & diluted | $ | (0.37 | ) | $ | (0.21 | ) | ||||||
| Shares used in loss per share – basic & diluted | 11,444 | 11,146 | ||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2026 | 2025 | Δ bps | ||||||||||
| Fav/(Unfav) | ||||||||||||
| Net sales | 100.0 | % | 100.0 | % | – | |||||||
| Less: Cost of sales | ||||||||||||
| Cost of goods | 48.9 | 48.3 | (60 | ) | ||||||||
| Royalty expense | 15.9 | 16.0 | 10 | |||||||||
| Amortization of tools and molds | 1.8 | 1.3 | (50.0 | ) | ||||||||
| Cost of sales | 66.6 | 65.6 | (100 | ) | ||||||||
| Gross profit | 33.4 | 34.4 | (100 | ) | ||||||||
| Direct selling expenses | 7.7 | 7.7 | 0 | |||||||||
| General and administrative expenses | 30.8 | 29.9 | (90 | ) | ||||||||
| Depreciation and amortization | 0.1 | 0.1 | – | |||||||||
| Selling, general and administrative expenses | 38.6 | 37.7 | (90 | ) | ||||||||
| Loss from operations | (5.2 | ) | (3.3 | ) | (190 | ) | ||||||
| Other income (expense): | ||||||||||||
| Other income (expense), net | – | – | ||||||||||
| Interest income | 0.4 | 0.3 | ||||||||||
| Interest expense | – | (0.1 | ) | |||||||||
| Loss before benefit from income taxes | (4.8 | ) | (3.1 | ) | ||||||||
| Benefit from income taxes | (0.8 | ) | (1.0 | ) | ||||||||
| Net loss | (4.0 | )% | (2.1 | )% | ||||||||
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Information (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended March 31, |
Three Months Ended March 31, |
|||||||||||||||||||||||
| 2026 | 2025 | Δ ($) | 2026 | 2025 | Δ ($) | |||||||||||||||||||
| (In thousands) | (In thousands) | |||||||||||||||||||||||
| EBITDA and Adjusted EBITDA | ||||||||||||||||||||||||
| Net loss | $ | (4,280 | ) | $ | (2,382 | ) | $ | (1,898 | ) | $ | (4,280 | ) | $ | (2,382 | ) | $ | (1,898 | ) | ||||||
| Interest expense | 60 | 155 | (95 | ) | 60 | 155 | (95 | ) | ||||||||||||||||
| Interest income | (480 | ) | (362 | ) | (118 | ) | (480 | ) | (362 | ) | (118 | ) | ||||||||||||
| Benefit from income taxes | (849 | ) | (1,163 | ) | 314 | (849 | ) | (1,163 | ) | 314 | ||||||||||||||
| Depreciation and amortization | 2,122 | 1,559 | 563 | 2,122 | 1,559 | 563 | ||||||||||||||||||
| EBITDA | (3,427 | ) | (2,193 | ) | (1,234 | ) | (3,427 | ) | (2,193 | ) | (1,234 | ) | ||||||||||||
| Adjustments: | ||||||||||||||||||||||||
| Other (income) expense, net | (25 | ) | (5 | ) | (20 | ) | (25 | ) | (5 | ) | (20 | ) | ||||||||||||
| Restricted stock compensation expense | 3,081 | 2,552 | 529 | 3,081 | 2,552 | 529 | ||||||||||||||||||
| Adjusted EBITDA | $ | (371 | ) | $ | 354 | $ | (725 | ) | $ | (371 | ) | $ | 354 | $ | (725 | ) | ||||||||
| Adjusted EBITDA/Net sales % | (0.3 | )% | 0.3 | % | -60 bps | (0.3 | )% | 0.3 | % | -60 bps | ||||||||||||||
| Trailing Twelve Months Ended March 31, | ||||||||||||||||||||||||
| 2026 | 2025 | Δ ($) | ||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||
| TTM EBITDA and TTM Adjusted EBITDA | ||||||||||||||||||||||||
| TTM net income | $ | 7,973 | $ | 46,043 | $ | (38,070 | ) | |||||||||||||||||
| Interest expense | 376 | 1,107 | (731 | ) | ||||||||||||||||||||
| Interest income | (1,113 | ) | (827 | ) | (286 | ) | ||||||||||||||||||
| Provision for income taxes | 5,208 | 11,097 | (5,889 | ) | ||||||||||||||||||||
| Depreciation and amortization | 10,796 | 10,091 | 705 | |||||||||||||||||||||
| TTM EBITDA | 23,240 | 67,511 | (44,271 | ) | ||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||
| Other (income) expense, net | (470 | ) | (169 | ) | (301 | ) | ||||||||||||||||||
