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

☐ 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

Table of Contents

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.

Table of Contents

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.

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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.

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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.

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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.

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JAKKS PACIFIC, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

September 30, 2025

In July 2025, the FASB issued ASU 2025-05, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets.” The new guidance provides a practical expedient in developing reasonable and supportable forecasts when estimating expected credit losses for current accounts receivable and current contract assets arising from transactions accounted for under Topic 606. Entities that elect the practical expedient may assume that current conditions as of the balance sheet date do not change for the remaining life of the respective assets. The amendments will be effective for annual reporting periods beginning after December 15, 2025, and interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual reporting periods in which financial statements have not yet been issued or made available for issuance. The Company is currently evaluating the impact of adopting this standard on its condensed consolidated financial statements and related disclosures.

In September 2025, the FASB issued ASU 2025-06, “Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software.” The new guidance removes all references to prescriptive and sequential software development stages (referred to as “project stages”) throughout Subtopic 350-40. Therefore, an entity is required to start capitalizing software costs when both of the following occur: 1. Management has authorized and committed to funding the software project and 2. It is probable that the project will be completed and the software will be used to perform the function intended (referred to as the “probable-to-complete recognition threshold”). In evaluating the probable-to-complete recognition threshold, an entity is required to consider whether there is significant uncertainty associated with the development activities of the software (referred to as “significant development uncertainty”). The amendments will be effective for all entities for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods. Early adoption is permitted as of the beginning of an annual reporting period. The Company is currently evaluating the impact of adopting this standard on its condensed consolidated financial statements and related disclosures.

There were no other new accounting pronouncements, issued or effective during the first nine months of fiscal 2025, which had or are expected to have a significant impact on the Company’s condensed consolidated financial statements and related disclosures.

Note 2 — Business Segments, Geographic Data and Sales by Major Customers

The Company is a worldwide producer and marketer of children’s toys and other consumer products, principally engaged in the design, development, production, marketing and distribution of its diverse portfolio of products. The Company’s segments are (i) Toys/Consumer Products (“TCP”) and (ii) Costumes.

The Toys/Consumer Products segment includes action figures, vehicles, play sets, plush products, dolls, electronic products, construction toys, infant and pre-school toys, child-sized and hand-held role play toys and everyday costume play, foot-to-floor ride-on vehicles, wagons, novelty toys, seasonal and outdoor products, kids’ indoor and outdoor furniture, and related products.

The Costumes segment, under its Disguise branding, designs, develops, markets and sells a wide range of every-day and special occasion dress-up costumes and related accessories in support of Halloween, Carnival, Children’s Day, Book Day/Week, and every-day/any-day costume play.

The Company’s Chief Executive Officer and Chief Financial Officer have been identified jointly as the Chief Operating Decision Maker (“CODM”). The CODM manages and allocates resources on a segment basis. The determination of the two segments is consistent with the financial information regularly reviewed by the CODM for purposes of evaluating performance. Results are regularly reviewed in comparison with current budget, prior forecast, prior year and recent years’ performance in that quarter.

Segment performance is measured at the operating income (loss) level. All sales are made to external customers and general corporate expenses have been attributed to the segments based upon relative sales volumes. Segment assets are primarily comprised of accounts receivable and inventories, net of applicable reserves and allowances, goodwill and other assets. Certain assets which are not tracked by operating segment and/or that benefit multiple operating segments have been allocated on the same basis.

