Jakks Pacific Stock Earnings Reports

Key points for investors: JAKKS reported significant near-term pressure from the shifting tariff regime and delayed retailer ordering, driving year-to-date net sales down ~21% (Toys/Consumer Products down 24%, Costumes down 8%). Q3 Toys sales fell 41% to $156.1M; Costumes were $55.1M (down 4%). Gross margin held at ~32% in Q3 (vs. 33.8% prior year) after price discipline to pass through tariff costs. Adjusted EBITDA for the quarter was $36.5M (vs. $74.4M prior year) and trailing 12‑month EBITDA fell to $29M. Adjusted diluted EPS for the quarter was $1.80 (vs. $4.79 prior year). Balance sheet and liquidity: cash was $27.8M at quarter end, inventory was ~$72M (up vs. $64M last year, driven by international expansion; U.S. inventory is lower year-over-year), and the Board approved a Q4 cash dividend of $0.25 per share. Management’s strategy: remain conservative — prioritize margins, tight cost control, low U.S. inventory, accelerate international expansion, and invest in a rebuilt 2026–2027 product pipeline. Tariff impact: unpredictable tariff swings (from ~10% to 100%+ earlier, now more stable near 20–30% depending on origin) have delayed retailer buys and reduced FOB shipments (FOB declines accounted for most of the sales drop). Outlook: management expects more certainty heading into 2026, is focused on preserving cash and operational flexibility, is optimistic about international growth and several upcoming IP/product initiatives (including movie tie-ins and new licensing/private-label programs), and is monitoring M&A opportunities but will likely act after 2025 stabilizes.