(MENAFN- GlobeNewsWire - Nasdaq) Board approves Quarterly Cash Dividend

SANTA MONICA, Calif., Oct. 30, 2025 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ: JAKK) today reported financial results for the third quarter ended September 30, 2025.

Third Quarter 2025

• Net sales were $211.2 million, a year-over-year decrease of $110.4 million or 34%, driven largely by a reduction in direct-import sales due to a combination of customers anticipating lower consumer demand in response to tariff-driven price increases and the lack of new theatrical release-related product vs. prior year
  • US net sales were $154.5 million, down 40% compared to Q3 2024
  • Rest of World net sales were $56.7 million, down 15% compared to Q3 2024
• Gross margin of 32.0% vs. 33.8% in Q3 2024, driven by US tariffs and higher royalty expense
• Gross profit of $67.6 million, down $41.2 million compared to $108.8 million in Q3 2024
• Operating income of $29.4 million, compared to operating income of $68.1 million in Q3 2024
• Adjusted net income attributable to common stockholders (a non-GAAP measure) of $20.6 million (or $1.80 per diluted share), compared to adjusted net income attributable to common stockholders of $54.0 million (or $4.79 per diluted share) in Q3 2024
• Adjusted EBITDA (a non-GAAP measure) of $36.5 million vs. $74.4 million in Q3 2024

First Nine Months 2025

• Net sales were $443.6 million compared to $560.3 million last year, a 21% decrease
  • US net sales were $330.5 million, down 27% compared to 2024
  • Rest of World net sales were $113.1 million, up 4% compared to 2024
  • Toys/Consumer Products net sales were $343.9 million, down 24% to prior year
  • Costumes net sales were $99.7 million, a year-over-year decrease of 8%
• Gross margin of 32.8% compared to 31.7% last year
• Gross profit of $145.7 million, down 18% compared to $177.5 million last year
  

Management Commentary

“While near-term volatility in tariffs and retail demand present challenges, this year they also highlight the value of running a disciplined, forward-looking business,” said Stephen Berman, Chairman and CEO of JAKKS Pacific.“We are not only protecting margins and supporting our retail partners with transparency today-we are laying the groundwork for a strong pipeline of products in a broad array of categories with some of the top licensed intellectual property that extends well into 2026 and beyond.

Our diversified sourcing network and ongoing supply chain cost reduction initiatives give us the agility to adapt to future shifts in trade and policy, while our strong balance sheet, conservative financial posture and strong inventory controls, both at retail and in our distribution centers, provide us with resilience through changing business environments.

We remain confident in our long-term trajectory. By sharpening operational efficiency, accelerating cash generation, and investing in product innovation, we are positioning JAKKS Pacific to capture new opportunities, deliver lasting value to shareholders and customers, and shape the future of play for years to come.”

Third Quarter & First Nine Months 2025 Results
Net sales for the third quarter of 2025 were $211.2 million, down 34% versus $321.6 million last year. The Toys/Consumer Products segment sales were down 41% globally to $156.1 million, and sales of Costumes were down 4% to $55.1 million compared to last year. United States sales were $154.5 million, down 40% from $255.3 million last year. Rest of World sales were $56.7 million, down 15% from $66.3 million last year.

Net sales for the first nine months of 2025 were $443.6 million, down 21% from $560.3 million last year. The Toys/Consumer Products segment's sales were $343.9 million, down 24% from $451.8 million last year. Sales of Costumes were $99.7 million, down 8% from $108.5 million for the same time period last year. United States sales were $330.5 million, down 27% from $451.5 million last year. Rest of World sales were $113.1 million, up 4% from $108.8 million last year.

Trailing twelve-month EBITDA (a non-GAAP measure) was $29.0 million as of September 30, 2025, down from $58.5 million as of September 30, 2024.

The Company's cash and cash equivalents (including restricted cash) totaled $27.8 million as of September 30, 2025, compared to $22.3 million at the same time last year, and $70.1 million as of December 31, 2024. Inventory was $71.5 million, compared to $63.5 million as of September 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 December 29, 2025, to shareholders of record on November 28, 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 provides 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.

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 October 30, 2025. A live webcast of the call will be available on the“Investor Relations” page of the Company's website at . To access the call by phone, please go to this link (3Q25 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 ( ).

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®, Disguise®, Fly Wheels®, JAKKS Wild Games®, Moose Mountain®, Maui®, Perfectly Cute®, ReDo® Skateboard Co., Sky Ball®, SportsZoneTM, Xtreme Power Dozer®, WeeeDo® and Wild ManesTM 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 and follow us on Instagram (@jakkspacific), X (@jakkstoys) and Facebook

CONTACT:

JAKKS Pacific Investor Relations

(424) 268-9567

Lucas Natalini;...

JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
					September 30,		December 31,
						2025					2024				2024
					(In thousands)
Assets
Current assets:
	Cash and cash equivalents		$	25,887				$	22,070			$	69,936
	Restricted cash			1,869					214				201
	Accounts receivable, net			195,779					290,424				131,629
	Inventory			71,497					63,509				52,780
	Prepaid expenses and other assets			19,784					8,082				14,141
		Total current assets			314,816					384,299				268,687
Property and equipment			147,745					144,072				142,623
Less accumulated depreciation and amortization			131,226					128,947				126,981
	Property and equipment, net			16,519					15,125				15,642
Operating lease right-of-use assets, net			49,611					19,242				53,254
Deferred income tax assets, net			67,612					68,187				70,394
Goodwill				35,081					35,102				35,111
Other long-term assets			1,631					1,923				1,781
		Total assets		$	485,270				$	523,878			$	444,869
Liabilities and Stockholders' Equity
Current liabilities:
	Accounts payable		$	72,338				$	98,928			$	42,560
	Accounts payable - Meisheng (related party)			-					35,011				13,461
	Accrued expenses			52,085					71,748				48,456
	Reserve for sales returns and allowances			37,691					40,837				35,817
	Income taxes payable			5,389					-				1,035
	Short term operating lease liabilities			13,504					7,405				8,091
		Total current liabilities			181,007					253,929				149,420
Long term operating lease liabilities			43,113					14,536				48,433
Accrued expenses - long term			3,503					1,824				2,563
Income taxes payable			1,732					3,523				3,620
		Total liabilities			229,355					273,812				204,036
Stockholders' equity:
	Common stock, $.001 par value			11					11				11
	Additional paid-in capital			301,098					295,400				297,198
	Accumulated deficit			(32,875	)				(30,579	)			(39,692	)
	Accumulated other comprehensive loss			(12,319	)				(15,266	)			(17,184	)
		Total JAKKS Pacific, Inc. stockholders' equity			255,915					249,566				240,333
	Non-controlling interests			-					500				500
		Total stockholders' equity			255,915					250,066				240,833
		Total liabilities and stockholders' equity		$	485,270				$	523,878			$	444,869
Supplemental Balance Sheet and Cash Flow Data (Unaudited)
					September 30,
Key Balance Sheet Data:			2025					2024
Accounts receivable days sales outstanding (DSO)			85					83
Inventory turnover (DSI)			46					27
					Nine Months Ended September 30,
Condensed Cash Flow Data:			2025					2024
Cash flows used in operating activities		$	(24,753	)			$	(15,181	)
Cash flows used in investing activities			(9,670	)				(8,989	)
Cash flows used in financing activities and other			(7,958	)				(26,100	)
Decrease in cash, cash equivalents and restricted cash		$	(42,381	)			$	(50,270	)
Capital expenditures		$	(7,850	)			$	(7,344	)

