JAKKS Pacific Reports Second Quarter 2026 Financial Results

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
investors@jakks.net


JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)

	June 30,						December 31,
	2026			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.

JAKKS Pacific, Inc. and Subsidiaries
Condensed Consolidated Statements of Operations (Unaudited)

	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)

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	)%

JAKKS Pacific, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information (Unaudited)
	Three Months Ended June 30,											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

JAKKS Pacific, Inc. and Subsidiaries
Net Sales by Division and Geographic Region

(In thousands)	QTD Q2										(In thousands)	YTD Q2
Divisions	2024		2025		2026		% Change 2025 v 2026		CAGR% 2024 - 2026		Divisions	2024		2025		2026		% Change 2025 v 2026		CAGR% 2024 - 2026
Toys/Consumer Products	$	104,570	$	80,379	$	97,507	21.3	%	-3.4	%	Toys/Consumer Products	$	187,480	$	187,817	$	197,602	5.2	%	2.7	%
Dolls, Role-Play/Dress-Up		63,608		46,164		51,629	11.8	%	-9.9	%	Dolls, Role-Play/Dress-Up		104,182		101,627		89,126	-12.3	%	-7.5	%
Action Play & Collectibles		36,555		29,902		42,063	40.7	%	7.3	%	Action Play & Collectibles		69,563		72,783		97,332	33.7	%	18.3	%
Outdoor/Seasonal Toys		4,407		4,313		3,815	-11.5	%	-7.0	%	Outdoor/Seasonal Toys		13,735		13,407		11,144	-16.9	%	-9.9	%
Costumes	$	44,049	$	38,715	$	41,731	7.8	%	-2.7	%	Costumes	$	51,215	$	44,530	$	48,312	8.5	%	-2.9	%
Total	$	148,619	$	119,094	$	139,238	16.9	%	-3.2	%	Total	$	238,695	$	232,347	$	245,914	5.8	%	1.5	%


(In thousands)	QTD Q2										(In thousands)	YTD Q2
Regions	2024		2025		2026		% Change 2025 v 2026		CAGR% 2024 - 2026		Regions	2024		2025		2026		% Change 2025 v 2026		CAGR% 2024 - 2026
United States	$	125,837	$	86,990	$	108,251	24.4	%	-7.3	%	United States	$	196,267	$	175,934	$	182,887	4.0	%	-3.5	%
Europe		10,264		14,657		16,021	9.3	%	24.9	%	Europe		15,999		26,467		33,400	26.2	%	44.5	%
Latin America		3,239		6,047		4,137	-31.6	%	13.0	%	Latin America		11,235		13,506		11,099	-17.8	%	-0.6	%
Canada		6,288		8,826		7,080	-19.8	%	6.1	%	Canada		9,658		12,105		10,072	-16.8	%	2.1	%
Australia & New Zealand		1,607		886		1,533	73.0	%	-2.3	%	Australia & New Zealand		2,953		1,499		4,002	167.0	%	16.4	%
Asia		1,268		1,448		2,216	53.0	%	32.2	%	Asia		2,233		2,199		4,151	88.8	%	36.3	%
Middle East & Africa		116		240		-	-100.0	%	-100.0	%	Middle East & Africa		350		637		303	-52.4	%	-7.0	%
Total	$	148,619	$	119,094	$	139,238	16.9	%	-3.2	%	Total	$	238,695	$	232,347	$	245,914	5.8	%	1.5	%


(In thousands)	QTD Q2										(In thousands)	YTD Q2
Regions	2024		2025		2026		% Change 2025 v 2026		CAGR% 2024 - 2026		Regions	2024		2025		2026		% Change 2025 v 2026		CAGR% 2024 - 2026
North America	$	132,125	$	95,816	$	115,331	20.4	%	-6.6	%	North America	$	205,925	$	188,039	$	192,959	2.6	%	-3.2	%
International		16,494		23,278		23,907	2.7	%	20.4	%	International		32,770		44,308		52,955	19.5	%	27.1	%
Total	$	148,619	$	119,094	$	139,238	16.9	%	-3.2	%	Total	$	238,695	$	232,347	$	245,914	5.8	%	1.5	%


(In thousands)	QTD Q2										(In thousands)	YTD Q2
Regions	2024		2025		2026		% Change 2025 v 2026		CAGR% 2024 - 2026		Regions	2024		2025		2026		% Change 2025 v 2026		CAGR% 2024 - 2026
United States	$	125,837	$	86,990	$	108,251	24.4	%	-7.3	%	United States	$	196,267	$	175,934	$	182,887	4.0	%	-3.5	%
Rest of World		22,782		32,104		30,987	-3.5	%	16.6	%	Rest of World		42,428		56,413		63,027	11.7	%	21.9	%
Total	$	148,619	$	119,094	$	139,238	16.9	%	-3.2	%	Total	$	238,695	$	232,347	$	245,914	5.8	%	1.5	%

Source: JAKKS Pacific Inc.