JAKKS Pacific Reports Third Quarter 2026 Financial Results

Net sales up 20% in Q3 compared to prior year; Board approves cash dividend

SANTA MONICA, Calif., Oct. 22, 2026 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (Nasdaq: JAKK) today reported financial results for the third quarter ended September 30, 2026.

Third Quarter 2026

Net sales were $254.2 million, a year-over-year increase of 20%
- Toys/Consumer Products net sales were $192.0 million, up 23% from $156.1 million last year
- Costumes net sales were $62.2 million, a year-over-year increase of 13%
Gross margin of 32.1%, up 10 basis points vs. Q3 2025
Gross profit of $81.5 million, up 20% compared to $67.6 million in Q3 2025
Operating income of $37.4 million, compared to $29.4 million in Q3 2025, a year-over-year increase of 27%
Net income attributable to common stockholders of $29.9 million or $2.48 per diluted share, compared to net income attributable to common stockholders of $19.9 million or $1.74 per diluted share in Q3 2025
Adjusted net income attributable to common stockholders (a non-GAAP measure) of $32.3 million or $2.68 per diluted share, compared to adjusted net income attributable to common stockholders of $20.6 million or $1.80 per diluted share in Q3 2025
Adjusted EBITDA (a non-GAAP measure) of $44.4 million vs. $36.5 million in Q3 2025
Trailing-twelve-month Adjusted EBITDA of $45.7 million, up from $37.8 million as of Q2 2026

Management Commentary
“We’re very happy with our Q3 results as we approach the end of the year. Having successfully navigated the high tariff turmoil, we are driving our business forward. We see that reflected in our current results, the line-up we recently shared with the trade for 2027 and new initiatives we’re in the process of securing for 2028,” said Stephen Berman, Chairman and CEO of JAKKS Pacific. “We have great placement this holiday season and our international business continues to steadily expand as we continue to open new accounts and partner more closely for a more robust presence in-store.”

Third Quarter Results
Net Sales in North America were $209 million, up 28% in the quarter compared to the previous year. International Sales were $45 million, down from $47 million last year (a 4% decrease). North America and International are up 14% and 7% respectively, year-to-date. Globally, Dolls, Role-Play, Dress-Up net sales were $119 million, compared to $92 million in 2025, an increase of 29%. Action Play & Collectibles net sales were $63 million in the quarter, up from $53 million in 2025, a 19% increase. Costumes net sales were $62 million, compared to $55 million (a 13% increase) in 2025. Costumes are up 11% year-to-date.

Inventory was $63.8 million as of September 30, 2026, compared to $71.5 million as of September 30, 2025, and $59.8 million as of December 31, 2025.

Cash (including restricted cash and cash equivalents) was $45.1 million as of September 30, 2026, compared to $27.8 million as of September 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 December 28^th, 2026, to shareholders of record November 27th, 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 October 22, 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 (3Q26 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™, 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)

			September 30,						December 31,
				2026			2025			2025
			(In thousands)
Assets
Current assets:
	Cash and cash equivalents		$	43,999		$	25,887		$	52,197
	Restricted cash			1,133			1,869			1,869
	Accounts receivable, net			240,294			195,779			138,341
	Inventory, net			63,770			71,497			59,805
	Prepaid expenses and other assets			13,359			19,784			16,873
		Total current assets		362,555			314,816			269,085

Property and equipment				163,246			147,745			152,224
Less accumulated depreciation and amortization				141,121			131,226			133,216
	Property and equipment, net			22,125			16,519			19,008

Operating lease right-of-use assets, net				37,835			49,611			46,776
Deferred income tax assets, net				69,589			67,612			69,569
Goodwill				34,956			35,081			35,077
Other long-term assets				1,729			1,631			2,682
		Total assets	$	528,789		$	485,270		$	442,197


Liabilities and Stockholders' Equity

Current liabilities:
	Accounts payable		$	96,507		$	72,338		$	55,558
	Accrued expenses			60,129			52,085			43,076
	Reserve for sales returns and allowances			40,810			37,691			33,569
	Income taxes payable			4,445			5,389			2,119
	Short-term operating lease liabilities			14,707			13,504			13,784
		Total current liabilities		216,598			181,007			148,106

Long-term operating lease liabilities				28,405			43,113			39,578
Accrued expenses, long term				5,486			3,503			4,463
Income taxes payable				992			1,732			945
		Total liabilities		251,481			229,355			193,092

