Revenue: As of FY2026 Q1, the actual value is USD 106.68 M, beating the estimate of USD 103.8 M.EPS: As of FY2026 Q1, the actual value is USD -0.37, missing the estimate of USD -0.23.EBIT: As of FY2026 Q1, the actual value is USD -5.994 M.<h4>Net Sales</h4>JAKKS Pacific, Inc.’s total net sales decreased to $106,676 thousand for the three months ended March 31, 2026, from $113,253 thousand in the prior year period . Toys/Consumer Products (TCP): Net sales were $100,095 thousand for Q1 2026, marking a decrease of $7,343 thousand or 6.8% from $107,438 thousand in Q1 2025, primarily due to lower North American sales despite higher international sales . Dolls, Role-Play/Dress-up sales declined by 32.4%, while Action Play &amp; Collectibles division sales increased by 28.9% due to Super Mario Movie 2 products . Costumes: Net sales increased to $6,581 thousand for Q1 2026, an increase of $766 thousand or 13.8% from $5,815 thousand in Q1 2025, mainly driven by increased sales of Nintendo costumes .<h4>Cost of Sales</h4>Total cost of sales decreased to $71,070 thousand for Q1 2026 from $74,240 thousand in Q1 2025 . Toys/Consumer Products (TCP): Cost of sales was $66,113 thousand (66.0% of net sales) for Q1 2026, compared to $69,239 thousand (64.4% of net sales) for Q1 2025, with the increase as a percentage of net sales attributed to higher product costs and tooling amortization . Costumes: Cost of sales was $4,957 thousand (75.8% of net sales) for Q1 2026, compared to $5,001 thousand (86.2% of net sales) for Q1 2025, with the decrease as a percentage of net sales due to lower royalty expense .<h4>Gross Profit</h4>Total gross profit decreased to $35,606 thousand for Q1 2026 from $39,013 thousand in Q1 2025 . Toys/Consumer Products (TCP): Gross profit was $33,982 thousand for Q1 2026, down from $38,199 thousand in Q1 2025 . Costumes: Gross profit increased to $1,624 thousand for Q1 2026, up from $814 thousand in Q1 2025 .<h4>Selling, General and Administrative Expenses (SG&amp;A)</h4>Total SG&amp;A decreased slightly to $41,180 thousand for Q1 2026 from $42,770 thousand in Q1 2025 . As a percentage of net sales, SG&amp;A increased to 38.6% in Q1 2026 from 37.7% in Q1 2025, driven by decreases in temporary help and media spending . Direct selling expenses: $8,164 thousand for Q1 2026, compared to $8,696 thousand for Q1 2025 . TCP: $6,955 thousand (Q1 2026) vs. $7,966 thousand (Q1 2025) . Costumes: $1,209 thousand (Q1 2026) vs. $730 thousand (Q1 2025) . Product development and testing expenses: $2,142 thousand for Q1 2026, compared to $2,399 thousand for Q1 2025 . TCP: $2,004 thousand (Q1 2026) vs. $2,015 thousand (Q1 2025) . Costumes: $138 thousand (Q1 2026) vs. $384 thousand (Q1 2025) . Divisional general and administrative expenses: $7,945 thousand for Q1 2026, compared to $8,788 thousand for Q1 2025 . TCP: $5,298 thousand (Q1 2026) vs. $5,557 thousand (Q1 2025) . Costumes: $2,647 thousand (Q1 2026) vs. $3,231 thousand (Q1 2025) . Allocated headquarter general &amp; administrative expenses: $22,929 thousand for Q1 2026, compared to $22,887 thousand for Q1 2025 . TCP: $21,431 thousand (Q1 2026) vs. $21,740 thousand (Q1 2025) . Costumes: $1,498 thousand (Q1 2026) vs. $1,147 thousand (Q1 2025) .<h4>Loss from Operations</h4>Total loss from operations was - $5,574 thousand for Q1 2026, compared to - $3,757 thousand for Q1 2025 . Toys/Consumer Products (TCP): Loss from operations was - $1,706 thousand for Q1 2026, compared to income of $921 thousand for Q1 2025 . Costumes: Loss from operations was - $3,868 thousand for Q1 2026, compared to - $4,678 thousand for Q1 2025 .<h4>Other Financial Metrics</h4>Net loss was - $4,280 thousand for Q1 2026, compared to - $2,382 thousand for Q1 2025 . Comprehensive loss was - $6,081 thousand for Q1 2026, compared to - $1,754 thousand for Q1 2025 . Income tax benefit was $0.8 million for Q1 2026 (effective tax rate of 16.6%), a decrease from $1.2 million for Q1 2025 (effective tax rate of 32.8%), due to lower discrete tax benefits and an increased pre-tax book loss . Working capital decreased by $9.2 million to $111.8 million as of March 31, 2026, from $121.0 million as of December 31, 2025, primarily due to changes in receivables, inventory, payables, and cash used in financing activities . Share-based compensation expense increased to $3,081 thousand for Q1 2026, from $2,552 thousand for Q1 2025 . Unrecognized compensation cost related to non-vested restricted stock units was $19.8 million as of March 31, 2026, expected to be recognized over a weighted-average period of 2.0 years .<h4>Cash Flow</h4>Net cash provided by operating activities was $21,795 thousand for Q1 2026, a significant increase from - $1,700 thousand used in Q1 2025, driven by higher receivable collections, lower inventory purchases, less capital tied up in prepaids and other assets, lower cash outflow for payables, and a net refund of cash taxes . Net cash used in investing activities was - $5,812 thousand for Q1 2026, compared to - $3,065 thousand for Q1 2025, primarily for purchases of molds, tooling, and investments in employee deferred compensation trusts . Net cash used in financing activities was - $4,267 thousand for Q1 2026, compared to - $6,605 thousand for Q1 2025, mainly for common stock repurchase for employee tax withholding and cash dividends paid .<h4>Liquidity and Capital Resources</h4>Cash and cash equivalents (including restricted cash) increased to $64.0 million as of March 31, 2026, from $54.1 million as of December 31, 2025 . Foreign cash and cash equivalents totaled $20.0 million held in foreign subsidiaries as of March 31, 2026, up from $16.9 million as of December 31, 2025 . JAKKS Pacific, Inc. entered into a new $70.0 million senior secured revolving credit facility with BMO Bank, N.A., maturing June 24, 2030, with no outstanding borrowings and $68.3 million total excess borrowing availability as of March 31, 2026 . The company was in compliance with all financial covenants . As of March 31, 2026, future aggregate minimum royalty guarantees totaled $193.4 million, with $66.8 million due within the next twelve months .<h4>Outlook and Strategy</h4>JAKKS Pacific, Inc. declared a quarterly cash dividend of $0.25 per common share, payable on June 30, 2026 . The company has submitted a claim for refunds related to previously paid tariffs, though the timing, eligibility, and amount of any potential recovery are uncertain . Additionally, a pre-effective amendment to a registration statement was filed, allowing the issuance of up to $150.0 million of various securities . Sales are expected to remain heavily influenced by the seasonality of toy and costume products, which makes accurate forecasting difficult and causes operating results and working capital demand to vary significantly by quarter .

JAKKS Pacific | 10-Q: FY2026 Q1 Revenue Beats Estimate at USD 106.68 M