JAKK

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Performance was driven by the Action Play and Collectibles division, specifically supporting the Super Mario Bros. film with movie-branded product sales exceeding the first film's volume. The Dolls, Role Play, and Dress Up business grew 12% despite a lack of new entertainment support, bolstered by a 18-month expansion of the Frozen product line. Management attributed improved velocity to the unwinding of tariff-related price shocks, allowing retail prices for lower-priced items to return toward pre-tariff levels. International growth reached record first-half levels, driven by a strategy of curating region-specific product portfolios and expanding distributor networks in fragmented markets. The outdoor seasonal business remains a structural headwind as retailers reallocate shelf space away from bulky items that are poorly suited for low-cost home delivery economics. Operational efficiency was maintained through a high-FOB business model, which reached its highest level this decade at over 75% of shipments. Strategic focus remains on the 'true toy' kids market (ages 0-7) even as competitors pivot toward 'kidults', though the company is selectively entering the anime and digital entertainer space. The 2026 outlook assumes a front-weighted year due to the lack of major new toy introductions supporting holiday theatrical releases in the second half. Management is reengineering packaging and product design for the outdoor segment to shrink box sizes and improve delivery economics over a multi-year timeline. A major 2027 growth catalyst is expected from top-tier theatrical releases for Sonic the Hedgehog (Q1) and Disney Frozen (Q4). The company is preparing a methodical launch into anime, manga, and VTube digital entertainer segments for 2027, targeting both specialty and mass-market channels. Strategic investments include opening a first office in South America and adding senior sales professionals to drive long-term international diversification. The company successfully recovered essentially all applied-for tariff refunds following a Supreme Court ruling, resulting in a $6.8 million non-operating gain. Management utilized the refund process to revalue on-hand inventory, removing excess carrying costs generated by previous tariffs to reduce balance sheet values. The Board approved its sixth consecutive quarterly cash dividend of $0.25 per share, reflecting a commitment to capital return alongside growth investments. A slight operating loss in Q2 was characterized as an improvement over the prior year, with management prioritizing margin dollars over margin percentages. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management noted the market has adapted to previous price shocks; JAKKS specifically reduced costs in various products to hit sub-$30 retail price points where volume is highest. The company has diversified its retail footprint, deepening relationships with value and specialty trades like TJ Maxx and 5 Below alongside traditional mass-market accounts. The majority of international sales are on an FOB basis, which enhances internal margins while allowing international customers to offer lower prices to consumers. Management sees a 2-3 year window of rapid growth through country-specific licensing and distribution strategies. Management confirmed that no revenue is expected from anime-related efforts in 2026. The strategy involves a 'grassroots' launch with specialty retailers first, followed by wide distribution in fall 2027. With a strong cash position, management is actively speaking with bankers regarding potential acquisitions that would benefit shareholders. The focus for M&A remains on segments that shore up the core toy business or provide entry into high-growth categories like anime.

This article first appeared on GuruFocus. Net Sales: $139.2 million in Q2, a 17% increase year-over-year. Year-to-Date Sales: $245.9 million, 6% ahead of the prior year. North America Sales Growth: 20% increase in Q2, 3% for the first half. International Sales Growth: 3% increase in Q2, 20% for the first half. Toys and Consumer Products Growth: 5% increase in the first half. Dolls, Role-Play and Dress-Up Growth: 12% increase in Q2. Disguised Business Growth: 8% increase in Q2, 9% for the first half. Outdoor Seasonal Business: 12% decrease in Q2, 17% decrease year-to-date. Gross Margin: 32.3% in Q2, slightly lower than 32.8% last year. Operating Loss: $142,000 in Q2, improved from a $2.8 million loss last year. Adjusted EBITDA: $5.4 million in Q2, up from $2.3 million last year. Adjusted EPS: $0.25 in Q2, $0.09 for the first half. Cash Position: $60.6 million in cash at the end of Q2, up from $43.1 million last year. Inventory Level: $58.3 million at the end of Q2, down from $71.8 million last year. Quarterly Dividend: $0.25 per share, payable on September 28. Warning! GuruFocus has detected 7 Warning Signs with JAKK. Is JAKK fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Jakks Pacific Inc (NASDAQ: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. Q: How has the domestic market changed post-tariff adjustments, and what opportunities does this present for JAKKS Pacific? A: Stephen Berman, CEO, explained that the market has adapted to price changes due to tariffs and costs. JAKKS has reduced costs to bring price points back to levels that drive volume, particularly under $30 retail. The company has diversified its distribution across major retailers and value trades, seeing strong point-of-sale results compared to last spring. Q: What is the outlook for international markets and their impact on margins? A: Stephen Berman noted that international markets, particularly in EMEA, Latin America, and Southeast Asia, are growing well. JAKKS has adapted its product lines to be more suitable for these markets and maintains a strong FOB structure, enhancing margins and offering competitive pricing to consumers. Q: How is JAKKS Pacific planning to utilize its increasing cash reserves, particularly regarding new licenses and potential M&A? A: Stephen Berman stated that JAKKS has a strong balance sheet, allowing for exploration of new licenses and potential acquisitions. The company is focused on diversifying its license portfolio and remains open to acquisition opportunities that align with its core focus on toy and kids' consumer products. Q: Was there any benefit to gross margins from the tariff refunds received? A: John Kimble, CFO, confirmed that there was no benefit to gross margins from the tariff refunds in the quarter. Q: Is the pace of anime-related efforts progressing as expected, and what is the revenue outlook for 2026? A: Stephen Berman confirmed that anime-related initiatives are on track, with a grassroots marketing approach and wide distribution planned for fall 2027. There is no expected revenue from these efforts in 2026. Q: How is the current media landscape affecting JAKKS Pacific, particularly with changes at major studios like Pixar and Warner Bros.? A: Stephen Berman stated that there are no challenges from the media landscape changes. JAKKS sees opportunities due to its focus on kids' products and diversification into kidult areas, maintaining strong relationships with licensors and entertainment holders. