JAKKS Pacific Reports Second Quarter 2025 Financial Results



JAKKS Pacific Reports Second Quarter 2025 Financial Results

GlobeNewswire

July 24, 2025


US Sales down in the Quarter; Rest of World up
First-half Toy/Consumer Products sales flat to prior year

SANTA MONICA, Calif., July 24, 2025 (GLOBE NEWSWIRE) — JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the second quarter ended June 30, 2025.

Second Quarter 2025

  • Net sales were $119.1 million, a year-over-year decrease of $29.5 million or 20%, driven largely by a reduction in direct-import sales due to higher cost of importation
    • US net sales were $87.0 million, down 31% compared to Q2 2024
    • Rest of World net sales were $32.1 million, up 41% compared to Q2 2024
  • Gross margin of 32.8% vs. 32.0% in Q2 2024, driven by improved margin and volume of new product launches
  • Gross profit of $39.0 million, down $8.6 million compared to $47.6 million in Q2 2024
  • Operating loss of $2.8 million, compared to operating income of $7.6 million in Q2 2024
  • Adjusted net income attributable to common stockholders (a non-GAAP measure) of $0.4 million (or $0.03 per share), compared to adjusted net income attributable to common stockholders of $7.3 million (or $0.65 per share) in Q2 2024
  • Adjusted EBITDA (a non-GAAP measure) of $2.3 million vs. $12.3 million in Q2 2024

First-Half 2025

  • Net sales were $232.3 million compared to $238.7 million last year, a 3% decrease
    • Toys/Consumer Products net sales were $187.8 million, flat to prior year
    • Costumes net sales were $44.5 million, a year-over-year decrease of 13%
  • Gross margin of 33.6% compared to 28.8% last year
  • Gross profit of $78.0 million, up 14% compared to $68.6 million last year
  • Operating loss of $6.5 million compared to an operating loss of $13.7 million last year
  • Adjusted net income attributable to common stockholders of $36,000 ($0.00 per share), up from adjusted net loss attributable to common stockholders of $4.0 million ($0.38 per share) in 2024
  • Adjusted EBITDA of $2.7 million, up from $(4.9) million in 2024

Management Commentary
“As challenging as this year is proving to be, we feel our first half results demonstrate that we are managing our business well despite the persistent uncertainty we've all been navigating,” said Stephen Berman, Chairman and CEO of JAKKS Pacific. “In a company of our size, we are constantly reminded that there are decisions and actions within our control and external influences that we must try to anticipate and adapt to when necessary. I feel we are capitalizing on our decades of experience and relationships to work through these challenges from a position of strength and remain confident about where we are headed.

The refinancing of our credit facility this quarter to a larger, cash-flow-funded structure further increases our financial resilience and preparedness to maximize the opportunities that lie ahead for us.”

Second Quarter & First-Half 2025 Results
Net sales for the second quarter of 2025 were $119.1 million, down 20% versus $148.6 million last year. The Toys/Consumer Products segment sales were down 23% globally to $80.4 million, and sales of Costumes were down 12% to $38.7 million compared to last year. United States sales were $87.0 million, down 31% from $125.8 million last year. Rest of World sales were $32.1 million, up 41% from $22.8 million last year.

Net sales for the first half of 2025 were $232.3 million, down 3% from $238.7 million last year. The Toys/Consumer Products segment's sales were $187.8 million, roughly flat to $187.5 million last year. Sales of Costumes were $44.5 million, down 13% from $51.2 million last year. United States sales were $175.9 million, down 10% from $196.3 million last year. Rest of World sales were $56.4 million, up 33% from $42.4 million last year.

The Company's cash and cash equivalents (including restricted cash) totaled $43.1 million as of June 30, 2025, compared to $17.9 million at the same time last year, and to $70.1 million as of December 31, 2024. Inventory was $71.8 million, compared to $51.3 million as of June 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 September 30, 2025, to shareholders of record August 29, 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 provide 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 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 July 24, 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 (2Q25 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(R), Disguise(R), Fly Wheels(R), JAKKS Wild Games(R), Moose Mountain(R), Maui(R), Perfectly Cute(R), ReDo(R) Skateboard Co., Sky Ball(R), SportsZone(TM), Xtreme Power Dozer(R), WeeeDo(R) and Wild Manes(TM) 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).

