JAKKS Pacific Q2 Sales Surge 17% to $139M, Adjusted EPS $0.25 vs $0.03; Declares $0.25 Dividend
JAKK sits 65% above its 52-week low of $14.865 on elevated volume (3.2× avg).
Summary
JAKKS Pacific reported Q2 2026 net sales of $139.2 million, up 17% year-over-year, with adjusted EPS of $0.25 versus $0.03 last year. The company also declared a $0.25 quarterly dividend.
Key Events · Earnings and Guidance · JAKK
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Q2 Sales Beat Consensus
Net sales of $139.2 million rose 17% year-over-year, exceeding the $123 million consensus estimate, driven by a 40% surge in Action Play & Collectibles.
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Adjusted EPS Soars
Adjusted net income of $2.9 million, or $0.25 per diluted share, compared to $0.4 million, or $0.03 per share, in Q2 2025, reflecting strong operating leverage.
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Dividend Declared
Board declared a quarterly cash dividend of $0.25 per share, payable August 28, 2026 to shareholders of record September 28, 2026, signaling confidence in cash flow.
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Gross Margin Pressure
Gross margin declined 50 basis points to 32.3%, as cost of goods and royalty expenses grew faster than sales, though gross profit still rose 15% to $45.0 million.
Analysis · JAKK · Manufacturing
A standout second quarter saw sales jump 17% to $139.2 million, well above the $123 million consensus. Adjusted EPS of $0.25 trounced last year's $0.03, driven by a 40% surge in Action Play & Collectibles and a rebound in North America. The company also declared a $0.25 quarterly dividend, signaling confidence in cash generation. This follows a Q1 miss and a shareholder rejection of executive pay, making the strong Q2 a critical turnaround signal. The stock is trading near its 52-week high, reflecting the market's positive reaction to the results.
At the time of this filing, JAKK was trading at $24.47 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $272.5M. The 52-week trading range was $14.87 to $25.25. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.