Financial Data and Key Metrics Changes - For Q4 2025, total company sales decreased by 2.8% year-over-year to $127.1 million, roughly flat compared to Q4 2023 sales of $127.4 million [6] - U.S. business sales in Q4 were down 7.8% to $86.2 million, attributed to higher tariff burdens and slower sell-throughs [6] - Gross margin for the full fiscal year was 32.4%, the highest level in over 15 years, up from 30.8% in the previous year [11][13] - Adjusted EBITDA loss for Q4 was reduced to $3.8 million, compared to a loss of $10.2 million in the same quarter last year [11] Business Line Data and Key Metrics Changes - Toy and consumer product net sales were approximately flat in Q4 at $118 million, down 0.2% from the prior year [5] - The costume business was down 10% for the full year, with a slight increase in international sales offsetting U.S. results [8] - Action play and collectibles business saw a 19% year-over-year increase in Q4, driven by the Super Mario Galaxy film [12] Market Data and Key Metrics Changes - Fourth quarter sales in the rest of the world increased by 9.9% to $41 million, with Europe showing a 14% increase to $81.4 million for the full year [7][8] - Retail inventory levels were down 21% year-over-year at one major retailer and down about 4% at another, indicating tight inventory management [52] Company Strategy and Development Direction - The company is focused on long-term value creation despite short-term financial pressures from tariffs, maintaining a disciplined approach to margin integrity [4] - Plans for significant new initiatives launching in 2027 are underway, with a focus on expanding strategic relationships and product offerings [4][10] - The company aims to leverage its strong balance sheet to enhance relationships with licensors and expand its product portfolio [39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged 2025 as a disappointing year but expressed confidence in the company's adaptability and future growth opportunities [10] - The company anticipates a low- to mid-single-digit top-line growth year in 2026, with a continued focus on margin expansion [28] - Management highlighted the importance of maintaining a cash dividend policy while navigating a challenging operating environment [18] Other Important Information - The company returned $1 per share to shareholders as a cash dividend while preserving a debt-free balance sheet [5] - The first quarter dividend payment of $0.25 per common share has been approved, payable at the end of Q1 [18] Q&A Session Summary Question: Discussion on the FOB model and its adjustments - Management confirmed a continued focus on an FOB-first business model, adapting to tariff impacts while working closely with retailers to mitigate costs [32][34] Question: International opportunities with FOB - The company is expanding distribution centers in strategic areas to support growth in smaller markets, balancing FOB with domestic inventory [35][36] Question: Leveraging a strong balance sheet for new licenses - A strong balance sheet has allowed the company to build relationships with licensors, focusing on margin enhancement without sacrificing top-line revenue [38][39] Question: Conceptual flow of Q1 given last year's strong performance - Management noted that Q1 is typically the smallest quarter, but there is momentum from new product launches, and they are not overly fixated on Q1 results [40][41] Question: POS trends and retail inventory - Management indicated that POS was not as strong as desired, but inventory levels at retail are tight, reflecting a cautious approach to sales and profitability [52][54]

Fourth Quarter 2025 Earnings Presentation February 19, 2026 5:00 PM Eastern / 2:00 PM Pacific 4Q25 Registration link 4Q25 Webcast link 1 EXECUTIVE TEAM ON THE CALL STEPHEN BERMAN Chairman & Chief Executive Officer JOHN KIMBLE Executive Vice President & Chief Financial Officer 2 SAFE HARBOR STATEMENT The Company would like to point out that any comments made about JAKKS Pacific's future performance, events or circumstances, including the estimates of sales and/or Adjusted EBITDA in 2026, as well as any other ...

Core Insights - JAKKS Pacific, Inc. reported Q4 and full-year 2025 financial results, showing a bottom-line growth despite challenges from tariff policies [1][4] - The company declared a quarterly cash dividend of $0.25 per share, marking its first full year as a cash dividend payer [7] Q4 2025 Financial Performance - Q4 net sales were $127.1 million, a decrease of 2.8% year-over-year, with Toys/Consumer Products division net sales at $118.0 million, down 0.2% from the previous year [5][9] - Gross margins improved to 31.0%, up 380 basis points compared to Q4 2024, with gross profit increasing by 11% to $39.4 million [9] - Operating loss for Q4 was $8.6 million, an improvement from a loss of $14.7 million in Q4 2024 [9] Full-Year 2025 Financial Performance - Full-year net sales decreased by 17% to $570.7 million, with Toys/Consumer Products net sales down 19% to $461.9 million [9][27] - Gross margin for the full year was 32.4%, compared to 30.8% in 2024, with gross profit declining by 13% to $185.1 million [9] - Net income attributable to common stockholders was $9.9 million, down from $35.3 million in 2024 [9] Geographic Sales Performance - U.S. sales fell by 8% in Q4 and 24% for the full year, while international sales increased by 10% in Q4 and 6% for the full year, primarily driven by Europe [6][27] - In Q4, sales in Europe were stable, while Latin America saw a significant increase of 106.2% [27] Inventory and Cash Flow - Inventory as of December 31, 2025, was $59.8 million, up from $52.8 million in 2024, attributed to an expanded warehouse network in the EU [6] - Cash returned to shareholders totaled $11.2 million, with end-of-year cash and cash equivalents at $54.1 million, down from $70.1 million in 2024 [9]

