JAKKS 2025 年第三季度财报：营收下滑但净收入增长

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark one)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2025

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 001-35448

JAKKS Pacific, Inc.

(Exact Name of Registrant as Specified in Its Charter)

Delaware 95-4527222

(State or Other Jurisdiction of

Incorporation or Organization) (I.R.S. Employer

Identification No.)

2951 28th Street Santa Monica, California 90405

(Address of Principal Executive Offices) (Zip Code)

Registrant’s Telephone Number, Including Area Code: (424) 268-9444

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “non-accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐ Accelerated filer ☒

Non-accelerated filer ☐ Smaller reporting company ☒

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(g) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common Stock $.001 Par Value JAKK The NASDAQ Global Select Market

The number of shares outstanding of the issuer’s common stock is 11,269,529 as of October 31, 2025.

JAKKS PACIFIC, INC. AND SUBSIDIARIES

TABLE OF CONTENTS TO QUARTERLY REPORT ON FORM 10-Q

QUARTER ENDED September 30, 2025

ITEMS IN FORM 10-Q

Part I FINANCIAL INFORMATION

Item 1. Financial Statements (Unaudited) 3

Condensed Consolidated Balance Sheets 3

Condensed Consolidated Statements of Operations and Comprehensive Income 4

Condensed Consolidated Statements of Stockholders’ Equity 5

Condensed Consolidated Statements of Cash Flows 6

Notes to Condensed Consolidated Financial Statements 7

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 21

Item 3. Quantitative and Qualitative Disclosures About Market Risk 25

Item 4. Controls and Procedures 25

Part II OTHER INFORMATION

Item 1. Legal Proceedings 26

Item 1A. Risk Factors 26

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 3. Defaults Upon Senior Securities

Item 4. Mine Safety Disclosures

Item 5. Other Information

Item 6. Exhibits 26

Signatures 27

Exhibit 31.1

Exhibit 31.2

Exhibit 32.1

Exhibit 32.2

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

JAKKS PACIFIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share amounts)

September 30, December 31,

2025 2024

(Unaudited)

Assets

Current assets

Cash and cash equivalents $ 25,887 $ 69,936

Restricted cash 1,869 201

Accounts receivable, net of allowance for credit losses of $5,647 and $4,919 at September 30, 2025 and December 31, 2024, respectively 195,779 131,629

Inventory 71,497 52,780

Prepaid expenses and other assets 19,784 14,141

Total current assets 314,816 268,687

Property and equipment

Office furniture and equipment 10,185 10,049

Molds and tooling 130,322 125,618

Leasehold improvements 7,238 6,956

Total 147,745 142,623

Less accumulated depreciation and amortization 131,226 126,981

Property and equipment, net 16,519 15,642

Operating lease right-of-use assets, net 49,611 53,254

Other long-term assets 1,631 1,781

Deferred income tax assets, net 67,612 70,394

Goodwill 35,081 35,111

Total assets $ 485,270 $ 444,869

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable $ 72,338 $ 42,560

Accounts payable - Meisheng (related party) — 13,461

Accrued expenses 52,085 48,456

Reserve for sales returns and allowances 37,691 35,817

Income taxes payable 5,389 1,035

Short-term operating lease liabilities 13,504 8,091

Total current liabilities 181,007 149,420

Long-term operating lease liabilities 43,113 48,433

Accrued expenses – long term 3,503 2,563

Income taxes payable 1,732 3,620

Total liabilities 229,355 204,036

Stockholders’ Equity

Common stock, $0.001 par value; 100,000,000 shares authorized; 11,204,941 and 11,025,582 shares issued and outstanding at September 30, 2025 and December 31, 2024, respectively 11 11

Additional paid-in capital 301,098 297,198

Accumulated deficit (32,875 ) (39,692 )

Accumulated other comprehensive loss (12,319 ) (17,184 )

Total JAKKS Pacific, Inc. stockholders’ equity 255,915 240,333

Non-controlling interests — 500

Total stockholders’ equity 255,915 240,833

Total liabilities and stockholders’ equity $ 485,270 $ 444,869

See accompanying notes to condensed consolidated financial statements.

