JAKK · CIK 1009829
What JAKKS Pacific, Inc. told the SEC could break it.
JAKKS Pacific is squeezed by concentration at both ends of its toy business. Just two big-box retailers — Target (26.6%) and Walmart (26.1%) — accounted for about 53% of 2025 net sales, so reduced orders from either would bite hard. On supply, it contracts manufacturing to unaffiliated factories and buys substantially all of its inventory from China, and that single-country dependence collided with 2025 U.S. tariffs on China-sourced products, which both raised its import cost base and cut demand as unit prices rose (its Costumes segment sales fell 10.2% as customers pulled back). It also depends on its Chairman and CEO, Stephen G. Berman, whose loss it flags could adversely affect the business.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Customer concentration
- Two retailers (Target, Walmart) ~53% of net saleshigh
JAKKS' sales are concentrated in two big-box retailers — Target (26.6%) and Walmart (26.1%) together ~53% of 2025 net sales — so reduced orders or loss of either would materially affect results.
“Target® $ 152,028 26.6 % $ 204,396 29.6 % $ 215,211 30.3 %”
SEC filing →As of 2026
Supplier concentration
- Substantially all inventory sourced from Chinahigh
JAKKS contracts the manufacture of most products to unaffiliated manufacturers in China and purchases substantially all inventory from Chinese companies, exposing it to supply disruption, quality, and pricing risk concentrated in one country (its Hong Kong operation is foundational).
“We purchase substantially all of our inventory from companies in China, and, therefore, we are subject to the risk that such suppliers will be unable to provide inventory at competitive prices and quality.”
Key person
- Dependence on CEO Stephen G. Bermanmedium
JAKKS depends on its Chairman and CEO Stephen G. Berman, and the loss or interruption of his services could adversely affect its business, results of operations, and financial condition.
“We depend upon our Chief Executive Officer and any loss or interruption of his services could adversely affect our business, results of operations and financial condition.”
SEC filing →As of 2026
Regulatory & policy
- U.S. tariffs on China-sourced toys cutting demand and raising costsmedium
The 2025 U.S. tariffs on China-sourced products both reduced customer demand (via higher unit prices) and raised JAKKS' import cost base; its Costumes segment sales fell 10.2% as U.S. customers cut orders over tariffs.
“The sudden imposition of tariffs in 2025 in the US on products sourced from China similarly reduced customer demand for our product in reaction to the increased cost per unit, while similarly increasing our cost base for product we import for sale in the US out of our US warehouse location.”
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
“Our three largest customers are Target®, Walmart® and Amazon®, which accounted for 29.6%, 24.2% and 10.6%, respectively, of our net sales in 2024.”
Cited →“Our three largest customers are Target®, Walmart® and Amazon®, which accounted for 29.6%, 24.2% and 10.6%, respectively, of our net sales in 2024.”
Cited →“Walmart® (*) 149,206 26.1 180,719 26.2”
Cited →“Our three largest customers are Target®, Walmart® and Amazon®, which accounted for 29.6%, 24.2% and 10.6%, respectively, of our net sales in 2024.”
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