Stockholders' equity:
	Common stock, $.001 par value			11			11			11
	Additional paid-in capital			310,211			301,098			302,408
	Accumulated deficit			(18,122	)		(32,875	)		(41,021	)
	Accumulated other comprehensive loss			(14,792	)		(12,319	)		(12,293	)
		Total stockholders' equity		277,308			255,915			249,105
		Total liabilities and stockholders' equity	$	528,789		$	485,270		$	442,197


Supplemental Balance Sheet and Cash Flow Data (Unaudited)
			September 30,
Key Balance Sheet Data:				2026			2025

Accounts receivable days sales outstanding (DSO)				87			85
Inventory turnover (DSI)				34			46

			Nine Months Ended September 30,						*Trailing Twelve Months () Ended September 30,**
			Nine Months Ended September 30,						*Trailing Twelve Months () Ended September 30,**
Condensed Cash Flow Data:				2026			2025			2026			2025

Cash flows from (used in) operating activities			$	17,430		$	(24,753	)	$	50,675		$	29,375
Cash flows used in investing activities				(13,817	)		(9,670	)		(16,491	)		(13,570	)
Cash flows used in financing activities and other				(12,547	)		(7,958	)		(16,808	)		(10,333	)
Net increase (decrease) in cash, cash equivalents and restricted cash			$	(8,934	)	$	(42,381	)	$	17,376		$	5,472

Capital expenditures			$	(13,226	)	$	(7,850	)	$	(14,939	)	$	(14,469	)

(*) 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 September 30,											Nine Months Ended September 30,
			Three Months Ended September 30,											Nine Months Ended September 30,
				2026				2025			Δ (%)				2026				2025			Δ (%)
			(In thousands, except per share data)											(In thousands, except per share data)

Net sales			$	254,222			$	211,210			20		%	$	500,136			$	443,557			13		%
Less: Cost of sales
	Cost of goods			127,611				104,846			22				248,571				218,256			14
	Royalty expense			41,287				34,099			21				81,272				71,776			13
	Amortization of tools and molds			3,824				4,622			(17	)			8,226				7,846			5
	Cost of sales			172,722				143,567			20				338,069				297,878			13
		Gross profit		81,500				67,643			20				162,067				145,679			11
Direct selling expenses				7,561				5,933			27				24,225				21,339			14
General and administrative expenses				36,388				32,200			13				105,694				101,135			5
Depreciation and amortization				178				147			21				491				382			29
	Selling, general and administrative expenses			44,127				38,280			15				130,410				122,856			6
		Income from operations		37,373				29,363			27				31,657				22,823			39
Other income (expense):
	Other income (expense), net			48				388			(88	)			7,049				418			nm
	Loss on debt extinguishment			-				(1	)		nm				-				(418	)		nm
	Interest income			261				75			248				1,529				832			84
	Interest expense			(60	)			(102	)		(41	)			(175	)			(402	)		(56	)
Income before provision for income taxes				37,622				29,723			27				40,060				23,253			72
Provision for income taxes				7,723				9,831			(21	)			8,578				8,062			6
Net income				29,899				19,892			50				31,482				15,191			107
	Earnings per share - basic		$	2.61			$	1.78						$	2.75			$	1.36
	Shares used in earnings per share - basic			11,450				11,185							11,446				11,159
	Earnings per share - diluted		$	2.48			$	1.74						$	2.65			$	1.32
	Shares used in earnings per share - diluted			12,051				11,423							11,869				11,487

			Three Months Ended September 30,											Nine Months Ended September 30,
			Three Months Ended September 30,											Nine Months Ended September 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			50.2				49.6			(60	)			49.7				49.2			(50	)
	Royalty expense			16.2				16.2			0				16.3				16.2			(10	)
	Amortization of tools and molds			1.5				2.2			70.0				1.6				1.8			20
	Cost of sales			67.9				68.0			10				67.6				67.2			(40	)
		Gross profit		32.1				32.0			10				32.4				32.8			(40	)
Direct selling expenses				3.0				2.8			(20	)			4.9				4.8			(10	)
General and administrative expenses				14.3				15.2			90				21.1				22.8			170
Depreciation and amortization				0.1				0.1			-				0.1				0.1			-
	Selling, general and administrative expenses			17.4				18.1			70				26.1				27.7			160
		Income from operations		14.7				13.9			80				6.3				5.1			120
Other income (expense):
	Other income (expense), net			-				0.2							1.4				0.1
	Loss on debt extinguishment			-				-							-				(0.1	)
	Interest income			0.1				-							0.3				0.2
	Interest expense			-				-							-				(0.1	)
Income before provision for income taxes				14.8				14.1							8.0				5.2
Provision for income taxes				3.0				4.7							1.7				1.8
Net income				11.8		%		9.4		%					6.3		%		3.4		%

