JAKKS Pacific, Inc. (JAKK) SEC Filings & Earnings Calls

International sales declined 4% YoY, indicating potential weakness in non-US markets.

“International Sales were $45 million, down from $47 million last year (a 4% decrease).” · word for word

Tariff turmoil cited as a challenge, though navigated; ongoing trade policy risk remains.

“Having successfully navigated the high tariff turmoil, we are driving our business forward.” · word for word

Minimum royalty guarantee obligations

“As of June 30, 2026, these agreements required future aggregate minimum royalty guarantees of $185.0 million exclusive of $3.8 million in advances already paid.” · word for word

Seasonality and order cancellation risk

“Orders placed with us are generally cancellable until the date of shipment.” · word for word

Customer concentration

“dependency on a limited set of large customers” · word for word

Gross margin compression of 50 bps indicates cost pressure or mix shift.

“Gross margin of 32.3%, down 50 basis points vs. Q2 2025” · word for word

Customer concentration risk

“Walmart and Target combined accounted for 50.4% of net sales in Q1 2026.”

Tariff exposure

“Subsequent to March 31, 2026, the U.S. government established a claims process to refund certain tariffs deemed unlawful... the Company has submitted a claim but the timing, eligibility, and amount of any potential recovery remain subject to uncertainty.” · word for word

Seasonality risk

“The retail toy industry is inherently seasonal. Generally, our sales have been highest during the second and third quarters.” · word for word

US demand weakness and customer caution

“Customers in the U.S. remain cautious but we are rebuilding the base that was disrupted last year.” · word for word

Gross margin contraction

“Gross margin of 33.4%, down 100 basis points vs. Q1 2025” · word for word

Bonus targets may be adjusted for extraordinary items, strategic transaction costs, and market conditions, introducing uncertainty in compensation outcomes.

“Compensation Committee also specifically reserved the right to modify the performance criteria ... to take account of investment banking, accounting and legal fees incurred in connection with any strategic transactions and unforeseen market and general economic conditions.” · word for word

Customer concentration risk

“Our two largest customers are Target® and Walmart®, which accounted for 26.6% and 26.1%, respectively, of our net sales in 2025.” · word for word

Tariff exposure risk

“The sudden imposition of tariffs in 2025 in the US on products sourced from China similarly reduced customer demand for our product in reaction to the increased cost per unit, while similarly increasing our cost base for product we import for sale in the US out of our US warehouse location.” · word for word

Fixed royalty obligation risk

“As of December 31, 2025, these agreements required future aggregate minimum royalty guarantees of $189.8 million, exclusive of $2.3 million in advances already paid.” · word for word

Seasonality risk

“Our business is seasonal and therefore our annual operating results will depend, in large part, on our sales during the relatively brief holiday shopping season.” · word for word

Tariff policy disruption caused significant customer order disruptions in Q2 and Q3; abated in Q4 but uncertainty remains.

“Downward pressure on full-year financials from tariff policy; significant customer order disruptions in Q2 and Q3 driven by rapidly changing tariff policy.”

Sales decline of 17% full year; U.S. sales down 24% full year.

“Full year net sales down 17%; U.S. sales down 24% on a full-year basis.”

Tariff-driven price increases significantly reducing consumer demand and direct-import sales

“reduction in direct-import sales due to a combination of customers anticipating lower consumer demand in response to tariff-driven price increases” · word for word

Lack of new theatrical release product vs prior year impacting sales

“lack of new theatrical release-related product vs. prior year” · word for word

Demand decline risk

“Net sales of our Toys/Consumer Products segment were $156.1 million for the three months ended September 30, 2025 compared to $264.3 million for the prior year period, representing a decrease of $108.2 million, or 40.9%.” · word for word

Tariff cost risk

“The decrease was primarily due to reduced orders from select recurring customers attributable to tariff expense.” · word for word

Customer concentration risk

“dependency on a limited set of large customers” · word for word

Order cancellation risk

“Orders placed with us are generally cancelable until the date of shipment.” · word for word