		JAKKS Pacific, Inc. and Subsidiaries
		Condensed Consolidated Statements of Operations (Unaudited)
			Three Months Ended September 30,		Nine Months Ended September 30,
				2025					2024			Δ (%)				2025					2024			Δ (%)
			(In thousands, except per share data)					(In thousands, except per share data)
Net sales	$	211,210				$	321,606			(34	)	%		$	443,557				$	560,301			(21	)	%
Less: Cost of sales
	Cost of goods		104,846					158,770			(34	)				218,256					289,190			(25	)
	Royalty expense		34,099					50,011			(32	)				71,776					86,181			(17	)
	Amortization of tools and molds		4,622					3,994			16					7,846					7,462			5
	Cost of sales		143,567					212,775			(33	)				297,878					382,833			(22	)
		Gross profit		67,643					108,831			(38	)				145,679					177,468			(18	)
Direct selling expenses		5,933					7,552			(21	)				21,339					21,904			(3	)
General and administrative expenses		32,200					33,101			(3	)				101,135					100,887			0
Depreciation and amortization		147					95			55					382					275			39
	Selling, general and administrative expenses		38,280					40,748			(6	)				122,856					123,066			(0	)
		Income from operations		29,363					68,083			(57	)				22,823					54,402			(58	)
Other income (expense):
	Other income (expense), net		388					84			362					418					294			42
	Loss on debt extinguishment		(1	)				-			nm				(418	)				-			nm
	Interest income		75					69			9					832					533			56
	Interest expense		(102	)				(539	)		(81	)				(402	)				(938	)		(57	)
Income before provision for income taxes		29,723					67,697			(56	)				23,253					54,291			(57	)
Provision for income taxes		9,831					15,425			(36	)				8,062					10,978			(27	)
Net income		19,892					52,272			(62	)				15,191					43,313			(65	)
Net income attributable to non-controlling interests		-					-			-					-					280			nm
Net income attributable to JAKKS Pacific, Inc.	$	19,892				$	52,272			(62	)	%		$	15,191				$	43,033			(65	)	%
Net income attributable to common stockholders	$	19,892				$	52,272			(62	)	%		$	15,191				$	44,363			(66	)	%
	Earnings per share - basic	$	1.78				$	4.78						$	1.36				$	4.14
	Shares used in earnings per share - basic		11,185					10,942							11,159					10,704
	Earnings per share - diluted	$	1.74				$	4.64						$	1.32				$	3.99
	Shares used in earnings per share - diluted		11,423					11,275							11,487					11,106
			Three Months Ended September 30,					Nine Months Ended September 30,
				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		49.6					49.4			(20	)				49.2					51.6			240
	Royalty expense		16.2					15.6			(60	)				16.2					15.4			(80	)
	Amortization of tools and molds		2.2					1.2			(100	)				1.8					1.3			(50	)
	Cost of sales		68.0					66.2			(180	)				67.2					68.3			110
		Gross profit		32.0					33.8			(180	)				32.8					31.7			110
Direct selling expenses		2.8					2.3			(50	)				4.8					3.9			(90	)
General and administrative expenses		15.2					10.3			(490	)				22.8					18.1			(470	)
Depreciation and amortization		0.1					-			(10.0	)				0.1					-			(10.0	)
	Selling, general and administrative expenses		18.1					12.6			(550	)				27.7					22.0			(570	)
		Income from operations		13.9					21.2			(730	)				5.1					9.7			(460	)
Other income (expense):
	Other income (expense), net		0.2					-							0.1					0.1
	Loss on debt extinguishment		-					-							(0.1	)				-
	Interest income		-					-							0.2					0.1
	Interest expense		-					(0.2	)						(0.1	)				(0.2	)
Income before benefit from income taxes		14.1					21.0							5.2					9.7
Provision for income taxes		4.7					4.7							1.8					2.0
Net income		9.4					16.3							3.4					7.7
Net income attributable to non-controlling interests		-					-							-					-
Net income attributable to JAKKS Pacific, Inc.		9.4		%			16.3		%					3.4		%			7.7		%
Net income attributable to common stockholders		9.4		%			16.3		%					3.4		%			7.9		%

JAKKS Pacific, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information (Unaudited)
		Three Months Ended September 30,				Nine Months Ended September 30,
			2025				2024			Δ ($)			2025				2024			Δ ($)
		(In thousands)				(In thousands)
EBITDA and Adjusted EBITDA
Net income		$	19,892			$	52,272			$	(32,380	)		$	15,191			$	43,313			$	(28,122	)
Interest expense			102				539				(437	)			402				938				(536	)
Interest income			(75	)			(69	)			(6	)			(832	)			(533	)			(299	)
Provision for income taxes			9,831				15,425				(5,594	)			8,062				10,978				(2,916	)
Depreciation and amortization			4,769				4,089				680				8,228				7,737				491
EBITDA			34,519				72,256				(37,737	)			31,051				62,433				(31,382	)
Adjustments:
Other (income) expense, net			(388	)			(84	)			(304	)			(418	)			(294	)			(124	)
Restricted stock compensation expense			2,392				2,186				206				8,132				7,280				852
Loss on debt extinguishment			1				-				1				418				-				418
Adjusted EBITDA		$	36,524			$	74,358			$	(37,834	)		$	39,183			$	69,419			$	(30,236	)
Adjusted EBITDA/Net sales %			17.3		%		23.1		%	-580 bps			8.8		%		12.4		%	-360 bps
		Trailing Twelve Months Ended September 30,
			2025				2024			Δ ($)
		(In thousands)
TTM EBITDA and TTM Adjusted EBITDA
TTM net income		$	6,078			$	32,441			$	(26,363	)
Interest expense			559				1,648				(1,089	)
Interest income			(1,140	)			(1,290	)			150
Provision for income taxes			2,616				5,335				(2,719	)
Depreciation and amortization			10,537				10,091				446
TTM EBITDA			18,650				48,225				(29,575	)
Adjustments:
Other (income) expense, net			(426	)			(433	)			7
Restricted stock compensation expense			10,387				9,337				1,050
Change in fair value of preferred stock derivative liability			-				1,361				(1,361	)
Loss on debt extinguishment			418				-				418
TTM Adjusted EBITDA		$	29,029			$	58,490			$	(29,461	)
TTM Adjusted EBITDA/TTM Net sales %			5.1		%		8.5		%	-340 bps
		Three Months Ended September 30,				Nine Months Ended September 30,
			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 attributable to common stockholders		$	19,892			$	52,272			$	(32,380	)		$	15,191			$	44,363			$	(29,172	)
Restricted stock compensation expense			2,392				2,186				206				8,132				7,280				852
Loss on debt extinguishment			1				-				1				418				-				418
Tax impact of additional charges			(1,733	)			(494	)			(1,239	)			(3,153	)			(1,681	)			(1,472	)
Adjusted net income attributable to common stockholders		$	20,552			$	53,964			$	(33,412	)		$	20,588			$	49,962			$	(29,374	)
Adjusted earnings per share - basic		$	1.84			$	4.93			$	(3.09	)		$	1.84			$	4.67			$	(2.83	)
Shares used in adjusted earnings per share - basic			11,185				10,942				243				11,159				10,704				455
Adjusted earnings per share - diluted		$	1.80			$	4.79			$	(2.99	)		$	1.79			$	4.50			$	(2.71	)
Shares used in adjusted earnings per share - diluted			11,423				11,275				148				11,487				11,106				381