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Image source: The Motley Fool. Thursday, July 23, 2026 at 5:00 p.m. ET Chairman and Chief Executive Officer - Steven Berman Chief Financial Officer - John L. Kimble Operator: Good afternoon, everyone. Welcome to the JAKKS Pacific Second Quarter Earnings Conference Call with Management who will review financial results for the quarter ended 06/30/2026. JAKKS issued its earnings press release earlier today. Earnings release and presentation slides related to today's call are available on the company's Web in the Investors section. On the call this afternoon are Steven Berman, chairman and chief executive officer, and John L. Kimble, chief financial officer. Steven will first provide an overview of the quarter and year to date along with highlights of recent performance and current business trends. Then John will provide some additional comments around JAKKS' specific financial and operational results. Mr. Berman will then return with comments about the balance of the year and beyond prior to opening up the call for questions. The line will be placed on mute for the first portion of the call. If you like to be placed in the queue to ask a question, please press 11 on your telephone keypad. Before we begin, the company would like to point out that any comments made about JAKKS Pacific future performance events or circumstances, including the estimate of sales, margins, earnings, and or adjusted EBITDA in 2026 and beyond, as well as any other forward looking statements concerning 2026 and beyond are subject to safe harbor protection under federal security laws. These statements reflect the company's best judgment based on current market trends and conditions today and are subject to certain risks and uncertainties which could cause actual results to differ materially from those projected in forward looking statements. For details concerning these and other such risks and uncertainties, you should consult JAKKS' most recent 10 k and 10 q filings with the SEC as well as the company's others report subsequently filed with the SEC from time to time. In addition, today's comments by management will refer to non GAAP financial measures such as adjusted EBITDA, and adjusted earnings per share. Unless stated otherwise, the most directly comparable GAAP financial metrics have been reconciled to the associated non GAAP financial measure within the company's earnings press release issued today or previously. As a reminder, this call is being recorded. With that, I would like to turn the call over to Steven Berman. Stephen G. Berman: Good afternoon, and thank you for joining us today. Our Q2 financial results were modestly better than our expectations and an improvement over the same quarter a year ago. Globally, our net sales finished at $139.2 million in Q2 a 17% increase compared to prior year when the sudden implementation of massive tariffs dramatically reduced customer orders. Year to date, our sales are 6% ahead of prior year at $245.9 million, our best first half since 2023. North America led the improved results, growing 20% year over year in Q2 and 3% for the first half. Our international business reflected smaller year over year growth of 3% led by Europe but is up 20% for the first half of the year. Overall, this is the highest level of international first half shipping in JAKKS' history, over 10 years, at $53 million. Keeping the focus on the first half, our toys and consumer product business was up 5%. Those results were driven by the action play and collectibles division, which was up as we supported the extremely successful second Super Mario Brothers film released in April. Led by an array of 5-inch figures developed specifically for the film, Our product line also featured playsets, dioramas, and plush and was very well received with solid sell throughs. Building on that, we have another wave of new product introductions shipping now for fall planogram sets and promotional spaces. Some of which are already on shelf. As retailers knew we had a solid opportunity with this film Through the first 3 quarters of shipping, we have sold in more movie branded products than what we did for the first film. Which is great, especially given the consumer reaction. Fans can also look forward to a lot more focus on Donkey Kong in the second half with a feature playset shipping along with a new figure multipack. Our dolls, role play, and dress up business was up 12% in Q2 despite a lack of new entertainment support compared to the prior year. Of note, we have been steadily expanding our frozen product line over the past 18 months. Offering new role play patterns refreshing key products. Although Frozen has been a cornerstone of our business dating back to the original film release, the business is up for the first half of this year versus prior year. In the fall, we have a strong retailer exclusive placed that will add more energy to this aisle as we build towards the frozen 3 theatrical event in fall of 2027. Retail pricing of our Disney princess and style collection assortments were heavily impacted by tariffs most of last year. And those price shocks have unwound over recent months We see some customers bringing retail prices down closer to where they were pre tariff, although, admittedly, not across the entire product line. In general, it is true for the lower price points. We feel lower retails are contributing to improved velocity as consumers discover some of the strong innovative items we launched last fall as well as this spring. We are also seeing expanded listings resulting in positive point of sale results. The baby bath doll line launched in fall continues to sell extremely well, and our refreshed 6-inch princess doll line with a sub-$10 price point has been a strong performer as well. Retail toy and consumer products POS at the top 2 US accounts was positive in the first half, accelerating to double digit levels in Q2. Our Disguise business also performed well up 8% in the quarter, and 9% in the first half. The popularity of Toy Story 5, and the Super Mario Brothers films are positive contributors to our business this year, well as our launch of K pop Demon Hunters costumes. Our outdoor seasonal business includes everything from activity tables and chairs to ball pits to ride ons, to skateboards and hula hoops among other products remained a slight drag on results this quarter. We see this as a structural headwind rather than a transitory 1. Retailers continue to reallocate in store space away from large box items these bulky formats are poorly suited to the low cost home delivery model that increasingly shaping retail economics. We are not waiting this out. We are managing this business with a multiyear lens and a clear plan on 2 levers. Partnering with retailers to defend and recapture shelf space and lost sales, and reengineering packaging and product design to shrink box sizes and improve delivery economics. We are already advancing on both fronts. While these investments will take time to fully show up in the numbers, we are extremely confident they position this business for sustainable, profitable growth as the category continues to shift. We like where we are headed, but for the quarter, we were down 12% and down 17% year-to-date to $11.1 million in sales. Gross margins held up very well in the quarter at 32.3%, slightly lower than last year's at 32.8%. Tight management of sales, marketing, overhead costs led to a slight operating loss of $142 thousand in the quarter compared to a $2.8 million loss in Q2 of last year. Adjusted EBITDA in the quarter was $5.4 million compared to $2.3 million in Q2 last year. That increases our 12 month trailing adjusted EBITDA to $37.8 million. I will now pass it over to John for some comments after which I will come back and discuss some product initiatives and areas of focus moving forward. John. John L. Kimble: Thank you, Steven, and hello, everybody. This has been a solid quarter wrapping up a solid first half of the year. Steven has pointed out, everything has been going pretty much in line with our expectations. it is a plus when that actually happens. Our FOB centric business model is alive and well, Our first half shipments were over 75% FOB, reaching as high of a level as we have seen this decade. From a seasonality point of view, we have planned this year as a bit more front-weighted than normal given the strength of Super