JAKKS Pacific(US:JAKK)2026-02-20 13:30Financial Performance - Net sales for Q4 2025 were $127.1 million, a year-over-year decrease of 3%[5] - Full-year net sales decreased by 17% to $570.7 million compared to $691.0 million in 2024[5] - Net sales for Q4 2025 were $127.1 million, a decrease of 3% from $130.7 million in Q4 2024; for the full year, net sales dropped 17% to $570.7 million from $691.0 million[20] - Year-to-date net sales for 2025 were $570,671,000, down 17.4% from $691,042,000 in 2024[26] - Sales in the United States decreased by 8% in Q4 and 24% for the full year compared to the previous year[8] - Sales in the United States for Q4 2025 were $86,155,000, a decline of 7.8% from Q4 2024[26] - Latin America saw a significant increase in Q4 2025 sales, rising 106.2% to $8,849,000 compared to Q4 2024[26] Profitability Metrics - Gross margin improved to 31.0%, up 380 basis points compared to Q4 2024[5] - Adjusted EBITDA for Q4 2025 was $(3.8) million, an improvement of $6.3 million from $(10.2) million in Q4 2024[5] - Adjusted EBITDA for Q4 2025 was $(3.8) million, an improvement from $(10.2) million in Q4 2024; full-year adjusted EBITDA decreased to $35.4 million from $59.3 million[23] - Gross profit increased by 11% to $39.4 million in Q4 2025, compared to $35.6 million in Q4 2024; however, full-year gross profit decreased by 13% to $185.1 million from $213.0 million[20] - Adjusted net income for the full year was $18.6 million, down from $42.6 million in 2024[5] - The company reported a net loss of $5.3 million in Q4 2025, a 42% improvement from a net loss of $9.1 million in Q4 2024; for the full year, net income decreased by 71% to $9.9 million from $34.2 million[20] - Earnings per share (EPS) for Q4 2025 were $(0.47), compared to $(0.83) in Q4 2024; full-year EPS was $0.88, down from $3.27[20] - Adjusted earnings per share (basic) for Q4 2025 was $(0.18), improving from $(0.67) in Q4 2024[24] Expenses and Cost Management - Operating loss in Q4 2025 was $8.6 million, an improvement of $6.1 million from a loss of $14.7 million in Q4 2024[5] - Direct selling expenses decreased by 15% to $15.5 million in Q4 2025, while general and administrative expenses increased slightly by 1% to $32.3 million[20] - The cost of sales as a percentage of net sales improved to 69.0% in Q4 2025 from 72.8% in Q4 2024, indicating better cost management[21] - Interest income decreased by 47% to $0.2 million in Q4 2025, while interest expense decreased by 56% to $0.1 million[20] - Restricted stock compensation expense increased to $10,913,000 from $9,535,000, an increase of $1,378,000[24] Shareholder Returns - Cash returned to shareholders was $11.2 million, equating to $1 per common share[5] - The company declared a quarterly dividend of $0.25 per share, payable on March 30, 2026[9] Market Outlook - The overall market outlook remains cautious, with the company focusing on cost control and potential new product developments to drive future growth[20]