Net sales up 17% in Q2
Highest first-half International sales in 10+ years
SANTA MONICA, Calif., July 23, 2026 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (Nasdaq: JAKK) today reported financial results for the second quarter ended June 30, 2026.
Second Quarter 2026
- Net sales were $139.2 million, a year-over-year increase of 17%
- Toys/Consumer Products net sales were $97.5 million, up 21% from $80.4 million last year
- Costumes net sales were $41.7 million, a year-over-year increase of 8%
- Gross margin of 32.3%, down 50 basis points vs. Q2 2025
- Gross profit of $45.0 million, up 15% compared to $39.0 million in Q2 2025
- Operating loss of $0.1 million in Q2 2026, compared to a loss of $2.8 million in Q2 2025
- Net income attributable to common stockholders of $5.9 million or $0.49 per diluted share, compared to net loss attributable to common stockholders of $2.3 million or $0.21 per diluted share in Q2 2025, driven by refunded tariff expenditures reflected in Non-Operating Income
- Adjusted net income attributable to common stockholders (a non-GAAP measure) of $2.9 million or $0.25 per diluted share, compared to adjusted net income attributable to common stockholders of $0.4 million or $0.03 per diluted share in Q2 2025
- Adjusted EBITDA (a non-GAAP measure) of $5.4 million vs. $2.3 million in Q2 2025
- Trailing-twelve-month Adjusted EBITDA of $37.8 million, up from $34.6 million as of Q1 2026
Management Commentary
“We finished the second quarter with good momentum heading into the second half of the year. The year is developing as we had planned,” said Stephen Berman, Chairman and CEO of JAKKS Pacific. “Many retailers in the US are recalibrating their pricing and where they have done so, we see consumers responding positively to our compelling product offering. Our first half new product introductions were broadly well received and sold through. Our Action Play & Collectibles business was up by over 40% in the quarter and reached $97 million in net sales for the first half, our highest level in over 15 years. Our Dolls, Role-Play and Dress-Up business was up over 11% in the quarter despite a lack of new entertainment properties in that division. Our evergreen businesses are rebounding from last year and setting us up well for the quarters ahead”.
Second Quarter & First-Half 2026 Highlights
Net Sales in North America were up 20% in the quarter to $115 million compared to the previous year and 3% for the first-half of the year. International Sales were $24 million in the quarter -- up from $23 million last year (a 3% increase) and $53 million in the first-half compared to $44 million in 2025 and $33 million in 2024 for the comparable time periods. Globally, Action Play & Collectibles net sales were $42 million in the quarter, up from $30 million and $37 million in 2025 and 2024, respectively. Dolls, Role-Play, Dress-Up net sales were $52 million, compared to $46 million and $64 million in 2025 and 2024, respectively. Costumes net sales were $42 million, compared to $39 million (an 8% increase) and $44 million in 2025 and 2024, respectively. Costumes were up 8% for the quarter and 9% for the first-half.
Inventory was $58.3 million as of June 30, 2026, compared to $71.8 million as of June 30, 2025, and $59.8 million as of December 31, 2025.
Cash (including restricted cash and cash equivalents) was $60.6 million as of June 30, 2026, compared to $43.1 million as of June 30, 2025, and $54.1 million as of December 31, 2025.
