JAKKS Pacific (JAKK) Q4 2025 earnings summary

Executive summary

• 2025 was a challenging year due to tariff pressures, with Q4 net sales at $127.1 million (down 3% year-over-year) and full-year net sales at $570.7 million (down 17%), as the company prioritized long-term value and margin integrity over short-term sales growth.

• Maintained a debt-free balance sheet and returned $1 per share in dividends, exiting the year stronger and more resilient.

• Gross margin improved to 31.0% in Q4 (up 380 bps) and reached 32.4% for the year, the highest in over 15 years.

• Operating loss in Q4 improved to $8.6 million from $14.7 million last year; full-year operating income was $14.2 million, down from $39.7 million.

• Expanded global relationships with factories, licensors, and retail partners, and prepared for a major initiative launching in 2027.

Financial highlights

• Q4 gross profit increased to $39.4 million from $35.6 million year-over-year; full-year gross profit was $185.1 million, down 13%.

• Adjusted EBITDA for 2025 was $35.4 million, down from $59.3 million in 2024; Q4 adjusted EBITDA loss improved to $3.8 million from $10.2 million last year.

• Adjusted EPS for the year was $1.62, down from $3.79 in 2024; Q4 adjusted loss per share was $0.18, improved from $0.67 loss in Q4 2024.

• U.S. sales declined 8% in Q4 and 24% for the year; international sales rose 10% in Q4 and 6% for the year, led by Europe.

• Cash returned to shareholders totaled $11.2 million ($1 per share); end-of-year cash and equivalents were $54.1 million.

Outlook and guidance

• Anticipates low-to-mid-single-digit top-line growth in 2026, with continued focus on margin expansion and several impactful launches planned for 2027.

• Strong product pipeline for 2026, including launches tied to major theatrical releases and anniversaries.

• Board declared a $0.25 per share quarterly dividend, payable March 30, 2026.