Squishmallows parent Jazwares reports record Q1 2026 with $1.2 billion revenue
Squishmallows drive 34% revenue growth
Jazwares, the parent company behind the Squishmallows phenomenon, has reported record first-quarter earnings for 2026, with revenue reaching $1.2 billion — a 34% increase over Q1 2025. The results cement Squishmallows' position as the world's best-selling plush brand for the third consecutive year.
CEO Judd Zebersky attributed the growth to three key factors: expansion into new retail channels across Asia, the launch of the Squishmallows Collector's Vault premium line, and a strategic partnership with Netflix for a Squishmallows animated series debuting this autumn.
"We are not just selling plush anymore — we are building a lifestyle brand. The emotional connection people have with Squishmallows transcends the product." — Judd Zebersky, Jazwares CEO
New distribution deals
The quarter saw Jazwares finalise distribution agreements with major retailers in Japan, South Korea, and Brazil — three markets where Squishmallows had limited presence until now. The Japanese launch through Don Quijote and Loft stores has been particularly strong, with initial shipments selling out within 72 hours.
In the UK, Squishmallows expanded into Primark with exclusive colourways, driving a 45% increase in UK sales. The brand also deepened its presence at Target and Five Below in the US, where it now commands an entire aisle in most locations.
The Collector's Vault effect
Launched in February, the Collector's Vault line — featuring premium fabrics, numbered certificates, and display cases — has exceeded expectations. Priced between $35 and $85 (compared to $12-$25 for standard Squishmallows), the Vault line accounted for 12% of total revenue despite representing only 3% of unit sales.
Analysts at Goldman Sachs upgraded their price target for Jazwares' publicly traded parent company, citing the Vault line's margins as "transformative for the plush category." The premium plush segment is now the fastest-growing corner of the $14.8 billion global plush market.
What collectors should know
For collectors, the Q1 results suggest that Squishmallows will continue its aggressive release cadence — Jazwares confirmed 180 new characters planned for the remainder of 2026, including licensed collaborations with Disney, Sanrio, and for the first time, Studio Ghibli.
The Studio Ghibli collaboration, expected in Q3, will feature characters from Spirited Away and My Neighbour Totoro. Given the overlap between Ghibli fans and plush collectors, these are expected to be among the most sought-after releases of the year.
Secondary market prices for rare Squishmallows remain elevated, with the 2024 Halloween Brina selling for $340 on average — a 6x premium over retail. The Collector's Vault line may help absorb some premium-seeking demand, but limited runs ensure scarcity remains a key driver of value.