The Board of Directors declared a quarterly dividend of $0.25 per share on the company’s common stock, payable September 28, 2026, to shareholders of record August 28, 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 July 23, 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 (2Q26 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
[email protected]
2025
2025
(In thousands) Assets Current assets: Cash and cash equivalents$59,513 $38,195 $52,197 Restricted cash 1,132 4,861 1,869 Accounts receivable, net 141,272 124,489 138,341 Inventory, net 58,272 71,811 59,805 Prepaid expenses and other assets 17,899 22,575 16,873 Total current assets 278,088 261,931 269,085 Property and equipment 159,938 146,661 152,224 Less accumulated depreciation and amortization 136,725 126,890 133,216 Property and equipment, net 23,213 19,771 19,008 Operating lease right-of-use assets, net 40,890 49,931 46,776 Deferred income tax assets, net 69,587 70,401 69,569 Goodwill 34,964 34,950 35,077 Other long-term assets 1,751 1,734 2,682 Total assets$448,493 $438,718 $442,197 Liabilities and Stockholders' Equity Current liabilities: Accounts payable$69,737 $65,422 $55,558 Accrued expenses 47,145 45,890 43,076 Reserve for sales returns and allowances 30,849 29,116 33,569 Income taxes payable - - 2,119 Short-term operating lease liabilities 14,406 12,405 13,784 Total current liabilities 162,137 152,833 148,106 Long-term operating lease liabilities 32,218 43,881 39,578 Accrued expenses, long term 5,288 3,222 4,463 Income taxes payable 975 2,045 945 Total liabilities 200,618 201,981 193,092 Stockholders' equity: Common stock, $.001 par value 11 11 11 Additional paid-in capital 307,218 299,110 302,408 Accumulated deficit (45,160) (49,965) (41,021) Accumulated other comprehensive loss (14,194) (12,919) (12,293) Total JAKKS Pacific, Inc. stockholders' equity 247,875 236,237 249,105 Non-controlling interests - 500 - Total stockholders' equity 247,875 236,737 249,105 Total liabilities and stockholders' equity$448,493 $438,718 $442,197 Supplemental Balance Sheet and Cash Flow Data (Unaudited) June 30, Key Balance Sheet Data:2026
2025
Accounts receivable days sales outstanding (DSO) 92 95 Inventory turnover (DSI) 56 82 Six Months Ended
June 30,
Trailing Twelve Months (*)
Ended June 30,
Condensed Cash Flow Data:2026
2025
2026
2025
Cash flows from (used in) operating activities$26,149 $(15,931) $50,572 $50,682 Cash flows used in investing activities (10,532) (6,015) (16,861) (12,730)Cash flows used in financing activities and other (9,038) (5,135) (16,122) (12,798)Net increase (decrease) in cash, cash equivalents and restricted cash$6,579 $(27,081) $17,589 $25,154 Capital expenditures$(10,104) $(4,470) $(15,197) $(11,089) (*) Trailing twelve months (TTM) amounts are calculated as the sum of the most recent four quarters, derived from reported GAAP results.
Six Months Ended June 30,
2026
2025
Δ (%) 2026
2025
Δ (%) (In thousands, except per share data) (In thousands, except per share data) Net sales$139,238 $119,094 17% $245,914 $232,347 6%Less: Cost of sales Cost of goods 68,773 58,784 17 120,960 113,410 7 Royalty expense 23,072 19,509 18 39,985 37,677 6 Amortization of tools and molds 2,432 1,778 37 4,402 3,224 37 Cost of sales 94,277 80,071 18 165,347 154,311 7 Gross profit 44,961 39,023 15 80,567 78,036 3 Direct selling expenses 8,500 6,710 27 16,664 15,406 8 General and administrative expenses 36,442 34,974 4 69,306 68,935 1 Depreciation and amortization 161 122 32 313 235 33 Selling, general and administrative expenses 45,103 41,806 8 86,283 84,576 2 Loss from operations (142) (2,783) (95) (5,716) (6,540) (13)Other income (expense): Other income (expense), net 6,976 25 nm 7,001 30 nm Loss on debt extinguishment - (417) nm - (417) nm Interest income 788 395 99 1,268 757 68 Interest expense (55) (145) (62) (115) (300) (62)Income (loss) before provision for (benefit from) income taxes 7,567 (2,925) nm 2,438 (6,470) nm Provision for (benefit from) income taxes 1,704 (606) nm 855 (1,769) nm Net income (loss) 5,863 (2,319) nm 1,583 (4,701) nm Earnings (loss) per share - basic$0.51 $(0.21) $0.14 $(0.42) Shares used in earnings (loss) per share - basic 11,445 11,146 11,444 11,146 Earnings (loss) per share - diluted$0.49 $(0.21) $0.13 $(0.42) Shares used in earnings (loss) per share - diluted 11,872 11,146 11,803 11,146 Three Months Ended June 30,