Mario. Since we do not have any new toy introductions in the second half supporting holiday theatrical releases. And so far, that outlook is holding up. As I look at our financial results, I am focused on seeing gross margin dollars increase 3% in the first half to a little over $80 million. that is a pretty good outcome and reflects solid execution against what we saw as the opportunity. A bit better than the last 2 years and a couple of million dollars short of where we were in 2023. Ultimately, as a company, I wanna see us optimizing for margin dollars and not margin percentages. As we do the extra work to identify incremental business outside of the traditional US mass market, I believe that is going to require more financial creativity in how we assess new opportunities. Which is something we are in progress on working through. But establishing more annuity like evergreen revenue streams while continuing to thoughtfully manage overhead should create another flow of long term bottom line profitability, which I feel we are only starting to wrap our heads around. As the majority of our overhead costs are fixed, I think we have an opportunity in this area given our momentum over the past couple of years. But it will admittedly take some time to build and prove out. To that end, we managed a bit of leverage in both selling and G and A in the first half, offsetting gross margin percentage being down slightly. That led to a slight operating loss in the quarter, and a $5.7 million operating loss in the first half improved over the $6.5 million loss last year. In the same time period. Working our way down the P&L, that leads us to the topic of IEPA tariff refunds. As mentioned last quarter, we applied for refunds for tariffs we paid under the regulations which the Supreme Court ultimately struck down. We are pleased to share that we have had essentially all of those funds refunded to us as of the second quarter close. We do not anticipate any more refunds going forward. In the quarter, we took the opportunity to revalue on hand inventory that was still burdened by those tariffs to essentially undo the excess carrying costs that the tariffs generated upon import. Thereby reducing the value on the balance sheet. The remainder of funds received we have recognized on the P&L this quarter as non operating other income of $6.8 million These refunds have raised our projection for pretax net income for the year so our Q2 tax estimate has been adjusted accordingly. We have opted to back this gain out of our published non GAAP projections of adjusted EBITDA and adjusted earnings per share. With that said, adjusted EPS for the quarter was $0.25 and $0.09 for the first half of the year. That compares favorably to $0.03 of earnings in Q2 last year and being breakeven year to date EPS at the same time last year. From a balance sheet perspective, we finished the quarter at $60.6 million in restricted and unrestricted cash compared to $43.1 million at the same time last year. That increase is largely driven by stronger operating results and the aforementioned tariff refund. As of July 17, the comparable cash on hand number was $47.1 million to give you an extra bit of context to remind you of the seasonality in our working capital. Our inventory level at the end of the quarter was $58.3 million, down from $71.8 million at the this time last year, and up a bit from $52.9 million last quarter. Finally, the Board has approved our sixth consecutive quarterly cash dividend of $0.25 per share. The dividend will be payable to shareholders of record as of August 28, and will be payable on September 28. And now back to Steven for some more discussion of what is ahead. Stephen G. Berman: Thank you, John. Midyear is always an exciting time in the business as we get close to all the energy, and excitement around Halloween, and the fourth quarter holiday season. While also seeing the full lineup for the following year. Solidifying and receiving positive feedback from customers around the world. And as much as we have mentioned before, I cannot emphasize enough the traction we are getting elevating our level of focus and performance outside of The US. We are increasingly working with key existing accounts in Europe on exclusive launches while listening to our customer needs and curating new offerings to open new accounts on the strength of our broad brand portfolios. We are additionally working with more distributors to specifically reach additional accounts in more fragmented markets. Our evergreen brands and categories with global appeal create a platform where products designed toward lower price points can reach a very wide audience when we could form the right partnership between our vendors in Asia, the licensors, and the right distribution partner to reach smaller accounts around the world. We have recently added 3 senior sales professionals to our global organization to further drive our business to higher levels. In addition to opening our first office in South America, an eye towards longer term growth there. Turning back to the near term, I want to highlight some of the exciting areas as we move into the second half of the year. Our Disney Darling line continues to expand both in The US and in Europe with broader listings, which are in great sell throughs success so far this year. The snuggly stars Wishables segment has recently launched in The US in store and online and selected accounts with rapid sell throughs. You will see a much broader Disney Darlings assortment on shelf later this year supported by 360 marketing campaign across regions. Our baby dolls continue to be the happiest baby dolls you will find in the marketplace, There is no crying at JAKKS and there is no crying in the Disney Darling line of products. In Disney Princess, our ages and stages strategy is introducing new core large dolls and matching dresses. Our 2 featured items will be grow and style Rapunzel doll and our interactive dance with me bell. The bell doll will be featured out of aisle at key US accounts as our must have princess toy this holiday season. With Disney Ily, we are introducing a new range with lower price points to further expand the product portfolio. We are also investing with a focus on the serious Disney fan who has proven to be the most enthusiastic Illy consumer. We see an opportunity by increasing our reach to more of them, especially given the current breadth and depth of this line. Moving to our Sonic business. This fall, we are launching Giant Metal Sonic. The biggest most sophisticated feature large scale action figure we have ever released as part of our Sonic the Hedgehog product line. Inspired by the Metal Sonic from the Sonic Superstars video game, At over 20 inches tall, it recreates ultimate boss battle Metal Sonic faces off with a 2.5-inch sonic figure, which is also included. With the menacing light up eyes, sounds, and slashing arm action, it comes in the 30 fifth anniversary packaging and we believe will top many holiday wish lists. These large scale toys have always been well received by the Sonic fan base, and we secured strong retail support and placement this fall. Also this fall inspired by the DC-Sonic crossover series, we have more new product arriving for the fall that we plan to announce soon. As I mentioned, fans should look forward to the new Super Mario inspired film product follow with a mix of core items and strong retail exclusives. They will also see our continued support and innovation within our evergreen Nintendo business, including a number of items themed to Super Mario Wonder game. This past quarter, we also launched as a retail exclusive a new collector doll line of DC Comics characters. Featuring Poison Ivy, Catwoman, and fan favorite Harley Quinn. We saw a nice presale engagement, and these dolls continue to sell through well. In the fall, we