JAKKS Pacific, Inc. (JAKK) Market Cap
JAKKS Pacific, Inc. has a market capitalization of $258M.
Financials based on reported quarter end 2025-12-31
Price: $22.54
▲ 0.98 (4.55%)
Market Cap: 257.96M
NASDAQ · time unavailable
CEO: Stephen G. Berman
Sector: Consumer Cyclical
Industry: Leisure
IPO Date: 1996-05-02
Website: https://www.jakks.com
JAKKS Pacific, Inc. (JAKK) - Company Information
Market Cap: 257.96M · Sector: Consumer Cyclical
JAKKS Pacific, Inc. develops, produces, markets, sells, and distributes toys, consumables, and electronics and related products worldwide. It operates in two segments, Toys/Consumer Products and Costumes. The company offers action figures and accessories, such as licensed characters; toy vehicles and accessories; dolls and accessories, including small, large, fashion, and baby dolls based on licenses, as well as infant and pre-school products; private label products; and foot-to-floor ride-on products, inflatable environments, tents, and wagons. The company also provides role play, dress-up, pretend play, and novelty products for boys and girls based on brands and entertainment properties, as well as on its own proprietary brands; and indoor and outdoor kids' furniture, activity trays and tables, room décor, kiddie pools, and seasonal and outdoor products. In addition, it offers Halloween and everyday costumes for various ages based on licensed and proprietary non-licensed brands, and related Halloween accessories; outdoor activity toys; and junior sports toys, including hyper-charged balls, sport sets, and toy hoops. The company sells its products through in-house sales staff and independent sales representatives to toy and mass-market retail chain stores, department stores, office supply stores, drug and grocery store chains, club stores, value-oriented dollar stores, toy specialty stores, and wholesalers. JAKKS Pacific, Inc. was incorporated in 1995 and is headquartered in Santa Monica, California.
Analyst Sentiment
Based on 2 ratings
Analyst 1Y Forecast: $0.00
Average target (based on 1 sources)
Consensus Price Target
Low
$38
Median
$41
High
$46
Average
$42
Potential Upside: 84.9%
Price & Moving Averages
Related Companies in Consumer Cyclical
LOVESAC COMPANY (LOVE)
Consumer Cyclical
$0.26B
Mkt Cap
ESCALADE INC (ESCA)
Consumer Cyclical
$0.26B
Mkt Cap
XPONENTIAL FITNESS INC CLASS A (XPOF)
Consumer Cyclical
$0.25B
Mkt Cap
FLEXSTEEL INDUSTRIES INC (FLXS)
Consumer Cyclical
$0.25B
Mkt Cap
JACK IN THE BOX INC (JACK)
Consumer Cyclical
$0.25B
Mkt Cap
1-800 FLOWERS.COM INC CLASS A (FLWS)
Consumer Cyclical
$0.25B
Mkt Cap
Management sounded disciplined and confident—emphasizing a margin-first approach, an FOB-first return path, and a low-to-mid-single-digit 2026 revenue outlook while prioritizing gross margin expansion. However, the Q&A revealed the real operational pain: tariffs didn’t just hit cost; they disrupted sell-through and replenishment, and management estimates nearly $50M of tariff burden was paid by U.S. FOB customers on JAKKS/Disguise product in 2025, contributing to customer de-risking and lower units versus original plans. Despite that, Q4 showed tangible improvement: adjusted EPS loss narrowed to $0.18 and Q4 adjusted EBITDA loss improved to $3.8M (from $10.2M), with a stated 380 bps YoY margin improvement and gross margin dollars up 11%. The tension is that FY operating margin fell to 2.5% and full-year adjusted EPS dropped to $1.62 from $3.79. Analyst pressure focused on FOB mechanics, POS/inventory clutter risk, and promotions—where management confirmed tight retail inventory and less promotional intensity than competitors, but acknowledged POS softness driven by higher retailer prices.