Six Months Ended June 30,
2026
2025
Δ bps 2026
2025
Δ bps Fav/(Unfav)
Fav/(Unfav)Net sales 100.0% 100.0% - 100.0% 100.0% - Less: Cost of sales Cost of goods 49.4 49.3 (10) 49.2 48.8 (40)Royalty expense 16.6 16.4 (20) 16.3 16.2 (10)Amortization of tools and molds 1.7 1.5 (20.0) 1.7 1.4 (30)Cost of sales 67.7 67.2 (50) 67.2 66.4 (80)Gross profit 32.3 32.8 (50) 32.8 33.6 (80)Direct selling expenses 6.1 5.6 (50) 6.8 6.6 (20)General and administrative expenses 26.2 29.4 320 28.2 29.7 150 Depreciation and amortization 0.1 0.1 - 0.1 0.1 - Selling, general and administrative expenses 32.4 35.1 270 35.1 36.4 130 Loss from operations (0.1) (2.3) 220 (2.3) (2.8) 50 Other income (expense): Other income (expense), net 5.0 - 2.8 - Loss on debt extinguishment - (0.4) - (0.2) Interest income 0.6 0.3 0.5 0.3 Interest expense (0.1) (0.1) (0.1) (0.1) Income (loss) before provision for (benefit from) income taxes 5.4 (2.5) 0.9 (2.8) Provision for (benefit from) income taxes 1.2 (0.6) 0.3 (0.8) Net income (loss) 4.2% (1.9) 0.6 (2.0)%
Six Months Ended June 30,
2026 2025 Δ ($) 2026 2025 Δ ($) (In thousands) (In thousands) EBITDA and Adjusted EBITDA Net income (loss)$5,863 $(2,319) $8,182 $1,583 $(4,701) $6,284 Interest expense 55 145 (90) 115 300 (185)Interest income (788) (395) (393) (1,268) (757) (511)Provision for (benefit from) income taxes 1,704 (606) 2,310 855 (1,769) 2,624 Depreciation and amortization 2,593 1,900 693 4,715 3,459 1,256 EBITDA 9,427 (1,275) 10,702 6,000 (3,468) 9,468 Adjustments: Other (income) expense, net (6,976) (25) (6,951) (7,001) (30) (6,971)Restricted stock compensation expense 2,998 3,188 (190) 6,079 5,740 339 Loss on debt extinguishment - 417 (417) - 417 (417)Adjusted EBITDA$5,449 $2,305 $3,144 $5,078 $2,659 $2,419 Adjusted EBITDA/Net sales % 3.9% 1.9% 200 bps 2.1% 1.1% 100 bps Trailing Twelve Months Ended June 30,
2026 2025 Δ ($) (In thousands) TTM EBITDA and TTM Adjusted EBITDA TTM net income$16,155 $38,458 $(22,303) Interest expense 286 996 (710) Interest income (1,506) (1,134) (372) Provision for income taxes 7,518 8,210 (692) Depreciation and amortization 11,489 9,857 1,632 TTM EBITDA 33,942 56,387 (22,445) Adjustments: Other (income) expense, net (7,421) (122) (7,299) Restricted stock compensation expense 11,252 10,181 1,071 Loss on debt extinguishment 10 417 (407) TTM Adjusted EBITDA$37,783 $66,863 $(29,080) (43)% TTM Adjusted EBITDA/TTM Net sales % 6.5% 9.8% -330 bps Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Δ ($) 2026 2025 Δ ($) (In thousands, except per share data) (In thousands, except per share data) Adjusted net income Net income (loss)$5,863 $(2,319) $8,182 $1,583 $(4,701) $6,284 Restricted stock compensation expense 2,998 3,188 (190) 6,079 5,740 339 Loss on debt extinguishment - 417 (417) - 417 (417)Refunded tariff expenditure (6,772) - (6,772) (6,772) - (6,772)Tax impact of additional charges 855 (896) 1,751 142 (1,420) 1,562 Adjusted net income$2,944 $390 $2,554 $1,032 $36 $996 Adjusted earnings per share - basic$0.26 $0.03 $0.23 $0.09 $- $0.09 Shares used in adjusted earnings per share - basic 11,445 11,146 299 11,444 11,146 298 Adjusted earnings per share - diluted$0.25 $0.03 $0.22 $0.09 $- $0.09 Shares used in adjusted earnings per share - diluted 11,872 11,397 475 11,803 11,487 316