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Jakks Pacific Reports Fourth Quarter and Full-Year 2025 Financial Results

Jakks Pacific Reports Fourth Quarter and Full-Year 2025 Financial Results image

Santa Monica, CA — Jakks Pacific reported financial results for the fourth quarter and fiscal year ended December 31, 2025.

Fourth Quarter 2025

  • Net sales were $127.1 million, a year-over-year decrease of 3%
    • Toys/Consumer Products net sales were $118.0 million, essentially flat to $118.2 million last year
    • Costumes net sales were $9.1 million, a year-over-year decrease of 28%
  • Gross margin of 31.0%, up 380 basis points vs. Q4 2024
  • Gross profit of $39.4 million, up 11% compared to $35.6 million in Q4 2024
  • Operating loss of $8.6 million in Q4 2025, an improvement of $6.1 million vs. a loss of $14.7 million in Q4 2024
  • Net loss attributable to common stockholders of $5.3 million or $0.47 per diluted share, compared to net loss attributable to common stockholders of $9.1 million or $0.83 per diluted share in Q4 2024
  • Adjusted net loss attributable to common stockholders (a non-GAAP measure) of $2.0 million or $0.18 per diluted share, compared to adjusted net loss attributable to common stockholders of $7.4 million or $0.67 per diluted share in Q4 2024
  • Adjusted EBITDA (a non-GAAP measure) of $(3.8) million vs. $(10.2) million in Q4 2024, an improvement of $6.3 million

Full-Year 2025

  • Net sales were $570.7 million compared to $691.0 million last year, a 17% decrease
    • Toys/Consumer Products net sales were $461.9 million, a year-over-year decrease of 19%
    • Costumes net sales were $108.7 million, a year-over-year decrease of 10%
  • Gross margin of 32.4% compared to 30.8% last year
  • Gross profit of $185.1 million, down 13% compared to $213.0 million last year
  • Operating income of $14.2 million compared to $39.7 million last year: a 64% decrease
  • Net income attributable to common stockholders of $9.9 million, down from a net income attributable to common stockholders of $35.3 million in 2024
  • Adjusted net income attributable to common stockholders of $18.6 million ($1.62 per diluted share), down from adjusted net income attributable to common stockholders of $42.6 million ($3.79 per diluted share) in 2024
  • Adjusted EBITDA of $35.4 million, down from $59.3 million in 2024
  • Cash returned to shareholders of $11.2 million, $1 per common share.
  • End of year cash and cash equivalents of $54.1 million, down from $70.1 million in 2024

Management Commentary
“We are pleased with everything we accomplished as 2025 draws to a close. I think when we look back, we’ll see it as a very important year in the history of our company,” said Stephen Berman, Chairman and CEO of JAKKS Pacific. “On the surface, the downward pressure on the full-year financials from tariff policy might be all that some people can see now. What I also reflect upon, however, is the number of areas where we nonetheless made substantial progress towards longer-term goals despite that disruption. We elevated and broadened our relationships with existing factories, licensors and customers, with a global worldview. We also made substantial progress expanding our relationship portfolio in anticipation of a new strategic initiative set to launch in 2027. We were transparent with our shareholders about our perspective on market dynamics and the resulting challenges. We followed through with what we said we would do, refusing to chase topline sales at the expense of bottom-line margin. And we completed our first full year as a cash dividend payer, returning $1 per share in dividends back to our shareholders as we maintained our debt-free balance sheet. We feel we are leaving 2025 stronger than we left 2024 and are excited about 2026’s potential.

Our fourth quarter results were roughly in line with our expectations. The significant customer order disruptions of Q2 and Q3 driven by rapidly changing tariff policy abated in Q4 and allowed for a slightly more predictable environment. Our Toy/Consumer Products division net sales were roughly flat in Q4, at $118.0 million, down 0.2% from prior year and down 0.5% from 2023. Costumes were down, although in one of its smaller quarters of the year, but enough to bring total company sales down 2.8% from prior year to $127.1 million, or roughly flat to our 2023 Q4 sales of $127.4 million.  Gross margins improved in the quarter vs. last year and finished the full year at 32.4%, our highest full-year number in fifteen years. Adjusted EBITDA in the quarter improved vs prior year, lifting full-year Adjusted EBITDA to $35.4 million.”

Other Financial Highlights
Sales in the United States were down 8% in the quarter and 24% on a full-year basis compared to the previous year. Sales outside of the United States were up 10% in the quarter, and up 6% for the full year outside the United States, led by Europe.

Inventory was $59.8 million as of December 31, 2025, compared to $52.8 million as of December 31, 2024, driven primarily by our expanded warehouse network in the European Union.

