JAKKS Pacific(US:JAKK)2025-10-31 13:26Financial Performance - Net sales for Q3 2025 were $211.2 million, a decrease of 34% year-over-year from $321.6 million[4] - US net sales in Q3 2025 were $154.5 million, down 40% compared to $255.3 million in Q3 2024[7] - Gross profit for Q3 2025 was $67.6 million, down 38% from $108.8 million in Q3 2024[4] - Adjusted net income attributable to common stockholders was $20.6 million, or $1.80 per diluted share, compared to $54.0 million, or $4.79 per diluted share in Q3 2024[4] - Adjusted EBITDA for Q3 2025 was $36.5 million, down from $74.4 million in Q3 2024[4] - Net income for Q3 2025 was $19,892, reflecting a 62% decline from $52,272 in Q3 2024[22] - Earnings per share (basic) for Q3 2025 was $1.78, down from $4.78 in Q3 2024[22] - The adjusted net income attributable to common stockholders for Q3 2025 was $20,552, a decrease of $33,412 compared to $53,964 in Q3 2024[26] Revenue Trends - Net sales for the first nine months of 2025 were $443.6 million, down 21% from $560.3 million last year[8] - The Toys/Consumer Products segment's sales for the first nine months of 2025 were $343.9 million, down 24% from $451.8 million last year[8] - Total revenue for Q3 2025 was $211,210, down 34.3% from Q3 2024's $321,606[28] - Revenue from the United States in Q3 2025 was $154,516, reflecting a 39.5% decline from Q3 2024's $255,278[28] - Latin America showed a revenue decrease of 37.8% in Q3 2025, with $14,066 compared to $22,632 in Q3 2024[28] - The North America region reported Q3 2025 revenue of $163,753, down 37.6% from $262,346 in Q3 2024[28] - The total year-to-date (YTD) revenue for Q3 2025 was $443,557, a decrease of 20.8% from YTD Q3 2024's $560,301[28] Product Category Performance - Q3 2025 revenue for Toys/Consumer Products was $156,080, a decrease of 40.9% compared to Q3 2024, which was $264,306[28] - Dolls, Role Play/Dress-Up revenue in Q3 2025 was $92,330, down 37.1% from $146,893 in Q3 2024[28] - Action Play & Collectibles revenue decreased by 46.4% in Q3 2025, totaling $52,950 compared to $98,750 in Q3 2024[28] - Outdoor/Seasonal Toys revenue fell by 42.1% in Q3 2025, with $10,800 compared to $18,663 in Q3 2024[28] Cost and Expenses - Total cost of sales for Q3 2025 was $143,567, a reduction of 33% from $212,775 in Q3 2024[22] - Direct selling expenses decreased by 21% to $5,933 in Q3 2025 from $7,552 in Q3 2024[22] - The company reported a provision for income taxes of $9,831 in Q3 2025, down 36% from $15,425 in Q3 2024[22] Market Outlook - The company anticipates continued challenges in the market, as indicated by the significant revenue declines across multiple regions and product categories[28] - The company experienced a decline in adjusted EBITDA/net sales percentage to 17.3% in Q3 2025 from 23.1% in Q3 2024, a drop of 580 basis points[25]