JAKKS Pacific (JAKK) Q1 2025 Earnings Call April 29, 2025 05:00 PM ET Company Participants Stephen Berman - Chairman and CEOJohn Kimble - CFO Conference Call Participants Eric Beder - CEO & Senior Research AnalystTom Forte - Managing Director & Senior Consumer Internet Analyst Operator Good afternoon, everyone. Welcome to the JAKKS Pacific First Quarter twenty twenty five Earnings Conference Call with Management, who will review financial results for the quarter ended 03/31/2025. JAKKS issued its earnings p ...

JAKKS Pacific (JAKK) Q1 2025 Earnings Call April 29, 2025 05:00 PM ET Company Participants Stephen Berman - Chairman and CEOJohn Kimble - CFO Conference Call Participants Eric Beder - CEO & Senior Research AnalystTom Forte - Managing Director & Senior Consumer Internet Analyst Operator Good afternoon, everyone. Welcome to the JAKKS Pacific First Quarter twenty twenty five Earnings Conference Call with Management, who will review financial results for the quarter ended 03/31/2025. JAKKS issued its earnings p ...

Financial Performance - Net sales for Q1 2025 were $113.3 million, a 26% increase from $90.1 million in Q1 2024[8] - Gross profit reached $39.0 million, up $17.9 million compared to $21.1 million in Q1 2024, with a gross margin of 34.4% versus 23.4% in the prior year[6] - Operating loss improved to $3.8 million from an operating loss of $21.3 million in Q1 2024[6] - Adjusted net loss attributable to common stockholders was $0.4 million (or $0.03 per share), significantly better than an adjusted net loss of $11.3 million (or $1.09 per share) in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $354,000, a substantial improvement from $(17,235,000) in Q1 2024, reflecting a 1940 basis points increase[26] - Net loss attributable to common stockholders decreased to $(2,382,000) from $(13,175,000), an 82% improvement[26] - Loss per share improved to $(0.21) from $(1.27) in the previous year[23] Sales Growth - International sales increased to $21.0 million, up from $16.3 million last year, with Europe showing over 100% growth from $5.7 million to $11.8 million[8] - Sales in the United States grew by 26.3% to $88,944,000 compared to $70,430,000 in Q1 2024[28] - The Dolls, Role-Play/Dress Up division saw a 36.7% increase in sales to $55,463,000 from $40,574,000[28] - Europe experienced a significant sales increase of 105.9% to $11,810,000 from $5,735,000[28] Financial Stability - Cash and cash equivalents totaled $59.4 million as of March 31, 2025, compared to $35.5 million a year earlier[9] - Inventory was $53.2 million, up from $46.3 million in Q1 2024[9] - The company eliminated all long-term debt in 2023, enhancing its financial stability[4] Dividend Declaration - The company declared a quarterly dividend of $0.25 per share, payable on June 27, 2025[7] Strategic Focus - JAKKS Pacific is focusing on growth opportunities in Europe and Latin America, which are currently delivering real growth[5] Cost Management - The overall cost of sales as a percentage of net sales decreased to 65.6% from 76.6% year-over-year[24]

Core Viewpoint - JAKKS Pacific, Inc. reported a strong financial performance for Q1 2025, with net sales increasing by 26% year-over-year, driven by consumer demand and successful product launches, while also declaring a quarterly dividend of $0.25 per share [1][6][9]. Financial Performance - Net sales for Q1 2025 were $113.3 million, up from $90.1 million in Q1 2024, representing a 26% increase [7][9]. - The Toys/Consumer Products segment saw a 30% increase in sales globally, totaling $107.4 million, while the Costumes segment experienced a 19% decline to $5.8 million [7][30]. - North American sales rose to $92.2 million from $73.8 million, and international sales increased to $21.0 million from $16.3 million, with Europe showing over 100% growth [7][30]. Profitability Metrics - Gross profit for Q1 2025 was $39.0 million, an increase of $17.9 million compared to $21.1 million in Q1 2024, with a gross margin of 34.4%, up from 23.4% [9][24]. - The operating loss improved to $3.8 million from a loss of $21.3 million in Q1 2024 [9][24]. - Adjusted net loss attributable to common stockholders was $0.4 million (or $0.03 per share), significantly better than the adjusted net loss of $11.3 million (or $1.09 per share) in Q1 2024 [9][28]. Balance Sheet and Cash Position - Cash and cash equivalents totaled $59.4 million as of March 31, 2025, compared to $35.5 million a year earlier [8][19]. - The company eliminated all long-term debt in 2023 and repurchased preferred stock, resulting in a strong balance sheet [4][6]. Strategic Outlook - Management expressed confidence in the company's ability to navigate market challenges, highlighting growth opportunities in Europe and Latin America [5][6]. - The company is focused on maintaining a strong liquidity position and a prudent capital structure to support future investments [4][6]. Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.25 per share, payable on June 27, 2025, to shareholders of record on May 30, 2025 [6].