3

JAKKS PACIFIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME

(In thousands, except per share data)

Three Months Ended

September 30,

(Unaudited) Nine Months Ended

September 30,

(Unaudited)

2025 2024 2025 2024

Net sales $ 211,210 $ 321,606 $ 443,557 $ 560,301

Cost of sales:

Cost of goods 104,846 158,770 218,256 289,190

Royalty expense 34,099 50,011 71,776 86,181

Amortization of tools and molds 4,622 3,994 7,846 7,462

Cost of sales 143,567 212,775 297,878 382,833

Gross profit 67,643 108,831 145,679 177,468

Direct selling expenses 5,933 7,552 21,339 21,904

General and administrative expenses 32,200 33,101 101,135 100,887

Depreciation and amortization 147 95 382 275

Selling, general and administrative expenses 38,280 40,748 122,856 123,066

Income from operations 29,363 68,083 22,823 54,402

Other income (expense), net 388 84 418 294

Loss on debt extinguishment (1 ) — (418 ) —

Interest income 75 69 832 533

Interest expense (102 ) (539 ) (402 ) (938 )

Income before provision for income taxes 29,723 67,697 23,253 54,291

Provision for income taxes 9,831 15,425 8,062 10,978

Net income 19,892 52,272 15,191 43,313

Net income attributable to non-controlling interests — — 280

Net income attributable to Jakks Pacific, Inc. $ 19,892 $ 52,272 $ 15,191 $ 43,033

Net income attributable to common stockholders $ 19,892 $ 52,272 $ 15,191 $ 44,363

Earnings per share - basic $ 1.78 $ 4.78 $ 1.36 $ 4.14

Shares used in earnings per share - basic 11,185 10,942 11,159 10,704

Earnings per share - diluted $ 1.74 $ 4.64 $ 1.32 $ 3.99

Shares used in earnings per share - diluted 11,423 11,275 11,487 11,106

Comprehensive income $ 20,492 $ 53,314 $ 20,056 $ 43,674

Comprehensive income attributable to JAKKS Pacific, Inc. $ 20,492 $ 53,314 $ 20,056 $ 43,394

See accompanying notes to condensed consolidated financial statements.

4

JAKKS PACIFIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(In thousands)

Three and Nine Months Ended September 30, 2025

(Unaudited)

Accumulated JAKKS

Additional Other Pacific, Inc. Non- Total

Common Paid-in Accumulated Comprehensive Stockholders’ Controlling Stockholders’

Stock Capital Deficit Loss Equity Interests Equity

Balance, December 31, 2024 $ 11 $ 297,198 $ (39,692 ) $ (17,184 ) $ 240,333 $ 500 $ 240,833

Share-based compensation expense — 2,552 — — 2,552 — 2,552

Repurchase of common stock for employee tax withholding — (3,819 ) — — (3,819 ) — (3,819 )

Cash dividend declared, $0.25 per share — — (2,786 ) — (2,786 ) — (2,786 )

Net loss — — (2,382 ) — (2,382 ) — (2,382 )

Foreign currency translation adjustment — — — 628 628 — 628

Balance, March 31, 2025 11 295,931 (44,860 ) (16,556 ) 234,526 500 235,026

Share-based compensation expense — 3,188 — — 3,188 — 3,188

Repurchase of common stock for employee tax withholding — (9 ) — — (9 ) — (9 )

Cash dividend declared, $0.25 per share — — (2,786 ) — (2,786 ) — (2,786 )

Net loss — — (2,319 ) — (2,319 ) — (2,319 )

Foreign currency translation adjustment — — — 3,637 3,637 — 3,637

Balance, June 30, 2025 11 299,110 (49,965 ) (12,919 ) 236,237 500 236,737

Share-based compensation expense — 2,392 — — 2,392 — 2,392

Non-controlling interests – derecognition — — — — — (500 ) (500 )

Repurchase of common stock for employee tax withholding — (404 ) — — (404 ) — (404 )

Cash dividend declared, $0.25 per share — — (2,802 ) — (2,802 ) — (2,802 )

Net income — — 19,892 — 19,892 — 19,892

Foreign currency translation adjustment — — — 600 600 — 600

Balance, September 30, 2025 $ 11 $ 301,098 $ (32,875 ) $ (12,319 ) $ 255,915 $ — $ 255,915

