UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-35448

JAKKS Pacific, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware		95-4527222
(State or Other Jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification No.)

2951 28th Street Santa Monica, California		90405
(Address of Principal Executive Offices)		(Zip Code)

Registrant’s Telephone Number, Including Area Code: (424) 268-9444

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☒
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(g) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common Stock $.001 Par Value		JAKK		The NASDAQ Global Select Market

The number of shares outstanding of the issuer’s common stock is 11,445,012 as of July 31, 2026.

JAKKS PACIFIC, INC. AND SUBSIDIARIES

TABLE OF CONTENTS TO QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED JUNE 30, 2026

ITEMS IN FORM 10-Q

Part I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)	3
	Condensed Consolidated Balance Sheets	3
	Condensed Consolidated Statements of Operations and Comprehensive Income (Loss)	4
	Condensed Consolidated Statements of Stockholders’ Equity	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	23
Item 4.	Controls and Procedures	23

Part II	OTHER INFORMATION
Item 1.	Legal Proceedings	24
Item 1A.	Risk Factors	24
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	None
Item 3.	Defaults Upon Senior Securities	None
Item 4.	Mine Safety Disclosures	None
Item 5.	Other Information	None
Item 6.	Exhibits	24

Signatures		25
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2

	June 30,			December 31,
	2026			2025
	(Unaudited)
Assets
Current assets
Cash and cash equivalents	$	59,513		$	52,197
Restricted cash		1,132			1,869
Accounts receivable, net of allowance for credit losses of $5,100 and $5,103 at June 30, 2026 and December 31, 2025, respectively		141,272			138,341
Inventory, net		58,272			59,805
Prepaid expenses and other assets		17,899			16,873
Total current assets		278,088			269,085
Property and equipment
Office furniture and equipment		11,413			10,189
Molds and tooling		141,236			134,771
Leasehold improvements		7,289			7,264
Total		159,938			152,224
Less accumulated depreciation and amortization		136,725			133,216
Property and equipment, net		23,213			19,008
Operating lease right-of-use assets, net		40,890			46,776
Other long-term assets		1,751			2,682
Deferred income tax assets, net		69,587			69,569
Goodwill		34,964			35,077
Total assets	$	448,493		$	442,197
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$	69,737		$	55,558
Accrued expenses		47,145			43,076
Reserve for sales returns and allowances		30,849			33,569
Income taxes payable		—			2,119
Short-term operating lease liabilities		14,406			13,784
Total current liabilities		162,137			148,106
Long-term operating lease liabilities		32,218			39,578
Accrued expenses – long term		5,288			4,463
Income taxes payable		975			945
Total liabilities		200,618			193,092

Stockholders’ Equity
Common stock, $0.001 par value; 100,000,000 shares authorized; 11,445,012 and 11,342,981 shares issued and outstanding at June 30, 2026 and December 31, 2025, respectively		11			11
Additional paid-in capital		307,218			302,408
Accumulated deficit		(45,160	)		(41,021	)
Accumulated other comprehensive loss		(14,194	)		(12,293	)
Total stockholders’ equity		247,875			249,105
Total liabilities and stockholders’ equity	$	448,493		$	442,197

	Three Months Ended June 30, (Unaudited)						Six Months Ended June 30, (Unaudited)
	2026			2025			2026			2025
Net sales	$	139,238		$	119,094		$	245,914		$	232,347
Cost of sales:
Cost of goods		68,773			58,784			120,960			113,410
Royalty expense		23,072			19,509			39,985			37,677
Amortization of tools and molds		2,432			1,778			4,402			3,224
Cost of sales		94,277			80,071			165,347			154,311
Gross profit		44,961			39,023			80,567			78,036
Direct selling expenses		8,500			6,710			16,664			15,406
General and administrative expenses		36,442			34,974			69,306			68,935
Depreciation and amortization		161			122			313			235
Selling, general and administrative expenses		45,103			41,806			86,283			84,576
Loss from operations		(142	)		(2,783	)		(5,716	)		(6,540	)
Other income (expense), net		6,976			25			7,001			30
Loss on debt extinguishment		—			(417	)		—			(417	)
Interest income		788			395			1,268			757
Interest expense		(55	)		(145	)		(115	)		(300	)
Income (loss) before provision for (benefit from) income taxes		7,567			(2,925	)		2,438			(6,470	)
Provision for (benefit from) income taxes		1,704			(606	)		855			(1,769	)
Net income (loss)		5,863			(2,319	)		1,583			(4,701	)
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
Comprehensive income (loss)	$	5,763		$	1,318		$	(318	)	$	(436	)