Growth Catalysts
- Super Mario Galaxy theatrical tie-in (FOB shipments benefited Q4 Action Play & Collectibles; Action Play & Collectibles +19% YoY in Q4)
- Sonic DC crossover line: Q4 received strong response; exclusive retailer launches in the U.S. and Europe; DC Sonic Batmobile added at key retailers in 2026
- Disney Doll: Disney Darlings soft launch sell-through in fall; expanded U.S. listings in 2026; growing international commitments from Toy Fair
Business Development
- Illumination licensing for Super Mario Galaxy movie (film release April 1; product available late February)
- Disney partnership for Disney Darlings (homegrown Disney IP; designed as a partnership-based approach)
- Sonic licensing partner with Sega activations for the 35th anniversary (special packaging and exclusive items)
- Integrated JAKKS + Disguise showroom debut at Nuremberg Toy Fair (integrated portfolio presentation; customer/partner feedback described as overwhelmingly positive)
- Retail partnerships cited for Action Sports portfolio: Walmart, Amazon, and Academy Sports and Outdoors (Element growth engine; expanded distribution and deeper retail partnerships)
Financial Highlights
- Q4 revenue: $127.1M, down 2.8% YoY; U.S. down 7.8% to $86.2M; Rest of World up 9.9% to $41.0M
- Q4 adjusted EPS: loss of $0.18/share vs $0.67 loss in Q4 2024
- Full-year adjusted EPS: $1.62 vs $3.79 in FY2024
- Gross margin: full-year 32.4% (highest in 15+ years) vs 30.8% last year; Q4 gross margin dollars +11% YoY with slightly better margin percentage
- Margin improvement callout: Q4 margin was 380 bps higher than prior year (management statement)
- Full-year operating margin: 2.5% vs 5.7% last year; adjusted EBITDA margin: 6.2% vs 8.6%
- Q4 adjusted EBITDA loss: $3.8M vs $10.2M Q4 prior year; trailing-12-month EBITDA: $35.4M for FY2025 vs $59.3M prior year
- Tariff impacts (financial): paid ~$12M in U.S. tariffs in 2025 (felt recovered via pricing); management estimates U.S. FOB customers paid nearly ~$50M in tariffs on JAKKS and Disguise product in 2025
- Management states the $50M tariff burden would have been allocated to product instead, implying lower sales/units resulted from customer de-risking (operational/financial implied impact vs plans)
Capital Funding
- Cash & balance sheet: $54M cash at year-end (down from $70M prior year); debt-free balance sheet maintained
- Dividend: completed first full year as cash dividend payer; FY dividend funded $11.2M in common dividends; Q1 2026 dividend approved at $0.25/share; record date Feb 27; payable date Mar 30
- Cash flow: generated >$8M cash flow from operations in FY2025
Strategy & Ops
- FOB model: management expects to move forward again on an FOB-first basis in 2026 and 2027 (FOB slightly decreased in 2025 due to manufacturing locations/tariff disruptions)
- Retail tariff mitigation: working with major U.S. retailers under their “first cost of sale” program to shift tariff impact to be less of a burden to both retailers and JAKKS
- International growth operations: inventory rose to support expanded distribution footprint in Europe and Mexico; EMEA uses warehouses across 5 parts (EMEA) plus Latin America distribution; added inventory to grow areas with FOB-first plus domestic backup inventory
- U.S. inventory control: U.S. held inventory down 18% YoY to the lowest level in over 10 years; retail inventory described as very tight
- Promotions/allowances: Q4 promotional activity described as normal or slightly less than normal; competitors used heavier discounting in Nov/Dec
- Obsolescence/inventory management: reduced obsolescence expense via tighter inventory management
Market Outlook
- 2026 top-line guidance (management): low to mid-single-digit top line growth year
- 2026/27 emphasis: continued focus on expanding margins; maximize potential of impactful new launches in 2027
- Product timing: Super Mario Galaxy product available late February; film release April 1; Sonic DC distribution “wide in the new year” with additional items added at key retailers
- Moana timing: live-action Moana release in early July 2026; focus items called out (Moana Necklace, Maui’s Fish Hook, Hei Hei large dolls)
Risks & Headwinds
- Tariffs: explicit “tariff policy created visible pressure on near-term financial performance” and reduced sales via higher retail prices and slower sell-through in the U.S.
- Sales derailment reference: Q2 and Q3 “financial carnage” referenced as the reason operating loss/EBITDA improved in Q4 but not enough to offset prior-quarter damage
- Consumer demand uncertainty: management described 2025 as cautionary due to tariffs and not knowing consumer appetite; POS slowed in tariff-affected segments
- Retail replenishment risk: management attributed slower second-half sell-through to higher tariff-burden retail prices, resulting in lower Q4 replenishment
- Promotional environment: competitors reportedly increased discounting, but JAKKS kept promotions relatively normal (implying competitive pressure exists even if JAKKS avoided heavy discounting)
Sentiment: MIXED
Note: This summary was synthesized by AI from the JAKK Q4 2025 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.
Fundamentals Overview
📊 AI Financial Analysis
Powered by StockMarketInfo"JAKK reported revenue of $127.1M for the year ending December 31, 2025, but incurred a net loss of $5.32M, resulting in an EPS of -$0.48. The company's operating cash flow stood at $33.25M, with free cash flow reaching $31.53M after accounting for capital expenditures. Total assets are valued at $442.2M against total liabilities of $193.1M, indicating a solid equity buffer of $249.1M. However, with a significant debt-to-equity ratio, leverage may be a concern. While JAKK pays dividends of $0.25 per share quarterly, the stock has seen a decline of 22.38% over the past year against a 17.83% year-to-date increase. Looking at analyst sentiments, the average price target of $41.67 suggests potential upward movement, indicating that the market may foresee recovery post the recent downturn."
Revenue Growth
Revenue of $127.1M shows decent growth potential despite fluctuations.
Profitability
The company reported a net loss; profitability needs improvement.
Cash Flow Quality
Strong operating cash flow and positive free cash flow indicate good cash management.
Leverage & Balance Sheet
Adequate equity base but watchful on high leverage with net debt levels.
Shareholder Returns
Consistent dividends offset by negative price performance; dividend yield remains appealing.
Analyst Sentiment & Valuation
Analyst targets suggest room for recovery, yet current valuations are under pressure.
Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.