JAKKS Pacific (JAKK) Q1 2025 earnings summary

Executive summary

• Net sales rose 26% year-over-year to $113.3 million in Q1 2025, driven by strong performance in Toys/Consumer Products, especially from movie-related and licensed products, and robust international growth.

• Operating loss narrowed to $3.8 million from $21.3 million in Q1 2024; adjusted net loss was $0.4 million ($0.03/share) versus $11.3 million ($1.09/share) last year.

• Adjusted EBITDA turned positive at $0.4 million, compared to a loss of $17.2 million in Q1 2024.

• Gross profit margin improved to 34.4% from 23.4% year-over-year, attributed to favorable product mix, new launches, and lower inventory reserves.

• Board approved a $0.25 per share quarterly dividend for Q2 2025.

Financial highlights

• Gross profit increased 85% to $39.0 million from $21.1 million year-over-year.

• Adjusted net loss per diluted share was $0.03, a significant improvement from $1.09 loss per share last year.

• Cash and cash equivalents stood at $59.4 million at quarter-end, up from $35.3 million a year ago, but down from $70.1 million at year-end 2024.

• Inventory increased 15% year-over-year to $53.2 million, with in-transit inventory at $10.0 million.

• Working capital was $109.2 million at quarter-end, a decrease of $10.1 million from December 31, 2024.

Outlook and guidance

• Management remains optimistic about the next twelve months, citing a strong product pipeline, international momentum, and continued product launches, but maintains a cautious approach due to unresolved tariff issues and U.S. market challenges.

• Aggressively pursuing international growth, especially in Europe and Latin America, to offset U.S. risks.

• Expecting continued seasonality, with higher sales in Q2 and Q3, and notes that backlog is not a reliable indicator of future sales.