The earnings call highlighted strong international growth and solid product margins, alongside successful financial management. However, it also revealed significant challenges in the U.S. market, with declining sales and increased costs due to tariffs. The company remains cautious about the future, focusing on cash generation and strategic product launches.

Company Guidance

During the JAKKS Pacific Second Quarter 2025 Earnings Conference Call, management provided guidance amidst a challenging economic environment characterized by fluctuating tariffs and increased costs. The company's sales in the second quarter were down 20% year-over-year, though first-half sales were only down 3% overall. U.S. sales decreased by 10%, whereas international markets grew by 33%, with Europe leading at a 65% increase. Despite these challenges, the company focused on maintaining gross margins, reported at 32.8% for the quarter, and achieved an adjusted EBITDA of $2.3 million, though this was a decline from $12.3 million in the same quarter last year. Adjusted diluted EPS was $0.03 per share, compared to $0.65 per share the previous year. The company also announced a $0.25 per share dividend for the third quarter. JAKKS Pacific outlined strategic efforts to diversify manufacturing, enhance supply chain flexibility, and explore U.S. domestic manufacturing to mitigate risks associated with tariff changes. The management emphasized the importance of remaining agile and adaptable, focusing on cash generation, and being cautious in inventory management while exploring new product and licensing opportunities.

International Growth

International sales were up 33% in the first half of the year, with Europe leading the growth at 65%.

Strong Product Margins

Gross margins sustained strong at 32.8% in the second quarter, supported by higher-margin product mix and monetization of on-hand inventory.

Cash Flow and Financial Position

Cash at the end of the quarter was $43 million, significantly up from $18 million last year. The company also refinanced its credit facility with a new 5-year $70 million cash flow revolver.

New Product Initiatives

Launch of new baby doll brand Disney Darlings and expansion of Disney ily product lines are planned for the upcoming quarters.

Jakks Pacific (JAKK) Earnings, Revenues Date & History

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JAKK Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 23, 2025	2025 (Q3)	2.83 / -	4.79	―	―	―
Jul 24, 2025	2025 (Q2)	-0.17 / 0.03	0.65	-95.38% (-0.62)
Apr 29, 2025	2025 (Q1)	-1.29 / -0.03	-1.09	97.25% (+1.06)
Feb 20, 2025	2024 (Q4)	-0.73 / -0.67	-1.04	35.58% (+0.37)
Oct 30, 2024	2024 (Q3)	3.87 / 4.79	4.75	0.84% (+0.04)
Jul 31, 2024	2024 (Q2)	0.33 / 0.65	1.26	-48.41% (-0.61)
Apr 24, 2024	2024 (Q1)	-0.85 / -1.09	-0.4	-172.50% (-0.69)
Feb 29, 2024	2023 (Q4)	-1.14 / -1.04	-1.44	27.78% (+0.40)
Nov 01, 2023	2023 (Q3)	3.38 / 4.75	3.8	25.00% (+0.95)
Jul 27, 2023	2023 (Q2)	0.51 / 1.26	2.1	-40.00% (-0.84)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

JAKK Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Jul 24, 2025	$18.74	$18.82	+0.43%
Apr 29, 2025	$18.96	$18.79	-0.90%
Feb 20, 2025	$33.61	$28.96	-13.84%
Oct 30, 2024	$26.51	$30.46	+14.90%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.