will be mixing in a range of other classic Warner Bros. characters that fans love and have not been able to get in these product executions. In our Disguise costume business, beyond the properties already mentioned, our product line this year features other new entertainment releases. Including Disney's Descendants 5, PAW Patrol: The Dino Movie, and Minions and Monsters, just to name a few. We remain on track to deliver a strong year of results in 2026, both financially and achieving potentially exceeding our initial plans. But more importantly, making substantial progress in building this business for growth in 2027, 2028, and beyond. In 2027, we have 2 top tier theatrical releases from Sonic the Hedgehog and Disney Frozen franchises lined up for Q1 and Q4, respectively. But beyond that, there are a number of additional initiatives, some entertainment led, some working with our key customers on private label opportunities, and some opportunities just classic new toy lines with innovation driven by creativity of our design and marketing teams. In addition, we and the trade are extremely excited to launch our anime, manga, and VTube digital entertainer initiatives for 2027 and beyond. We are opening up brand new distribution channels while working differently with our well established current distribution partners to bring a lot of different offerings to the market, that we will discuss in more detail later in the year and throughout 2027. And now we will take a couple questions. Operator? Operator: Thank you. At this time, we will conduct a question and answer session. To wait for your name to be announced. To withdraw your question, please press 11 again. Please stand by. We will compile the q and a roster. And our first question comes from the line of Eric Beder of Small Cap Consumer Research. Your line is now open. Eric Beder: Great. Congratulations. Stephen G. Berman: Thank you, Eric. Eric Beder: Let me ask a question about the domestic market here. So we went through this shock. We are coming back out of it. How do you see the market change And I guess, what are the opportunities from that you can take advantage of? Stephen G. Berman: Well, firstly, thank you very much. The things that we have seen versus last year is that the market adapted to the price changes that occurred throughout the industry with prices being raised where appropriate due to tariffs and also the volatility of the cost of petroleum with regards to resins as well as container costs. So I believe, at least for us, we have mandated and have achieved what we needed to going into this year. Which is reducing costs in various products to achieve bringing back the price points to the correct price points. That we see more volume in. Those are the price points during usually the spring and summer under $30 retail. We have done that, adapted to it very quickly. In addition, we have dove very deep in with the value trade and the specialty trades. it is as the TJ Maxx's, the Ross's, and so on. Long as our strong major customers like Target, Walmart, and Amazon you know, going into the 5 Below's, the Dollar Trade, and so on. So we became very diversified through this. Both on a FOB basis and slightly on a domestic basis. So we are also seeing the appetite at retail that the POS is quite strong during the spring versus last spring. So the appetite's there for the right product at the right price points. Eric Beder: Okay. So, basically, you can-- you can-- you have kind of matched with you kinda taken your advantage and kept prices where you would need to be and still maintain kind of the margins that we are seeing right now. Stephen G. Berman: Yes. And plus. Yes. Okay. Eric Beder: Now you mentioned about the change in international is a great opportunity. Some of these markets are not as concentrated as we are in The US. What does that mean for kind of the level of FOB you see internationally? And the potential for margins going forward on that? Stephen G. Berman: Well, the great thing about international is it is growing on a great path. In EMEA, Latin America, South America, and Southeast Asia. So we are growing with 1, our product categories and lines are really more appropriate today than they were 5 years ago for the international market. that is 1. 2, we have the majority of the licensing rights that work in the territories. We have the right ones that are correct for our company. That being said, there is certain properties that work well in UK, Germany, and France that do not work well in Italy or Spain. So we really are very quick to market with the right product at the right country at the right level. The same goes for Latin America, South America, and Southeast Asia. In addition, we have the FOB structure that we started since inception is very much a footprint internationally. So primarily, the majority of our sales internationally are on an FOB basis, which helps us then enhance our own margins internally giving a also a lower price to the customer which they could enhance their margin as a customer and also then have a lower price for the consumer, which gives them a great price point to have. So all of those combinations on top of great product, great licenses, and strong momentum in all of our different categories. it is allowing us to grow pretty rapidly and going forward for the next 2, 3 years. We see strong growth, diversification, various countries and just some really strong initiatives that we see going forward. Eric Beder: Okay and final question. What are you seeing in terms of, potentially either for new licenses, m and a, You keep on getting more cash. How should we be thinking about that kind of potential, I guess, near and longer term? Thank you. Stephen G. Berman: Thanks for that question. 1 thing is, we are a strong, healthy balance sheet, which gives us a lot of strength going forward and looking at different opportunities. But the first part of the question, we have a lot of licenses in which we have not been able to announce yet because some of them are under contract. But our licensed portfolio is diversifying very strongly in each of our categories of business, the 5 different segments that we focus on. We are focused. We are a toy company. We are a kids consumer product company. So while a lot of companies are focused on the kidult, which we are heavily focused on in the anime segmentation that we are moving into, and we are into that in certain other areas. We are truly a toy kids consumer product company, and we do not forget about kids. At the young age that will never change from that age group from birth to 6-7 years old. So that is the key focus that a lot of companies are moving out of, and that is a key focus that we are diving deeper in with the understanding of kidults is a great market, and we have been in it. Since we did double digits ago. And you know, Nintendo and Sonic and The Simpsons. there is kidults involved, but the anime segment manga, VTubers, and digital entertainers are truly kidults and above. So we are in all the areas of business. I do think it is it is interesting when I hear people focusing on more in the kidult area and not the true toy business where we are focused on. We are focused on that acquiring licenses, If there is an opportunity in the acquisition area, in the segment that would benefit the company and our shareholders, We have been looking. We are speaking to bankers and so on and so if an opportunity arose, we have the cash and the availability with banking To be able to get additional capital if needed. So that is on our platform. And going into this year, we are looking at going into the 2027 and 2028, which we feel very strong and confident about. We will be sitting with the board of directors looking at different capital allocation initiatives But, going through the first half of the year, having a strong