JAKK · JAKKS Pacific, Inc.

JAKKS Pacific's first quarter 2026 results reflect a challenging start to the fiscal year, characterized by a 6% decline in net sales to $106.7 million and a widening operating loss. The performance was primarily impacted by a 7% contraction in the core Toys/Consumer Products segment, which fell to $100.1 million. While the Costumes segment provided a bright spot with 13% growth to $6.6 million, it was insufficient to offset broader softness. Gross margin compressed 100 basis points to 33.4%, driven by unfavorable product mix and cost dynamics, contributing to the operating loss expanding to $5.6 million from $3.8 million in the prior year.

Geographically, the company demonstrated significant divergence. North American net sales declined 16% year-over-year, reflecting cautious consumer behavior and a rebuilding phase following prior year disruptions. Conversely, the International segment delivered robust growth, with sales rising to $29.0 million from $21.0 million, achieving a ten-year high in trailing twelve-month international sales of $138 million. The Action Play & Collectibles category was a standout performer, growing 29% to $55.3 million, while Dolls and Role-Play categories faced headwinds.

Despite the quarterly loss, balance sheet liquidity remains solid with total cash and restricted cash of $64.0 million as of March 31, 2026, an increase from $59.4 million in the prior year. Operating cash flow showed marked improvement, generating $21.8 million in the quarter compared to a usage of $1.7 million in the same period last year. Demonstrating confidence in its liquidity and long-term prospects, the Board of Directors declared a quarterly dividend of $0.25 per share, payable June 29, 2026.