|
|
|
|
|||||
|
|
|
Board approves 25 cent quarterly dividend
SANTA MONICA, Calif., April 30, 2026 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (Nasdaq: JAKK) today reported financial results for the first quarter ended March 31, 2026.
First Quarter 2026
Management Commentary
“The first quarter for our company is always focused on working with customers to understand the implications of the year that has just closed. For companies like ours that can move quickly and are focused on meeting their customers’ needs that leads to uncovering new opportunities. From that perspective, this has been a very successful quarter, and we feel we are building momentum. Our persistent focus on international growth delivered well. On a trailing twelve-month basis, our International Net Sales have reached $138 million, the highest level we achieved over the past ten years. Customers in the U.S. remain cautious but we are rebuilding the base that was disrupted last year. Our Costumes business continues to steadily expand both its product line breadth as well as its customer footprint, globally."
First Quarter 2026 Results
Net Sales in North America were down 16% in the quarter compared to the previous year but were up compared to the same quarter in 2024. International Sales were $29.0 million in the quarter, up from $21.0 million last year and $16.3 million in 2024. Globally, Action Play & Collectibles net sales were $55.3 million, up from $42.9 million and $33.0 million in 2025 and 2024, respectively. Dolls, Role-Play, Dress-Up net sales were $37.5 million, compared to $55.5 million and $40.6 million in 2025 and 2024, respectively.
Inventory was $52.9 million as of March 31, 2026, compared to $53.2 million as of March 31, 2025, and $59.8 million as of December 31, 2025.
Cash (including restricted cash and cash equivalents) was $64.0 million as of March 31, 2026, compared to $59.4 million as of March 31, 2025, and $54.1 million as of December 31, 2025.
The Board of Directors has declared a quarterly dividend of $0.25 per share on the company’s common stock, payable June 29, 2026, to shareholders of record May 29, 2026.
Use of Non-GAAP Financial Information and Reconciliation of GAAP to Non-GAAP measures:
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.
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.
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 April 30, 2026. 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 (1Q26 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, costumes and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include Disguise®, Fly Wheels®, Charming™, KidTopia®, Moose Mountain®, Maui®, ReDo Skateboard Co. ®, Sky Ball®, and Xtreme Power Dozer™ as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through their products and 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), YouTube (@JAKKSPacific), Facebook (@jakkspacific.toys) and LinkedIn (JAKKS Pacific).
Forward Looking Statements
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 Pacific's products, product mix, the timing of customer orders and deliveries, the impact of competitive products, tariff policy and pricing, or 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.
