Highlights

  • Second quarter 2026 net sales rose 17% to $139.2 million, with Toys/Consumer Products up 21.3% and Costumes up 7.8%.
  • GAAP net income was $5.9 million, or $0.49 per diluted share, versus a $2.3 million loss a year earlier.
  • Other income of $7.0 million came mainly from refunded import tariff expenditures, while operations were close to breakeven.
  • The board declared a $0.25 quarterly dividend on July 22, 2026, payable September 28 to holders of record August 28.

JAKKS Pacific (NASDAQ:JAKK) shares were trading near their 52-week high at USD 29.12 on October 21, 2026, down 0.27%. The toy and costume maker paid a quarterly dividend in June, reported second quarter results in its filing for the period ended June 30, 2026 on July 31, and declared its next dividend on July 22.

Based in Santa Monica, California, JAKKS Pacific is a Delaware corporation that describes itself as a worldwide producer and marketer of children's toys and other consumer products. It reports two segments. Toys/Consumer Products covers action figures, vehicles, play sets, plush, dolls, electronic products, construction toys, infant and pre-school toys, role-play toys, ride-ons and outdoor and furniture items. Costumes, sold under the Disguise brand, covers dress-up costumes and accessories for occasions such as Halloween and Carnival. Its fiscal year ends December 31.

Sales Up 17% While Operations Stay Near Breakeven

Net sales for the three months ended June 30, 2026 were $139.2 million, compared with $119.1 million a year earlier. Toys/Consumer Products rose $17.1 million to $97.5 million, led by a 40.7% increase in the Action Play and Collectibles division on sales of Super Mario Movie and Nintendo products. Dolls, Role-Play and Dress Up grew 11.8%. Costumes rose $3.0 million to $41.7 million, which the company tied to reduced orders a year earlier from select customers because of US tariffs.

Gross profit rose to $45.0 million from $39.0 million, although gross margin eased to 32.3% from 32.8%. Costumes cost of sales climbed to 72.7% of segment sales from 69.3%. Selling, general and administrative expenses were $45.1 million, up $3.3 million, but fell to 32.4% of net sales from 35.1%. The loss from operations was 0.1% of net sales, compared with 2.3% a year earlier.

The swing to profit came below the operating line. Other income, net was $7.0 million, against $25 thousand, mainly from refunded import tariff expenditures. GAAP net income was $5.9 million, or $0.49 per diluted share, compared with a net loss of $2.3 million, or $0.21 per share. Income tax expense was $1.7 million, an effective rate of 22.5%. For the six months, net sales were $245.9 million, up 5.8%, and net income was $1.6 million, or $0.13 per diluted share.

Cash Flow, Liquidity and Customer Concentration

Operating activities provided $26.1 million of cash in the first half, compared with $15.9 million used a year earlier. The company attributed the improvement mainly to refunds tied to IEEPA tariffs and to income taxes, along with lower inventory costs. It received $11.1 million of tariff refunds and related interest in the period. Cash and equivalents, including restricted cash, were $60.6 million at June 30, 2026, versus $54.1 million at year-end, and $68.7 million was available under its $70.0 million revolving credit facility, which matures in June 2030. It was in compliance with all financial covenants.

Two customers matter a great deal. Walmart accounted for 34.3% of second quarter net sales and Target for 23.5%, together 57.8%. Future minimum royalty guarantees under license agreements totaled $185.0 million, with $60.7 million due in the next twelve months. The company has a $75 million at-the-market agreement and filed a new shelf registration for up to $150.0 million of securities on April 30, 2026, but sold no shares under the agreement through June 30.

Seasonality and Outlook

The quarterly report gives no numerical guidance. The company says sales in toys are highest in the second and third quarters, with working capital needs peaking in the same period, and that quarterly results may not indicate full-year performance. It also notes that orders are generally cancellable until shipment, so backlog may not reliably predict sales. The next confirmed milestone is the September 28, 2026 dividend payment.