CONTACT:
JAKKS Pacific Investor Relations
(424) 268-9567
Lucas Natalini; investors@jakks.net

JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
June 30, December 31,
2025 2024 2024
(In thousands)
Assets
Current assets:
Cash and cash equivalents $ 38,195 $ 17,700 $ 69,936
Restricted cash 4,861 202 201
Accounts receivable, net 124,489 140,006 131,629
Inventory 71,811 51,327 52,780
Prepaid expenses and other assets 22,575 26,457 14,141
Total current assets 261,931 235,692 268,687
Property and equipment 146,661 141,326 142,623
Less accumulated depreciation and amortization 126,890 124,580 126,981
Property and equipment, net 19,771 16,746 15,642
Operating lease right-of-use assets, net 49,931 20,667 53,254
Deferred income tax assets, net 70,401 68,141 70,394
Goodwill 34,950 35,029 35,111
Other long-term assets 1,734 1,976 1,781
Total assets $ 438,718 $ 378,251 $ 444,869
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $ 65,422 $ 55,368 $ 42,560
Accounts payable – Meisheng (related party) – 19,130 13,461
Accrued expenses 45,890 45,026 48,456
Reserve for sales returns and allowances 29,116 29,456 35,817
Income taxes payable – – 1,035
Short term operating lease liabilities 12,405 7,777 8,091
Short term debt, net – 5,000 –
Total current liabilities 152,833 161,757 149,420
Long term operating lease liabilities 43,881 14,859 48,433
Accrued expenses – long term 3,222 2,299 2,563
Income taxes payable 2,045 3,441 3,620
Total liabilities 201,981 182,356 204,036
Stockholders' equity:
Common stock, $.001 par value 11 11 11
Additional paid-in capital 299,110 294,543 297,198
Accumulated deficit (49,965 ) (82,851 ) (39,692 )
Accumulated other comprehensive loss (12,919 ) (16,308 ) (17,184 )
Total JAKKS Pacific, Inc. stockholders' equity 236,237 195,395 240,333
Non-controlling interests 500 500 500
Total stockholders' equity 236,737 195,895 240,833
Total liabilities and stockholders' equity $ 438,718 $ 378,251 $ 444,869
Supplemental Balance Sheet and Cash Flow Data (Unaudited)
June 30,
Key Balance Sheet Data: 2025 2024
Accounts receivable days sales outstanding (DSO) 95 86
Inventory turnover (DSI) 82 46
Six Months Ended June 30,
Condensed Cash Flow Data: 2025 2024
Cash flows used in operating activities $ (15,585 ) $ (27,666 )
Cash flows used in investing activities (6,361 ) (6,174 )
Cash flows used in financing activities and other (5,135 ) (20,812 )
Increase in cash, cash equivalents and restricted cash $ (27,081 ) $ (54,652 )
Capital expenditures $ (4,816 ) $ (4,627 )
JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)

Three Months Ended June 30,
Six Months Ended June 30,
2025 2024 D (%) 2025 2024 D (%)
(In thousands, except per share data) (In thousands, except per share data)
Net sales $ 119,094 $ 148,619 (20 ) % $ 232,347 $ 238,695 (3 ) %
Less: Cost of sales
Cost of goods 58,784 76,599 (23 ) 113,410 130,420 (13 )
Royalty expense 19,509 22,394 (13 ) 37,677 36,170 4
Amortization of tools and molds 1,778 2,041 (13 ) 3,224 3,468 (7 )
Cost of sales 80,071 101,034 (21 ) 154,311 170,058 (9 )
Gross profit 39,023 47,585 (18 ) 78,036 68,637 14
Direct selling expenses 6,710 6,255 7 15,406 14,352 7
General and administrative expenses 34,974 33,594 4 68,935 67,786 2
Depreciation and amortization 122 93 31 235 180 31
Selling, general and administrative expenses 41,806 39,942 5 84,576 82,318 3
Income (loss) from operations (2,783 ) 7,643 nm (6,540 ) (13,681 ) (52 )
Other income (expense):
Loss from joint ventures – – – – – –
Other income (expense), net 25 72 (65 ) 30 210 (86 )
Change in fair value of preferred stock derivative liability – – – – – –
Loss on debt extinguishment (417 ) – nm (417 ) – nm
Interest income 395 88 349 757 464 63
Interest expense (145 ) (256 ) (43 ) (300 ) (399 ) (25 )
Income (loss) before benefit from income taxes (2,925 ) 7,547 nm (6,470 ) (13,406 ) (52 )
Provision for (benefit from) income taxes (606 ) 2,281 nm (1,769 ) (4,447 ) (60 )
Net income (loss) (2,319 ) 5,266 nm (4,701 ) (8,959 ) (48 )
Net income attributable to non-controlling interests – – – – 280 nm
Net income (loss) attributable to JAKKS Pacific, Inc. $ (2,319 ) $ 5,266 nm % $ (4,701 ) $ (9,239 ) (49 ) %
Net income (loss) attributable to common stockholders $ (2,319 ) $ 5,266 nm % $ (4,701 ) $ (7,909 ) (41 ) %
Earnings (loss) per share – basic $ (0.21 ) $ 0.49 $ (0.42 ) $ (0.75 )
Shares used in earnings (loss) per share – basic 11,146 10,801 11,146 10,577
Earnings (loss) per share – diluted $ (0.21 ) $ 0.47 $ (0.42 ) $ (0.75 )
Shares used in earnings (loss) per share – diluted 11,146 11,245 11,146 10,577