| CONTACT: |
| JAKKS Pacific Investor Relations |
| (424) 268-9567 Lucas Natalini investors@jakks.net |
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||||||
| Condensed Consolidated Balance Sheets (Unaudited) | ||||||||||||||||
| March 31, | December 31, | |||||||||||||||
| 2026 | 2025 | 2025 | ||||||||||||||
| (In thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Current assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 62,849 | $ | 59,188 | $ | 52,197 | ||||||||||
| Restricted cash | 1,132 | 207 | 1,869 | |||||||||||||
| Accounts receivable, net | 93,244 | 95,611 | 138,341 | |||||||||||||
| Inventory, net | 52,854 | 53,163 | 59,805 | |||||||||||||
| Prepaid expenses and other assets | 18,749 | 19,854 | 16,873 | |||||||||||||
| Total current assets | 228,828 | 228,023 | 269,085 | |||||||||||||
| Property and equipment | 156,576 | 142,493 | 152,224 | |||||||||||||
| Less accumulated depreciation and amortization | 135,162 | 124,592 | 133,216 | |||||||||||||
| Property and equipment, net | 21,414 | 17,901 | 19,008 | |||||||||||||
| Operating lease right-of-use assets, net | 43,869 | 52,721 | 46,776 | |||||||||||||
| Deferred income tax assets, net | 69,578 | 70,404 | 69,569 | |||||||||||||
| Goodwill | 34,970 | 35,085 | 35,077 | |||||||||||||
| Other long-term assets | 1,787 | 1,737 | 2,682 | |||||||||||||
| Total assets | $ | 400,446 | $ | 405,871 | $ | 442,197 | ||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||
| Current liabilities: | ||||||||||||||||
| Accounts payable | $ | 39,964 | $ | 44,489 | $ | 55,558 | ||||||||||
| Accrued expenses | 35,709 | 37,200 | 43,076 | |||||||||||||
| Reserve for sales returns and allowances | 26,737 | 26,229 | 33,569 | |||||||||||||
| Income taxes payable | 509 | 1,093 | 2,119 | |||||||||||||
| Short-term operating lease liabilities | 14,115 | 9,806 | 13,784 | |||||||||||||
| Total current liabilities | 117,034 | 118,817 | 148,106 | |||||||||||||
| Long-term operating lease liabilities | 35,913 | 47,110 | 39,578 | |||||||||||||
| Accrued expenses, long term | 4,555 | 2,909 | 4,463 | |||||||||||||
| Income taxes payable | 960 | 2,009 | 945 | |||||||||||||
| Total liabilities | 158,462 | 170,845 | 193,092 | |||||||||||||
| Stockholders' equity: | ||||||||||||||||
| Common stock, $.001 par value | 11 | 11 | 11 | |||||||||||||
| Additional paid-in capital | 304,229 | 295,931 | 302,408 | |||||||||||||
| Accumulated deficit | (48,162 | ) | (44,860 | ) | (41,021 | ) | ||||||||||
| Accumulated other comprehensive loss | (14,094 | ) | (16,556 | ) | (12,293 | ) | ||||||||||
| Total JAKKS Pacific, Inc. stockholders' equity | 241,984 | 234,526 | 249,105 | |||||||||||||
| Non-controlling interests | - | 500 | - | |||||||||||||
| Total stockholders' equity | 241,984 | 235,026 | 249,105 | |||||||||||||
| Total liabilities and stockholders' equity | $ | 400,446 | $ | 405,871 | $ | 442,197 | ||||||||||
| Supplemental Balance Sheet and Cash Flow Data (Unaudited) | |||||||||||||||||||
| March 31, | |||||||||||||||||||
| Key Balance Sheet Data: | 2026 | 2025 | |||||||||||||||||
| Accounts receivable days sales outstanding (DSO) | 79 | 76 | |||||||||||||||||
| Inventory turnover (DSI) | 67 | 64 | |||||||||||||||||