Core Insights - JAKKS Pacific, Inc. has renewed its partnership with Universal Products & Experiences, Illumination, and Nintendo to launch a new toy collection inspired by the upcoming animated film, The Super Mario Galaxy Movie, set to release on April 1, 2026 [3][6] - The previous toy line based on The Super Mario Bros. Movie was a significant success, generating over $1.3 billion globally and contributing to double-digit growth in JAKKS Pacific's action figures and collectibles business [4][6] Product Line Details - The new product line will include various items such as movie-inspired figures, playsets, plush toys, and accessories, aimed at fans of all ages [5] - Key products include: - 5-inch figures featuring Mario with yellow Luma, Yoshi, Rosalina, and Bowser Jr. [5] - 1.5-inch mini scale figures of Mario, Luigi, Yoshi, Princess Peach, and Bowser Jr. [5] - Yoshi Egg playset and Deluxe Bowser Castle playset to enhance playability [5] - Exclusive items available at Target and Walmart, including posable plush toys and unique figure packs [5] Company Background - JAKKS Pacific, Inc. is a leading designer, manufacturer, and marketer of toys and consumer products, headquartered in Santa Monica, California [15] - The company manages a diverse portfolio of licensed and owned intellectual property brands, including popular franchises like The Legend of Zelda and Donkey Kong [6][15] - JAKKS Pacific aims to create high-quality products that resonate with both longtime fans and new audiences [6]

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Jakks Pacific (JAKK) due to higher revenues, with actual results being crucial for stock price movement [1][2] Earnings Expectations - The earnings report is expected on February 19, with a consensus estimate of a quarterly loss of $0.58 per share, reflecting a year-over-year change of +13.4% [3] - Revenues are projected to be $132.85 million, an increase of 1.6% from the previous year [3] Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst assessments [4] - The Most Accurate Estimate for Jakks is higher than the Zacks Consensus Estimate, resulting in an Earnings ESP of +46.55% [11] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [9] - However, Jakks currently holds a Zacks Rank of 5, complicating predictions of an earnings beat despite the positive Earnings ESP [11] Historical Performance - In the last reported quarter, Jakks was expected to post earnings of $2.6 per share but delivered only $1.80, resulting in a surprise of -30.77% [12] - Over the past four quarters, Jakks has beaten consensus EPS estimates twice [13] Conclusion - While Jakks does not appear to be a compelling earnings-beat candidate, investors should consider other factors when making decisions regarding the stock ahead of the earnings release [16]

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Group 1 - JAKKS Pacific, Inc. will announce its fourth quarter and full-year 2025 financial results on February 19, 2026, after the stock market closes [1] - A teleconference is scheduled for February 19, 2026, at 5:00 p.m. ET to discuss the financial results and future plans, with a live webcast available on the company's Investor Relations page [2] - JAKKS Pacific is a leading designer, manufacturer, and marketer of toys and consumer products, headquartered in Santa Monica, California, with popular proprietary brands and a commitment to positively impacting children's lives [3]

Core Insights - JAKKS Pacific, Inc. has partnered with The Hershey Company to introduce a new line of dolls and collectibles inspired by Hershey's popular confectionery brands, marking a unique expansion into the confection-themed toy market [2][3] Product Details - The new collection will feature eight SKUs, including dolls inspired by Hershey's Kisses, Jolly Rancher, Reese's, Bubble Yum, Twizzlers, and Hershey's Syrup, each accompanied by themed charms and accessories [3] - The first product, Hershey's Kisses collectibles, will launch exclusively at CVS on December 26, 2025, in time for Valentine's Day, with the partnership set to run until December 31, 2026, with an option for extension [4] Market Positioning - The collaboration aims to blend the appeal of delicious treats with self-expression, enhancing the trendy nature of JAKKS Pacific's products [5] - The Charming Bag Charms are designed as a viral trend, allowing kids to customize their looks by mixing and matching dolls and charms, making them portable and versatile [6] Company Background - JAKKS Pacific, Inc. is a leading designer, manufacturer, and marketer of toys and consumer products, headquartered in Santa Monica, California, with a focus on creating a positive impact on children's lives through its products and charitable efforts [10] - The Hershey Company is a major player in the snacks industry, generating over $11.2 billion in annual revenues from its extensive portfolio of brands, including Hershey's, Reese's, and Jolly Rancher [7]

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