Three and Nine Months Ended September 30, 2024

(Unaudited)

Accumulated JAKKS

Additional Other Pacific, Inc. Non- Total

Common Paid-in Accumulated Comprehensive Stockholders' Controlling Stockholders'

Stock Capital Deficit Loss Equity Interests Equity

Balance, December 31, 2023 $ 10 $ 278,642 $ (73,612 ) $ (15,627 ) $ 189,413 $ 708 $ 190,121

New stock issuance 1 — — — 1 — 1

Share-based compensation expense — 2,575 — — 2,575 — 2,575

Non-controlling interests – capital reduction — — — — — (488 ) (488 )

Repurchase of common stock for employee tax withholding — (5,132 ) — — (5,132 ) — (5,132 )

Preferred stock accrued dividends — (390 ) — — (390 ) — (390 )

Preferred stock redemption — 16,329 — — 16,329 — 16,329

Net income (loss) — — (14,505 ) — (14,505 ) 280 (14,225 )

Foreign currency translation adjustment — — — (565 ) (565 ) — (565 )

Balance, March 31, 2024 11 292,024 (88,117 ) (16,192 ) 187,726 500 188,226

Share-based compensation expense — 2,519 — — 2,519 — 2,519

Net income — — 5,266 — 5,266 — 5,266

Foreign currency translation adjustment — — — (116 ) (116 ) — (116 )

Balance, June 30, 2024 11 294,543 (82,851 ) (16,308 ) 195,395 500 195,895

Share-based compensation expense — 2,186 — — 2,186 — 2,186

Repurchase of common stock for employee tax withholding — (1,329 ) — — (1,329 ) — (1,329 )

Net income — — 52,272 — 52,272 — 52,272

Foreign currency translation adjustment — — — 1,042 1,042 — 1,042

Balance, September 30, 2024 $ 11 $ 295,400 $ (30,579 ) $ (15,266 ) $ 249,566 $ 500 $ 250,066

See accompanying notes to condensed consolidated financial statements.

5

JAKKS PACIFIC, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)

Nine Months Ended

September 30,

(Unaudited)

2025 2024

Cash flows from operating activities

Net income $ 15,191 $ 43,313

Adjustments to reconcile net income to net cash used in operating activities:

Provision for credit losses 785 1,687

Depreciation and amortization 8,228 7,737

Write-off and amortization of debt issuance costs 464 237

Share-based compensation expense 8,132 7,280

Loss on disposal of property and equipment 12 115

Changes in operating assets and liabilities:

Accounts receivable (64,935 ) (168,314 )

Inventory (18,717 ) (10,862 )

Prepaid expenses and other assets (3,832 ) (121 )

Accounts payable 27,756 56,085

Accounts payable - Meisheng (related party) (12,706 ) 22,382

Accrued expenses 3,071 26,158

Reserve for sales returns and allowances 1,874 2,306

Income taxes payable 2,466 (3,507 )

Deferred income taxes 2,782 —

Other liabilities 4,676 323

Total adjustments (39,944 ) (58,494 )

Net cash used in operating activities (24,753 ) (15,181 )

Cash flows from investing activities

Purchases of property and equipment (7,850 ) (7,344 )

Investments in employee deferred compensation trusts (1,820 ) (1,647 )

Proceeds from sale of property and equipment — 2

Net cash used in investing activities (9,670 ) (8,989 )

Cash flows from financing activities

Repurchase of common stock for employee tax withholding (4,232 ) (6,461 )

Repayment of credit facility borrowings (8,000 ) (63,000 )

Proceeds from credit facility borrowings 8,000 63,000

Dividends paid (8,374 ) —

Deferred issuance costs (217 ) —

Redemption of preferred stock — (20,000 )

Net cash used in financing activities (12,823 ) (26,461 )

Net decrease in cash, cash equivalents and restricted cash (47,246 ) (50,631 )

Effect of foreign currency translation 4,865 361

Cash, cash equivalents and restricted cash, beginning of period 70,137 72,554

Cash, cash equivalents and restricted cash, end of period $ 27,756 $ 22,284

Supplemental disclosures of cash flow information:

Cash paid for interest $ 29 $ 452

Cash paid for income taxes, net $ 2,789 $ 14,866

Supplemental disclosures of non-cash activities:

During the nine months ended September 30, 2025 and 2024, the lease liability increased by $5.1 million and $2.7 million respectively, with a corresponding increase to the ROU asset.

