SANTA MONICA, Calif., April 30, 2026 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ:JAKK) today reported financial results for the first quarter ended March 31, 2026.

First Quarter 2026

Net sales were $106.7 million, a year-over-year decrease of 6%
- Toys/Consumer Products net sales were $100.1 million, down 7% from $107.4 million last year
- Costumes net sales were $6.6 million, a year-over-year increase of 13%
Gross margin of 33.4%, down 100 basis points vs. Q1 2025
Gross profit of $35.6 million, down 9% compared to $39.0 million in Q1 2025
Operating loss of $5.6 million in Q1 2026, compared to a loss of $3.8 million in Q1 2025
Net loss attributable to common stockholders of $4.3 million or $0.37 per diluted share, compared to net loss attributable to common stockholders of $2.4 million or $0.21 per diluted share in Q1 2025
Adjusted net loss attributable to common stockholders (a non-GAAP measure) of $1.9 million or $0.17 per diluted share, compared to adjusted net loss attributable to common stockholders of $0.4 million or $0.03 per diluted share in Q1 2025
Adjusted EBITDA (a non-GAAP measure) of $(0.4) million vs. $0.4 million in Q1 2025
Trailing-twelve-month Adjusted EBITDA of $34.6 million, down from $35.4 million as of Q4 2025

Management Commentary

"The first quarter for our company is always focused on working with customers to understand the implications of the year that has just closed. For companies like ours that can move quickly and are focused on meeting their customers' needs that leads to uncovering new opportunities. From that perspective, this has been a very successful quarter, and we feel we are building momentum. Our persistent focus on international growth delivered well. On a trailing twelve-month basis, our International Net Sales have reached $138 million, the highest level we achieved over the past ten years. Customers in the U.S. remain cautious but we are rebuilding the base that was disrupted last year. Our Costumes business continues to steadily expand both its product line breadth as well as its customer footprint, globally."

First Quarter 2026 Results

Net Sales in North America were down 16% in the quarter compared to the previous year but were up compared to the same quarter in 2024. International Sales were $29.0 million in the quarter, up from $21.0 million last year and $16.3 million in 2024. Globally, Action Play & Collectibles net sales were $55.3 million, up from $42.9 million and $33.0 million in 2025 and 2024, respectively. Dolls, Role-Play, Dress-Up net sales were $37.5 million, compared to $55.5 million and $40.6 million in 2025 and 2024, respectively.

Inventory was $52.9 million as of March 31, 2026, compared to $53.2 million as of March 31, 2025, and $59.8 million as of December 31, 2025.

Cash (including restricted cash and cash equivalents) was $64.0 million as of March 31, 2026, compared to $59.4 million as of March 31, 2025, and $54.1 million as of December 31, 2025.

The Board of Directors has declared a quarterly dividend of $0.25 per share on the company's common stock, payable June 29, 2026, to shareholders of record May 29, 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 April 30, 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 (1Q26 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)

			March 31,						December 31,
				2026			2025			2025
			(In thousands)
Assets
Current assets:
	Cash and cash equivalents		$	62,849		$	59,188		$	52,197
	Restricted cash			1,132			207			1,869
	Accounts receivable, net			93,244			95,611			138,341
	Inventory, net			52,854			53,163			59,805
	Prepaid expenses and other assets			18,749			19,854			16,873
		Total current assets		228,828			228,023			269,085

Property and equipment				156,576			142,493			152,224
Less accumulated depreciation and amortization				135,162			124,592			133,216
	Property and equipment, net			21,414			17,901			19,008

Operating lease right-of-use assets, net				43,869			52,721			46,776
Deferred income tax assets, net				69,578			70,404			69,569
Goodwill				34,970			35,085			35,077
Other long-term assets				1,787			1,737			2,682
		Total assets	$	400,446		$	405,871		$	442,197


Liabilities and Stockholders' Equity

Current liabilities:
	Accounts payable		$	39,964		$	44,489		$	55,558
	Accrued expenses			35,709			37,200			43,076
	Reserve for sales returns and allowances			26,737			26,229			33,569
	Income taxes payable			509			1,093			2,119
	Short-term operating lease liabilities			14,115			9,806			13,784
		Total current liabilities		117,034			118,817			148,106

Long-term operating lease liabilities				35,913			47,110			39,578
Accrued expenses, long term				4,555			2,909			4,463
Income taxes payable				960			2,009			945
		Total liabilities		158,462			170,845			193,092

