JAKKS Pacific (NASDAQ:JAKK) Announces Quarterly Earnings Results

JAKKS Pacific (NASDAQ:JAKK) posted its quarterly earnings results on Thursday. The company reported ($0.17) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.44) by $0.27, FiscalAI reports. The business had revenue of $106.68 million during the quarter, compared to analysts’ expectations of $103.80 million. JAKKS Pacific had a net margin of 1.41% and a return on equity of 3.25%.

Here are the key takeaways from JAKKS Pacific’s conference call:

• Q1 net sales were $170 million, down 6% year-over-year, led by a 16% decline in North America to $78 million despite continued strength in FOB shipments (~70% of NA volume).
• International revenue grew 38% to $29 million, with EMEA delivering its best quarter since 2015 supported by expanded regional distribution capabilities.
• Gross margin remained strong at 33.4% (down ~100 bps) driven by higher-margin new products and fewer low-margin closeouts.
• The company recorded a quarterly adjusted EBITDA loss of $0.37 million (versus a $0.35 million gain a year ago) and an adjusted EPS loss of $0.17, reflecting softer margin dollars despite the margin percentage.
• Management is investing in a large-scale anime/manga/VTuber platform launching in 2027 (premium collectibles, DTC, live events) and ended Q1 with $64 million cash plus a $0.25 per‑share Q2 dividend approved by the board.

JAKKS Pacific Stock Performance

Shares of JAKKS Pacific stock traded up $2.30 during trading on Friday, hitting $24.06. 160,467 shares of the company’s stock were exchanged, compared to its average volume of 48,978. The business has a 50-day simple moving average of $21.11 and a 200-day simple moving average of $18.81. JAKKS Pacific has a 52-week low of $14.86 and a 52-week high of $24.12. The stock has a market capitalization of $275.25 million, a price-to-earnings ratio of 28.31 and a beta of 1.50.

JAKKS Pacific Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Monday, June 29th. Investors of record on Friday, May 29th will be issued a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend is Friday, May 29th. JAKKS Pacific’s dividend payout ratio (DPR) is 117.65%.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Wall Street Zen raised shares of JAKKS Pacific from a “hold” rating to a “buy” rating in a report on Saturday, March 7th. Zacks Research raised shares of JAKKS Pacific from a “strong sell” rating to a “hold” rating in a report on Monday, March 9th. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has an average rating of “Hold”.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the business. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC purchased a new position in shares of JAKKS Pacific during the third quarter worth $46,000. Quarry LP purchased a new position in shares of JAKKS Pacific during the third quarter worth $51,000. BNP Paribas Financial Markets raised its holdings in shares of JAKKS Pacific by 155.8% during the second quarter. BNP Paribas Financial Markets now owns 3,072 shares of the company’s stock worth $64,000 after purchasing an additional 1,871 shares during the last quarter. State of Wyoming raised its holdings in shares of JAKKS Pacific by 42.8% during the fourth quarter. State of Wyoming now owns 4,140 shares of the company’s stock worth $70,000 after purchasing an additional 1,240 shares during the last quarter. Finally, Deutsche Bank AG purchased a new position in shares of JAKKS Pacific during the fourth quarter worth $80,000. Hedge funds and other institutional investors own 44.38% of the company’s stock.

JAKKS Pacific News Summary

Here are the key news stories impacting JAKKS Pacific this week:

• Positive Sentiment: Q1 results beat expectations: JAKK reported adjusted EPS of ($0.17) vs. consensus of ($0.44) and revenue of $106.7M, modestly above estimates — this EPS/revenue surprise is the primary near-term catalyst. MarketBeat Q1 Summary
• Positive Sentiment: Dividend reinstated: the company declared a $0.25 per-share quarterly dividend (ex-dividend/record/payable dates announced) implying a ~4.4% yield — this raises the stock’s income appeal for yield-seeking investors.
• Positive Sentiment: Balance-sheet/cash flow signals: management reported healthy cash and a reduction in total liabilities year-over-year, which reduces financing risk and supports the dividend and working-capital needs. Quiver Quant recap
• Neutral Sentiment: Earnings call transcript available for review — useful for investors wanting management’s commentary on demand, channel inventory and holiday cadence. Earnings Call Transcript
• Neutral Sentiment: Official press release and slide deck are posted — appropriate for those doing a deeper read of segment and geographic performance. GlobeNewswire Release
• Negative Sentiment: Margin pressure and operating loss: cost of sales and lower gross margin drove an operating loss and a small net loss for Q1 — these profitability headwinds are why the company remains unprofitable on a GAAP basis and represent the primary near-term risk to the stock. Zacks report

About JAKKS Pacific

JAKKS Pacific, Inc (NASDAQ: JAKK) is a Los Angeles–based company that designs, develops and markets a broad range of toys and consumer products. Since its founding in 1995 by industry veteran Jack Friedman, the company has built a diversified portfolio spanning three primary segments: Toys, Consumer Electronics & Seasonal, and Kids Furniture & Accessories. JAKKS Pacific specializes in both licensed and proprietary brands, collaborating with major entertainment and sports licensors to bring popular characters and franchises to market.

The company’s Toys segment includes action figures, dolls, role-play items, collectible toys and outdoor activity products.