Q2 2026 JAKKS Pacific Inc Earnings Call Transcript
Key Points
- Jakks Pacific Inc (JAKK) reported a 17% increase in net sales for Q2, reaching $139.2 million, with North America leading the growth.
- The company's international business saw a 20% increase in sales for the first half of the year, marking the highest level of international first-half shipping in over a decade.
- The Toys and Consumer products division grew by 5%, driven by the success of the Super Mario Brothers film merchandise.
- The Dolls, Role-Play, and Dress-Up business increased by 12% in Q2, with strong performance from the Frozen product line.
- Adjusted EBITDA for the quarter was $5.4 million, up from $2.3 million in Q2 of the previous year, indicating improved financial performance.
- The outdoor seasonal business experienced a decline, with sales down 12% in the quarter and 17% year-to-date, due to structural headwinds in retail space allocation.
- Gross margins slightly decreased to 32.3% from 32.8% in the previous year, despite tight management of costs.
- The company reported a slight operating loss of $142,000 in the quarter, although this was an improvement from a $2.8 million loss in the same quarter last year.
- The company does not anticipate any more tariff refunds going forward, which had previously contributed to non-operating income.
- No revenue from anime-related efforts is expected for 2026, indicating a delay in realizing potential growth from this segment.
Good afternoon, everyone. Welcome to the JAKKS Pacific second-quarter earnings conference call with management, who will review financial results for the quarter ended June 30, 2026. JAKKS issued its earnings press release earlier today. The earnings release and presentation slides related to today's call are available on the company's website in the Investors section.
On the call this afternoon are Stephen Berman, Chairman and Chief Executive Officer; and John Kimble, Chief Financial Officer. Stephen will first provide a more view of quarter and year to date along with highlights of recent performance and current business trends. Then John will provide some additional comments around JAKKS Pacific financial and operational results. Mr. Berman will then return comments about the balance of the year and beyond prior to opening up the call for questions. (Operator Instructions)
Before we begin, the company would like to point out that any comments made about JAKKS Pacific's future performance, events or circumstances, including the estimate of sales margins, earnings and our adjusted
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