Stockholders' equity:
	Common stock, $.001 par value			11			11			11
	Additional paid-in capital			304,229			295,931			302,408
	Accumulated deficit			(48,162	)		(44,860	)		(41,021	)
	Accumulated other comprehensive loss			(14,094	)		(16,556	)		(12,293	)
		Total JAKKS Pacific, Inc. stockholders' equity		241,984			234,526			249,105
	Non-controlling interests			-			500			-
		Total stockholders' equity		241,984			235,026			249,105
		Total liabilities and stockholders' equity	$	400,446		$	405,871		$	442,197

Supplemental Balance Sheet and Cash Flow Data (Unaudited)
	March 31,
Key Balance Sheet Data:		2026			2025

Accounts receivable days sales outstanding (DSO)		79			76
Inventory turnover (DSI)		67			64

	Three Months Ended March 31,						*Trailing Twelve Months () Ended March 31,**
	Three Months Ended March 31,						*Trailing Twelve Months () Ended March 31,**
Condensed Cash Flow Data:		2026			2025			2026			2025

Cash flows from (used in) operating activities	$	21,795		$	(1,700	)	$	31,987		$	50,110
Cash flows used in investing activities		(5,812	)		(3,065	)		(15,091	)		(12,320	)
Cash flows used in financing activities and other		(6,068	)		(5,977	)		(12,310	)		(13,887	)
Net increase (decrease) in cash, cash equivalents and restricted cash	$	9,915		$	(10,742	)	$	4,586		$	23,903

Capital expenditures	$	(5,589	)	$	(2,070	)	$	(13,082	)	$	(11,088	)

(*) 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 March 31,
				2026			2025		Δ (%)
			(In thousands, except per share data)

Net sales			$	106,676		$	113,253		(6	)%
Less: Cost of sales
	Cost of goods			52,187			54,626		(4	)
	Royalty expense			16,913			18,168		(7	)
	Amortization of tools and molds			1,970			1,446		36
	Cost of sales			71,070			74,240		(4	)
		Gross profit		35,606			39,013		(9	)
Direct selling expenses				8,164			8,696		(6	)
General and administrative expenses				32,864			33,961		(3	)
Depreciation and amortization				152			113		35
	Selling, general and administrative expenses			41,180			42,770		(4	)
		Loss from operations		(5,574	)		(3,757	)	48
Other income (expense):
	Other income (expense), net			25			5		400
	Interest income			480			362		33
	Interest expense			(60	)		(155	)	(61	)
Loss before benefit from income taxes				(5,129	)		(3,545	)	45
Benefit from income taxes				(849	)		(1,163	)	(27	)
Net loss			$	(4,280	)	$	(2,382	)	80	%
	Loss per share - basic & diluted		$	(0.37	)	$	(0.21	)
	Shares used in loss per share - basic & diluted			11,444			11,146

			Three Months Ended March 31,
			Three Months Ended March 31,
				2026			2025		Δ bps
									Fav/(Unfav)
Net sales				100.0	%		100.0	%	-
Less: Cost of sales
	Cost of goods			48.9			48.3		(60	)
	Royalty expense			15.9			16.0		10
	Amortization of tools and molds			1.8			1.3		(50.0	)
	Cost of sales			66.6			65.6		(100	)
		Gross profit		33.4			34.4		(100	)
Direct selling expenses				7.7			7.7		0
General and administrative expenses				30.8			29.9		(90	)
Depreciation and amortization				0.1			0.1		-
	Selling, general and administrative expenses			38.6			37.7		(90	)
		Loss from operations		(5.2	)		(3.3	)	(190	)
Other income (expense):
	Other income (expense), net			-			-
	Interest income			0.4			0.3
	Interest expense			-			(0.1	)
Loss before benefit from income taxes				(4.8	)		(3.1	)
Benefit from income taxes				(0.8	)		(1.0	)
Net loss				(4.0	)%		(2.1	)%

JAKKS Pacific, Inc. and Subsidiaries
Reconciliation of Non-GAAP Financial Information (Unaudited)
	Three Months Ended March 31,									Three Months Ended March 31,
	Three Months Ended March 31,									Three Months Ended March 31,
		2026			2025		Δ ($)				2026			2025		Δ ($)
	(In thousands)									(In thousands)
EBITDA and Adjusted EBITDA
Net loss	$	(4,280	)	$	(2,382	)	$	(1,898	)	$	(4,280	)	$	(2,382	)	$	(1,898	)
Interest expense		60			155			(95	)		60			155			(95	)
Interest income		(480	)		(362	)		(118	)		(480	)		(362	)		(118	)
Benefit from income taxes		(849	)		(1,163	)		314			(849	)		(1,163	)		314
Depreciation and amortization		2,122			1,559			563			2,122			1,559			563
EBITDA		(3,427	)		(2,193	)		(1,234	)		(3,427	)		(2,193	)		(1,234	)
Adjustments:
Other (income) expense, net		(25	)		(5	)		(20	)		(25	)		(5	)		(20	)
Restricted stock compensation expense		3,081			2,552			529			3,081			2,552			529
Adjusted EBITDA	$	(371	)	$	354		$	(725	)	$	(371	)	$	354		$	(725	)
Adjusted EBITDA/Net sales %		(0.3	)%		0.3	%	-60 bps				(0.3	)%		0.3	%	-60 bps