Three and Six Months Ended June 30, 2026
(Unaudited)
									Accumulated			JAKKS
			Additional						Other			Pacific, Inc.			Non-		Total
	Common		Paid-in			Accumulated			Comprehensive			Stockholders’			Controlling		Stockholders’
	Stock		Capital			Deficit			Loss			Equity			Interests		Equity
Balance, December 31, 2025	$	11	$	302,408		$	(41,021	)	$	(12,293	)	$	249,105		$	—	$	249,105
Share-based compensation expense		—		3,081			—			—			3,081			—		3,081
Repurchase of common stock for employee tax withholding		—		(1,260	)		—			—			(1,260	)		—		(1,260	)
Cash dividend declared, $0.25 per share		—		—			(2,861	)		—			(2,861	)		—		(2,861	)
Net loss		—		—			(4,280	)		—			(4,280	)		—		(4,280	)
Foreign currency translation adjustment		—		—			—			(1,801	)		(1,801	)		—		(1,801	)
Balance, March 31, 2026		11		304,229			(48,162	)		(14,094	)		241,984			—		241,984
Share-based compensation expense		—		2,998			—			—			2,998			—		2,998
Repurchase of common stock for employee tax withholding		—		(9	)		—			—			(9	)		—		(9	)
Cash dividend declared, $0.25 per share		—		—			(2,861	)		—			(2,861	)		—		(2,861	)
Net income		—		—			5,863			—			5,863			—		5,863
Foreign currency translation adjustment		—		—			—			(100	)		(100	)		—		(100	)
Balance, June 30, 2026	$	11	$	307,218		$	(45,160	)	$	(14,194	)	$	247,875		$	—	$	247,875

Three and Six Months Ended June 30, 2025
(Unaudited)
									Accumulated			JAKKS
			Additional						Other			Pacific, Inc.			Non-		Total
	Common		Paid-in			Accumulated			Comprehensive			Stockholders’			Controlling		Stockholders’
	Stock		Capital			Deficit			Loss			Equity			Interests		Equity
Balance, December 31, 2024	$	11	$	297,198		$	(39,692	)	$	(17,184	)	$	240,333		$	500	$	240,833
Share-based compensation expense		—		2,552			—			—			2,552			—		2,552
Repurchase of common stock for employee tax withholding		—		(3,819	)		—			—			(3,819	)		—		(3,819	)
Cash dividend declared, $0.25 per share		—		—			(2,786	)		—			(2,786	)		—		(2,786	)
Net loss		—		—			(2,382	)		—			(2,382	)		—		(2,382	)
Foreign currency translation adjustment		—		—			—			628			628			—		628
Balance, March 31, 2025		11		295,931			(44,860	)		(16,556	)		234,526			500		235,026
Share-based compensation expense		—		3,188			—			—			3,188			—		3,188
Repurchase of common stock for employee tax withholding		—		(9	)		—			—			(9	)		—		(9	)
Cash dividend declared, $0.25 per share		—		—			(2,786	)		—			(2,786	)		—		(2,786	)
Net loss		—		—			(2,319	)		—			(2,319	)		—		(2,319	)
Foreign currency translation adjustment		—		—			—			3,637			3,637			—		3,637
Balance, June 30, 2025	$	11	$	299,110		$	(49,965	)	$	(12,919	)	$	236,237		$	500	$	236,737

