Core Insights - JAKKS Pacific, Inc. reported first-quarter 2025 results with earnings and revenues exceeding Zacks Consensus Estimates, showing year-over-year growth [1][3] - The company experienced solid consumer demand across major markets and retail channels, with growth in Europe and Latin America despite challenges in the U.S. market [1] Financial Performance - The adjusted loss per share for the quarter was 3 cents, significantly better than the Zacks Consensus Estimate of a loss of 72 cents, and an improvement from a loss of $1.09 per share in the prior-year quarter [3] - Quarterly revenues reached $113.3 million, surpassing the consensus mark of $92 million by 22.8%, and increased by 26% year-over-year [3] - Net sales in the Toys/Consumer Products segment rose by 29.6% year-over-year to $107.4 million, exceeding the estimate of $85 million, while Costumes' net sales fell by 18.9% to $5.8 million, below the prediction of $7.2 million [4] Operating Highlights - Gross margin improved to 34.4% from 23.4% in the prior-year quarter, driven by higher margins on new product launches and reduced inventory obsolescence expenses [5] - Adjusted EBITDA for the quarter was $0.4 million, a decline from $17.2 million reported a year ago, and below the predicted $8.7 million [5] Balance Sheet - As of March 31, 2025, JAKKS had cash and cash equivalents of $59.2 million, an increase from $35.3 million as of March 31, 2024 [6] Stock Performance - Following the earnings report, JAKK's stock surged by 15.6% in after-hours trading [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☐ 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 | (I.R.S. Employer | | Incorporation or Organization) | Identification No.) | | 2951 28th Street Santa Monica, California ...

PACIF TIM First Quarter 2025 Earnings Presentation April 29, 2025 5:00 PM Eastern / 2:00 PM Pacific Registration: 1Q25 Registration link Webcast: 1Q25 Webcast link EXECUTIVE TEAM ON THE CALL Note: The following presentation includes unaudited information 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 circumsta ...

Financial Data and Key Metrics Changes - Company reported a 26% increase in sales for Q1 2025, driven by successful toy launches from films like Sonic the Hedgehog 3 and Moana 2 [5] - Gross margin improved to 34.4%, attributed to higher volumes from new releases and better product margins [6] - Adjusted EBITDA for the quarter was $400,000, marking a significant improvement from a loss of $17.2 million in the previous year [13] - Adjusted EPS loss improved to $0.03 per share from a loss of $1.09 last year [13] Business Line Data and Key Metrics Changes - Dolls role play dress up business shipped $55.5 million, a 37% increase year-over-year [5] - Action play and collectibles shipped $42.9 million, reflecting a 30% increase [6] - North American sales were up 25%, while international sales increased by 29% [6] Market Data and Key Metrics Changes - Company is focusing on international markets, particularly in Latin America and EMEA, to offset risks in the U.S. market [33] - Domestic inventory levels are healthy, allowing the company to navigate tariff impacts [9] Company Strategy and Development Direction - Company is exploring alternative sourcing opportunities outside of China while maintaining strong relationships with existing Chinese manufacturers [20] - Focus on developing products for the value trade in response to changing consumer demand [21] - Plans to host a Factory Summit to foster collaboration with manufacturing partners [19] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding tariff issues and their potential impact on pricing and consumer behavior [7][15] - Company remains optimistic about long-term prospects despite current challenges, emphasizing a proactive approach to business development [24] - Management highlighted the importance of maintaining product safety standards while exploring cost-effective manufacturing options [50] Other Important Information - The Board approved a $0.25 per share dividend for the second quarter [14] - Company is debt-free, with an unrestricted cash balance of $59.2 million, up from $35.3 million a year ago [14] Q&A Session Summary Question: What will the holiday season look like if tariffs remain unchanged? - Management indicated that higher tariffs would lead to increased prices for lower-priced products, ultimately impacting consumers the most [29] Question: How is the company addressing international sales growth? - Management confirmed aggressive international expansion, particularly in Latin America and EMEA, to mitigate U.S. market risks [33] Question: How are tariffs affecting licensing opportunities? - Management noted that while some companies face difficulties due to tariffs, this creates opportunities for JAKKS to expand its licensing agreements [55] Question: Are there new strategic M&A opportunities arising from current market conditions? - Management acknowledged increased outreach from banks and individuals regarding potential M&A opportunities due to market challenges [57]

