Hasbro Reports Second Quarter 2025 Financial Results

Wizards of the Coast Momentum Drives Adjusted Net Earnings Growth, Fuels Upgraded Outlook

Hasbro, Inc. (NASDAQ:HAS), a leading games, IP, and toy company, today reported financial results for the second quarter 2025.

"Hasbro's return to growth in the first half of 2025 is clear validation that our Playing to Win strategy is working," said Chris Cocks, Chief Executive Officer, Hasbro, Inc. "We delivered record-setting results from MAGIC: THE GATHERING, alongside strong contributions from our games portfolio, licensing partnerships, and digital initiatives. With this momentum, we're increasing our full-year outlook and positioning Hasbro for sustained growth in 2025 and beyond."

"We are raising our full-year revenue and adjusted EBITDA guidance, fueled by performance in our Wizards business. Despite a dynamic macro environment, the strength of our diversified business and cost productivity initiatives support our updated outlook," said Gina Goetter, Hasbro Chief Financial Officer and Chief Operating Officer.

Second Quarter 2025 Results

• Hasbro, Inc.'s revenue decreased 1%, with growth in Wizards and Digital Gaming nearly offsetting the decline in Consumer Products.
• MAGIC: THE GATHERING revenue grew 23% driven by the release of Final Fantasy, which set the record as being the biggest set release in Wizards history.
• Operating loss of $798 million includes a $1.0 billion non-cash goodwill impairment.
• Adjusted operating profit was $247 million stable year-over-year, reflecting the strength of MAGIC and a more efficient cost structure.
• Reported net loss of $6.10 per share and Adjusted net earnings of $1.30 per diluted share, an $0.08 improvement year over year.
• Returned $98 million to shareholders via dividends and reduced $12 million of outstanding debt.

Second Quarter 2025 Segment Details

• Wizards of the Coast and Digital Gaming Segment
  • Revenue increased 16% behind record growth in MAGIC: THE GATHERING and contributions from Monopoly Go!.
  • MAGIC: THE GATHERING revenue increased 23% with growth in tabletop fueled by Final Fantasy and continued momentum in Secret Lair and backlist products.
  • Monopoly Go! contributed $44M of revenue in the quarter.
  • Operating profit decreased (-2%) driven by expected higher royalty expense; operating margin was 46.3%, down 8.4 points year over year.
• Consumer Products Segment
  • Revenue decrease of 16% as growth in licensing was more than offset by anticipated softness in Toys driven by retailer order timing and geographic volatility.
  • Growth across key brands including BEYBLADE, TRANSFORMERS, MONOPOLY and licensed products.
  • Operating loss of $1,030 million includes $1.0 billion non-cash goodwill impairment.
  • Adjusted operating profit of $1.2 million, with cost productivity within supply chain and managed expenses offsetting volume deleverage.
• Entertainment Segment
  • Revenues declined 15% in the quarter related to the nature and timing of deals.
  • Operating profit of $6 million compared to an operating loss of $1 million in the second quarter 2024.
  • Adjusted operating profit of $10 million compared to adjusted operating profit of $18 million in the second quarter 2024.

Year to Date 2025 Results

• Year to date Hasbro, Inc. revenue increased 7%, with continued growth in Wizards and Digital Gaming (+28%) offsetting declines in Consumer Products (-10%).
• Operating loss of $628 million includes $1.0 billion of non-cash goodwill impairment.
• Adjusted operating profit of $470 million benefited from favorable business mix and reduced operating expenses.
• Reported net loss of $5.41 per share and Adjusted net earnings of $2.35 per diluted share, a $0.52 improvement versus the same period last year.
• Returned $196 million to shareholders via dividends and reduced debt by $62 million.

Year to Date Quarter 2025 Segment Details

• Wizards of the Coast and Digital Gaming Segment
  • Revenue increased 28% due to momentum in MAGIC: THE GATHERING and contributions from Monopoly Go!.
  • MAGIC: THE GATHERING revenue increased 32% with growth in tabletop.
  • Year to date Monopoly Go! contributed $83M of revenue.
  • Operating profit increased 28% and operating margin was 47.9%, flat compared to the same period last year.
• Consumer Products Segment
  • Revenue decrease of 10% in line with expectations, with growth in licensing offset by declines in Toy due to the timing of retail orders.
  • Growth across key brands including MARVEL, BEYBLADE, TRANSFORMERS, MONOPOLY and licensed products.
  • Operating loss of $1,074 million includes non-cash goodwill impairment.
  • Adjusted operating loss of $30 million, a 22% improvement versus the same period in 2024 as improved expenses are helping to offset volume deleverage.
• Entertainment Segment
  • Revenues declined 9% in the period related to the timing of deals.
  • Operating loss of $5 million compared to operating profit of $5 million in the same period last year.
  • Adjusted operating profit of $28 million compared to adjusted operating profit of $36 million year to date 2024.

