Financial Performance - Q2 2025 - Net sales decreased by 19.9% year-over-year to $119.1 million, compared to $148.6 million in Q2 2024 [10, 60, 61] - Gross profit decreased by 18% to $39.0 million, compared to $47.6 million in Q2 2024 [10, 48] - Operating loss was $2.8 million, compared to an operating income of $7.6 million in Q2 2024 [10] - Adjusted EBITDA decreased to $2.3 million, compared to $12.3 million in Q2 2024 [10] - Adjusted net income attributable to common stockholders was $0.4 million (or $0.03 per share), compared to $7.3 million (or $0.65 per share) in Q2 2024 [10] - Gross margin increased to 32.8%, up from 32.0% in Q2 2024 [10, 20] Financial Performance - First Half 2025 - Net sales decreased by 2.7% year-over-year to $232.3 million, compared to $238.7 million in 1H 2024 [10, 60, 61] - Gross profit increased by 14% to $78.0 million, compared to $68.6 million in 1H 2024 [10, 48] - Operating loss decreased to $6.5 million, compared to an operating loss of $13.7 million in 1H 2024 [10] - Adjusted EBITDA increased to $2.7 million, up from a loss of $4.9 million in 2024 [10] - Gross margin increased to 33.6%, up from 28.8% in 1H 2024 [10, 32] Sales by Division - Q2 2025 - Toys/Consumer Products net sales decreased by 23.1% to $80.4 million, compared to $104.6 million in Q2 2024 [14, 60] - Costumes net sales decreased by 12.1% to $38.7 million, compared to $44.0 million in Q2 2024 [18, 60] Sales by Region - Q2 2025 - United States net sales decreased by 30.9% to $87.0 million, compared to $125.8 million in Q2 2024 [61] - Europe net sales increased by 42.8% to $14.7 million, compared to $10.3 million in Q2 2024 [61]

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]