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Jakks Pacific Reports Fourth Quarter and Full-Year 2025 Financial Results

Q4 in line with expectations with bottom-line growth; Board approves cash dividend

SANTA MONICA, Calif., Feb. 19, 2026 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (Nasdaq: JAKK) today reported financial results for the fourth quarter and fiscal year ended December 31, 2025.

Fourth Quarter 2025

  • Net sales were $127.1 million, a year-over-year decrease of 3%
    • Toys/Consumer Products net sales were $118.0 million, essentially flat to $118.2 million last year
    • Costumes net sales were $9.1 million, a year-over-year decrease of 28%
  • Gross margin of 31.0%, up 380 basis points vs. Q4 2024
  • Gross profit of $39.4 million, up 11% compared to $35.6 million in Q4 2024
  • Operating loss of $8.6 million in Q4 2025, an improvement of $6.1 million vs. a loss of $14.7 million in Q4 2024
  • Net loss attributable to common stockholders of $5.3 million or $0.47 per diluted share, compared to net loss attributable to common stockholders of $9.1 million or $0.83 per diluted share in Q4 2024
  • Adjusted net loss attributable to common stockholders (a non-GAAP measure) of $2.0 million or $0.18 per diluted share, compared to adjusted net loss attributable to common stockholders of $7.4 million or $0.67 per diluted share in Q4 2024
  • Adjusted EBITDA (a non-GAAP measure) of $(3.8) million vs. $(10.2) million in Q4 2024, an improvement of $6.3 million

Full-Year 2025

  • Net sales were $570.7 million compared to $691.0 million last year, a 17% decrease
    • Toys/Consumer Products net sales were $461.9 million, a year-over-year decrease of 19%
    • Costumes net sales were $108.7 million, a year-over-year decrease of 10%
  • Gross margin of 32.4% compared to 30.8% last year
  • Gross profit of $185.1 million, down 13% compared to $213.0 million last year
  • Operating income of $14.2 million compared to $39.7 million last year: a 64% decrease
  • Net income attributable to common stockholders of $9.9 million, down from a net income attributable to common stockholders of $35.3 million in 2024
  • Adjusted net income attributable to common stockholders of $18.6 million ($1.62 per diluted share), down from adjusted net income attributable to common stockholders of $42.6 million ($3.79 per diluted share) in 2024
  • Adjusted EBITDA of $35.4 million, down from $59.3 million in 2024
  • Cash returned to shareholders of $11.2 million, $1 per common share.
  • End of year cash and cash equivalents of $54.1 million, down from $70.1 million in 2024

Management Commentary
“We are pleased with everything we accomplished as 2025 draws to a close. I think when we look back, we’ll see it as a very important year in the history of our company,” said Stephen Berman, Chairman and CEO of JAKKS Pacific. “On the surface, the downward pressure on the full-year financials from tariff policy might be all that some people can see now. What I also reflect upon, however, is the number of areas where we nonetheless made substantial progress towards longer-term goals despite that disruption. We elevated and broadened our relationships with existing factories, licensors and customers, with a global worldview. We also made substantial progress expanding our relationship portfolio in anticipation of a new strategic initiative set to launch in 2027. We were transparent with our shareholders about our perspective on market dynamics and the resulting challenges. We followed through with what we said we would do, refusing to chase topline sales at the expense of bottom-line margin. And we completed our first full year as a cash dividend payer, returning $1 per share in dividends back to our shareholders as we maintained our debt-free balance sheet. We feel we are leaving 2025 stronger than we left 2024 and are excited about 2026’s potential.

Our fourth quarter results were roughly in line with our expectations. The significant customer order disruptions of Q2 and Q3 driven by rapidly changing tariff policy abated in Q4 and allowed for a slightly more predictable environment. Our Toy/Consumer Products division net sales were roughly flat in Q4, at $118.0 million, down 0.2% from prior year and down 0.5% from 2023. Costumes were down, although in one of its smaller quarters of the year, but enough to bring total company sales down 2.8% from prior year to $127.1 million, or roughly flat to our 2023 Q4 sales of $127.4 million.  Gross margins improved in the quarter vs. last year and finished the full year at 32.4%, our highest full-year number in fifteen years. Adjusted EBITDA in the quarter improved vs prior year, lifting full-year Adjusted EBITDA to $35.4 million.”