 

JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
December 31,
2025 2024
(In thousands)
Assets
Current assets:
Cash and cash equivalents $ 52,197 $ 69,936
Restricted cash 1,869 201
Accounts receivable, net 138,341 131,629
Inventory 59,805 52,780
Prepaid expenses and other assets 16,873 14,141
Total current assets 269,085 268,687
Property and equipment 152,224 142,623
Less accumulated depreciation and amortization 133,216 126,981
Property and equipment, net 19,008 15,642
Operating lease right-of-use assets, net 46,776 53,254
Deferred income tax assets, net 69,569 70,394
Goodwill 35,077 35,111
Other long-term assets 2,682 1,781
Total assets $ 442,197 $ 444,869
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 55,558 $ 42,560
Accounts payable – Meisheng (related party) 13,461
Accrued expenses 43,076 48,456
Reserve for sales returns and allowances 33,569 35,817
Income taxes payable 2,119 1,035
Short term operating lease liabilities 13,784 8,091
Total current liabilities 148,106 149,420
Long term operating lease liabilities 39,578 48,433
Accrued expenses – long term 4,463 2,563
Income taxes payable 945 3,620
Total liabilities 193,092 204,036
Stockholders’ equity:
Common stock, $.001 par value 11 11
Additional paid-in capital 302,408 297,198
Accumulated deficit (41,021 ) (39,692 )
Accumulated other comprehensive loss (12,293 ) (17,184 )
Total JAKKS Pacific, Inc. stockholders’ equity 249,105 240,333
Non-controlling interests 500
Total stockholders’ equity 249,105 240,833
Total liabilities and stockholders’ equity $ 442,197 $ 444,869
Supplemental Balance Sheet and Cash Flow Data (Unaudited)
December 31,
Key Balance Sheet Data: 2025 2024
Accounts receivable days sales outstanding (DSO) 100 93
Inventory turnover (DSI) 63 51
Twelve Months Ended
December 31,
Condensed Cash Flow Data: 2025 2024
Cash flows from operating activities $ 8,492 $ 38,947
Cash flows used in investing activities (12,344 ) (12,889 )
Cash flows used in financing activities and other (12,219 ) (28,475 )
Decrease in cash, cash equivalents and restricted cash $ (16,071 ) $ (2,417 )
Capital expenditures $ (9,563 ) $ (11,246 )
JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025 2024 Δ (%) 2025 2024 Δ (%)
(In thousands, except per share data) (In thousands, except per share data)
Net sales $ 127,114 $ 130,741 (3 ) % $ 570,671 $ 691,042 (17 ) %
Less: Cost of sales
Cost of goods 65,265 72,373 (10 ) 283,521 361,563 (22 )
Royalty expense 20,605 20,623 (0 ) 92,381 106,804 (14 )
Amortization of tools and molds 1,843 2,192 (16 ) 9,689 9,654 0
Cost of sales 87,713 95,188 (8 ) 385,591 478,021 (19 )
Gross profit 39,401 35,553 11 185,080 213,021 (13 )
Direct selling expenses 15,519 18,201 (15 ) 36,858 40,105 (8 )
General and administrative expenses 32,325 31,953 1 133,460 132,840 0
Depreciation and amortization 162 117 38 544 392 39
Selling, general and administrative expenses 48,006 50,271 (5 ) 170,862 173,337 (1 )
Income (loss) from operations (8,605 ) (14,718 ) (42 ) 14,218 39,684 (64 )
Other income (expense):
Loss from joint ventures
Other income (expense), net 32 8 300 450 302 49
Change in fair value of preferred stock derivative liability
Loss on debt extinguishment (9 ) nm (427 ) nm
Interest income 163 308 (47 ) 995 841 18
Interest expense (69 ) (157 ) (56 ) (471 ) (1,095 ) (57 )
Income (loss) before provision for (benefit from) income taxes (8,488 ) (14,559 ) (42 ) 14,765 39,732 (63 )
Provision for (benefit from) income taxes (3,168 ) (5,446 ) (42 ) 4,894 5,532 (12 )
Net income (loss) (5,320 ) (9,113 ) (42 ) 9,871 34,200 (71 )
Net income (loss) attributable to non-controlling interests 280 nm
Net income (loss) attributable to JAKKS Pacific, Inc. $ (5,320 ) $ (9,113 ) (42 ) % $ 9,871 $ 33,920 (71 ) %
