The widening operating loss and negative adjusted EBITDA signal deteriorating profitability despite the EPS beat vs low consensus. Monitor the Q2 2026 pre-orders and North America recovery trajectory; the international growth is a positive offset but insufficient to reverse the bearish trend. The maintained $0.25 dividend provides a modest floor but does not offset fundamental weakness.
Price Chart
Executive Summary
JAKKS Pacific reported Q1 2026 net sales of $106.7M (-6% YoY) and a GAAP net loss of $0.37/share, wider than the $0.21 loss in Q1 2025. Revenue missed the $103.8M consensus by 2.8%, while the adjusted EPS loss of $0.17 was a 58.6% beat vs the $-0.43 consensus estimate. The core Toys/Consumer Products segment declined 7%, partially offset by 13% growth in Costumes and strong international sales (+38%), but operating losses widened to $5.6M from $3.8M, and adjusted EBITDA turned negative.
Key Financial Metrics
Key Facts
- Q1 2026 net sales $106.7M, down 6% YoY from $113.3M
- GAAP net loss $0.37 per diluted share vs $0.21 loss in Q1 2025
- Adjusted net loss $0.17 per share vs $0.03 loss in Q1 2025
- Gross margin contracted 100 bps to 33.4%
- Operating loss widened to $5.6M from $3.8M
- Adjusted EBITDA turned negative to -$0.4M from +$0.4M
- North America sales fell 16% YoY; International sales grew 38% to $29.0M
- Action Play & Collectibles grew 29% YoY to $55.3M; Dolls/Role-Play fell 32% to $37.5M
- Cash and equivalents $64.0M vs $59.4M a year ago
- Quarterly dividend maintained at $0.25 per share
Financial Impact
Revenue miss of ~$2.9M vs consensus; net loss widened by $1.9M YoY; operating loss increased $1.8M
Risk Factors
- Continued North America sales decline (-16%) may indicate structural market share loss
- Gross margin compression (-100 bps) and negative adjusted EBITDA suggest cost pressures
- Dolls/Role-Play segment (-32% YoY) faces significant headwinds from licensing or demand shifts
- TTM adjusted EBITDA dropped to $34.6M from $76.9M, a 55% decline
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3285450 |
Track record builds as more directional reports settle.
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 23, 2026 3d ago | 8-K | $30.30 | awaiting T+60 | — | $31.41 (+3.66%) |
Oct 22, 2026 3d ago | Press Release | $31.50 | awaiting T+60 | — | $31.41 (−0.29%) |
Oct 1, 2026 24d ago | Press Release | $27.15 | awaiting T+60 | — | $31.41 (+15.69%) |
Jul 24, 2026 13w ago | 8-K | $24.50 $28.37 | ▼ −15.80% | ▼ −12.07% | $31.41 (−28.20%) |
Jul 23, 2026 13w ago | Press Release | $24.50 $28.37 | ▲ +15.80% | ▲ +12.07% | $31.41 (+28.20%) |
Jun 11, 2026 19w ago | Institutional Cluster | $22.35 $24.58 | ▲ +9.98% | ▲ +5.58% | $31.41 (+40.54%) |
May 12, 2026 23w ago | Press Release | $21.89 $25.47 | ▲ +16.35% | ▲ +11.97% | $31.41 (+43.49%) |
May 7, 2026 24w ago | Press Release | $23.28 $26.08 | ▲ +12.03% | ▲ +8.19% | $31.41 (+34.92%) |
May 6, 2026 24w ago | EFFECT | $23.03 $26.33 | ▲ +14.33% | ▲ +12.27% | $31.41 (+36.39%) |
Apr 30, 2026 25w ago | Press Release | $24.06 $26.63 | ▼ −10.68% | ▼ −7.61% | $31.41 (−30.55%) |
US Market Status
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