📊 JAKK Key Takeaways
Is Jakks Pacific Inc. (JAKK) a Good Investment?
JAKKS Pacific exhibits deteriorating operational performance with revenue declining 17.4% YoY while maintaining marginal profitability, suggesting structural headwinds in the toy and games sector. Negative free cash flow of -1.1M combined with high debt servicing costs and minimal net margins indicate the company is struggling to convert sales into sustainable cash generation, raising concerns about financial sustainability.
JAKKS Pacific shows a solid balance sheet with good liquidity, modest leverage, and strong interest coverage, which limits near-term financial stress. However, the latest fundamentals are weak: revenue fell 17.4% year over year, operating and net margins remain thin, and free cash flow turned slightly negative. The company appears financially stable but fundamentally lacks strong growth quality and durable profitability at current levels.
Why Buy Jakks Pacific Inc. Stock? JAKK Key Strengths
- Solid liquidity position with current ratio of 1.82x and cash balance of 52.2M providing near-term operational flexibility
- Manageable debt-to-equity ratio of 0.28x with strong interest coverage of 30.2x indicating ability to service obligations
- Gross margin of 32.4% demonstrates reasonable pricing power and production efficiency despite revenue contraction
- Healthy liquidity with a 1.82x current ratio and 1.41x quick ratio
- Low leverage with debt/equity of 0.28x and strong 30.2x interest coverage
- Positive net income and sizable equity base of $249.10M support balance-sheet resilience
JAKK Stock Risks: Jakks Pacific Inc. Investment Risks
- Revenue declining 17.4% YoY signals loss of market share or demand weakness in core toy and games segment with no clear turnaround catalyst
- Negative free cash flow of -1.1M despite positive operating income indicates capital intensity and deteriorating cash conversion, unsustainable long-term
- Razor-thin net margin of 1.7% and operating margin of 2.5% leave minimal cushion for operational disruptions or unexpected costs
- Diluted EPS collapsed 72.6% YoY while net income remained flat, indicating significant share dilution and earnings pressure
- Revenue contraction of 17.4% year over year signals meaningful top-line pressure
- Very thin profitability with 2.5% operating margin and 1.7% net margin leaves limited cushion
- Negative free cash flow and low operating cash flow weaken earnings quality
Key Metrics to Watch
- Revenue trajectory and comparable sales trends - critical to assess whether 17.4% decline continues or stabilizes
- Free cash flow sustainability - must return to positive territory to fund operations and debt reduction
- Operating margin expansion - minimal 2.5% margin suggests pricing power or cost structure issues requiring remediation
- Revenue growth and operating margin recovery
- Operating cash flow and free cash flow consistency
Jakks Pacific Inc. (JAKK) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Jakks Pacific Inc. presents a mixed fundamental picture. Review the detailed metrics above to form your own investment thesis.
JAKK Profit Margin, ROE & Profitability Analysis
JAKK vs Market Sector: How Jakks Pacific Inc. Compares
How Jakks Pacific Inc. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Jakks Pacific Inc. Stock Overvalued? JAKK Valuation Analysis 2026
Based on fundamental analysis, Jakks Pacific Inc. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Jakks Pacific Inc. Balance Sheet: JAKK Debt, Cash & Liquidity
JAKK Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Jakks Pacific Inc.'s revenue has grown significantly by 15% over the 5-year period, indicating strong business expansion. The most recent EPS of $3.48 reflects profitable operations.
JAKK Revenue Growth, EPS Growth & YoY Performance
JAKK Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $211.2M | -$2.3M | $1.32 |
| Q2 2025 | $119.1M | -$2.3M | $-0.21 |
| Q1 2025 | $90.1M | -$2.4M | $-0.21 |
| Q3 2024 | $309.7M | $5.3M | $3.99 |
| Q2 2024 | $148.6M | $1.1M | $0.04 |
| Q1 2024 | $90.1M | -$5.3M | N/A |
| Q3 2023 | $309.7M | -$3.8M | $2.96 |
| Q2 2023 | $166.9M | $1.1M | $0.04 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Jakks Pacific Inc. Dividends, Buybacks & Capital Allocation
JAKK SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Jakks Pacific Inc. (CIK: 0001009829)
📋 Recent SEC Filings
❓ Frequently Asked Questions about JAKK
What is the AI rating for JAKK?
Jakks Pacific Inc. (JAKK) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 74% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are JAKK's key strengths?
Claude: Solid liquidity position with current ratio of 1.82x and cash balance of 52.2M providing near-term operational flexibility. Manageable debt-to-equity ratio of 0.28x with strong interest coverage of 30.2x indicating ability to service obligations. ChatGPT: Healthy liquidity with a 1.82x current ratio and 1.41x quick ratio. Low leverage with debt/equity of 0.28x and strong 30.2x interest coverage.
What are the risks of investing in JAKK?
Claude: Revenue declining 17.4% YoY signals loss of market share or demand weakness in core toy and games segment with no clear turnaround catalyst. Negative free cash flow of -1.1M despite positive operating income indicates capital intensity and deteriorating cash conversion, unsustainable long-term. ChatGPT: Revenue contraction of 17.4% year over year signals meaningful top-line pressure. Very thin profitability with 2.5% operating margin and 1.7% net margin leaves limited cushion.
What is JAKK's revenue and growth?
Jakks Pacific Inc. reported revenue of $570.7M.
Does JAKK pay dividends?
Jakks Pacific Inc. pays dividends, with $11.2M distributed to shareholders in the trailing twelve months.
Where can I find JAKK SEC filings?
Official SEC filings for Jakks Pacific Inc. (CIK: 0001009829) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is JAKK's EPS?
Jakks Pacific Inc. has a diluted EPS of $0.86.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is JAKK a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Jakks Pacific Inc. has a SELL rating with 74% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is JAKK stock overvalued or undervalued?
Valuation metrics for JAKK: ROE of 4.0% (sector avg: 15%), net margin of 1.7% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy JAKK stock in 2026?
Our dual AI analysis gives Jakks Pacific Inc. a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is JAKK's free cash flow?
Jakks Pacific Inc.'s operating cash flow is $8.5M, with capital expenditures of $9.6M. FCF margin is -0.2%.
How does JAKK compare to other Market stocks?
Vs Default sector averages: Net margin 1.7% (avg: 12%), ROE 4.0% (avg: 15%), current ratio 1.82 (avg: 1.8).