JAKKS Pacific Reports 25.7% Revenue Growth to $113.3 Million in Q1 2025

JAKKS Pacific, Inc. reported a significant increase in financial performance for the first quarter of 2025, with net sales reaching $113.3 million, up 25.7% from $90.1 million in the same period last year. The company's gross profit also saw a substantial rise, totaling $39 million compared to $21.1 million in the prior year, reflecting a gross margin of 34.4%. Despite the improved sales and profitability, JAKKS Pacific recorded a net loss of $2.4 million, a notable reduction from the $14.2 million loss reported in the first quarter of 2024.

The increase in revenue was primarily driven by the Toys/Consumer Products segment, which generated $107.4 million, a 29.6% increase from $82.9 million in the previous year. This growth was attributed to strong sales of products linked to popular franchises, including the Moana 2 movie and various Disney Princess lines. Conversely, the Costumes segment experienced a decline, with sales dropping to $5.8 million from $7.2 million, largely due to reduced orders from key customers.

Operationally, JAKKS Pacific's total current assets decreased to $228 million from $268.7 million at the end of 2024, primarily due to a reduction in accounts receivable, which fell to $95.6 million from $131.6 million. The company also reported a decrease in total liabilities, which dropped to $170.8 million from $204 million, reflecting a strategic focus on managing expenses and improving cash flow. The company’s working capital decreased to $109.2 million, down from $119.3 million, as cash used in financing activities increased.

In terms of strategic developments, JAKKS Pacific declared a quarterly cash dividend of $0.25 per share, payable on March 31, 2025, marking a return to dividend payments after a hiatus in 2024. The company also repurchased $3.8 million worth of common stock for employee tax withholding during the quarter. Looking ahead, JAKKS Pacific anticipates continued growth driven by new product launches and the ongoing popularity of its licensed brands, although it remains cautious about the seasonal nature of the toy industry and potential fluctuations in consumer demand.

Overall, JAKKS Pacific's first-quarter results indicate a positive trajectory in sales and profitability, despite ongoing challenges in certain segments. The company is focused on leveraging its strong product portfolio and managing operational efficiencies to enhance its market position in the competitive toy industry.