📊 JAKK Key Takeaways
Is Jakks Pacific Inc. (JAKK) a Good Investment?
JAKKS Pacific has experienced a catastrophic 83.6% revenue collapse while operating at a loss with negative interest coverage, indicating severe business deterioration that cannot be sustained despite current liquidity. The company's inability to generate operating profit combined with its inability to cover debt service from operations suggests fundamental business model breakdown rather than cyclical stress.
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
- Positive free cash flow of $16.2M despite operating losses indicates working capital efficiency or significant non-cash charges providing a temporary cash cushion
- Conservative debt/equity ratio of 0.28x and total debt of $68.9M provide moderate leverage with capacity for operational adjustments
- Solid liquidity position with $62.8M cash and 1.96x current ratio providing runway to stabilize operations or execute strategic alternatives
- 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
- Catastrophic 83.6% year-over-year revenue decline suggests loss of major customer contracts, product recalls, or market disruption with no visibility into recovery
- Operating and net losses with deeply negative interest coverage (-92.9x) indicate company cannot service debt from operating cash generation and is dependent on asset liquidation or restructuring
- Complete absence of insider Form 4 filings over 90 days signals management and insiders lack confidence in near-term business recovery prospects
- 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
- Sequential revenue trends next 2-3 quarters to determine if 83.6% decline has stabilized or continues deteriorating
- Return to operating profitability and positive interest coverage ratio as barometer for business model viability
- Cash burn rate and runway given operating losses will determine how long balance sheet cushion sustains operations before restructuring necessity
- 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 |
|---|---|---|---|
| Q1 2026 | $106.7M | -$2.4M | $-0.21 |
| 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 |
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 (STRONG SELL) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are JAKK's key strengths?
Claude: Positive free cash flow of $16.2M despite operating losses indicates working capital efficiency or significant non-cash charges providing a temporary cash cushion. Conservative debt/equity ratio of 0.28x and total debt of $68.9M provide moderate leverage with capacity for operational adjustments. 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: Catastrophic 83.6% year-over-year revenue decline suggests loss of major customer contracts, product recalls, or market disruption with no visibility into recovery. Operating and net losses with deeply negative interest coverage (-92.9x) indicate company cannot service debt from operating cash generation and is dependent on asset liquidation or restructuring. 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 $106.7M.
Does JAKK pay dividends?
Jakks Pacific Inc. pays dividends, with $2.9M 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 $-0.37.
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 May 2026, Jakks Pacific Inc. has a SELL rating with 76% 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 -1.8% (sector avg: 15%), net margin of -4.0% (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 $21.8M, with capital expenditures of $5.6M. FCF margin is 15.2%.
How does JAKK compare to other Market stocks?
Vs Default sector averages: Net margin -4.0% (avg: 12%), ROE -1.8% (avg: 15%), current ratio 1.96 (avg: 1.8).