| Three Months Ended March 31, | Trailing Twelve Months (*) Ended March 31, | ||||||||||||||||||
| Condensed Cash Flow Data: | 2026 | 2025 | 2026 | 2025 | |||||||||||||||
| Cash flows from (used in) operating activities | $ | 21,795 | $ | (1,700 | ) | $ | 31,987 | $ | 50,110 | ||||||||||
| Cash flows used in investing activities | (5,812 | ) | (3,065 | ) | (15,091 | ) | (12,320 | ) | |||||||||||
| Cash flows used in financing activities and other | (6,068 | ) | (5,977 | ) | (12,310 | ) | (13,887 | ) | |||||||||||
| Net increase (decrease) in cash, cash equivalents and restricted cash | $ | 9,915 | $ | (10,742 | ) | $ | 4,586 | $ | 23,903 | ||||||||||
| Capital expenditures | $ | (5,589 | ) | $ | (2,070 | ) | $ | (13,082 | ) | $ | (11,088 | ) | |||||||
| (*) Trailing twelve months (TTM) amounts are calculated as the sum of the most recent four quarters, derived from reported GAAP results. | |||||||||||||||||||
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||
| Condensed Consolidated Statements of Operations (Unaudited) | ||||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2026 | 2025 | Δ (%) | ||||||||||
| (In thousands, except per share data) | ||||||||||||
| Net sales | $ | 106,676 | $ | 113,253 | (6 | )% | ||||||
| Less: Cost of sales | ||||||||||||
| Cost of goods | 52,187 | 54,626 | (4 | ) | ||||||||
| Royalty expense | 16,913 | 18,168 | (7 | ) | ||||||||
| Amortization of tools and molds | 1,970 | 1,446 | 36 | |||||||||
| Cost of sales | 71,070 | 74,240 | (4 | ) | ||||||||
| Gross profit | 35,606 | 39,013 | (9 | ) | ||||||||
| Direct selling expenses | 8,164 | 8,696 | (6 | ) | ||||||||
| General and administrative expenses | 32,864 | 33,961 | (3 | ) | ||||||||
| Depreciation and amortization | 152 | 113 | 35 | |||||||||
| Selling, general and administrative expenses | 41,180 | 42,770 | (4 | ) | ||||||||
| Loss from operations | (5,574 | ) | (3,757 | ) | 48 | |||||||
| Other income (expense): | ||||||||||||
| Other income (expense), net | 25 | 5 | 400 | |||||||||
| Interest income | 480 | 362 | 33 | |||||||||
| Interest expense | (60 | ) | (155 | ) | (61 | ) | ||||||
| Loss before benefit from income taxes | (5,129 | ) | (3,545 | ) | 45 | |||||||
| Benefit from income taxes | (849 | ) | (1,163 | ) | (27 | ) | ||||||
| Net loss | $ | (4,280 | ) | $ | (2,382 | ) | 80 | % | ||||
| Loss per share - basic & diluted | $ | (0.37 | ) | $ | (0.21 | ) | ||||||
| Shares used in loss per share - basic & diluted | 11,444 | 11,146 | ||||||||||
| Three Months Ended March 31, | ||||||||||||
| 2026 | 2025 | Δ bps | ||||||||||
| Fav/(Unfav) | ||||||||||||
| Net sales | 100.0 | % | 100.0 | % | - | |||||||
| Less: Cost of sales | ||||||||||||
| Cost of goods | 48.9 | 48.3 | (60 | ) | ||||||||
| Royalty expense | 15.9 | 16.0 | 10 | |||||||||
| Amortization of tools and molds | 1.8 | 1.3 | (50.0 | ) | ||||||||
| Cost of sales | 66.6 | 65.6 | (100 | ) | ||||||||
| Gross profit | 33.4 | 34.4 | (100 | ) | ||||||||
| Direct selling expenses | 7.7 | 7.7 | 0 | |||||||||
| General and administrative expenses | 30.8 | 29.9 | (90 | ) | ||||||||
| Depreciation and amortization | 0.1 | 0.1 | - | |||||||||
| Selling, general and administrative expenses | 38.6 | 37.7 | (90 | ) | ||||||||
