JAKKS Pacific Reports Second Quarter 2025 Financial Results
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 ResultsNet 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 WebcastJAKKS 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®, Disguise®, Fly Wheels®, JAKKS Wild Games®, Moose Mountain®, Maui®, Perfectly Cute®, ReDo® Skateboard Co., Sky Ball®, SportsZone™, Xtreme Power Dozer®, WeeeDo® and Wild Manes™ 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 X (@jakkstoys) and Facebook
CONTACT:
JAKKS Pacific Investor Relations
(424) 268-9567 Lucas Natalini;
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
Δ (%)
2025
2024
Δ (%)
(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
