JAKKS Pacific Q4 Gross Margin Up 380 Bps; Board Approves $0.25 Dividend
JAKKS Pacific’s Q4 net sales totaled $127.1M, down 3%, with gross margin rising 380 basis points to 31.0% and adjusted EBITDA loss narrowing to $(3.8)M from $(10.2)M. Full-year net sales fell 17% to $570.7M, adjusted net income fell to $18.6M, and a $0.25 dividend was approved.
1. Q4 Financial Performance
JAKKS Pacific reported Q4 net sales of $127.1 million, down 3% year-over-year, driven by a 28% decline in the Costumes segment. Gross margin improved by 380 basis points to 31.0%, while adjusted EBITDA loss narrowed to $(3.8) million from $(10.2) million, and net loss attributable to common shareholders was $5.3 million, or $0.47 per share.
2. Full-Year 2025 Results
Full-year net sales declined 17% to $570.7 million, with Toys/Consumer Products down 19% and Costumes down 10%. Gross margin rose to 32.4%, its highest in fifteen years, and adjusted net income fell to $18.6 million ($1.62 per diluted share) from $42.6 million ($3.79 per diluted share). Operating income declined 64% to $14.2 million, and adjusted EBITDA was $35.4 million versus $59.3 million last year.
3. Dividend Declaration and Outlook
The board declared a quarterly cash dividend of $0.25 per share, payable March 30, 2026 to shareholders of record February 27, 2026. Management cited stabilization of customer orders after tariff disruptions, progress on a 2027 strategic initiative, expanded global factory and licensor relationships, and a debt-free balance sheet with $54.1 million in year-end cash.