JAKKS Pacific opened 2026 in familiar territory — a quiet first quarter marked by retailer recalibration, with international growth helping offset softness in the U.S.
Net sales reached $106.7 million, down 6% year over year. The company posted a net loss of $4.3 million, or $0.37 per share, compared to a loss of $2.4 million, or $0.21 per share, in the prior-year period. Gross margin held at 33.4%, down 100 basis points, while adjusted EBITDA dipped slightly into the red.
The headline numbers only tell part of the story.
“The first quarter for our company is always focused on working with customers to understand the implications of the year that has just closed,” said the company in a prepared earnings statement. “For companies like ours that can move quickly and are focused on meeting their customers’ needs, that leads to uncovering new opportunities. From that perspective, this has been a very successful quarter, and we feel we are building momentum.”
“Our Q1 financial results were roughly in line with our expectations,” Chairman and CEO Stephen Berman said during the earnings call, noting that the company’s near-term outlook has improved compared to a year ago.
North America remained the pressure point. Sales declined 16% in the region as retailers stayed cautious amid ongoing volatility and worked through last year’s disruption in inventory flow. Tariffs also played a role, with the company incurring estimated costs of $1-2 million during the quarter, compared with less than $100,000 a year ago.
International delivered the counterbalance. Sales climbed to $29 million, up from $21 million last year, marking one of the company’s strongest global starts in recent years.
By category, Action Play & Collectibles led growth, reaching $55.3 million, while Dolls, Role-Play, and Dress-Up declined to $37.5 million. The Disguise Costumes segment continued to expand, rising 13% to $6.6 million.
Looking ahead, JAKKS is leaning into the strength of entertainment-driven demand and new category plays. The company cited strong retail support tied to The Super Mario Galaxy Movie, its mashup between DC and SEGA’s Sonic the Hedgehog, momentum across Disney Princess and Frozen lines, and a growing slate of theatrical releases and licensing programs. Those efforts include multiple new launches in the Disguise business, including costumes inspired by Toy Story 5, KPop Demon Hunters, Descendants 5, PAW Patrol: The Dino Movie, Minions & Monsters, and more.
At the same time, JAKKS is building toward a larger strategic pivot: a next-generation anime, manga, and digital creator platform set to roll out in 2026, ahead of a broader launch in 2027.
“We are not simply entering a category; we are building a durable, repeatable platform designed to deliver sustained, multi-year value,” Berman said.
