JAKKS Pacific Reports Third Quarter 2025 Financial Results

Core Viewpoint - JAKKS Pacific, Inc. reported a significant decline in net sales for the third quarter and the first nine months of 2025, attributed to reduced consumer demand and challenges related to tariffs, while emphasizing a commitment to operational efficiency and product innovation for long-term growth [3][5][11]. Financial Performance - Net sales for Q3 2025 were $211.2 million, a decrease of 34% from $321.6 million in Q3 2024 [5][11]. - For the first nine months of 2025, net sales totaled $443.6 million, down 21% from $560.3 million in the same period last year [6][11]. - The Toys/Consumer Products segment saw a 41% decline in global sales to $156.1 million in Q3 2025, while Costumes sales decreased by 4% to $55.1 million [5][11]. - U.S. sales in Q3 2025 were $154.5 million, down 40% from $255.3 million in Q3 2024, and Rest of World sales were $56.7 million, down 15% from $66.3 million [5][11]. Profitability Metrics - Gross profit for Q3 2025 was $67.6 million, down from $108.8 million in Q3 2024, resulting in a gross margin of 32.0%, compared to 33.8% in the prior year [11]. - Adjusted net income attributable to common stockholders for Q3 2025 was $20.6 million, or $1.80 per diluted share, compared to $54.0 million, or $4.79 per diluted share, in Q3 2024 [11]. - Trailing twelve-month EBITDA as of September 30, 2025, was $29.0 million, down from $58.5 million a year earlier [7][11]. Cash and Inventory Management - Cash and cash equivalents totaled $27.8 million as of September 30, 2025, an increase from $22.3 million at the same time last year, but down from $70.1 million as of December 31, 2024 [7]. - Inventory levels rose to $71.5 million compared to $63.5 million a year ago, indicating a need for improved inventory management [7]. Dividend Declaration - The Board of Directors declared a quarterly dividend of $0.25 per share, payable on December 29, 2025, to shareholders of record on November 28, 2025 [8]. Management Commentary - The CEO highlighted the importance of maintaining margins and supporting retail partners while preparing for a strong product pipeline extending into 2026 and beyond [3][4]. - The company remains confident in its long-term trajectory by focusing on operational efficiency, cash generation, and product innovation [5].