JAKKS Pacific Reports First Quarter 2025 Financial Results

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].