Other Financial Highlights
Sales in the United States were down 8% in the quarter and 24% on a full-year basis compared to the previous year. Sales outside of the United States were up 10% in the quarter, and up 6% for the full year outside the United States, led by Europe.

Inventory was $59.8 million as of December 31, 2025, compared to $52.8 million as of December 31, 2024, driven primarily by our expanded warehouse network in the European Union.

The Board of Directors has declared a quarterly dividend of $0.25 per share on the company’s common stock, payable March 30, 2026, to shareholders of record February 27, 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 February 19, 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 (4Q25 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)
             
        December 31,
          2025         2024  
        (In thousands)
Assets
             
Current assets:          
  Cash and cash equivalents   $ 52,197       $ 69,936  
  Restricted cash     1,869         201  
  Accounts receivable, net     138,341         131,629  
  Inventory     59,805         52,780  
  Prepaid expenses and other assets     16,873         14,141  
    Total current assets     269,085         268,687  
               
Property and equipment     152,224         142,623  
Less accumulated depreciation and amortization     133,216         126,981  
  Property and equipment, net     19,008         15,642  
               
Operating lease right-of-use assets, net     46,776         53,254  
Deferred income tax assets, net     69,569         70,394  
Goodwill     35,077         35,111  
Other long-term assets     2,682         1,781  
    Total assets   $ 442,197       $ 444,869  
               
               
Liabilities and Stockholders' Equity
             
               
Current liabilities:          
  Accounts payable   $ 55,558       $ 42,560  
  Accounts payable - Meisheng (related party)     -         13,461  
  Accrued expenses     43,076         48,456  
  Reserve for sales returns and allowances     33,569         35,817  
  Income taxes payable     2,119         1,035  
  Short term operating lease liabilities     13,784         8,091  
    Total current liabilities     148,106         149,420  
               
Long term operating lease liabilities     39,578         48,433  
Accrued expenses - long term     4,463         2,563  
Income taxes payable     945         3,620  
    Total liabilities     193,092         204,036  
               
Stockholders' equity:          
  Common stock, $.001 par value     11         11  
  Additional paid-in capital     302,408         297,198  
  Accumulated deficit     (41,021 )       (39,692 )
  Accumulated other comprehensive loss     (12,293 )       (17,184 )
    Total JAKKS Pacific, Inc. stockholders' equity     249,105         240,333  
  Non-controlling interests     -         500  
    Total stockholders' equity     249,105         240,833  
    Total liabilities and stockholders' equity   $ 442,197       $ 444,869  
               
               
Supplemental Balance Sheet and Cash Flow Data (Unaudited)
             
        December 31,
Key Balance Sheet Data:     2025         2024  
               
Accounts receivable days sales outstanding (DSO)     100         93  
Inventory turnover (DSI)     63         51  
               
        Twelve Months Ended
December 31,
Condensed Cash Flow Data:     2025         2024  
               
Cash flows from operating activities   $ 8,492       $ 38,947  
Cash flows used in investing activities     (12,344 )       (12,889 )
Cash flows used in financing activities and other     (12,219 )       (28,475 )
Decrease in cash, cash equivalents and restricted cash   $ (16,071 )     $ (2,417 )
               
Capital expenditures   $ (9,563 )     $ (11,246 )
               


    JAKKS Pacific, Inc. and Subsidiaries  
    Condensed Consolidated Statements of Operations (Unaudited)  
       
      Three Months Ended
December 31,
        Twelve Months Ended
December 31,
     
        2025       2024     Δ (%)       2025       2024     Δ (%)  
      (In thousands, except per share data)         (In thousands, except per share data)      
                               