JAKKS Pacific, Inc. and Subsidiaries
Net Sales by Division and Geographic Region
(In thousands)	QTD Q3		(In thousands)	YTD Q3
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	$	156,080	$	264,306	$	246,004	-40.9	%	7.4	%		Toys/Consumer Products	$	343,897	$	451,786	$	461,831	-23.9	%	-2.2	%
Dolls, Role-Play/Dress-Up		92,330		146,893		139,177	-37.1	%	5.5	%		Dolls, Role-Play/Dress-Up		193,957		251,075		246,689	-22.7	%	1.8	%
Action Play & Collectibles		52,950		98,750		93,717	-46.4	%	5.4	%		Action Play & Collectibles		125,733		168,313		184,134	-25.3	%	-8.6	%
Outdoor/Seasonal Toys		10,800		18,663		13,110	-42.1	%	42.4	%		Outdoor/Seasonal Toys		24,207		32,398		31,008	-25.3	%	4.5	%
Costumes	$	55,130	$	57,300	$	63,740	-3.8	%	-10.1	%		Costumes	$	99,660	$	108,515	$	122,330	-8.2	%	-11.3	%
Total	$	211,210	$	321,606	$	309,744	-34.3	%	3.8	%		Total	$	443,557	$	560,301	$	584,161	-20.8	%	-4.1	%
(In thousands)	QTD Q3		(In thousands)	YTD Q3
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	$	154,516	$	255,278	$	244,931	-39.5	%	4.2	%		United States	$	330,450	$	451,545	$	461,561	-26.8	%	-2.2	%
Europe		29,408		30,034		31,676	-2.1	%	-5.2	%		Europe		55,875		46,033		58,476	21.4	%	-21.3	%
Latin America		14,066		22,632		15,319	-37.8	%	47.7	%		Latin America		27,572		33,867		27,590	-18.6	%	22.8	%
Canada		9,237		7,068		11,453	30.7	%	-38.3	%		Canada		21,342		16,726		22,306	27.6	%	-25.0	%
Asia		1,526		2,345		3,192	-34.9	%	-26.5	%		Asia		3,725		4,578		6,403	-18.6	%	-28.5	%
Australia & New Zealand		2,095		3,339		2,692	-37.3	%	24.0	%		Australia & New Zealand		3,594		6,292		6,056	-42.9	%	3.9	%
Middle East & Africa		362		910		481	-60.2	%	89.2	%		Middle East & Africa		999		1,260		1,769	-20.7	%	-28.8	%
Total	$	211,210	$	321,606	$	309,744	-34.3	%	3.8	%		Total	$	443,557	$	560,301	$	584,161	-20.8	%	-4.1	%
(In thousands)	QTD Q3		(In thousands)	YTD Q3
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	$	163,753	$	262,346	$	256,384	-37.6	%	2.3	%		North America	$	351,792	$	468,271	$	483,867	-24.9	%	-3.2	%
International		47,457		59,260		53,360	-19.9	%	11.1	%		International		91,765		92,030		100,294	-0.3	%	-8.2	%
Total	$	211,210	$	321,606	$	309,744	-34.3	%	3.8	%		Total	$	443,557	$	560,301	$	584,161	-20.8	%	-4.1	%
(In thousands)	QTD Q3		(In thousands)	YTD Q3
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	$	154,516	$	255,278	$	244,931	-39.5	%	4.2	%		United States	$	330,450	$	451,545	$	461,561	-26.8	%	-2.2	%
Rest of World		56,694		66,328		64,813	-14.5	%	2.3	%		Rest of World		113,107		108,756		122,600	4.0	%	-11.3	%
Total	$	211,210	$	321,606	$	309,744	-34.3	%	3.8	%		Total	$	443,557	$	560,301	$	584,161	-20.8	%	-4.1	%

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