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JAKKS PACIFIC, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

September 30, 2025

Results are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts for the three and nine months ended September 30, 2025 and 2024 and as of September 30, 2025 and December 31, 2024 are as follows (in thousands):

	Three Months Ended September, 30
	2025							2024
	TCP		Costumes		Total			TCP		Costumes		Total

Net Sales	$	156,080	$	55,130	$	211,210		$	264,306	$	57,300	$	321,606

Cost of Sales ^(A)		104,513		39,054		143,567			171,774		41,001		212,775

Gross Profit		51,567		16,076		67,643			92,532		16,299		108,831

Direct selling expenses		3,919		2,014		5,933			5,002		2,550		7,552
Product development and testing expenses		2,137		708		2,845			2,245		760		3,005
Divisional general and administrative expenses ^{(A), (B)}		5,233		2,763		7,996			8,227		2,860		11,087
Allocated headquarter general & administrative expenses ^{(A), (C)}		15,726		5,780		21,506			15,582		3,522		19,104

Income from operations		24,552		4,811		29,363			61,476		6,607		68,083

Other income (expense), net						388							84

Loss on debt extinguishment						(1	)						—

Interest income						75							69

Interest expense						(102	)						(539	)
Income before provision for income taxes					$	29,723						$	67,697

(A) Includes depreciation and amortization

4,726

4,769

4,047

4,089

^(B)

Consist mainly of payroll and related expenses, rent, depreciation and other general and administrative expenses.

^(C)

Consist mainly of payroll related expenses, rent, depreciation and other general and administrative expenses.

Table of Contents

JAKKS PACIFIC, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

September 30, 2025

	Nine Months Ended September, 30
	2025								2024
	TCP		Costumes			Total			TCP		Costumes		Total

Net Sales	$	343,897	$	99,660		$	443,557		$	451,786	$	108,515	$	560,301

Cost of Sales ^(A)		227,045		70,833			297,878			304,348		78,485		382,833

Gross Profit		116,852		28,827			145,679			147,438		30,030		177,468

Direct selling expenses		16,873		4,466			21,339			16,027		5,877		21,904
Product development and testing expenses		6,332		1,981			8,313			5,964		2,405		8,369
Divisional general and administrative expenses ^{(A), (B)}		16,595		8,951			25,546			21,288		9,408		30,696
Allocated headquarter general & administrative expenses ^{(A), (C)}		53,248		14,410			67,658			50,183		11,914		62,097

Income (loss) from operations		23,804		(981	)		22,823			53,976		426		54,402

Other income (expense), net							418							294

Loss on debt extinguishment							(418	)						—

Interest income							832							533

Interest expense							(402	)						(938	)
Income before provision for income taxes						$	23,253						$	54,291

(A) Includes depreciation and amortization

8,135

8,228

7,642

7,737

^(B)

Consist mainly of payroll and related expenses, rent, depreciation and other general and administrative expenses.

^(C)

Consist mainly of payroll related expenses, rent, depreciation and other general and administrative expenses.

	September 30,		December 31,
	2025		2024
Assets
Toys/Consumer Products	$	425,216	$	429,254
Costumes		60,054		15,615
	$	485,270	$	444,869

Table of Contents

JAKKS PACIFIC, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

September 30, 2025

Net revenues are categorized based upon location of the customer, while long-lived assets are categorized based upon the location of the Company’s assets. The following tables present information about the Company by geographic area as of September 30, 2025 and December 31, 2024 and for the three and nine months ended September 30, 2025 and 2024 (in thousands):

	September 30,		December 31,
	2025		2024
Long-lived Assets
United States	$	45,289	$	53,020
China		14,226		13,553
United Kingdom		3,096		808
Hong Kong		2,027		582
Italy		765		754
Mexico		610		31
Canada		96		107
France		21		41
	$	66,130	$	68,896

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2025		2024		2025		2024
Net Sales by Customer Area
United States	$	154,516	$	255,278	$	330,450	$	451,545
Europe		29,408		30,034		55,875		46,033
Latin America		14,066		22,632		27,572		33,867
Canada		9,237		7,068		21,342		16,726
Asia		1,526		2,345		3,725		4,578
Australia & New Zealand		2,095		3,339		3,594		6,292
Middle East & Africa		362		910		999		1,260
	$	211,210

SEC Form 10-Q filed by JAKKS Pacific Inc.