JAKKS Pacific (JAKK) Q3 2025 earnings summary

Executive summary

• Q3 2025 net sales were $211.2 million, a 34% year-over-year decrease, driven by tariff volatility, delayed retailer orders, and fewer new theatrical releases, with Toys/Consumer Products and Costumes both declining.

• Year-to-date net sales were $443.6 million, down 21% year-over-year, with Toys/Consumer Products down 24% and Costumes down 8%.

• Gross margin for Q3 was 32.0%, down from 33.8% last year, impacted by tariffs and higher royalty expenses.

• Adjusted net income attributable to common stockholders was $20.6 million ($1.80 per diluted share), down from $54.0 million ($4.79 per diluted share) in Q3 2024.

• The company is investing in a robust 2026-2027 product pipeline, expanding licensing agreements, and focusing on international growth.

Financial highlights

• Q3 gross profit was $67.6 million, down $41.2 million year-over-year; Q3 operating income was $29.4 million, compared to $68.1 million in Q3 2024.

• Adjusted EBITDA for Q3 was $36.5 million, down from $74.4 million last year; trailing 12-month EBITDA is $29 million.

• Cash and cash equivalents at quarter-end were $27.8 million, up from $22.3 million last year but down from $70.1 million at year-end 2024.

• Working capital at September 30, 2025, was $133.8 million, up from $119.3 million at year-end 2024.

• Inventory increased to $71.5 million from $63.5 million a year ago.

Outlook and guidance

• Management expects continued seasonality, with highest sales in Q2 and Q3, and is preparing for a more normalized FOB order environment.

• 2026 and 2027 are expected to be strong years, with new IP, licensing extensions, and product launches planned.

• Emphasis on operational efficiency, cash generation, and product innovation, with ongoing supply chain cost reduction initiatives.