| Restricted stock compensation expense | 11,442 | 9,512 | 1,930 | |||||||||||||||||||||
| Loss on debt extinguishment | 427 | – | 427 | |||||||||||||||||||||
| TTM Adjusted EBITDA | $ | 34,639 | $ | 76,854 | $ | (42,215 | ) | |||||||||||||||||
| TTM Adjusted EBITDA/TTM Net sales % | 6.1 | % | 10.8 | % | -470 bps | |||||||||||||||||||
| Three Months Ended March 31, |
Three Months Ended March 31, |
|||||||||||||||||||||||
| 2026 | 2025 | Δ ($) | 2026 | 2025 | Δ ($) | |||||||||||||||||||
| (In thousands, except per share data) | (In thousands, except per share data) | |||||||||||||||||||||||
| Adjusted net loss attributable to common stockholders | ||||||||||||||||||||||||
| Net loss | $ | (4,280 | ) | $ | (2,382 | ) | $ | (1,898 | ) | $ | (4,280 | ) | $ | (2,382 | ) | $ | (1,898 | ) | ||||||
| Restricted stock compensation expense | 3,081 | 2,552 | 529 | 3,081 | 2,552 | 529 | ||||||||||||||||||
| Tax impact of additional charges | (713 | ) | (524 | ) | (189 | ) | (3,866 | ) | (524 | ) | (3,342 | ) | ||||||||||||
| Adjusted net loss | $ | (1,912 | ) | $ | (354 | ) | $ | (1,558 | ) | $ | (5,065 | ) | $ | (354 | ) | $ | (4,711 | ) | ||||||
| Adjusted loss per share – basic & diluted | $ | (0.17 | ) | $ | (0.03 | ) | $ | (0.14 | ) | $ | (0.44 | ) | $ | (0.03 | ) | $ | (0.41 | ) | ||||||
| Shares used in adjusted loss per share – basic & diluted | 11,444 | 11,146 | 298 | 11,444 | 11,146 | 298 | ||||||||||||||||||
| Adjusted earnings (loss) per share – diluted | $ | (0.17 | ) | $ | (0.03 | ) | $ | (0.14 | ) | $ | (0.44 | ) | $ | (0.03 | ) | $ | (0.41 | ) | ||||||
| Shares used in adjusted earnings (loss) per share – diluted | 11,444 | 11,146 | 298 | 11,444 | 11,146 | 298 | ||||||||||||||||||
| JAKKS Pacific, Inc. and Subsidiaries | |||||
| Net Sales by Division and Geographic Region | |||||
| (In thousands) | QTD Q1 | ||||
| Divisions | 2024 | 2025 | 2026 | % Change 2025 v 2026 |
CAGR% 2024 – 2026 |
| Toys/Consumer Products | $82,910 | $107,438 | $100,095 | -6.8% | 9.9% |
| Dolls, Role-Play/Dress-Up | 40,574 | 55,463 | 37,497 | -32.4% | -3.9% |
| Action Play & Collectibles | 33,008 | 42,881 | 55,269 | 28.9% | 29.4% |
| Outdoor/Seasonal Toys | 9,328 | 9,094 | 7,329 | -19.4% | -11.4% |
| Costumes | $7,166 | $5,815 | $6,581 | 13.2% | -4.2% |
| Total | $90,076 | $113,253 | $106,676 | -5.8% | 8.8% |
| (In thousands) | QTD Q1 | ||||
| Regions | 2024 | 2025 | 2026 | % Change 2025 v 2026 |
CAGR% 2024 – 2026 |
| United States | $70,430 | $88,944 | $74,636 | -16.1% | 2.9% |
| Europe | 5,735 | 11,810 | 17,379 | 47.2% | 74.1% |
| Latin America | 7,996 | 7,459 | 6,962 | -6.7% | -6.7% |
| Canada | 3,370 | 3,279 | 2,992 | -8.8% | -5.8% |
| Australia & New Zealand | 1,346 | 613 | 2,469 | 302.8% | 35.4% |
| Asia | 965 | 751 | 1,935 | 157.7% | 41.6% |
| Middle East & Africa | 234 | 397 | 303 | -23.7% | 13.8% |
| Total | $90,076 | $113,253 | $106,676 | -5.8% | 8.8% |
| (In thousands) | QTD Q1 | ||||
| Regions | 2024 | 2025 | 2026 | % Change 2025 v 2026 |
CAGR% 2024 – 2026 |
| North America | $73,800 | $92,223 | $77,628 | -15.8% | 2.6% |
| International | 16,276 | 21,030 | 29,048 | 38.1% | 33.6% |
| Total | $90,076 | $113,253 | $106,676 | -5.8% | 8.8% |
| (In thousands) | QTD Q1 | ||||
| Regions | 2024 | 2025 | 2026 | % Change 2025 v 2026 |
CAGR% 2024 – 2026 |
| United States | $70,430 | $88,944 | $74,636 | -16.1% | 2.9% |
| Rest of World | 19,646 | 24,309 | 32,040 | 31.8% | 27.7% |
| Total | $90,076 | $113,253 | $106,676 | -5.8% | 8.8% |
