Toy maker JAKKS Pacific's Q4 sales fall 3%, gross margin up

JAKKS Pacific

19/02/2026 21:22

Overview

Toy maker's Q4 net sales fell 3% yr/yr, but adjusted net loss narrowed significantly

Company's Q4 adjusted EBITDA improved significantly compared to last year

Gross margin increased to 31% in Q4, up 380 basis points from last year

Outlook

JAKKS Pacific anticipates growth opportunities with a new strategic initiative in 2027

Company maintains dividend payout, indicating confidence in financial stability

JAKKS Pacific sees improved gross margins and adjusted EBITDA as focus shifts to profitability

Result Drivers

GROSS MARGIN IMPROVEMENT - Gross margin increased to 31% in Q4, up 380 basis points from last year, attributed to improved cost management

INTERNATIONAL SALES GROWTH - Sales outside of the United States were up 10% in the quarter, led by Europe and Latin America

TARIFF POLICY STABILIZATION - Significant customer order disruptions from tariff policy changes abated in Q4, allowing for a more predictable environment

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Beat
$127.10 mln
$117.35 mln (2 Analysts)
Q4 Adjusted Net Income
Beat
-$2 mln
-$10.71 mln (2 Analysts)
Q4 Adjusted EBITDA
Beat
-$3.80 mln
-$12.63 mln (2 Analysts)
Q4 Gross Margin
31.00%
Q4 Gross Profit
$39.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the toys & children's products peer group is "buy"

Wall Street's median 12-month price target for JAKKS Pacific Inc is $28.50, about 60.7% above its February 18 closing price of $17.73

The stock recently traded at 7 times the next 12-month earnings vs. a P/E of 7 three months ago

Press Release: ID:nGNX8PLrs3

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)