performance, and then looking at what happened in last year back and so on and so forth. We are just really focused on shoring up our business taking market share, and then looking to grow in the future. Eric Beder: Great. Good luck for the rest of the year. Stephen G. Berman: Thank you. Thank you. Operator: 1 moment for our next question. Our next question comes from the line of Thomas Forte of Maxim Group. Your line is now open. Thomas Forte: Yep. Steven, John, congrats on great quarter. I have 3 questions. Stephen G. Berman: Thank you, Tom. Thomas Forte: I apologize. They are kind of on the boring side. So they are points of clarification. John L. Kimble: So the first point of clarification John, can you just clarify that there was no benefit to your gross margin in the quarter from the tariff refunds. Correct. Thomas Forte: Thank you. Second, Steven, the pace of your anime related efforts is it the same as you expected last quarter? Stephen G. Berman: Yes. Yes. We are extremely focused and extremely aggressively putting the initiatives together in these various segments that I brought up anime, the manga, the VTube, and enter digital entertainers. And the way that we are launching this is a really grassroots marketing with the specific retailers that are focused in this genre at first, and then a wide distribution initiative in the fall of 2027 with major of the main retailers that we know that we work with today on top of the actual anime call it Asian pop culture, distribution retail channels. Thomas Forte: And then the same thing goes for international in France and Latin America. there is very strong initiatives in anime. Stephen G. Berman: So we are very much on path, very strong with it. And very excited about it, but it is a very methodical initiative and launch. And long term expectations are still as strong as we were before. Thomas Forte: Great. So, Steven, so just a quick follow-up there. So there is nothing expected for 2026 revenue. From anime related efforts. Stephen G. Berman: Correct. Okay. Thomas Forte: And then lastly, the media landscape even by the media landscape standards, seems to be a little more cloudy. Pixar had layoffs even though Toy Story 5 is on pace for a billion. You know, the Paramount Warner Brothers deal seems to be in a holding pattern. Is this creating any additional opportunities or presenting any additional challenges for you? Stephen G. Berman: Not challenges. I mean, all in all, in the business environment, you see what the Walt Disney's company doing with Pixar and so on and so forth. Those are just common business practices that you go into and look for, you know, efficiencies and so on. The Paramount Warner Brothers deal it is still business as normal with all the, call it, the license and entertainment holders. Nothing's changed in the direction of where we are at as a company. We see a lot of opportunity right now just because of the traction that we have in the various segments that we are in. And as I mentioned, a few minutes ago, as we are focused in the kids' area of business, a lot of companies are focused on kidult, we see a huge opportunity in growth in our normal segments. Addition to the kidult areas that we talked about. Our cosplaying, our disguise division, our Halloween division. I just see things very strong moving forward. And really looking forward to this year and going into 2027. We are very comfortable with the initiatives we are undertaking, our private label initiative that we have done with some major retailers is picking up very strongly. So we just diversified our company in a very healthy platform going forward. Thomas Forte: You, Steven. Thank you, John. Stephen G. Berman: Thank you. Thanks, Tom. Operator: Thank you. This concludes the question and answer session. I would now like to turn it back to Steven Berman, CEO, for final remarks. Stephen G. Berman: Ladies and gentlemen, thank you for your time today, and we look forward to speaking to investors after these calls today and tomorrow and looking forward to our third quarter conference call. Getting on the road. Thank you, everybody. Operator: Thank you for participation in today's conference. This concludes the program. You may now disconnect. Before you buy stock in JAKKS Pacific, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and JAKKS Pacific wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $369,577!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,301,557!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of July 24, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. JAKKS Pacific (JAKK) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Jakks Pacific (JAKK) came out with quarterly earnings of $0.25 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $0.03 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this toymaker would post a loss of $0.36 per share when it actually produced a loss of $0.17, delivering a surprise of +52.78%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Jakks, which belongs to the Zacks Toys - Games - Hobbies industry, posted revenues of $139.24 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.42%. This compares to year-ago revenues of $119.09 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Jakks shares have added about 45% since the beginning of the year versus the S&P 500's gain of 9.6%. While Jakks has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Jakks was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.89 on $244.62 million in revenues for the coming quarter and $2.73 on $612.67 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Toys - Games - Hobbies is currently in the top 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Mattel (MAT), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 4. This toy maker is expected to post quarterly earnings of $0.03 per share in its upcoming report, which represents a year-over-year change of -84.2%. The consensus EPS estimate for the quarter has been revised 0.3% lower over the last 30 days to the current level. Mattel's revenues are expected to be $1.08 billion, up 6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report Mattel, Inc. (MAT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in JAKKS Pacific, Inc.? Here are five stocks we like better. JAKKS Pacific posted stronger-than-expected Q2 results, with global net sales rising 17% year over year to $139.2 million and adjusted EPS improving to $0.25. Management said the comparison benefited from tariff-related disruption a year earlier, while adjusted EBITDA rose to $5.4 million. Licensed products drove growth, especially Super Mario Bros., Disney, and costume lines. North America rebounded, international sales grew, and the company highlighted solid sell-through for movie- and game-related toys, including plans for more Donkey Kong and Frozen-related products. The outdoor seasonal business remained a weak spot, with sales falling 12% in the quarter due to structural pressures from shelf-space losses and bulky-product delivery challenges. Even so, the company ended the quarter with $60.6 million in cash, received tariff refunds, and kept its quarterly dividend at $0.25 per share. 3 Solid Consumer Brands Offering Stability in Volatile Markets JAKKS Pacific (NASDAQ:JAKK) reported second-quarter results that Chairman and Chief Executive Officer Stephen Berman said were “modestly better” than the company’s expectations, with revenue rising from a year earlier as North American sales rebounded from tariff-related disruption in the prior-year period. The toy and consumer products company reported global net sales of $139.2 million for the quarter ended June 30, 2026, up 17% year over year. Berman said the comparison benefited from the prior-year quarter, when “the sudden implementation of massive tariffs dramatically reduced customer orders.” Year-to-date sales increased 6% to $245.9 million, which Berman called the company’s best first half since 2023. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? 3 2021 Winners to Ride Out the Year With North America led the improvement, with sales up 20% in the quarter and 3% for the first half. International sales grew 3% in the quarter, led by Europe, and rose 20% for the first half. Berman said first-half international shipments reached $53 million, the company’s highest first-half level internationally in more than 10 years. Berman said the company’s toys and consumer products business was up 5% in the first half, driven by the Action Play & Collectibles division and products tied to the second Super Mario Bros. film, which was released in April. The lineup included 5-inch figures developed for the film, along with play sets, dioramas and plush. Berman said sell-through was solid and that the company has sold in more movie-branded products through the first three quarters of shipping than it did for the first film. → 3 Photonics Companies Making Quantum Tech Possible JAKKS Pacific Stock is Recovering JAKKS is also preparing additional product tied to Donkey Kong in the second half, including a feature play set and a new figure multi-pack. Berman said the company will continue to support its evergreen Nintendo business, including items themed to the Super Mario Wonder game. The dolls, role play and dress-up business rose 12% in the quarter despite what Berman described as a lack of new entertainment support compared with the prior year. He pointed to the company’s Frozen product line, which has been expanded over the past 18 months, and said the business was up in the first half versus a year earlier. JAKKS is also preparing a retailer exclusive for the fall ahead of the planned Frozen 3 theatrical release in fall 2027. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Berman said lower retail prices on some Disney Princess and Style Collection assortments, following earlier tariff-driven price increases, appear to be helping sales velocity. He cited strong performance from the baby bath doll line launched last fall and a refreshed 6-inch Princess doll line priced below $10. The Disguise costume business increased 8% in the quarter and 9% in the first half. Berman said contributors included the popularity of Toy Story 5 and Super Mario Bros. films, along with the launch of KPop Demon Hunters costumes. The company’s 2026 costume lineup also includes products tied to Descendants 5, PAW Patrol: The Dino Movie and Minions & Monsters. JAKKS’ outdoor seasonal business remained a headwind. The category, which includes activity tables and chairs, ball pits, ride-ons, skateboards and hula hoops, declined 12% in the quarter and 17% year to date to $11.1 million in sales. Berman said the pressure is “structural” rather than temporary, as retailers reallocate store space away from large-box items and bulky products face challenges in the low-cost home delivery model. He said JAKKS is working with retailers to defend and recapture shelf space while also redesigning packaging and products to reduce box sizes and improve delivery economics. Gross margin was 32.3% in the second quarter, slightly below 32.8% in the prior-year period. Berman said tight management of sales, marketing and overhead costs helped reduce the company’s operating loss to $142,000, compared with a $2.8 million loss in the year-earlier quarter. Adjusted EBITDA increased to $5.4 million from $2.3 million a year earlier, bringing trailing 12-month adjusted EBITDA to $37.8 million. Chief Financial Officer John Kimble said first-half shipments were more than 75% FOB, reaching one of the highest levels the company has seen this decade. He said the company planned 2026 to be more front-weighted than usual because of strength from Super Mario and the absence of new toy introductions tied to holiday theatrical releases in the second half. Kimble said first-half gross margin dollars increased 3% to slightly more than $80 million. He said JAKKS is focused on optimizing margin dollars rather than margin percentages, especially as the company looks for incremental business outside the traditional U.S. mass market. JAKKS posted a $5.7 million operating loss in the first half, improved from a $6.5 million loss in the same period last year. Kimble said JAKKS received essentially all of the tariff refunds it applied for after the Supreme Court struck down certain regulations. The company does not expect additional refunds. JAKKS recognized $6.8 million of the refunds as non-operating other income in the quarter and excluded the gain from its published non-GAAP projections for adjusted EBITDA and adjusted earnings per share. Adjusted earnings per share were $0.25 for the quarter and $0.09 for the first half, compared with adjusted EPS of $0.03 in the year-earlier quarter and break-even adjusted EPS for the first half of last year. The company ended the quarter with $60.6 million in restricted and unrestricted cash, up from $43.1 million a year earlier. Inventory was $58.3 million, down from $71.8 million a year earlier and up from $52.9 million in the prior quarter. Kimble said the board approved a sixth consecutive quarterly cash dividend of $0.25 per share, payable Sept. 28 to shareholders of record as of Aug. 28. Berman said JAKKS is gaining traction outside the U.S., including through exclusive launches with European accounts, new distributor relationships in fragmented markets and the recent addition of three senior sales professionals to its global organization. The company also opened its first office in South America with an eye toward longer-term growth. Looking ahead, Berman said JAKKS remains on track to deliver strong 2026 results and is building for growth in 2027 and 2028. He cited planned 2027 theatrical releases tied to Sonic the Hedgehog and Disney’s Frozen, as well as private-label opportunities and new initiatives in anime, manga, VTubers and digital entertainers. In response to an analyst question, Berman said the anime-related efforts remain on pace, but the company does not expect 2026 revenue from those initiatives. Asked about capital allocation, Berman said the company has a “strong, healthy balance sheet” and is evaluating licenses and potential acquisitions that could benefit JAKKS and its shareholders. He said management is focused on shoring up the business, taking market share and positioning the company for future growth. JAKKS Pacific, Inc (NASDAQ: JAKK) is a Los Angeles–based company that designs, develops and markets a broad range of toys and consumer products. Since its founding in 1995 by industry veteran Jack Friedman, the company has built a diversified portfolio spanning three primary segments: Toys, Consumer Electronics & Seasonal, and Kids Furniture & Accessories. JAKKS Pacific specializes in both licensed and proprietary brands, collaborating with major entertainment and sports licensors to bring popular characters and franchises to market. The company's Toys segment includes action figures, dolls, role-play items, collectible toys and outdoor activity products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "JAKKS Pacific Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Net sales up 17% in Q2Highest first-half International sales in 10+ years SANTA MONICA, Calif., July 23, 2026 (GLOBE NEWSWIRE) -- JAKKS Pacific, Inc. (Nasdaq: JAKK) today reported financial results for the second quarter ended June 30, 2026. Second Quarter 2026 Net sales were $139.2 million, a year-over-year increase of 17% Gross margin of 32.3%, down 50 basis points vs. Q2 2025 Gross profit of $45.0 million, up 15% compared to $39.0 million in Q2 2025 Operating loss of $0.1 million in Q2 2026, compared to a loss of $2.8 million in Q2 2025 Net income attributable to common stockholders of $5.9 million or $0.49 per diluted share, compared to net loss attributable to common stockholders of $2.3 million or $0.21 per diluted share in Q2 2025, driven by refunded tariff expenditures reflected in Non-Operating Income Adjusted net income attributable to common stockholders (a non-GAAP measure) of $2.9 million or $0.25 per diluted share, compared to adjusted net income attributable to common stockholders of $0.4 million or $0.03 per diluted share in Q2 2025 Adjusted EBITDA (a non-GAAP measure) of $5.4 million vs. $2.3 million in Q2 2025 Trailing-twelve-month Adjusted EBITDA of $37.8 million, up from $34.6 million as of Q1 2026 Management Commentary“We finished the second quarter with good momentum heading into the second half of the year. The year is developing as we had planned,” said Stephen Berman, Chairman and CEO of JAKKS Pacific. “Many retailers in the US are recalibrating their pricing and where they have done so, we see consumers responding positively to our compelling product offering. Our first half new product introductions were broadly well received and sold through. Our Action Play & Collectibles business was up by over 40% in the quarter and reached $97 million in net sales for the first half, our highest level in over 15 years. Our Dolls, Role-Play and Dress-Up business was up over 11% in the quarter despite a lack of new entertainment properties in that division. Our evergreen businesses are rebounding from last year and setting us up well for the quarters ahead”. Second Quarter & First-Half 2026 HighlightsNet Sales in North America were up 20% in the quarter to $115 million compared to the previous year and 3% for the first-half of the year. International Sales were $24 million in the quarter -- up from $23 million last year (a 3% increase) and $53 million in the first-half compared to $44 million in 2025 and $33 million in 2024 for the comparable time periods. Globally, Action Play & Collectibles net sales were $42 million in the quarter, up from $30 million and $37 million in 2025 and 2024, respectively. Dolls, Role-Play, Dress-Up net sales were $52 million, compared to $46 million and $64 million in 2025 and 2024, respectively. Costumes net sales were $42 million, compared to $39 million (an 8% increase) and $44 million in 2025 and 2024, respectively. Costumes were up 8% for the quarter and 9% for the first-half. Inventory was $58.3 million as of June 30, 2026, compared to $71.8 million as of June 30, 2025, and $59.8 million as of December 31, 2025. Cash (including restricted cash and cash equivalents) was $60.6 million as of June 30, 2026, compared to $43.1 million as of June 30, 2025, and $54.1 million as of December 31, 2025. The Board of Directors declared a quarterly dividend of $0.25 per share on the company’s common stock, payable September 28, 2026, to shareholders of record August 28, 2026. Use of Non-GAAP Financial Information and Reconciliation of GAAP to Non-GAAP measures: In addition to the preliminary results reported in accordance with U.S. GAAP included in this release, the Company has provided certain non-GAAP financial information including Adjusted EBITDA and Adjusted Net Income (Loss) that exclude various items that are detailed in the financial tables and accompanying footnotes reconciling GAAP to non-GAAP results contained in this release. The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures. We define Adjusted EBITDA as income (loss) from operations before depreciation, amortization and adjusted for certain non-recurring and non-cash charges, such as reorganization expenses and restricted stock compensation expense Net income (loss) is similarly adjusted and tax-effected to arrive at Adjusted Net Income (Loss). Adjusted EBITDA and Adjusted Net Income (Loss) are not recognized financial measures under GAAP, but we believe that they are useful in measuring our operating performance, enhance an overall understanding of the Company’s past financial performance, and provides useful information to the investor by comparing our performance across reporting periods on a consistent basis. Investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining the Company’s operating performance that is calculated in accordance with GAAP. In addition, because these measures are not calculated in accordance with GAAP, they may not necessarily be comparable to similarly titled measures employed by other companies. The non-GAAP financial measures included in the press release are reconciled to the corresponding GAAP financial measures below, as required under the rules of the Securities and Exchange Commission regarding the use of non-GAAP financial measures. See “Use of Non-GAAP Financial Information” for additional disclosures with respect to the use of non-GAAP financial information. Conference Call Live WebcastJAKKS Pacific, Inc. invites analysts, investors and media to listen to the teleconference scheduled for 5:00 p.m. ET / 2:00 p.m. PT on July 23, 2026. A live webcast of the call will be available on the “Investor Relations” page of the Company’s website at www.jakks.com/investors. To access the call by phone, please go to this link (2Q26 Registration link), and you will be provided with dial-in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time. A replay of the webcast will also be available for a limited time at (www.jakks.com/investors). About JAKKS Pacific, Inc.JAKKS Pacific, Inc. is a leading designer, manufacturer and marketer of toys, costumes and consumer products sold throughout the world, with its headquarters in Santa Monica, California. JAKKS Pacific’s popular proprietary brands include Disguise®, Fly Wheels®, Charming™, KidTopia®, Moose Mountain®, Maui®, ReDo Skateboard Co.®, Sky Ball®, and Xtreme Power Dozer™ as well as a wide range of entertainment-inspired products featuring premier licensed properties. Through their products and charitable donations, JAKKS is helping to make a positive impact on the lives of children. Visit us at www.jakks.com and follow us on Instagram (@jakkspacific.toys), X (@jakkstoys), YouTube (@JAKKSPacific), Facebook (@jakkspacific.toys) and LinkedIn (JAKKS Pacific). Forward Looking StatementsThis press release may contain “forward-looking statements” (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations, estimates and projections about JAKKS Pacific's business based partly on assumptions made by its management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such statements due to numerous factors, including, but not limited to, those described above, changes in demand for JAKKS Pacific's products, product mix, the timing of customer orders and deliveries, the impact of competitive products, tariff policy and pricing, or any future transactions will result in future growth or success of JAKKS. The “forward-looking statements” contained herein speak only as of the date on which they are made, and JAKKS undertakes no obligation to update any of them to reflect events or circumstances after the date of this release. CONTACT:JAKKS Pacific Investor Relations(424) 268-9567 Lucas [email protected]

