JAKKS Pacific, Inc. (NASDAQ: JAKK) announced a partnership with COVER Corporation, the Japanese public company that owns the hololive production brand, to develop and distribute officially licensed hololive consumer products in the United States. The agreement will bring a range of figures, plush toys, novelty items and role‑play products featuring popular hololive VTubers Mori Calliope, Takanashi Kiara and Ninomae Ina’nis to North American fans.
The first wave of products is slated to launch in 2027, with plans to expand the talent roster, product categories and territories in subsequent years. JAKKS will design, manufacture, market and sell the merchandise through venue and event sales, its direct‑to‑consumer platforms and select retail partners, creating a multi‑channel distribution strategy that mirrors the company’s existing model for other licensed brands.
JAKKS Pacific’s recent financial performance provides context for the partnership. In Q4 2025 the company reported net sales of $127.1 million, a 3% decline year‑over‑year, and a net loss of $5.3 million. Gross margin improved to 31.0% from 30.0% in the prior year, driven by better costing and inventory management. Segment data show that Toys/Consumer Products net sales were $118.0 million, essentially flat YoY, while Costumes net sales fell 28%. The company’s balance sheet remains strong, with no debt and significant cash reserves, positioning it to invest in new product lines.
The partnership is a strategic move that taps into the rapidly expanding VTuber merchandise market, which is driven by hololive’s 80 million‑plus YouTube subscriber base across Japanese, Indonesian and English‑speaking audiences. CEO Stephen Berman highlighted JAKKS Pacific’s focus on profitability and cost control, noting that the company’s highest full‑year gross margin in over 15 years was achieved in 2025 through improved factory costing and inventory management. The deal aligns with JAKKS Pacific’s goal of diversifying beyond traditional toys and costumes and leveraging its global distribution network to reach a dedicated fanbase.
The first product wave will begin in 2027, with the company planning to broaden the talent roster and product categories in subsequent years. The partnership is expected to generate a new revenue stream and enhance brand exposure, while the company’s strong balance sheet and disciplined cost structure should support the investment without compromising core operations.
The content on EveryTicker is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.