Net sales $ 127,114     $ 130,741     (3 ) %   $ 570,671     $ 691,042     (17 ) %
Less: Cost of sales                          
  Cost of goods   65,265       72,373     (10 )       283,521       361,563     (22 )  
  Royalty expense   20,605       20,623     (0 )       92,381       106,804     (14 )  
  Amortization of tools and molds   1,843       2,192     (16 )       9,689       9,654     0    
  Cost of sales   87,713       95,188     (8 )       385,591       478,021     (19 )  
    Gross profit   39,401       35,553     11         185,080       213,021     (13 )  
Direct selling expenses   15,519       18,201     (15 )       36,858       40,105     (8 )  
General and administrative expenses   32,325       31,953     1         133,460       132,840     0    
Depreciation and amortization   162       117     38         544       392     39    
  Selling, general and administrative expenses   48,006       50,271     (5 )       170,862       173,337     (1 )  
    Income (loss) from operations   (8,605 )     (14,718 )   (42 )       14,218       39,684     (64 )  
Other income (expense):                          
  Loss from joint ventures   -       -     -         -       -     -    
  Other income (expense), net   32       8     300         450       302     49    
  Change in fair value of preferred stock derivative liability   -       -     -         -       -     -    
  Loss on debt extinguishment   (9 )     -     nm       (427 )     -     nm  
  Interest income   163       308     (47 )       995       841     18    
  Interest expense   (69 )     (157 )   (56 )       (471 )     (1,095 )   (57 )  
Income (loss) before provision for (benefit from) income taxes   (8,488 )     (14,559 )   (42 )       14,765       39,732     (63 )  
Provision for (benefit from) income taxes   (3,168 )     (5,446 )   (42 )       4,894       5,532     (12 )  
Net income (loss)   (5,320 )     (9,113 )   (42 )       9,871       34,200     (71 )  
Net income (loss) attributable to non-controlling interests   -       -     -         -       280     nm  
Net income (loss) attributable to JAKKS Pacific, Inc. $ (5,320 )   $ (9,113 )   (42 ) %   $ 9,871     $ 33,920     (71 ) %
Net income (loss) attributable to common stockholders $ (5,320 )   $ (9,113 )   (42 ) %   $ 9,871     $ 35,250     (72 ) %
  Earnings (loss) per share - basic $ (0.47 )   $ (0.83 )         $ 0.88     $ 3.27        
  Shares used in earnings (loss) per share - basic   11,282       11,008             11,190       10,781        
  Earnings (loss) per share - diluted $ (0.47 )   $ (0.83 )         $ 0.86     $ 3.14        
  Shares used in earnings (loss) per share - diluted   11,282       11,008             11,491       11,226        
                               
      Three Months Ended
December 31,
        Twelve Months Ended
December 31,
     
        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   51.4       55.3     390         49.7       52.3     260    
  Royalty expense   16.2       15.8     (40 )       16.2       15.5     (70 )  
  Amortization of tools and molds   1.4       1.7     30.0         1.7       1.4     (30 )  
  Cost of sales   69.0       72.8     380         67.6       69.2     160    
    Gross profit   31.0       27.2     380         32.4       30.8     160    
Direct selling expenses   12.2       13.9     170         6.4       5.8     (60 )  
General and administrative expenses   25.5       24.5     (100 )       23.4       19.2     (420 )  
Depreciation and amortization   0.1       0.1     -         0.1       0.1     -    
  Selling, general and administrative expenses   37.8       38.5     70         29.9       25.1     (480 )  
    Income (loss) from operations   (6.8 )     (11.3 )   450         2.5       5.7     (320 )  
Other income (expense):                          
  Loss from joint ventures   -       -             -       -        
  Other income (expense), net   -       -             0.1       0.1        
  Change in fair value of preferred stock derivative liability   -       -             -       -        
  Loss on debt extinguishment   -       -             (0.1 )     -        
  Interest income   0.1       0.2             0.2       0.1        
  Interest expense   -       (0.1 )           (0.1 )     (0.2 )      
Income (loss) before provision for (benefit from) income taxes   (6.7 )     (11.2 )           2.6       5.7        
Provision for (benefit from) income taxes   (2.5 )     (4.2 )           0.9       0.8        
Net income (loss)   (4.2 )     (7.0 )           1.7       4.9        
Net income (loss) attributable to non-controlling interests   -       -             -       -        
Net income (loss) attributable to JAKKS Pacific, Inc.   (4.2 ) %   (7.0 ) %         1.7   %   4.9   %    
Net income (loss) attributable to common stockholders   (4.2 ) %   (7.0 ) %         1.7   %   5.1   %    
                               