Hasbro (HAS) came out with quarterly earnings of $1.28 per share, beating the Zacks Consensus Estimate of $1.17 per share. This compares to earnings of $1.3 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +9.40%. A quarter ago, it was expected that this toy maker would post earnings of $1.12 per share when it actually produced earnings of $1.47, delivering a surprise of +31.25%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Hasbro, which belongs to the Zacks Toys - Games - Hobbies industry, posted revenues of $1.14 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 8.93%. This compares to year-ago revenues of $980.8 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hasbro shares have lost about 0.5% since the beginning of the year versus the S&P 500's gain of 8.7%. While Hasbro has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hasbro was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.87 on $1.5 billion in revenues for the coming quarter and $6.04 on $4.99 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Toys - Games - Hobbies is currently in the top 3% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Jakks Pacific (JAKK), another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on July 23. This toymaker is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +733.3%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Jakks Pacific's revenues are expected to be $129.62 million, up 8.8% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hasbro, Inc. (HAS) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Jakks Pacific (JAKK) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 23. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This toymaker is expected to post quarterly earnings of $0.25 per share in its upcoming report, which represents a year-over-year change of +733.3%. Revenues are expected to be $129.62 million, up 8.8% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Jakks, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +51.02%. On the other hand, the stock currently carries a Zacks Rank of #1. So, this combination indicates that Jakks will most likely beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Jakks would post a loss of$0.36 per share when it actually produced a loss of -$0.17, delivering a surprise of +52.78%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Jakks appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Toys - Games - Hobbies industry, Jakks Pacific (JAKK), is soon expected to post earnings of $0.25 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +733.3%. This quarter's revenue is expected to be $129.62 million, up 8.8% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Jakks has remained unchanged. Nevertheless, the company now has an Earnings ESP of +51.02%, reflecting a higher Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #1 (Strong Buy), suggests that Jakks will most likely beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hasbro, Inc. HAS has been a notable outperformer in the toy and gaming space over the past year. The stock has surged 23.5%, significantly outpacing the industry’s modest 0.8% growth. While the broader S&P 500 has advanced 25.1% during the same period, Hasbro’s strong performance reflects growing investor confidence in its earnings trajectory, margin expansion efforts and long-term growth strategy. Analysts have become increasingly optimistic about the company’s prospects. Over the past 60 days, the Zacks Consensus Estimate for 2026 earnings has increased to $6.01 per share from $5.66, while the 2027 estimate stands at $6.44. Earnings are projected to grow 8.5% in 2026 and another 7.2% in 2027. Revenues are expected to rise 5.9% and 5.1% in the respective years. Image Source: Zacks Investment Research The stock's rally has been driven by the continued strength of Wizards of the Coast, improving profitability, disciplined cost management and confidence in Hasbro’s ability to capitalize on its powerful portfolio of brands. Notably, the company has also outperformed key industry peers such as Mattel MAT and JAKKS Pacific JAKK. Image Source: Zacks Investment Research A key driver of Hasbro’s improving outlook is the exceptional performance of Wizards of the Coast, home to MAGIC: The Gathering and Dungeons & Dragons. Hasbro kicked off 2026 on a strong note, reporting first-quarter revenue growth of 13% year over year to $1 billion. Adjusted earnings per share jumped 41% to $1.47, while adjusted operating profit increased 29%. Management credited much of this success to Wizards of the Coast, which delivered a 26% increase in revenues and a 29% rise in operating profit. The momentum within MAGIC: The Gathering has been particularly impressive. Management highlighted that the "Lorwyn Eclipsed" release became the best-selling MAGIC Premier set in the franchise’s history. The subsequent "Secrets of Strixhaven" launch surpassed even that record, underscoring sustained consumer demand for the brand. Beyond core releases, collaborations with popular franchises such as Teenage Mutant Ninja Turtles have attracted new players and expanded the game's audience. Management noted that MAGIC’s ecosystem continues to benefit from record engagement levels, growing organized play participation and strong backlist sales, providing confidence that the franchise's success is far from temporary. While Wizards continues to generate headlines, Hasbro’s Consumer Products segment is showing encouraging signs of recovery and growth.Management reported positive point-of-sale trends during the first quarter and through April, supported by lean retailer inventories and improving market-share performance. The company continues to focus on its GEM2 strategy, targeting categories that are gamified, entertainment-driven, multi-purchase and multi-generational. These categories have consistently outperformed the broader toy market and helped Hasbro gain share in several key segments. The company also has a favorable lineup of entertainment-driven opportunities ahead. Upcoming releases tied to Star Wars, Toy Story 5, Spider-Man and Avengers franchises are expected to support demand across Hasbro’s product portfolio. Additionally, innovations across brands such as Monopoly and Play-Doh should contribute to growth in the second half of the year. Hasbro’s earnings growth is not solely dependent on revenue expansion. The company is also benefiting from meaningful improvements in profitability. Adjusted operating margin expanded 360 basis points year over year to 28.7% in the first quarter, supported by a favorable business mix and ongoing cost-saving initiatives. During the quarter, Hasbro generated $37 million in gross savings and remains on track to deliver $150 million in annual cost reductions. The company also produced $338 million in operating cash flow, continued paying dividends and initiated share repurchases under its recently authorized buyback program. These actions demonstrate management’s commitment to enhancing shareholder value while maintaining financial flexibility. Importantly, management maintained its full-year outlook despite macroeconomic uncertainty. Hasbro continues to expect revenue growth of 3-5%, adjusted operating margins of 24-25% and adjusted EBITDA of $1.4-$1.45 billion in 2026. The company is trading at a discount to the industry. It has a forward 12-month price-to-earnings ratio of 13.59X, well above the industry average of 9.82X. On the other hand, Mattel and JAKKS Pacific are trading at 10.41X and 12.45X. Image Source: Zacks Investment Research Hasbro appears well-positioned to build on its recent momentum. The company is benefiting from the exceptional strength of Wizards of the Coast, improving trends in Consumer Products, expanding margins and disciplined capital allocation. The steady rise in earnings estimates suggests analysts are becoming increasingly confident in Hasbro’s growth prospects. At the same time, management continues to execute on its Playing to Win strategy, leveraging powerful intellectual property, expanding licensing opportunities and investing in high-return growth areas such as digital gaming. Although the stock has already gained nearly 24% over the past year, the fundamentals continue to improve. With projected earnings growth, ongoing margin expansion and a Zacks Rank #1 (Strong Buy), Hasbro remains attractively positioned for investors. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hasbro, Inc. (HAS) : Free Stock Analysis Report Mattel, Inc. (MAT) : Free Stock Analysis Report JAKKS Pacific, Inc. (JAKK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research