	Six Months Ended June 30,
	(Unaudited)
	2026			2025
Cash flows from operating activities
Net income (loss)	$	1,583		$	(4,701	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Provision for credit losses		137			422
Depreciation and amortization		4,715			3,459
Write-off and amortization of debt issuance costs		40			450
Share-based compensation expense		6,079			5,740
Loss on disposal of property and equipment		—			31
Deferred income taxes		(18	)		—
Changes in operating assets and liabilities:
Accounts receivable		(3,068	)		6,718
Inventory		1,533			(19,031	)
Prepaid expenses and other assets		406			(6,826	)
Accounts payable		15,363			6,252
Accrued expenses		4,215			(2,878	)
Reserve for sales returns and allowances		(2,720	)		(6,701	)
Income taxes payable		(2,089	)		(2,610	)
Other liabilities		(27	)		3,744
Total adjustments		24,566			(11,230	)
Net cash provided by (used in) operating activities		26,149			(15,931	)
Cash flows from investing activities
Purchases of property and equipment		(10,104	)		(4,470	)
Investments in employee deferred compensation trusts		(428	)		(1,545	)
Net cash used in investing activities		(10,532	)		(6,015	)
Cash flows from financing activities
Repurchase of common stock for employee tax withholding		(1,269	)		(3,828	)
Cash dividend paid		(5,722	)		(5,572	)
Payments for deferred issuance costs		(146	)		—
Net cash used in financing activities		(7,137	)		(9,400	)
Net increase (decrease) in cash, cash equivalents and restricted cash		8,480			(31,346	)
Effect of foreign currency translation		(1,901	)		4,265
Cash, cash equivalents and restricted cash, beginning of period		54,066			70,137
Cash, cash equivalents and restricted cash, end of period	$	60,645		$	43,056
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net	$	(3,314	)	$	2,199
Cash paid for interest	$	7		$	—

	Three Months Ended June 30,
	2026								2025
	TCP		Costumes			Total			TCP			Costumes			Total
Net Sales	$	97,507	$	41,731		$	139,238		$	80,379		$	38,715		$	119,094
Cost of Sales ^(A)		64,006		30,271			94,277			53,293			26,778			80,071
Gross Profit		33,501		11,460			44,961			27,086			11,937			39,023

Direct selling expenses		6,226		2,274			8,500			4,987			1,723			6,710
Product development and testing expenses		2,305		958			3,263			2,180			889			3,069
Divisional general and administrative expenses ^{(A), (B)}		5,845		2,993			8,838			5,805			2,956			8,761
Allocated headquarter general & administrative expenses ^{(A), (C)}		17,037		7,465			24,502			15,782			7,484			23,266
Income (loss) from operations		2,088		(2,230	)		(142	)		(1,668	)		(1,115	)		(2,783	)
Other income (expense), net							6,976									25
Loss on debt extinguishment							—									(417	)
Interest income							788									395
Interest expense							(55	)								(145	)
Income (loss) before provision for (benefit from) income taxes						$	7,567								$	(2,925	)

^(A)Includes depreciation and amortization	$	2,538	$	55		$	2,593		$	1,858		$	42		$	1,900

	Six Months Ended June 30,
	2026								2025
	TCP		Costumes			Total			TCP			Costumes			Total
Net Sales	$	197,602	$	48,312		$	245,914		$	187,817		$	44,530		$	232,347
Cost of Sales ^(A)		130,119		35,228			165,347			122,532			31,779			154,311
Gross Profit		67,483		13,084			80,567			65,285			12,751			78,036

Direct selling expenses		13,181		3,483			16,664			12,954			2,452			15,406
Product development and testing expenses		4,309		1,096			5,405			4,195			1,273			5,468
Divisional general and administrative expenses ^{(A), (B)}		11,143		5,640			16,783			11,362			6,188			17,550
Allocated headquarter general & administrative expenses ^{(A), (C)}		38,468		8,963			47,431			37,522			8,630			46,152
Income (loss) from operations		382		(6,098	)		(5,716	)		(748	)		(5,792	)		(6,540	)
Other income (expense), net							7,001									30
Loss on debt extinguishment							—									(417	)
Interest income							1,268									757
Interest expense							(115	)								(300	)
Income (loss) before provision for (benefit from) income taxes						$	2,438								$	(6,470	)

^(A) Includes depreciation and amortization	$	4,645	$	70		$	4,715		$	3,409		$	50		$	3,459

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2026		2025		2026		2025
Net Sales by Customer Area
United States	$	108,251	$	86,990	$	182,887	$	175,934
Europe		16,021		14,657		33,400		26,467
Canada		7,080		8,826		10,072		12,105
Latin America		4,137		6,047		11,099		13,506
Asia		2,216		1,448		4,151		2,199
Australia & New Zealand		1,533		886		4,002		1,499
Middle East & Africa		—		240		303		637
	$	139,238	$	119,094	$	245,914	$	232,347