| Loss from operations | (5.2 | ) | (3.3 | ) | (190 | ) | ||||||
| Other income (expense): | ||||||||||||
| Other income (expense), net | - | - | ||||||||||
| Interest income | 0.4 | 0.3 | ||||||||||
| Interest expense | - | (0.1 | ) | |||||||||
| Loss before benefit from income taxes | (4.8 | ) | (3.1 | ) | ||||||||
| Benefit from income taxes | (0.8 | ) | (1.0 | ) | ||||||||
| Net loss | (4.0 | )% | (2.1 | )% | ||||||||
| JAKKS Pacific, Inc. and Subsidiaries | ||||||||||||||||||||||||
| Reconciliation of Non-GAAP Financial Information (Unaudited) | ||||||||||||||||||||||||
| Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | Δ ($) | 2026 | 2025 | Δ ($) | |||||||||||||||||||
| (In thousands) | (In thousands) | |||||||||||||||||||||||
| EBITDA and Adjusted EBITDA | ||||||||||||||||||||||||
| Net loss | $ | (4,280 | ) | $ | (2,382 | ) | $ | (1,898 | ) | $ | (4,280 | ) | $ | (2,382 | ) | $ | (1,898 | ) | ||||||
| Interest expense | 60 | 155 | (95 | ) | 60 | 155 | (95 | ) | ||||||||||||||||
| Interest income | (480 | ) | (362 | ) | (118 | ) | (480 | ) | (362 | ) | (118 | ) | ||||||||||||
| Benefit from income taxes | (849 | ) | (1,163 | ) | 314 | (849 | ) | (1,163 | ) | 314 | ||||||||||||||
| Depreciation and amortization | 2,122 | 1,559 | 563 | 2,122 | 1,559 | 563 | ||||||||||||||||||
| EBITDA | (3,427 | ) | (2,193 | ) | (1,234 | ) | (3,427 | ) | (2,193 | ) | (1,234 | ) | ||||||||||||
| Adjustments: | ||||||||||||||||||||||||
| Other (income) expense, net | (25 | ) | (5 | ) | (20 | ) | (25 | ) | (5 | ) | (20 | ) | ||||||||||||
| Restricted stock compensation expense | 3,081 | 2,552 | 529 | 3,081 | 2,552 | 529 | ||||||||||||||||||
| Adjusted EBITDA | $ | (371 | ) | $ | 354 | $ | (725 | ) | $ | (371 | ) | $ | 354 | $ | (725 | ) | ||||||||
| Adjusted EBITDA/Net sales % | (0.3 | )% | 0.3 | % | -60 bps | (0.3 | )% | 0.3 | % | -60 bps | ||||||||||||||
| Trailing Twelve Months Ended March 31, | ||||||||||||||||||||||||
| 2026 | 2025 | Δ ($) | ||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||
| TTM EBITDA and TTM Adjusted EBITDA | ||||||||||||||||||||||||
| TTM net income | $ | 7,973 | $ | 46,043 | $ | (38,070 | ) | |||||||||||||||||
| Interest expense | 376 | 1,107 | (731 | ) | ||||||||||||||||||||
| Interest income | (1,113 | ) | (827 | ) | (286 | ) | ||||||||||||||||||
| Provision for income taxes | 5,208 | 11,097 | (5,889 | ) | ||||||||||||||||||||
| Depreciation and amortization | 10,796 | 10,091 | 705 | |||||||||||||||||||||
| TTM EBITDA | 23,240 | 67,511 | (44,271 | ) | ||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||
| Other (income) expense, net | (470 | ) | (169 | ) | (301 | ) | ||||||||||||||||||
| Restricted stock compensation expense | 11,442 | 9,512 | 1,930 | |||||||||||||||||||||
| Loss on debt extinguishment | 427 | - | 427 | |||||||||||||||||||||
| TTM Adjusted EBITDA | $ | 34,639 | $ | 76,854 | $ | (42,215 | ) | |||||||||||||||||
| TTM Adjusted EBITDA/TTM Net sales % | 6.1 | % | 10.8 | % | -470 bps | |||||||||||||||||||
| Three Months Ended March 31, | Three Months Ended March 31, | |||||||||||||||||||||||
| 2026 | 2025 | Δ ($) | 2026 | 2025 | Δ ($) | |||||||||||||||||||
| (In thousands, except per share data) | (In thousands, except per share data) | |||||||||||||||||||||||
