JAKKS Pacific (NASDAQ: JAKK) jumps 20% in sales and declares dividend
by Tristan Rich · The Markets DailyWhat happened
JAKKS Pacific, Inc. (NASDAQ: JAKK) reported third-quarter 2026 net sales of $254.2 million on October 22. North America net sales were $209 million, up 28%, and Toys/Consumer Products net sales were $192.0 million, up 23% from $156.1 million last year.
Costumes net sales were $62.2 million, up 13%. Gross margin was 32.1%, and gross profit was $81.5 million. Operating income was $37.4 million. Net income attributable to common stockholders was $29.9 million, or $2.48 per diluted share.
The board declared a quarterly cash dividend of $0.25 per common share, payable December 28, 2026, to shareholders of record November 27, 2026. Cash, including restricted cash and cash equivalents, was $45.1 million, up from $27.8 million a year earlier.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Net sales | $254.2 million | from $211.2 million, +20% | October 22, 2026 press release |
| North America net sales | $209 million | from $163.8 million, +28% | October 22, 2026 press release |
| Toys/Consumer Products net sales | $192.0 million | from $156.1 million, +23% | October 22, 2026 press release |
| Operating income | $37.4 million | from $29.4 million, +27% | October 22, 2026 press release |
| Net income attributable to common stockholders | $29.9 million | from $19.9 million, +50% | October 22, 2026 press release |
| Quarterly cash dividend | $0.25 per common share | SEC 8-K |
Read more: JAKKS Pacific (JAKK) stock analysis and investment case
Why it matters
OptimistFi's case is that FY2025 had to be a product-cycle trough, not evidence that toy-license economics and retailer relevance are structurally weaker. This quarter supports that view because net sales rose $43.0 million from $211.2 million a year earlier, and operating income rose $8.0 million.
Net income attributable to common stockholders rose $10.0 million from $19.9 million. Adjusted EBITDA rose to $44.4 million from $36.5 million. North America and international net sales are up 14% and 7% year to date, which suggests the gain is not limited to one line. Trailing-twelve-month Adjusted EBITDA was $45.7 million, up from $37.8 million as of Q2 2026.
The balance sheet showed $63.8 million of inventory as of September 30, 2026. Accounts receivable days sales outstanding was 87, and inventory turnover was 34. International sales fell to $45 million from $47 million last year, so the improvement was not uniform across every region. Gross margin improved only 10 basis points, which still leaves execution questions.
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What's next
The next test is JAKKS Pacific's fourth-quarter 2026 report.
A stronger report would show North America staying ahead and international sales stabilizing. A weaker one would point to a short-lived rebound.
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Sources
- SEC 8-K — Reports the quarterly cash dividend declaration and the timing of the third-quarter 2026 results release.
- October 22, 2026 press release — Contains the third-quarter 2026 sales, profit, balance-sheet and segment figures.
Read the full OptimistFi thesis on JAKKS Pacific, Inc.: https://optimistfi.com/stocks/JAKK
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.