Jakks Pacific ( (JAKK) ) has released its Q3 earnings. Here is a breakdown of the information Jakks Pacific presented to its investors.
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JAKKS Pacific, Inc. is a prominent toy and consumer products company based in Santa Monica, California, known for its diverse range of proprietary and licensed products sold globally. In its recent financial report for the third quarter of 2025, JAKKS Pacific revealed a significant decline in net sales, reporting $211.2 million, a 34% decrease from the previous year. This downturn was primarily attributed to reduced direct-import sales and the absence of new theatrical release-related products.
The company’s U.S. net sales fell by 40%, while international sales saw a 15% decline. Gross profit also took a hit, dropping to $67.6 million from $108.8 million in the same quarter last year. Operating income decreased to $29.4 million, and adjusted net income attributable to common stockholders was $20.6 million, down from $54.0 million in Q3 2024. Despite these challenges, the company maintained a gross margin of 32.0% compared to 33.8% in the previous year.
For the first nine months of 2025, JAKKS Pacific reported net sales of $443.6 million, a 21% decrease from the previous year. The Toys/Consumer Products segment experienced a 24% decline in sales, while the Costumes segment saw an 8% decrease. The company’s cash and cash equivalents stood at $27.8 million as of September 30, 2025, and the board approved a quarterly cash dividend of $0.25 per share.
Looking ahead, JAKKS Pacific’s management remains optimistic about the company’s long-term prospects. They are focusing on operational efficiency, cash generation, and product innovation to navigate the current challenges and position the company for future growth. With a strong balance sheet and a diversified sourcing network, JAKKS Pacific aims to adapt to changing market conditions and continue delivering value to shareholders and customers.