JAKKS Pacific, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information (Unaudited)
 
    Three Months Ended
December 31,
      Twelve Months Ended
December 31,
     
      2025       2024     Δ ($)     2025       2024     Δ ($)  
    (In thousands)       (In thousands)      
EBITDA and Adjusted EBITDA                          
Net income (loss)   $ (5,320 )   $ (9,113 )   $ 3,793     $ 9,871     $ 34,200     $ (24,329 )  
Interest expense     69       157       (88 )     471       1,095       (624 )  
Interest income     (163 )     (308 )     145       (995 )     (841 )     (154 )  
Provision for (benefit from) income taxes     (3,168 )     (5,446 )     2,278       4,894       5,532       (638 )  
Depreciation and amortization     2,005       2,309       (304 )     10,233       10,046       187    
EBITDA     (6,577 )     (12,401 )     5,824       24,474       50,032       (25,558 )  
Adjustments:                          
Other (income) expense, net     (32 )     (8 )     (24 )     (450 )     (302 )     (148 )  
Restricted stock compensation expense     2,781       2,255       526       10,913       9,535       1,378    
Loss on debt extinguishment     9       -       9       427       -       427    
Adjusted EBITDA   $ (3,819 )   $ (10,154 )   $ 6,335     $ 35,364     $ 59,265     $ (23,901 )  
Adjusted EBITDA/Net sales %     (3.0 ) %   (7.8 ) % 480 bps     6.2   %   8.6   % -240 bps  
                           
                           
    Trailing Twelve Months Ended December 31,                  
      2025       2024     Δ ($)              
    (In thousands)                  
TTM EBITDA and TTM Adjusted EBITDA                          
TTM net income   $ 9,871     $ 34,200     $ (24,329 )              
Interest expense     471       1,095       (624 )              
Interest income     (995 )     (841 )     (154 )              
Provision for income taxes     4,894       5,532       (638 )              
Depreciation and amortization     10,233       10,046       187                
TTM EBITDA     24,474       50,032       (25,558 )              
Adjustments:                          
Other (income) expense, net     (450 )     (302 )     (148 )              
Restricted stock compensation expense     10,913       9,535       1,378                
Change in fair value of preferred stock derivative liability     -       -       -                
Loss on debt extinguishment     427       -       427                
TTM Adjusted EBITDA   $ 35,364     $ 59,265     $ (23,901 )              
TTM Adjusted EBITDA/TTM Net sales %     6.2   %   8.6   % -240 bps              
                           
                           
    Three Months Ended
December 31,
      Twelve Months Ended
December 31,
     
      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 (loss) attributable to common stockholders   $ (5,320 )   $ (9,113 )   $ 3,793     $ 9,871     $ 35,250     $ (25,379 )  
Restricted stock compensation expense     2,781       2,255       526       10,913       9,535       1,378    
Loss on debt extinguishment     9       -       9       427       -       427    
Tax impact of additional charges     521       (544 )     1,065       (2,632 )     (2,225 )     (407 )  
Adjusted net income (loss) attributable to common stockholders   $ (2,009 )   $ (7,402 )   $ 5,393     $ 18,579     $ 42,560     $ (23,981 )  
Adjusted earnings (loss) per share - basic   $ (0.18 )   $ (0.67 )   $ 0.49     $ 1.66     $ 3.95     $ (2.29 )  
Shares used in adjusted earnings (loss) per share - basic     11,282       11,008       274       11,190       10,781       409    
Adjusted earnings (loss) per share - diluted   $ (0.18 )   $ (0.67 )   $ 0.49     $ 1.62     $ 3.79     $ (2.17 )  
Shares used in adjusted earnings (loss) per share - diluted     11,282       11,008       274       11,491       11,226       265    
                           