	Trailing Twelve Months Ended March 31,
	Trailing Twelve Months Ended March 31,
		2026			2025		Δ ($)
	(In thousands)
TTM EBITDA and TTM Adjusted EBITDA
TTM net income	$	7,973		$	46,043		$	(38,070	)
Interest expense		376			1,107			(731	)
Interest income		(1,113	)		(827	)		(286	)
Provision for income taxes		5,208			11,097			(5,889	)
Depreciation and amortization		10,796			10,091			705
TTM EBITDA		23,240			67,511			(44,271	)
Adjustments:
Other (income) expense, net		(470	)		(169	)		(301	)
Restricted stock compensation expense		11,442			9,512			1,930
Loss on debt extinguishment		427			-			427
TTM Adjusted EBITDA	$	34,639		$	76,854		$	(42,215	)
TTM Adjusted EBITDA/TTM Net sales %		6.1	%		10.8	%	-470 bps


	Three Months Ended March 31,									Three Months Ended March 31,
		2026			2025		Δ ($)				2026			2025		Δ ($)
	(In thousands, except per share data)									(In thousands, except per share data)
Adjusted net loss attributable to common stockholders
Net loss	$	(4,280	)	$	(2,382	)	$	(1,898	)	$	(4,280	)	$	(2,382	)	$	(1,898	)
Restricted stock compensation expense		3,081			2,552			529			3,081			2,552			529
Tax impact of additional charges		(713	)		(524	)		(189	)		(3,866	)		(524	)		(3,342	)
Adjusted net loss	$	(1,912	)	$	(354	)	$	(1,558	)	$	(5,065	)	$	(354	)	$	(4,711	)
Adjusted loss per share - basic & diluted	$	(0.17	)	$	(0.03	)	$	(0.14	)	$	(0.44	)	$	(0.03	)	$	(0.41	)
Shares used in adjusted loss per share - basic & diluted		11,444			11,146			298			11,444			11,146			298
Adjusted earnings (loss) per share - diluted	$	(0.17	)	$	(0.03	)	$	(0.14	)	$	(0.44	)	$	(0.03	)	$	(0.41	)
Shares used in adjusted earnings (loss) per share - diluted		11,444			11,146			298			11,444			11,146			298

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

(In thousands)	QTD Q1
Divisions	2024	2025	2026	% Change 2025 v 2026	CAGR% 2024 - 2026
Toys/Consumer Products	$82,910	$107,438	$100,095	-6.8%	9.9%
Dolls, Role-Play/Dress-Up	40,574	55,463	37,497	-32.4%	-3.9%
Action Play & Collectibles	33,008	42,881	55,269	28.9%	29.4%
Outdoor/Seasonal Toys	9,328	9,094	7,329	-19.4%	-11.4%
Costumes	$7,166	$5,815	$6,581	13.2%	-4.2%
Total	$90,076	$113,253	$106,676	-5.8%	8.8%



(In thousands)	QTD Q1
Regions	2024	2025	2026	% Change 2025 v 2026	CAGR% 2024 - 2026
United States	$70,430	$88,944	$74,636	-16.1%	2.9%
Europe	5,735	11,810	17,379	47.2%	74.1%
Latin America	7,996	7,459	6,962	-6.7%	-6.7%
Canada	3,370	3,279	2,992	-8.8%	-5.8%
Australia & New Zealand	1,346	613	2,469	302.8%	35.4%
Asia	965	751	1,935	157.7%	41.6%
Middle East & Africa	234	397	303	-23.7%	13.8%
Total	$90,076	$113,253	$106,676	-5.8%	8.8%


(In thousands)	QTD Q1
Regions	2024	2025	2026	% Change 2025 v 2026	CAGR% 2024 - 2026
North America	$73,800	$92,223	$77,628	-15.8%	2.6%
International	16,276	21,030	29,048	38.1%	33.6%
Total	$90,076	$113,253	$106,676	-5.8%	8.8%


(In thousands)	QTD Q1
Regions	2024	2025	2026	% Change 2025 v 2026	CAGR% 2024 - 2026
United States	$70,430	$88,944	$74,636	-16.1%	2.9%
Rest of World	19,646	24,309	32,040	31.8%	27.7%
Total	$90,076	$113,253	$106,676	-5.8%	8.8%

Jakks Pacific Reports First Quarter 2026 Financial Results