JAKKS Pacific, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information (Unaudited)
	Three Months Ended September 30,											Nine Months Ended September 30,
	Three Months Ended September 30,											Nine Months Ended September 30,
		2026				2025			Δ ($)				2026				2025			Δ ($)
	(In thousands)											(In thousands)
EBITDA and Adjusted EBITDA
Net income	$	29,899			$	19,892			$	10,007		$	31,482			$	15,191			$	16,291
Interest expense		60				102				(42	)		175				402				(227	)
Interest income		(261	)			(75	)			(186	)		(1,529	)			(832	)			(697	)
Provision for income taxes		7,723				9,831				(2,108	)		8,578				8,062				516
Depreciation and amortization		4,002				4,769				(767	)		8,717				8,228				489
EBITDA		41,423				34,519				6,904			47,423				31,051				16,372
Adjustments:
Loss from joint ventures (JAKKS Pacific, Inc. - 51%)		-				-				-			-				-				-
Loss from joint ventures (Meisheng - 49%)		-				-				-			-				-				-
Other (income) expense, net		(48	)			(388	)			340			(7,049	)			(418	)			(6,631	)
Restricted stock compensation expense		3,043				2,392				651			9,122				8,132				990
Change in fair value of preferred stock derivative liability		-				-				-			-				-				-
Employee Retention Credit/gov't employment support		-				-				-			-				-				-
Molds and tooling capitalization		-				-				-			-				-				-
Loss on debt extinguishment		-				1				(1	)		-				418				(418	)
Adjusted EBITDA	$	44,418			$	36,524			$	7,894		$	49,496			$	39,183			$	10,313
Adjusted EBITDA/Net sales %		17.5		%		17.3		%	20 bps				9.9		%		8.8		%	110 bps


	Trailing Twelve Months Ended September 30,
	Trailing Twelve Months Ended September 30,
		2026				2025			Δ ($)
	(In thousands)
TTM EBITDA and TTM Adjusted EBITDA
TTM net income	$	26,162			$	6,078			$	20,084
Interest expense		244				559				(315	)
Interest income		(1,692	)			(1,140	)			(552	)
Provision for income taxes		5,410				2,616				2,794
Depreciation and amortization		10,722				10,537				185
TTM EBITDA		40,846				18,650				22,196
Adjustments:
Other (income) expense, net		(7,081	)			(426	)			(6,655	)
Restricted stock compensation expense		11,903				10,387				1,516
Loss on debt extinguishment		9				418				(409	)
TTM Adjusted EBITDA	$	45,677			$	29,029			$	16,648
TTM Adjusted EBITDA/TTM Net sales %		7.3		%		5.1		%	220 bps


	Three Months Ended September 30,											Nine Months Ended September 30,
		2026				2025			Δ ($)				2026				2025			Δ ($)
	(In thousands, except per share data)											(In thousands, except per share data)
Adjusted net income
Net income	$	29,899			$	19,892			$	10,007		$	31,482			$	15,191			$	16,291
Restricted stock compensation expense		3,043				2,392				651			9,122				8,132				990
Loss on debt extinguishment		-				1				(1	)		-				418				(418	)
Refunded tariff expenditure		(29	)			-				(29	)		(6,801	)			-				(6,801	)
Tax impact of additional charges		(619	)			(1,733	)			1,114			(477	)			(3,153	)			2,676
Adjusted net income	$	32,294			$	20,552			$	11,742		$	33,326			$	20,588			$	12,738
Adjusted earnings per share - basic	$	2.82			$	1.84			$	0.98		$	2.91			$	1.84			$	1.07
Shares used in adjusted earnings per share - basic		11,450				11,185				265			11,446				11,159				287
Adjusted earnings per share - diluted	$	2.68			$	1.80			$	0.88		$	2.81			$	1.79			$	1.02
Shares used in adjusted earnings per share - diluted		12,051				11,423				628			11,869				11,487				382