JAKKS Pacific, Inc. and Subsidiaries
Net Sales by Division and Geographic Region
                         
(In thousands) QTD Q4   (In thousands) YTD Q4
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 $118,040 $118,233 $118,855 -0.2 % -0.5 %   Toys/Consumer Products $461,937 $570,018 $580,687 -19.0 % -1.8 %
Dolls, Role-Play/Dress-Up 48,806 62,603 73,272 -22.0 % -14.6 %   Dolls, Role-Play/Dress-Up 242,763 313,679 319,962 -22.6 % -2.0 %
Action Play & Collectibles 56,229 47,209 35,312 19.1 % 33.7 %   Action Play & Collectibles 181,962 215,521 219,446 -15.6 % -1.8 %
Outdoor/Seasonal Toys 13,005 8,421 10,272 54.4 % -18.0 %   Outdoor/Seasonal Toys 37,212 40,818 41,279 -8.8 % -1.1 %
Costumes $9,074 $12,508 $8,541 -27.5 % 46.4 %   Costumes $108,734 $121,024 $130,870 -10.2 % -7.5 %
Total $127,114 $130,741 $127,396 -2.8 % 2.6 %   Total $570,671 $691,042 $711,557 -17.4 % -2.9 %
                         
                         
                         
(In thousands) QTD Q4   (In thousands) YTD Q4
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 $86,155 $93,468 $96,304 -7.8 % -2.9 %   United States $416,605 $545,013 $557,865 -23.6 % -2.3 %
Europe 25,504 25,359 17,988 0.6 % 41.0 %   Europe 81,379 71,392 76,464 14.0 % -6.6 %
Latin America 8,849 4,292 4,434 106.2 % -3.2 %   Latin America 36,421 38,159 32,024 -4.6 % 19.2 %
Canada 3,084 4,257 4,686 -27.6 % -9.2 %   Canada 24,426 20,983 26,992 16.4 % -22.3 %
Asia 1,388 1,523 2,140 -8.9 % -28.8 %   Asia 4,982 6,101 8,543 -18.3 % -28.6 %
Australia & New Zealand 1,228 1,116 1,486 10.0 % -24.9 %   Australia & New Zealand 4,953 7,409 7,542 -33.1 % -1.8 %
Middle East & Africa 906 726 358 24.8 % 102.8 %   Middle East & Africa 1,905 1,985 2,127 -4.0 % -6.7 %
Total $127,114 $130,741 $127,396 -2.8 % 2.6 %   Total $570,671 $691,042 $711,557 -17.4 % -2.9 %
                         
                         
(In thousands) QTD Q4   (In thousands) YTD Q4
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 $89,239 $97,725 $100,990 -8.7 % -3.2 %   North America $441,031 $565,996 $584,857 -22.1 % -3.2 %
International 37,875 33,016 26,406 14.7 % 25.0 %   International 129,640 125,046 126,700 3.7 % -1.3 %
Total $127,114 $130,741 $127,396 -2.8 % 2.6 %   Total $570,671 $691,042 $711,557 -17.4 % -2.9 %
                         
                         
(In thousands) QTD Q4   (In thousands) YTD Q4
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 $86,155 $93,468 $96,304 -7.8 % -2.9 %   United States $416,605 $545,013 $557,865 -23.6 % -2.3 %
Rest of World 40,959 37,273 31,092 9.9 % 19.9 %   Rest of World 154,066 146,029 153,692 5.5 % -5.0 %
Total $127,114 $130,741 $127,396 -2.8 % 2.6 %   Total $570,671 $691,042 $711,557 -17.4 % -2.9 %

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