JAKKS Pacific (JAKK) Stock Forecast & Price Target

Jakks Pacific Inc. has demonstrated a solid positive outlook supported by a 4% increase in international revenue for the first nine months of 2025, which now accounts for 25.4% of total revenue compared to 19.2% in the prior year, reflecting effective market expansion and product availability. Additionally, the company’s cash per share has risen to $2.43, along with no debt, showcasing a strong financial position, while working capital has increased by 2.6% year-over-year to $133.8 million. The extension of the Sonic the Hedgehog license until 2029 and the expansion of private-label offerings at Target further illustrate Jakks Pacific's strategic growth initiatives and its focus on leveraging strong product offerings for future profitability.

Jakks Pacific Inc. demonstrated significant financial challenges in the third quarter, reporting an earnings per share (EPS) of $1.80, which fell short of expectations by $0.67 and represented a dramatic decline from $4.79 in the prior year. The company experienced a 34% year-over-year revenue drop to $211.2 million, further compounded by a 14.5% decline in non-U.S. revenue, reflecting challenges in international markets and difficult comparisons due to prior-order pull-forwards. Additionally, the operating margins were notably affected, with a 580 basis point drop in EBITDA margins despite management's efforts to reduce costs, signaling weak operational leverage amid ongoing tariff impacts and market uncertainties.