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JAKKS Pacific: JAKKS Pacific's Resilient Performance Amidst Challenges

JAKKS Pacific reported a mixed financial performance for the fourth quarter and full year 2025, with Toys/Consumer Products net sales roughly flat at $118 million, down 0.2% from the prior year. The company's gross margin improved to 32.4%, its highest full-year level in over 15 years, driven by better costing from factories and improved inventory management. The company reported an adjusted EBITDA loss of $3.8 million, a significant improvement from the $10.2 million loss in the same quarter last year. EPS came in at -$0.18, beating estimates of -$1.01.

JAKK

USD 22.47

23.73%

A-Score: 4.5/10

Publication date: February 19, 2026

Full Report

Author: Analystock.ai

📋 Highlights
  • Regional Sales Growth: Rest of World business rose 9.9% to $41M in Q4, driven by a 14% Europe increase to $81.4M.
  • Full-Year Revenue Decline: Toys/Consumer Products sales fell 19% YoY, impacted by tariffs and higher consumer prices.
  • Dividend & Financial Health: Returned $1/share dividend, maintained debt-free balance sheet, and ended 2025 with $54M in cash.
  • Gross Margin Improvement: Achieved 32.4% full-year gross margin (15-year high) and reduced Q4 EBITDA loss to $3.8M vs. $10.2M prior year.

Segment Performance

The Rest of World business was a bright spot, with a 9.9% increase to $41 million, led by a 14% growth in Europe. The company's Costume business was down 10% for the full year, but maintained its market leadership position for the season. The successful holiday season, driven by disciplined execution and strategic product innovation, positions the company to accelerate investment in innovation and expand partnerships.

Growth Prospects

JAKKS Pacific is well-positioned for growth in 2026, driven by new product launches, including the Super Mario Galaxy movie tie-in, and a solid momentum behind Disney Darlings. The company expects to deliver low to mid-single-digit top-line growth, with a focus on expanding margins. Analysts estimate revenue growth at 9.4% next year, indicating a positive outlook.

Valuation

With a P/E Ratio of 25.46 and a P/S Ratio of 0.44, the stock appears to be reasonably valued. The Dividend Yield of 4.45% is attractive, indicating a commitment to returning value to shareholders. The company's strong balance sheet, with a Net Debt / EBITDA ratio of 0.05, provides flexibility to invest in growth initiatives and expand existing relationships.

Operational Efficiency

The company's focus on an FOB-first basis and adapting to the needs of retailers and customers in various regions is expected to drive operational efficiency. With warehouses in five parts of EMEA, Latin America, and Southeast Asia, JAKKS Pacific is well-positioned to support its growth plans. As Stephen Berman noted, "The pressures of the past year have pushed us to find new areas for incremental improvement, and that will be a lot of our focus this year."

JAKKS Pacific's A-Score