As of September 30, 2025 and 2024, there was $4.2 million and $4.1 million, respectively, of property and equipment purchases included in accounts payable.

As of September 30, 2025, debt issuance costs of $0.1 million associated with the Company’s revolving credit facility with BMO Bank N.A. that was entered into on June 24, 2025 were included in accrued expenses (see Note 5 – Credit Facilities).

On August 8, 2025, the Company deregistered Jakks Pacific Trading Ltd., derecognized the related non-controlling interest of $0.5 million and recognized a liability towards the former non-controlling shareholder of $0.5 million within accrued expenses.

On March 11, 2024, the Company issued $15.0 million in common stock as part of the consideration to redeem the preferred stock derivative liability (see Note 8 – Common Stock and Preferred Stock).

See accompanying notes to condensed consolidated financial statements.

6

JAKKS PACIFIC, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

September 30, 2025

Note 1 — Basis of Presentation

The accompanying unaudited interim condensed consolidated financial statements included herein have been prepared by the Company, without audit, pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures are adequate to prevent the information presented from being misleading. These financial statements should be read in conjunction with the financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K, which contains audited financial information for the three years in the period ended December 31, 2024.

The information provided in this report reflects all adjustments (consisting solely of normal recurring items) that are, in the opinion of management, necessary to present fairly the financial position and the results of operations for the periods presented. Interim results are not necessarily, especially given seasonality, indicative of results to be expected for a full year.

The condensed consolidated financial statements include the accounts of JAKKS Pacific, Inc. and its wholly-owned subsidiaries (collectively, “the Company”).

As of the three months ended September 30, 2025, the Company has dissolved its subsidiary JAKKS Pacific Trading Ltd., which was partially owned by a non-controlling shareholder. In connection with the dissolution, the Company reclassified the non-controlling interest balance of $500,000 from equity to a liability payable to the former noncontrolling shareholder. The reclassification had no impact on net income or cash flows.

In August 2020, the FASB issued ASU 2020-06, “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The new guidance eliminates two of the three models in ASC 470-20, which required entities to account for beneficial conversion features and cash conversion features in equity, separately from the host convertible debt or preferred stock. As a result, only conversion features accounted for under the substantial premium model in ASC 470-20 and those that require bifurcation in accordance with ASC 815-15 will be accounted for separately. In addition, the amendments in ASU 2020-06 eliminate some of the requirements in ASC 815-40 related to equity classification. The amendments in ASU 2020-06 further revised the guidance in ASC 260, Earnings Per Share (“EPS”), to address how convertible instruments are accounted for in calculating diluted EPS and require enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. The new standard is effective for the Company for fiscal years beginning after December 15, 2023, including interim periods within these fiscal years, with early adoption permitted. The Company adopted ASU 2020-06 on January 1, 2024. The adoption of this new accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The new standard is effective for the Company for fiscal years beginning after December 15, 2023, with early adoption permitted. The Company adopted this standard as of December 31, 2024, which resulted in incremental segment disclosures. See Note 2 - Business Segments, Geographic Data and Sales by Major Customers.

In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures.” This ASU provides standardization of tax disclosures, primarily related to the rate reconciliation and income taxes paid information. The new standard is effective for the Company for fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact that the updated disclosure will have on its condensed consolidated financial statements.

In November 2024, the FASB issued ASU 2024-03, “Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses”. The new guidance improves disclosures about a public business entity’s expenses by requiring disaggregated disclosures of certain types of expenses, including purchases of inventory, employee compensation, depreciation, intangible amortization and depletion, as applicable, for each income statement caption that includes those expenses. In addition, the standard will require entities to define and disclose total selling expenses. The standard is effective for public business entities such as the Company for annual periods beginning after December 15, 2026, and interim periods beginning after December 15, 2027. Early adoption is permitted, and entities may apply the standard prospectively or retrospectively. The Company is currently evaluating the impact of adopting this standard on its condensed consolidated financial statements and related disclosures.

7

JAKKS PACIFIC, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

September 30, 2025