JAKKS Pacific (NASDAQ:JAKK) Issues Quarterly Earnings Results, Beats Estimates By $0.27 EPS

JAKKS Pacific (NASDAQ:JAKK) posted its quarterly earnings results on Thursday. The company reported ($0.17) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.44) by $0.27, FiscalAI reports. JAKKS Pacific had a net margin of 1.41% and a return on equity of 3.25%. The firm had revenue of $106.68 million during the quarter, compared to analyst estimates of $103.80 million.

Here are the key takeaways from JAKKS Pacific’s conference call:

• Q1 net sales were $170 million, down 6% year-over-year, led by a 16% decline in North America to $78 million despite continued strength in FOB shipments (~70% of NA volume).
• International revenue grew 38% to $29 million, with EMEA delivering its best quarter since 2015 supported by expanded regional distribution capabilities.
• Gross margin remained strong at 33.4% (down ~100 bps) driven by higher-margin new products and fewer low-margin closeouts.
• The company recorded a quarterly adjusted EBITDA loss of $0.37 million (versus a $0.35 million gain a year ago) and an adjusted EPS loss of $0.17, reflecting softer margin dollars despite the margin percentage.
• Management is investing in a large-scale anime/manga/VTuber platform launching in 2027 (premium collectibles, DTC, live events) and ended Q1 with $64 million cash plus a $0.25 per‑share Q2 dividend approved by the board.

JAKKS Pacific Trading Up 10.6%

Shares of JAKK traded up $2.30 during mid-day trading on Friday, hitting $24.06. 160,467 shares of the company traded hands, compared to its average volume of 48,978. JAKKS Pacific has a one year low of $14.86 and a one year high of $24.12. The business has a 50-day moving average of $21.11 and a 200 day moving average of $18.81. The stock has a market capitalization of $275.25 million, a price-to-earnings ratio of 28.31 and a beta of 1.50.

JAKKS Pacific Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, June 29th. Stockholders of record on Friday, May 29th will be paid a dividend of $0.25 per share. This represents a $1.00 annualized dividend and a dividend yield of 4.2%. The ex-dividend date of this dividend is Friday, May 29th. JAKKS Pacific’s dividend payout ratio is 117.65%.

Analyst Ratings Changes

Several research firms have recently weighed in on JAKK. Wall Street Zen raised shares of JAKKS Pacific from a “hold” rating to a “buy” rating in a report on Saturday, March 7th. Zacks Research raised shares of JAKKS Pacific from a “strong sell” rating to a “hold” rating in a report on Monday, March 9th. Two research analysts have rated the stock with a Hold rating, Based on data from MarketBeat, the company has an average rating of “Hold”.

Institutional Trading of JAKKS Pacific

Several hedge funds have recently modified their holdings of JAKK. Hotchkis & Wiley Capital Management LLC bought a new stake in shares of JAKKS Pacific during the third quarter valued at approximately $6,812,000. Ameriprise Financial Inc. grew its stake in shares of JAKKS Pacific by 187.2% during the third quarter. Ameriprise Financial Inc. now owns 104,518 shares of the company’s stock valued at $1,958,000 after purchasing an additional 68,128 shares during the last quarter. AQR Capital Management LLC grew its stake in shares of JAKKS Pacific by 67.9% during the first quarter. AQR Capital Management LLC now owns 140,666 shares of the company’s stock valued at $3,470,000 after purchasing an additional 56,873 shares during the last quarter. Corient Private Wealth LLC bought a new stake in shares of JAKKS Pacific during the fourth quarter valued at approximately $924,000. Finally, Qube Research & Technologies Ltd grew its stake in shares of JAKKS Pacific by 74.0% during the second quarter. Qube Research & Technologies Ltd now owns 118,411 shares of the company’s stock valued at $2,461,000 after purchasing an additional 50,344 shares during the last quarter. 44.38% of the stock is owned by institutional investors.

JAKKS Pacific News Summary

Here are the key news stories impacting JAKKS Pacific this week:

• Positive Sentiment: Q1 results beat expectations: JAKK reported adjusted EPS of ($0.17) vs. consensus of ($0.44) and revenue of $106.7M, modestly above estimates — this EPS/revenue surprise is the primary near-term catalyst. MarketBeat Q1 Summary
• Positive Sentiment: Dividend reinstated: the company declared a $0.25 per-share quarterly dividend (ex-dividend/record/payable dates announced) implying a ~4.4% yield — this raises the stock’s income appeal for yield-seeking investors.
• Positive Sentiment: Balance-sheet/cash flow signals: management reported healthy cash and a reduction in total liabilities year-over-year, which reduces financing risk and supports the dividend and working-capital needs. Quiver Quant recap
• Neutral Sentiment: Earnings call transcript available for review — useful for investors wanting management’s commentary on demand, channel inventory and holiday cadence. Earnings Call Transcript
• Neutral Sentiment: Official press release and slide deck are posted — appropriate for those doing a deeper read of segment and geographic performance. GlobeNewswire Release
• Negative Sentiment: Margin pressure and operating loss: cost of sales and lower gross margin drove an operating loss and a small net loss for Q1 — these profitability headwinds are why the company remains unprofitable on a GAAP basis and represent the primary near-term risk to the stock. Zacks report

About JAKKS Pacific

JAKKS Pacific, Inc (NASDAQ: JAKK) is a Los Angeles–based company that designs, develops and markets a broad range of toys and consumer products. Since its founding in 1995 by industry veteran Jack Friedman, the company has built a diversified portfolio spanning three primary segments: Toys, Consumer Electronics & Seasonal, and Kids Furniture & Accessories. JAKKS Pacific specializes in both licensed and proprietary brands, collaborating with major entertainment and sports licensors to bring popular characters and franchises to market.

The company’s Toys segment includes action figures, dolls, role-play items, collectible toys and outdoor activity products.