JAKKS Pacific picked up speed in the second quarter as stronger toy sales, improving retail conditions, and gains across key categories helped lift revenue 17% year over year.
Net sales reached $139.2 million, up from $119.2 million in the prior-year quarter. Toys/Consumer Products revenue climbed 21% to $97.5 million, while the Disguise Costumes business rose 8% to $41.7 million.
Action Play & Collectibles delivered the quarter’s biggest category gain led by properties including SEGA’s Sonic the Hedgehog and Nintendo’s Super Mario. Sales surged more than 40% to $42 million and reached $97 million for the first half — the company’s strongest six-month performance in the category in more than 15 years. Dolls, Role-Play, and Dress-Up increased 11% to $52 million despite a lighter slate of new entertainment properties.
“We finished the second quarter with good momentum heading into the second half of the year. The year is developing as we had planned,” said Stephen Berman, Chairman and CEO of JAKKS Pacific.
Berman said U.S. retailers continue to recalibrate pricing, but consumers are responding when those adjustments hit shelves. North American sales rose 20% to $115 million during the quarter, helping offset the caution that weighed on the company earlier this year.
International sales edged up 3% to $24 million in Q2. For the first half, international revenue reached $53 million, up from $44 million last year and $33 million in 2024.
Gross profit increased 15% to $45 million, while gross margin slipped 50 basis points to 32.3%. JAKKS nearly erased its quarterly operating loss, narrowing it to $100,000 from $2.8 million last year.
The company posted net income of $5.9 million, or $0.49 per diluted share, aided by refunded tariff expenditures recorded as non-operating income. Adjusted EBITDA more than doubled to $5.4 million.
JAKKS closed the quarter with lower inventory and a stronger cash position. The company also declared a quarterly dividend of $0.25 per share.
