JAKKS Pacific, Inc. (JAKK) Income Statement

The +20.4% print in 2026Q3 is the strongest growth quarter in the dataset, but it follows a -34.3% comparison in 2025Q3, so the rebound appears at least partly a low-base recovery rather than a proven new run-rate. Nine-quarter revenue still shows a wide dispersion around the holiday peak, from $106.7M to $321.6M, which makes trend extrapolation from any single quarter unreliable. Investors should judge durability on whether the off-season quarters can hold growth, since 2026Q1 and 2026Q4 printed negative year-over-year results.

Stability at roughly 32% is notable and suggests pricing and input costs are being managed, but the persistence of the peer gap implies limited headroom to expand structurally without a change in product or channel mix. The 27.2% print in 2024Q4 is worth noting as evidence that margin can compress materially in a weaker-selling quarter, likely through promotional discounting or unfavorable mix. Because licensing royalties are typically embedded in COGS, gross margin here functions more as a pass-through margin than a measure of brand pricing power.

Operating income swung from -$142K on $139.2M of revenue in 2026Q2 to $37.4M on $254.2M in 2026Q3, an amplitude that reflects overhead absorbing almost all incremental gross profit in the off-season. The flip side is that operating income fell 45% from the 2024Q3 peak even as SG&A was contained, indicating the leverage cuts symmetrically and that revenue quality, not cost control, drives the earnings outcome. R&D is reported at zero across all periods; the data does not clarify the treatment of product development spend, so no conclusion should be drawn on innovation investment.

The 2024Q3 quarter delivered a 21.2% operating margin on $321.6M of revenue, and the subsequent collapse appears to reflect a demand or licensing-calendar reset rather than a cost failure, since SG&A was held between $38M and $50M throughout. The lasting impact is a lower earnings baseline against which growth is now measured, and the 2026Q3 recovery to a 14.7% operating margin looks like a partial rather than full normalization. Whether the 2024 peak proves achievable again depends on factors not disclosed in the income statement provided.