| Adjusted net loss attributable to common stockholders | ||||||||||||||||||||||||
| Net loss | $ | (4,280 | ) | $ | (2,382 | ) | $ | (1,898 | ) | $ | (4,280 | ) | $ | (2,382 | ) | $ | (1,898 | ) | ||||||
| Restricted stock compensation expense | 3,081 | 2,552 | 529 | 3,081 | 2,552 | 529 | ||||||||||||||||||
| Tax impact of additional charges | (713 | ) | (524 | ) | (189 | ) | (3,866 | ) | (524 | ) | (3,342 | ) | ||||||||||||
| Adjusted net loss | $ | (1,912 | ) | $ | (354 | ) | $ | (1,558 | ) | $ | (5,065 | ) | $ | (354 | ) | $ | (4,711 | ) | ||||||
| Adjusted loss per share - basic & diluted | $ | (0.17 | ) | $ | (0.03 | ) | $ | (0.14 | ) | $ | (0.44 | ) | $ | (0.03 | ) | $ | (0.41 | ) | ||||||
| Shares used in adjusted loss per share - basic & diluted | 11,444 | 11,146 | 298 | 11,444 | 11,146 | 298 | ||||||||||||||||||
| Adjusted earnings (loss) per share - diluted | $ | (0.17 | ) | $ | (0.03 | ) | $ | (0.14 | ) | $ | (0.44 | ) | $ | (0.03 | ) | $ | (0.41 | ) | ||||||
| Shares used in adjusted earnings (loss) per share - diluted | 11,444 | 11,146 | 298 | 11,444 | 11,146 | 298 | ||||||||||||||||||
| JAKKS Pacific, Inc. and Subsidiaries | |||||
| Net Sales by Division and Geographic Region | |||||
| (In thousands) | QTD Q1 | ||||
| Divisions | 2024 | 2025 | 2026 | % Change 2025 v 2026 | CAGR% 2024 - 2026 |
| Toys/Consumer Products | $82,910 | $107,438 | $100,095 | -6.8% | 9.9% |
| Dolls, Role-Play/Dress-Up | 40,574 | 55,463 | 37,497 | -32.4% | -3.9% |
| Action Play & Collectibles | 33,008 | 42,881 | 55,269 | 28.9% | 29.4% |
| Outdoor/Seasonal Toys | 9,328 | 9,094 | 7,329 | -19.4% | -11.4% |
| Costumes | $7,166 | $5,815 | $6,581 | 13.2% | -4.2% |
| Total | $90,076 | $113,253 | $106,676 | -5.8% | 8.8% |
| (In thousands) | QTD Q1 | ||||
| Regions | 2024 | 2025 | 2026 | % Change 2025 v 2026 | CAGR% 2024 - 2026 |
| United States | $70,430 | $88,944 | $74,636 | -16.1% | 2.9% |
| Europe | 5,735 | 11,810 | 17,379 | 47.2% | 74.1% |
| Latin America | 7,996 | 7,459 | 6,962 | -6.7% | -6.7% |
| Canada | 3,370 | 3,279 | 2,992 | -8.8% | -5.8% |
| Australia & New Zealand | 1,346 | 613 | 2,469 | 302.8% | 35.4% |
| Asia | 965 | 751 | 1,935 | 157.7% | 41.6% |
| Middle East & Africa | 234 | 397 | 303 | -23.7% | 13.8% |
| Total | $90,076 | $113,253 | $106,676 | -5.8% | 8.8% |
| (In thousands) | QTD Q1 | ||||
| Regions | 2024 | 2025 | 2026 | % Change 2025 v 2026 | CAGR% 2024 - 2026 |
| North America | $73,800 | $92,223 | $77,628 | -15.8% | 2.6% |
| International | 16,276 | 21,030 | 29,048 | 38.1% | 33.6% |
| Total | $90,076 | $113,253 | $106,676 | -5.8% | 8.8% |
| (In thousands) | QTD Q1 | ||||
| Regions | 2024 | 2025 | 2026 | % Change 2025 v 2026 | CAGR% 2024 - 2026 |
| United States | $70,430 | $88,944 | $74,636 | -16.1% | 2.9% |
| Rest of World | 19,646 | 24,309 | 32,040 | 31.8% | 27.7% |
| Total | $90,076 | $113,253 | $106,676 | -5.8% | 8.8% |
| 1 hour | |
| 2 hours | |
| Apr-16 | |
| Mar-09 | |
| Mar-05 | |
| Mar-04 | |
| Mar-03 | |
| Mar-03 | |
| Mar-02 | |
| Feb-26 | |
| Feb-25 | |
| Feb-24 | |
| Feb-24 | |
| Feb-23 | |
| Feb-23 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, alerts, and much more.
Learn more about Finviz Elite