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


(In thousands)	QTD Q3										(In thousands)	YTD Q3
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	$264,306		$156,080		$191,957		23.0	%	-14.8	%	Toys/Consumer Products	$451,786		$343,897		$389,559		13.3	%	-7.1	%
Dolls, Role-Play/Dress-Up		146,893		92,330		119,151	29.0	%	-9.9	%	Dolls, Role-Play/Dress-Up		251,075		193,957		208,277	7.4	%	-8.9	%
Action Play & Collectibles		98,750		52,950		63,092	19.2	%	-20.1	%	Action Play & Collectibles		168,313		125,733		160,424	27.6	%	-2.4	%
Outdoor/Seasonal Toys		18,663		10,800		9,714	-10.1	%	-27.9	%	Outdoor/Seasonal Toys		32,398		24,207		20,858	-13.8	%	-19.8	%
Costumes	$57,300		$55,130		$62,265		12.9	%	4.2	%	Costumes	$108,515		$99,660		$110,577		11.0	%	0.9	%
Total	$321,606		$211,210		$254,222		20.4	%	-11.1	%	Total	$560,301		$443,557		$500,136		12.8	%	-5.5	%



(In thousands)	QTD Q3										(In thousands)	YTD Q3
Regions		2024		2025		2026	% Change 2025 v 2026		CAGR% 2024 - 2026		Regions		2024		2025		2026	% Change 2025 v 2026		CAGR% 2024 - 2026
United States	$255,278		$154,516		$202,837		31.3	%	-10.9	%	United States	$451,545		$330,450		$385,724		16.7	%	-7.6	%
Europe		30,034		29,408		29,686	0.9	%	-0.6	%	Europe		46,033		55,875		63,086	12.9	%	17.1	%
Latin America		22,632		14,066		10,771	-23.4	%	-31.0	%	Latin America		33,867		27,572		21,870	-20.7	%	-19.6	%
Canada		7,068		9,237		5,960	-35.5	%	-8.2	%	Canada		16,726		21,342		16,032	-24.9	%	-2.1	%
Asia		2,345		1,526		2,745	79.9	%	8.2	%	Asia		4,578		3,725		6,896	85.1	%	22.7	%
Australia & New Zealand		3,339		2,095		1,616	-22.9	%	-30.4	%	Australia & New Zealand		6,292		3,594		5,618	56.3	%	-5.5	%
Middle East & Africa		910		362		607	67.7	%	-18.3	%	Middle East & Africa		1,260		999		910	-8.9	%	-15.0	%
Total	$321,606		$211,210		$254,222		20.4	%	-11.1	%	Total	$560,301		$443,557		$500,136		12.8	%	-5.5	%


(In thousands)	QTD Q3										(In thousands)	YTD Q3
Regions		2024		2025		2026	% Change 2025 v 2026		CAGR% 2024 - 2026		Regions		2024		2025		2026	% Change 2025 v 2026		CAGR% 2024 - 2026
North America	$262,346		$163,753		$208,797		27.5	%	-10.8	%	North America	$468,271		$351,792		$401,756		14.2	%	-7.4	%
International		59,260		47,457		45,425	-4.3	%	-12.4	%	International		92,030		91,765		98,380	7.2	%	3.4	%
Total	$321,606		$211,210		$254,222		20.4	%	-11.1	%	Total	$560,301		$443,557		$500,136		12.8	%	-5.5	%


(In thousands)	QTD Q3										(In thousands)	YTD Q3
Regions		2024		2025		2026	% Change 2025 v 2026		CAGR% 2024 - 2026		Regions		2024		2025		2026	% Change 2025 v 2026		CAGR% 2024 - 2026
United States	$255,278		$154,516		$202,837		31.3	%	-10.9	%	United States	$451,545		$330,450		$385,724		16.7	%	-7.6	%
Rest of World		66,328		56,694		51,385	-9.4	%	-12.0	%	Rest of World		108,756		113,107		114,412	1.2	%	2.6	%
Total	$321,606		$211,210		$254,222		20.4	%	-11.1	%	Total	$560,301		$443,557		$500,136		12.8	%	-5.5	%

Source: JAKKS Pacific Inc.