Net income (loss) attributable to common stockholders $ (5,320 ) $ (9,113 ) (42 ) % $ 9,871 $ 35,250 (72 ) %
Earnings (loss) per share – basic $ (0.47 ) $ (0.83 ) $ 0.88 $ 3.27
Shares used in earnings (loss) per share – basic 11,282 11,008 11,190 10,781
Earnings (loss) per share – diluted $ (0.47 ) $ (0.83 ) $ 0.86 $ 3.14
Shares used in earnings (loss) per share – diluted 11,282 11,008 11,491 11,226
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025 2024 Δ bps 2025 2024 Δ bps
Fav/(Unfav) Fav/(Unfav)
Net sales 100.0 % 100.0 % 100.0 % 100.0 %
Less: Cost of sales
Cost of goods 51.4 55.3 390 49.7 52.3 260
Royalty expense 16.2 15.8 (40 ) 16.2 15.5 (70 )
Amortization of tools and molds 1.4 1.7 30.0 1.7 1.4 (30 )
Cost of sales 69.0 72.8 380 67.6 69.2 160
Gross profit 31.0 27.2 380 32.4 30.8 160
Direct selling expenses 12.2 13.9 170 6.4 5.8 (60 )
General and administrative expenses 25.5 24.5 (100 ) 23.4 19.2 (420 )
Depreciation and amortization 0.1 0.1 0.1 0.1
Selling, general and administrative expenses 37.8 38.5 70 29.9 25.1 (480 )
Income (loss) from operations (6.8 ) (11.3 ) 450 2.5 5.7 (320 )
Other income (expense):
Loss from joint ventures
Other income (expense), net 0.1 0.1
Change in fair value of preferred stock derivative liability
Loss on debt extinguishment (0.1 )
Interest income 0.1 0.2 0.2 0.1
Interest expense (0.1 ) (0.1 ) (0.2 )
Income (loss) before provision for (benefit from) income taxes (6.7 ) (11.2 ) 2.6 5.7
Provision for (benefit from) income taxes (2.5 ) (4.2 ) 0.9 0.8
Net income (loss) (4.2 ) (7.0 ) 1.7 4.9
Net income (loss) attributable to non-controlling interests
Net income (loss) attributable to JAKKS Pacific, Inc. (4.2 ) % (7.0 ) % 1.7 % 4.9 %
Net income (loss) attributable to common stockholders (4.2 ) % (7.0 ) % 1.7 % 5.1 %
JAKKS Pacific, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information (Unaudited)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025 2024 Δ ($) 2025 2024 Δ ($)
(In thousands) (In thousands)
EBITDA and Adjusted EBITDA
Net income (loss) $ (5,320 ) $ (9,113 ) $ 3,793 $ 9,871 $ 34,200 $ (24,329 )
Interest expense 69 157 (88 ) 471 1,095 (624 )
Interest income (163 ) (308 ) 145 (995 ) (841 ) (154 )
Provision for (benefit from) income taxes (3,168 ) (5,446 ) 2,278 4,894 5,532 (638 )
Depreciation and amortization 2,005 2,309 (304 ) 10,233 10,046 187
EBITDA (6,577 ) (12,401 ) 5,824 24,474 50,032 (25,558 )
Adjustments:
Other (income) expense, net (32 ) (8 ) (24 ) (450 ) (302 ) (148 )
Restricted stock compensation expense 2,781 2,255 526 10,913 9,535 1,378
Loss on debt extinguishment 9 9 427 427
Adjusted EBITDA $ (3,819 ) $ (10,154 ) $ 6,335 $ 35,364 $ 59,265 $ (23,901 )
Adjusted EBITDA/Net sales % (3.0 ) % (7.8 ) % 480 bps 6.2 % 8.6 % -240 bps
Trailing Twelve Months Ended December 31,
2025 2024 Δ ($)
(In thousands)
TTM EBITDA and TTM Adjusted EBITDA
TTM net income $ 9,871 $ 34,200 $ (24,329 )
Interest expense 471 1,095 (624 )
Interest income (995 ) (841 ) (154 )
Provision for income taxes 4,894 5,532 (638 )
Depreciation and amortization 10,233 10,046 187
TTM EBITDA 24,474 50,032 (25,558 )
Adjustments:
Other (income) expense, net (450 ) (302 ) (148 )
Restricted stock compensation expense 10,913 9,535 1,378
Change in fair value of preferred stock derivative liability
Loss on debt extinguishment 427 427
TTM Adjusted EBITDA $ 35,364 $ 59,265 $ (23,901 )
TTM Adjusted EBITDA/TTM Net sales % 6.2 % 8.6 % -240 bps
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2025 2024 Δ ($) 2025 2024 Δ ($)
(In thousands, except per share data) (In thousands, except per share data)
Adjusted net income (loss) attributable to common stockholders