Core Viewpoint - Jakks Pacific reported a quarterly loss of $0.03 per share, significantly better than the Zacks Consensus Estimate of a loss of $0.72, marking an earnings surprise of 95.83% [1] Financial Performance - The company posted revenues of $113.25 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 22.81%, compared to $90.08 million in the same quarter last year [2] - Over the last four quarters, Jakks has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Jakks shares have declined approximately 30.6% since the beginning of the year, while the S&P 500 has decreased by 6% [3] - The current Zacks Rank for Jakks is 4 (Sell), indicating expected underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.72 on revenues of $150.94 million, and for the current fiscal year, it is $4.14 on revenues of $691.74 million [7] - The estimate revisions trend for Jakks is currently unfavorable, which may impact future stock movements [6] Industry Context - The Toys - Games - Hobbies industry, to which Jakks belongs, is currently ranked in the bottom 7% of over 250 Zacks industries, suggesting potential challenges ahead [8] - The performance of Jakks may also be influenced by the overall outlook for the industry [8]

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 Data and Key Metrics Changes - Company reported a 26% increase in sales for the quarter, driven by successful toy launches from films like Sonic the Hedgehog 3 and Moana 2 [5] - Gross margin improved to 34.4%, attributed to higher volumes from new releases and better product margins [6] - Adjusted EBITDA for the quarter was $354,000, a significant improvement from a loss of $17.2 million in the previous year [13] - Unrestricted cash balance at the end of the quarter was $59.2 million, up from $35.3 million a year ago [14] Business Line Data and Key Metrics Changes - Dolls role play dress up business shipped $55.5 million, a 37% increase year-over-year [5] - Action play and collectibles shipped $42.9 million, a 30% increase [6] - North American sales were up 25%, while international sales increased by 29% [6] Market Data and Key Metrics Changes - Company is focusing on international markets to offset risks from the U.S. market, with significant growth in Latin America and EMEA [34] - The company is actively engaging customers across various international regions to enhance market presence [9] Company Strategy and Development Direction - Company is exploring alternative sourcing opportunities outside of China while maintaining strong relationships with existing partners [19] - Focus on product lines priced at $29.99 or less to cater to value-conscious consumers [20] - Plans to host a Factory Summit to foster collaboration with partners and drive product innovation [18] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding tariff issues and their potential impact on pricing and consumer behavior [8][15] - Company remains optimistic about long-term prospects despite current challenges, emphasizing a proactive approach to business development [23] - Management highlighted the importance of maintaining product safety standards while exploring cost-effective manufacturing options [51] Other Important Information - The Board approved a $0.25 per share dividend for the second quarter [14] - Company is debt-free, allowing for greater flexibility in navigating current market challenges [14][56] Q&A Session Summary Question: What will the holiday season look like if tariffs remain unchanged? - Management indicated that higher tariffs would lead to increased prices for lower-priced products, ultimately impacting consumers the most [29] Question: How is the company addressing international sales and infrastructure? - Management confirmed aggressive international expansion efforts, particularly in Latin America and EMEA, to mitigate U.S. market risks [34][36] Question: How are tariffs affecting licensing opportunities? - Management noted that while some companies face difficulties due to tariffs, this creates potential opportunities for JAKKS to expand its licensing agreements [55][57] Question: Are there new strategic M&A opportunities arising from current market conditions? - Management acknowledged increased outreach from banks regarding potential M&A opportunities, suggesting that the current environment may lead to more favorable conditions for acquisitions [58]

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]