Three Months Ended June 30,
Six Months Ended June 30,
2025 2024 D bps 2025 2024 D bps
Fav/(Unfav) Fav/(Unfav)
Net sales 100.0 % 100.0 % – 100.0 % 100.0 % –
Less: Cost of sales
Cost of goods 49.3 51.5 220 48.8 54.5 570
Royalty expense 16.4 15.1 (130 ) 16.2 15.2 (100 )
Amortization of tools and molds 1.5 1.4 (10.0 ) 1.4 1.5 10
Cost of sales 67.2 68.0 80 66.4 71.2 480
Gross profit 32.8 32.0 80 33.6 28.8 480
Direct selling expenses 5.6 4.2 (140 ) 6.6 6.0 (60 )
General and administrative expenses 29.4 22.6 (680 ) 29.7 28.4 (130 )
Depreciation and amortization 0.1 0.1 – 0.1 0.1 –
Selling, general and administrative expenses 35.1 26.9 (820 ) 36.4 34.5 (190 )
Income (loss) from operations (2.3 ) 5.1 (740 ) (2.8 ) (5.7 ) 290
Other income (expense):
Other income (expense), net – – – 0.1
Loss on debt extinguishment (0.4 ) – (0.2 ) –
Interest income 0.3 0.1 0.3 0.2
Interest expense (0.1 ) (0.2 ) (0.1 ) (0.2 )
Income (loss) before benefit from income taxes (2.5 ) 5.0 (2.8 ) (5.6 )
Provision for (benefit from) income taxes (0.6 ) 1.5 (0.8 ) (1.8 )
Net income (loss) (1.9 ) 3.5 (2.0 ) (3.8 )
Net income attributable to non-controlling interests – – – 0.1
Net income (loss) attributable to JAKKS Pacific, Inc. (1.9 ) % 3.5 % (2.0 ) % (3.9 ) %
Net income (loss) attributable to common stockholders (1.9 ) % 3.5 % (2.0 ) % (3.3 ) %
JAKKS Pacific, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information (Unaudited)