Core Insights - Disguise, Inc. has secured a multi-year licensing agreement with SEGA of America, granting exclusive rights to create Sonic the Hedgehog costumes for distribution in North America, Europe, EMEA, and LATAM [1][2][3] Group 1: Licensing Agreement - The agreement allows Disguise to be the sole costume manufacturer for Sonic the Hedgehog, enhancing its portfolio and market presence [1][3] - Disguise has previously developed costume lines for major Sonic properties, receiving positive fan feedback, which solidifies its reputation in the costume industry [2][4] Group 2: Strategic Importance - The acquisition of sole rights to Sonic the Hedgehog aligns with Disguise's global distribution strategy, indicating a focus on expanding its market reach [3] - The partnership with SEGA is expected to enhance the quality and variety of Sonic-themed costumes and accessories, leveraging innovative materials and manufacturing techniques [3][4] Group 3: Industry Position - Disguise is recognized as a leader in licensed costume design, with a commitment to excellence and a growing global distribution network [4]

Core Insights - Disguise, Inc. has secured North American rights to design, develop, manufacture, and distribute costumes and accessories for the PAW Patrol brand, including the upcoming PAW Patrol: The Dino Movie set to release on July 31, 2026 [1][3] - The company will launch a refreshed core costume line in fall 2025, followed by a new collection inspired by the Dino Movie in 2026, marking a significant expansion of its costume rights for the entire PAW Patrol portfolio [2][4] - PAW Patrol is a leading animated preschool series with a global reach, adored by over 350 million households, and the upcoming film is expected to be a major box-office success [3][4] Company Overview - Disguise, Inc. is a leader in the dress-up and roleplay industry, creating innovative costumes and accessories since 1987, and produces millions of costumes annually for various licensed brands [10] - JAKKS Pacific, Inc., the parent company of Disguise, is a prominent designer and manufacturer of toys and consumer products, with a diverse portfolio that includes proprietary brands and licensed properties [9] - Spin Master Corp. is a global children's entertainment company known for its award-winning brands, including PAW Patrol, and has produced multiple successful television series and films [6]

Company Announcement - JAKKS Pacific, Inc. will announce its first quarter 2025 financial results on April 29, 2025, after the stock market closes [1] - A teleconference and webcast will be held to discuss the results, along with potential future plans and prospects [1] Teleconference Details - The teleconference is scheduled for 5:00 p.m. ET / 2:00 p.m. PT on April 29, 2025 [2] - A live webcast will be available on the Company's "Investor Relations" page [2] - Participants are encouraged to join the call ten minutes early to avoid delays [2] Company Overview - JAKKS Pacific, Inc. is a leading designer, manufacturer, and marketer of toys and consumer products, headquartered in Santa Monica, California [3] - The company offers popular proprietary brands and a range of entertainment-inspired products featuring licensed properties [3] - JAKKS aims to positively impact children's lives through its products and charitable donations [3]

POWAY, Calif., April 07, 2025 (GLOBE NEWSWIRE) -- Disguise, Inc., the costume division of leading toy and consumer products company JAKKS Pacific, Inc. (NASDAQ:JAKK), and BBC Studios has extended their licensing partnership for the highly successful Bluey costume line in North America. Disguise is gearing up for the fall 2025 season with new styles and expanded distribution for high-quality Bluey costumes and accessories, ensuring fans of all ages can continue celebrating their favorite characters whether f ...

SANTA MONICA, Calif., March 31, 2025 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ:JAKK), has delighted THE SIMPSONS fans at WonderCon 2025 with the reveal of an all-new Funzo Feature Plush, now available for pre-sale on Amazon! Inspired by the Season 11 episode "The Grift of the Magi," this talking plush brings the infamous toy to life with interactive features and classic phrases from the show. The Funzo Feature Plush stands 14 inches tall and features active facial expressions, launching missiles, and ...

SANTA MONICA, Calif., March 28, 2025 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (NASDAQ: JAKK) today announced that the Board of Directors (the “Board”) approved the scheduling of the 2025 annual meeting for June 20, 2025, and also announced changes to the Board as part of the Company’s successful completion of the transition from its 2019 recapitalization transactions. As part of the restructuring, the Board announced the planned departure of three current directors appointed to the Board as part of the Compa ...