	Three Months Ended June 30,					Six Months Ended June 30,
Earnings (loss) per share - basic and diluted	2026		2025			2026		2025
Net income (loss)	$	5,863	$	(2,319	)	$	1,583	$	(4,701	)
Weighted average common shares outstanding - basic		11,445		11,146			11,444		11,146
Earnings (loss) per share - basic	$	0.51	$	(0.21	)	$	0.14	$	(0.42	)
Weighted average common shares outstanding - diluted		11,872		11,146			11,803		11,146
Earnings (loss) per share - diluted	$	0.49	$	(0.21	)	$	0.13	$	(0.42	)

	2026
	Number of Shares			Weighted Average Grant Date Fair Value
Outstanding, December 31, 2025		1,117,068		$	21.03
Granted		263,556			16.88
Vested		(177,082	)		24.83
Forfeited		(30,511	)		18.27
Outstanding, June 30, 2026		1,173,031			19.59

	June 30,		December 31,
	2026		2025
Long-lived Assets
United States	$	38,486	$	42,788
China		19,935		16,659
United Kingdom		2,903		3,073
Hong Kong		1,489		1,853
Others combined		1,290		1,411
	$	64,103	$	65,784

	Three Months Ended June 30,										Six Months Ended June 30,
	2026					2025					2026					2025
			Percentage					Percentage					Percentage					Percentage
	Amount		of Net Sales			Amount		of Net Sales			Amount		of Net Sales			Amount		of Net Sales
Walmart (*)	$	47,700		34.3	%	$	33,320		28.0	%	$	74,807		30.4	%	$	69,999		30.1	%
Target		32,760		23.5			30,630		25.7			59,405		24.2			60,074		25.9
	$	80,460		57.8	%	$	63,950		53.7	%	$	134,212		54.6	%	$	130,073		56.0	%

	Level 1:	Valuations for assets and liabilities traded in active markets from readily available pricing sources for market transactions involving identical assets or liabilities.

	Level 2:	Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities.

	Level 3:	Valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities.

Number		Description
31.1		Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer (1)
31.2		Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer (1)
32.1		Section 1350 Certification of Chief Executive Officer (1)
32.2		Section 1350 Certification of Chief Financial Officer (1)
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

	Carrying Amount as of June 30,		Fair Value Measurements As of June 30, 2026
	2026		Level 1		Level 2		Level 3
Money market funds	$	43,106	$	43,106	$	—	$	—
Investments in employee deferred compensation trusts		5,275		5,275		—		—

	Carrying Amount as of December 31,		Fair Value Measurements As of December 31, 2025
	2025		Level 1		Level 2		Level 3
Money market funds	$	33,062	$	33,062	$	—	$	—
Investments in employee deferred compensation trusts		4,467		4,467		—		—

	June 30, 2026		December 31, 2025
Prepaid expenses	$	5,860	$	2,126
Investments in employee deferred compensation trusts		5,275		4,467
Royalty advances (current and non-current)		3,778		1,295
Income tax receivable		2,556		8,588
Employee retention credit		285		285
Other assets		145		112
	$	17,899	$	16,873

	Three Months Ended June 30, (Unaudited)						Six Months Ended June 30, (Unaudited)
	2026			2025			2026			2025
Net sales		100	%		100	%		100	%		100	%
Cost of sales:
Cost of goods		49.4			49.3			49.2			48.8
Royalty expense		16.6			16.4			16.3			16.2
Amortization of tools and molds		1.7			1.5			1.7			1.4
Cost of sales		67.7			67.2			67.2			66.4
Gross profit		32.3			32.8			32.8			33.6
Direct selling expenses		6.1			5.6			6.8			6.6
General and administrative expenses		26.2			29.4			28.2			29.7
Depreciation and amortization		0.1			0.1			0.1			0.1
Selling, general and administrative expenses		32.4			35.1			35.1			36.4
Loss from operations		(0.1	)		(2.3	)		(2.3	)		(2.8	)
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.

Date: July 31, 2026	By:	/s/ John Kimble
		John Kimble
		Executive Vice President and
		Chief Financial Officer
		(Duly Authorized Officer and
		Principal Financial Officer)