Net income (loss) attributable to common stockholders $ (5,320 ) $ (9,113 ) $ 3,793 $ 9,871 $ 35,250 $ (25,379 )
Restricted stock compensation expense 2,781 2,255 526 10,913 9,535 1,378
Loss on debt extinguishment 9 9 427 427
Tax impact of additional charges 521 (544 ) 1,065 (2,632 ) (2,225 ) (407 )
Adjusted net income (loss) attributable to common stockholders $ (2,009 ) $ (7,402 ) $ 5,393 $ 18,579 $ 42,560 $ (23,981 )
Adjusted earnings (loss) per share – basic $ (0.18 ) $ (0.67 ) $ 0.49 $ 1.66 $ 3.95 $ (2.29 )
Shares used in adjusted earnings (loss) per share – basic 11,282 11,008 274 11,190 10,781 409
Adjusted earnings (loss) per share – diluted $ (0.18 ) $ (0.67 ) $ 0.49 $ 1.62 $ 3.79 $ (2.17 )
Shares used in adjusted earnings (loss) per share – diluted 11,282 11,008 274 11,491 11,226 265
JAKKS Pacific, Inc. and Subsidiaries
Net Sales by Division and Geographic Region
(In thousands) QTD Q4 (In thousands) YTD Q4
Divisions 2025 2024 2023 % Change 2025 v 2024 % Change 2024 v 2023 Divisions 2025 2024 2023 % Change 2025 v 2024 % Change 2024 v 2023
Toys/Consumer Products $118,040 $118,233 $118,855 -0.2 % -0.5 % Toys/Consumer Products $461,937 $570,018 $580,687 -19.0 % -1.8 %
Dolls, Role-Play/Dress-Up 48,806 62,603 73,272 -22.0 % -14.6 % Dolls, Role-Play/Dress-Up 242,763 313,679 319,962 -22.6 % -2.0 %
Action Play & Collectibles 56,229 47,209 35,312 19.1 % 33.7 % Action Play & Collectibles 181,962 215,521 219,446 -15.6 % -1.8 %
Outdoor/Seasonal Toys 13,005 8,421 10,272 54.4 % -18.0 % Outdoor/Seasonal Toys 37,212 40,818 41,279 -8.8 % -1.1 %
Costumes $9,074 $12,508 $8,541 -27.5 % 46.4 % Costumes $108,734 $121,024 $130,870 -10.2 % -7.5 %
Total $127,114 $130,741 $127,396 -2.8 % 2.6 % Total $570,671 $691,042 $711,557 -17.4 % -2.9 %
(In thousands) QTD Q4 (In thousands) YTD Q4
Regions 2025 2024 2023 % Change 2025 v 2024 % Change 2024 v 2023 Regions 2025 2024 2023 % Change 2025 v 2024 % Change 2024 v 2023
United States $86,155 $93,468 $96,304 -7.8 % -2.9 % United States $416,605 $545,013 $557,865 -23.6 % -2.3 %
Europe 25,504 25,359 17,988 0.6 % 41.0 % Europe 81,379 71,392 76,464 14.0 % -6.6 %
Latin America 8,849 4,292 4,434 106.2 % -3.2 % Latin America 36,421 38,159 32,024 -4.6 % 19.2 %
Canada 3,084 4,257 4,686 -27.6 % -9.2 % Canada 24,426 20,983 26,992 16.4 % -22.3 %
Asia 1,388 1,523 2,140 -8.9 % -28.8 % Asia 4,982 6,101 8,543 -18.3 % -28.6 %
Australia & New Zealand 1,228 1,116 1,486 10.0 % -24.9 % Australia & New Zealand 4,953 7,409 7,542 -33.1 % -1.8 %
Middle East & Africa 906 726 358 24.8 % 102.8 % Middle East & Africa 1,905 1,985 2,127 -4.0 % -6.7 %
Total $127,114 $130,741 $127,396 -2.8 % 2.6 % Total $570,671 $691,042 $711,557 -17.4 % -2.9 %
(In thousands) QTD Q4 (In thousands) YTD Q4
Regions 2025 2024 2023 % Change 2025 v 2024 % Change 2024 v 2023 Regions 2025 2024 2023 % Change 2025 v 2024 % Change 2024 v 2023
North America $89,239 $97,725 $100,990 -8.7 % -3.2 % North America $441,031 $565,996 $584,857 -22.1 % -3.2 %
International 37,875 33,016 26,406 14.7 % 25.0 % International 129,640 125,046 126,700 3.7 % -1.3 %
Total $127,114 $130,741 $127,396 -2.8 % 2.6 % Total $570,671 $691,042 $711,557 -17.4 % -2.9 %
(In thousands) QTD Q4 (In thousands) YTD Q4
Regions 2025 2024 2023 % Change 2025 v 2024 % Change 2024 v 2023 Regions 2025 2024 2023 % Change 2025 v 2024 % Change 2024 v 2023
United States $86,155 $93,468 $96,304 -7.8 % -2.9 % United States $416,605 $545,013 $557,865 -23.6 % -2.3 %
Rest of World 40,959 37,273 31,092 9.9 % 19.9 % Rest of World 154,066 146,029 153,692 5.5 % -5.0 %
Total $127,114 $130,741 $127,396 -2.8 % 2.6 % Total $570,671 $691,042 $711,557 -17.4 % -2.9 %


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