The massive EPS miss vs consensus ($0.25 adjusted vs $2.65) will likely drive a sharp sell-off at the open. However, the revenue beat (+17% YoY) and strong operating cash flow ($26.1M YTD) suggest the business is recovering. Traders should watch for management commentary on H2 guidance on the call — if they reaffirm or raise, the sell-off may be short-lived. The dividend remains intact at $0.25/quarter.
Price Chart
Executive Summary
JAKKS Pacific reported Q2 2026 net sales of $139.2M (+17% YoY) and GAAP diluted EPS of $0.49, swinging from a -$0.21 loss in Q2 2025. However, the GAAP EPS was inflated by a $6.8M refunded tariff expenditure booked in non-operating income; adjusted diluted EPS was $0.25, a massive miss vs the $2.65 consensus estimate. The company also declared a $0.25/share quarterly dividend. While the top-line recovery is encouraging, the severe EPS miss versus elevated Street expectations will likely pressure the stock near-term, though the underlying operating improvement (Adjusted EBITDA +136% to $5.4M) provides a floor.
Key Financial Metrics
Key Facts
- Q2 2026 net sales $139.2M, up 17% YoY from $119.1M.
- GAAP diluted EPS $0.49 vs -$0.21 loss in Q2 2025, boosted by $6.8M refunded tariff expenditure.
- Adjusted diluted EPS $0.25, massively below consensus estimate of $2.65.
- Adjusted EBITDA $5.4M, up from $2.3M in Q2 2025 (+136%).
- Board declared $0.25/share quarterly dividend, payable Sept 28, 2026.
- Cash and restricted cash $60.6M as of June 30, 2026, up from $43.1M a year ago.
- Action Play & Collectibles net sales up 40.7% in the quarter to $42.1M.
Financial Impact
GAAP net income of $5.9M vs consensus EPS implying ~$30M net income — a ~$24M miss on net income. Adjusted net income of $2.9M vs consensus $30.3M.
Risk Factors
- Consensus EPS was set at $2.65 — the $0.25 adjusted EPS is a 90.6% miss, likely triggering significant analyst downgrades and price target cuts.
- Operating loss of $0.1M in Q2 shows the core business is still barely profitable on a GAAP basis despite revenue growth.
- Tariff refund was a one-time non-operating item — without it, GAAP EPS would have been near zero.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001185185-26-003108 |
| Document: jakk8k072226.htm | 0001185185-26-003108 |
| Document: 0001185185-26-003108-index-headers.html | 0001185185-26-003108 |
| Document: 0001185185-26-003108-index.html | 0001185185-26-003108 |
| Document: 0001185185-26-003108.txt | 0001185185-26-003108 |
| 8-K Data (Synthetic) | 0001185185-26-003108 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 4d ago | 8-K | $30.52 $32.01 | ▲ +4.88% | ▲ +4.17% | $32.14 (+5.31%) |
Oct 22, 2026 5d ago | Press Release | $30.52 $32.01 | ▲ +4.88% | ▲ +4.17% | $32.14 (+5.31%) |
Oct 1, 2026 26d ago | Press Release | $27.15 | awaiting T+1 | — | $32.14 (+18.38%) |
Jul 24, 2026 13w ago | 8-K | $24.50 $25.92 | ▼ −5.80% | ▼ −5.77% | $32.14 (−31.18%) |
Jul 23, 2026 13w ago | Press Release | $24.50 $25.92 | ▲ +5.80% | ▲ +5.77% | $32.14 (+31.18%) |
Jun 11, 2026 19w ago | Institutional Cluster | $22.35 $22.50 | ▲ +0.67% | ▲ +0.13% | $32.14 (+43.80%) |
May 12, 2026 24w ago | Press Release | $21.89 $21.51 | ▼ −1.74% | ▼ −2.31% | $32.14 (+46.83%) |
May 7, 2026 24w ago | Press Release | $23.28 $23.22 | ▼ −0.26% | ▼ −1.09% | $32.14 (+38.06%) |
May 6, 2026 24w ago | EFFECT | $23.03 $23.28 | ▲ +1.09% | ▲ +1.42% | $32.14 (+39.56%) |
Apr 30, 2026 25w ago | Press Release | $24.06 $23.03 | ▲ +4.28% | ▲ +3.94% | $32.14 (−33.58%) |
US Market Status
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