Three Months Ended June 30,
Six Months Ended June 30,
2025 2024 D ($) 2025 2024 D ($)
(In thousands) (In thousands)
EBITDA and Adjusted EBITDA
Net income (loss) $ (2,319 ) $ 5,266 $ (7,585 ) $ (4,701 ) $ (8,959 ) $ 4,258
Interest expense 145 256 (111 ) 300 399 (99 )
Interest income (395 ) (88 ) (307 ) (757 ) (464 ) (293 )
Prvisiosn for (benefit from) income taxes (606 ) 2,281 (2,887 ) (1,769 ) (4,447 ) 2,678
Depreciation and amortization 1,900 2,134 (234 ) 3,459 3,648 (189 )
EBITDA (1,275 ) 9,849 (11,124 ) (3,468 ) (9,823 ) 6,355
Adjustments:
Other (income) expense, net (25 ) (72 ) 47 (30 ) (210 ) 180
Restricted stock compensation expense 3,188 2,519 669 5,740 5,094 646
Loss on debt extinguishment 417 – 417 417 – 417
Adjusted EBITDA $ 2,305 $ 12,296 $ (9,991 ) $ 2,659 $ (4,939 ) $ 7,598
Adjusted EBITDA/Net sales % 1.9 % 8.3 % -640 bps 1.1 % (2.1 ) % 320 bps
Trailing Twelve Months Ended June 30,
2025 2024 D ($)
(In thousands)
TTM EBITDA and TTM Adjusted EBITDA
TTM net income $ 38,458 $ 28,290 $ 10,168
Interest expense 996 2,545 (1,549 )
Interest income (1,134 ) (1,605 ) 471
Provision for income taxes 8,210 2,291 5,919
Depreciation and amortization 9,857 10,400 (543 )
TTM EBITDA 56,387 41,921 14,466
Adjustments:
Loss from joint ventures (JAKKS Pacific, Inc. – 51%) – (11 ) 11
Loss from joint ventures (Meisheng – 49%) – 11 (11 )
Other (income) expense, net (122 ) (297 ) 175
Restricted stock compensation expense 10,181 9,176 1,005
Change in fair value of preferred stock derivative liability – 2,154 (2,154 )
Molds and tooling capitalization – (1,751 ) 1,751
Loss on debt extinguishment 417 – 417
TTM Adjusted EBITDA $ 66,863 $ 51,203 $ 15,660
TTM Adjusted EBITDA/TTM Net sales % 9.8 % 7.6 % 220 bps
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 D ($) 2025 2024 D ($)
(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 $ (2,319 ) $ 5,266 $ (7,585 ) $ (4,701 ) $ (7,909 ) $ 3,208
Restricted stock compensation expense 3,188 2,519 669 5,740 5,094 646
Loss on debt extinguishment 417 – 417 417 – 417
Tax impact of additional charges (896 ) (530 ) (366 ) (1,420 ) (1,187 ) (233 )
Adjusted net income (loss) attributable to common stockholders $ 390 $ 7,255 $ (6,865 ) $ 36 $ (4,002 ) $ 4,038
Adjusted earnings (loss) per share – basic $ 0.03 $ 0.67 $ (0.64 ) $ 0.00 $ (0.38 ) $ 0.38
Shares used in adjusted earnings (loss) per share – basic 11,146 10,801 345 11,146 10,577 569
Adjusted earnings (loss) per share – diluted $ 0.03 $ 0.65 $ (0.62 ) $ – $ (0.38 ) $ 0.38
Shares used in adjusted earnings (loss) per share – diluted 11,397 11,245 152 11,487 10,577 910
JAKKS Pacific, Inc. and Subsidiaries
Net Sales by Division and Geographic Region
(In thousands) QTD Q2 (In thousands) YTD Q2
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 $80,379 $104,570 $117,934 -23.1% -11.3% Toys/Consumer Products $187,817 $187,480 $215,827 0.2% -13.1%
Dolls, Role-Play/Dress Up 46,164 63,608 59,669 -27.4% 6.6% Dolls, Role-Play/Dress Up 101,627 104,182 107,512 -2.5% -3.1%
Action Play & Collectibles 29,902 36,555 52,571 -18.2% -30.5% Action Play & Collectibles 72,783 69,563 90,417 4.6% -23.1%
Outdoor/Seasonal Toys 4,313 4,407 5,694 -2.1% -22.6% Outdoor/Seasonal Toys 13,407 13,735 17,898 -2.4% -23.3%
Costumes $38,715 $44,049 $48,999 -12.1% -10.1% Costumes $44,530 $51,215 $58,590 -13.1% -12.6%
Total $119,094 $148,619 $166,933 -19.9% -11.0% Total $232,347 $238,695 $274,417 -2.7% -13.0%
(In thousands) QTD Q2 (In thousands) YTD Q2
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 $86,990 $125,837 $136,187 -30.9% -7.6% United States $175,934 $196,267 $216,630 -10.4% -9.4%
Europe 14,657 10,264 16,638 42.8% -38.3% Europe 26,467 15,999 26,800 65.4% -40.3%
Latin America 6,047 3,239 3,067 86.7% 5.6% Latin America 13,506 11,235 12,271 20.2% -8.4%
Canada 8,826 6,288 6,799 40.4% -7.5% Canada 12,105 9,658 10,853 25.3% -11.0%
Asia 1,448 1,268 1,831 14.2% -30.7% Asia 2,199 2,233 3,211 -1.5% -30.5%
Australia & New Zealand 886 1,607 1,756 -44.9% -8.5% Australia & New Zealand 1,499 2,953 3,364 -49.2% -12.2%
Middle East & Africa 240 116 655 106.9% -82.3% Middle East & Africa 637 350 1,288 82.0% -72.8%
TOTAL JAKKS $119,094 $148,619 $166,933 -19.9% -11.0% Total $232,347 $238,695 $274,417 -2.7% -13.0%
(In thousands) QTD Q2 (In thousands) YTD Q2
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 $95,816 $132,125 $142,986 -27.5% -7.6% North America $188,039 $205,925 $227,483 -8.7% -9.5%
International 23,278 16,494 23,947 41.1% -31.1% International 44,308 32,770 46,934 35.2% -30.2%
Total $119,094 $148,619 $166,933 -19.9% -11.0% Total $232,347 $238,695 $274,417 -2.7% -13.0%
(In thousands) QTD Q2 (In thousands) YTD Q2
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 $86,990 $125,837 $136,187 -30.9% -7.6% United States $175,934 $196,267 $216,630 -10.4% -9.4%
Rest of World 32,104 22,782 30,746 40.9% -25.9% Rest of World 56,413 42,428 57,787 33.0% -26.6%
Total $119,094 $148,619 $166,933 -19.9% -11.0% Total $232,347 $238,695 $274,417 -2.7% -13.0%


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