JAKKS Pacific net income rises to $29.9 million as quarterly sales were $254.2 million

JAKKS Pacific reported third-quarter 2026 net sales of $254.2 million, up 20% from $211.2 million a year earlier, with net income attributable to common stockholders of $29.9 million, or $2.48 per diluted share. The Santa Monica toymaker also declared a quarterly cash dividend of $0.25 per common share.

Sales climb off a tariff-hit base

The comparison that matters is a year ago, not the second quarter. JAKKS booked $211.2 million of net sales in the third quarter of 2025, itself a year-over-year decrease of $110.4 million or 34%, and that prior-year release attributed the slide largely to “customers anticipating lower consumer demand in response to tariff-driven price increases” along with the lack of new theatrical-release product. Adding the 2025 quarter to its own stated decline gives $321.6 million of net sales for the third quarter of 2024, which means the latest $254.2 million is still below the level of two years earlier. The 20% gain is a recovery from a compressed base, not an expansion past the company's recent peak.

Toys and costumes grow while international slips

Toys/Consumer Products net sales were $192.0 million, up 23% from $156.1 million, and Costumes added $62.2 million, a year-over-year increase of 13%. The category lines moved in the same direction: Dolls, Role-Play, Dress-Up net sales were $119 million against $92 million, an increase of 29%, and Action Play & Collectibles were $63 million against $53 million, up 19%. Geography was uneven. North America contributed $209 million, up 28%, while International sales of $45 million fell 4% from $47 million. That $47 million is a restated base, not the figure JAKKS published a year ago: the 2026 release divides sales between North America and International, while the 2025 release reported US and Rest of World sales, and its Rest of World line was $56.7 million. International sales were up 7% year to date, the release says, and Chief Executive Stephen Berman emphasized shelf space rather than category detail: “We have great placement this holiday season and our international business continues to steadily expand as we continue to open new accounts and partner more closely for a more robust presence in-store.”

Margins hold, but operating profit stays below its 2024 level

Gross profit was $81.5 million against $67.6 million, and gross margin of 32.1% was 10 basis points wider than a year earlier, so the sales increase carried through to profit at roughly the same rate. Operating income rose to $37.4 million from $29.4 million, a year-over-year increase of 27%. Both gains rest on last year's shrunken base: in the third quarter of 2024 JAKKS reported a gross margin of 33.8% and operating income of $68.1 million, so the latest margin sits below that level and operating income is still about 45% below it. Net income attributable to common stockholders was $29.9 million, or $2.48 per diluted share, against $19.9 million, or $1.74. The adjusted figures strip out restricted stock compensation and smaller items: adjusted net income was $32.3 million, or $2.68 per diluted share, versus $20.6 million, or $1.80, and adjusted EBITDA was $44.4 million against $36.5 million. Trailing-twelve-month adjusted EBITDA was $45.7 million, which the release compares with $37.8 million as of the second quarter of 2026. Berman framed the quarter as a tariff recovery: “Having successfully navigated the high tariff turmoil, we are driving our business forward.” The release quantifies no tariff cost for the quarter.

A tariff refund lifts the nine-month comparison

The nine-month income statement needs its own warning. Net sales were $500.14 million against $443.56 million, and net income was $31.48 million versus $15.19 million, but the adjusted bridge removes a $6.8 million refunded tariff expenditure that ran through reported results, along with restricted stock compensation. Adjusted net income was $33.33 million, or $2.81 per diluted share, against $1.79. Cash generation reversed as well: operating activities provided $17.43 million in the nine months after using $24.75 million a year earlier. Inventory was $63.8 million at September 30, 2026, compared with $71.5 million a year earlier, and cash including restricted cash was $45.1 million against $27.8 million, though still below the $54.1 million held at December 31, 2025.

The dividend, and the release's silence on guidance

The Form 8-K, which carries the release as an exhibit, says the board declared a quarterly cash dividend of $0.25 per common share on October 20, 2026, payable December 28, 2026 to shareholders of record at the close of business on November 27, 2026. The release calls its GAAP results preliminary, gives no fourth-quarter or full-year guidance, and the only forward dates it sets are those two dividend dates, so the record date of November 27, 2026 is the next scheduled item. What the quarter does not establish is durability: international sales fell in the quarter, cash ended below the year-end 2025 level, and the double-digit sales gain owes much to a quarter that had shrunk by more than a third.