See the financial tables accompanying the press release for a reconciliation of GAAP to non-GAAP financial measures.

2025 Company Outlook and Capital Allocation

For the full year, the Company now expects:

• Total Hasbro revenues up mid-single digits in constant currency (previously up slightly).
• Adjusted operating margin of 22%-23% (previously 21% to 22%).
• Adjusted EBITDA of $1.17 billion to $1.20 billion (previously $1.1 billion to $1.15 billion).

The Company's capital allocation priorities remain to invest in the core business; strengthen its balance sheet and progress towards its leverage target; and return cash to shareholders.

Dividend Announcement

During the second quarter, the Company paid $98 million in cash dividends to shareholders. The Board of Directors has declared a quarterly cash dividend of $0.70 per common share payable on September 3, 2025, to shareholders of record at the close of business on August 20, 2025.

Conference Call Webcast

Hasbro will webcast its second quarter 2025 earnings conference call at 8:30 a.m. Eastern Time today. To listen to the live webcast and access the accompanying presentation slides, please go to https://investor.hasbro.com. The replay of the call will be available on Hasbro's website approximately 2 hours following completion of the call.

About Hasbro

Hasbro is a leading games, IP and toy company whose mission is to create joy and community through the magic of play. With over 100 years of expertise, Hasbro delivers groundbreaking play experiences and reaches over 500 million kids, families and fans around the world, through physical and digital games, video games, toys, licensed consumer products, location-based entertainment, film, TV and more.

Through its franchise-first approach, Hasbro unlocks value from both new and legacy IP, including MAGIC: THE GATHERING, DUNGEONS & DRAGONS, MONOPOLY, HASBRO GAMES, NERF, TRANSFORMERS, PLAY-DOH and PEPPA PIG, as well as premier partner brands. Powered by its portfolio of thousands of iconic marks and a diversified network of partners and subsidiary studios, Hasbro brings fans together wherever they are, from tabletop to screen.

For more than a decade, Hasbro has been consistently recognized for its corporate citizenship, including being named one of the 100 Best Corporate Citizens by 3BL Media, a 2025 JUST Capital Industry Leader, one of the 50 Most Community-Minded Companies in the U.S. by the Civic 50, and a Brand that Matters by Fast Company. For more information, visit https://corporate.hasbro.com or @Hasbro on LinkedIn.

© 2025 Hasbro, Inc. All Rights Reserved.

Forward Looking Statement Safe Harbor

Certain statements in this press release contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be identified by the use of forward-looking words or phrases, include statements relating to our business strategies and plans; expectations relating to products, gaming and entertainment; anticipated impact of tariffs, including reciprocal and retaliatory tariffs; anticipated cost savings; and financial targets and guidance. Our actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties. Factors that might cause such a difference include, but are not limited to:

• our ability to successfully implement and execute on our Playing to Win business strategy;
• our ability to successfully compete in the play industry and further develop our digital gaming, licensing business and partnerships;
• risks associated with the imposition, threat or uncertainty of tariffs, including reciprocal or retaliatory tariffs, in markets in which we operate which could increase our product costs and other costs of doing business, result in higher prices of our products, impact consumer spending, lower our revenues, result in goodwill impairments, reduce earnings and otherwise have an adverse impact on our business;
• risks associated with international operations, such as: the imposition or threat of tariffs; conflict in territories in which we operate or which affect areas in which we operate; currency conversion; currency fluctuations; quotas; shipping delays or difficulties; border adjustment taxes or other protectionist measures; and other challenges in the territories in which we operate;
• risks related to political, economic and public health conditions or regulatory changes in the markets in which we and our customers, partners, licensees, suppliers and manufacturers operate, such as inflation, fluctuating interest rates, tariffs, higher commodity prices, labor strikes, labor costs or transportation costs, or outbreaks of illness or disease, the occurrence of which could create work slowdowns, delays or shortages in production or shipment of products, increases in costs, reduced purchasing power or less discretionary income, or losses and delays in revenue and earnings;
• uncertain and unpredictable global and regional economic conditions impacting one or more of the markets in which we sell products, which can negatively impact our customers and consumers, result in lower employment levels, consumer disposable income, retailer inventories and spending, including lower spending on purchases of our products;
• our ability to transform our business and capabilities to address the changing global consumer landscape, including evolving demographics for our products and advancements in emerging technologies, including the integration of artificial intelligence (AI) into our product development, marketing strategies, business operations and consumer engagement, and the associated risks such as ethical concerns, evolving regulatory standards, implementation challenges, and third-party dependencies;
• our ability to design, develop, manufacture, and ship products on a timely, cost-effective and profitable basis;
• the concentration of our customers, potentially increasing the negative impact to our business of difficulties experienced by any of our customers or changes in their purchasing or selling patterns;
• our dependence on third party relationships, including with third party partners, manufacturers, distributors, studios, content producers, licensors, licensees, and outsourcers, which creates reliance on others and loss of control;
• risks relating to the concentration of manufacturing for many of our products in the People's Republic of China, which include the risks associated with increased tariffs imposed by China and the U.S., and our ability to successfully diversify sourcing of our products to reduce reliance on sources of supply in China;
• the success of our key partner brands, including the ability to secure, maintain and extend agreements with our key partners or the risk of delays, increased costs or difficulties associated with any of our or our partners' planned digital applications or media initiatives;
• our ability to attract and retain talented and diverse employees, particularly following recent workforce reductions;
• our ability to realize the benefits of cost-savings and efficiency and/or revenue and operating profit enhancing initiatives;
• risks relating to the impairment and/or write-offs of businesses, products and content we acquire and/or produce;
• the risk that acquisitions, dispositions and other investments we complete may not provide us with the benefits we expect, or the realization of such benefits may be significantly delayed;
• our ability to protect our assets and intellectual property, including as a result of infringement, theft, misappropriation, cyber-attacks or other acts compromising the integrity of our assets or intellectual property;
• fluctuations in our business due to seasonality;
• the risk of product recalls or product liability suits and costs associated with product safety regulations;
• changes in accounting treatment, tax laws or regulations, or the interpretation and application of such laws and regulations, which may cause us to alter reserves or make other changes which significantly impact our reported financial results;
• the impact of litigation or arbitration decisions or settlement actions;
• the bankruptcy or other lack of success of one or more of our significant retailers, licensees and other partners; and
• other risks and uncertainties as may be detailed in our public announcements and U.S. Securities and Exchange Commission ("SEC") filings.

The statements contained herein are based on our current beliefs and expectations. We undertake no obligation to make any revisions to the forward-looking statements contained in this press release or to update them to reflect events or circumstances occurring after the date of this press release.

Non-GAAP Financial Measures

The financial tables accompanying this press release include non-GAAP financial measures as defined under SEC rules, specifically Adjusted operating profit, Adjusted operating margin, Adjusted net earnings and Adjusted net earnings per diluted share, which exclude, where applicable, acquired intangible amortization, strategic transformation initiatives, restructuring and severance costs, loss on disposal of business, eOne Film and TV business divestiture related costs, and non-cash goodwill impairment charges. Also included in this press release are the non-GAAP financial measures of EBITDA and Adjusted EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding interest expense, income tax expense, net earnings attributable to noncontrolling interests, depreciation and amortization of intangibles. Adjusted EBITDA also excludes strategic transformation initiatives, restructuring and severance costs, loss on disposal of business, eOne Film and TV business divestiture related costs, non-cash goodwill impairment charges, and the impact of stock compensation. As required by SEC rules, we have provided reconciliations on the attached schedules of these measures to the most directly comparable GAAP measure. Management believes that Adjusted net earnings, Adjusted net earnings per diluted share, Adjusted operating profit and Adjusted operating margin provide investors with an understanding of the underlying performance of our business absent unusual events. Management believes that EBITDA and Adjusted EBITDA are appropriate measures for evaluating the operating performance of our business because they reflect the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet and make strategic acquisitions. The Company is not able to reconcile its forward-looking non-GAAP adjusted operating margin and adjusted EBITDA measures because the Company cannot predict with certainty the timing and amounts of discrete items such as charges associated with its cost-savings program, which could impact GAAP results. Constant currency is also a non-GAAP financial measure. The impact of changes in foreign currency exchange rates used to translate the consolidated statements of operations is quantified by translating the current or future period revenues at the prior period exchange rates and comparing this amount to the prior period reported revenues. The Company believes that the presentation of the impact of changes in exchange rates, which are beyond the Company's control, is helpful to an investor's understanding of the performance of the underlying business. These non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, net earnings or other measures of financial performance prepared in accordance with GAAP as more fully discussed in our consolidated financial statements and filings with the SEC. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America.

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