Hasbro reported financial results for the first quarter 2025
“Hasbro’s Playing to Win strategy is delivering in a challenging environment. We’re outperforming today and building for tomorrow through disciplined execution, standout partnerships like our extended Disney agreement, and future-focused bets that are already paying off,” said Chris Cocks, Hasbro Chief Executive Officer.
“We delivered strong revenue growth and a meaningful profit lift in Q1, driven by a strategic shift toward higher-margin businesses. As we progress toward our $1 billion cost savings goal, the strength of Wizards, licensing, and our asset-light model continues to offset tariff pressures and support margins,” said Gina Goetter, Chief Financial Officer and Chief Operating Officer at Hasbro.
First Quarter 2025 Highlights
- Hasbro, Inc. first quarter revenue increased 17% driven by 46% growth in the Wizards and Digital Gaming segment. Consumer Products declined 4%, outperforming expectations.
- Operating profit reached $171 million (19.2% margin); Adjusted operating profit was $222 million, up $74 million with 25.1% margin (+5.5 points), driven by revenue growth and favorable mix.
- Tariffs had no material impact on Q1 results due to timing of implementation.
- EPS was $0.70 per diluted share reported and $1.04 per diluted share adjusted, reflecting stronger mix and profitability.
- Operating cash flow was $138 million vs. $178 million last year, reflecting accounts receivable timing.
- Returned $98 million to shareholders via dividends and reduced debt by $50 million.
First Quarter 2025 Segment Details
- Wizards of the Coast and Digital Gaming Segment
- Revenue increased 46% behind strong growth in MAGIC: THE GATHERING, ongoing momentum in digital and licensed gaming and DUNGEONS & DRAGONS.
- MAGIC: THE GATHERING revenue increased 45% with growth in tabletop and ARENA.
- Monopoly Go! contributed $39M of revenue in the quarter.
- Operating profit increased 87% and operating margin was 49.8%, up 11.0 points due to business mix.
Consumer Products Segment
- Revenue decrease of 4% beating expectations, driven by strong licensing performance.
- Operating margin of -11.0%; Adjusted margin improved +1.4 points to -7.8% as lower operating expenses were offset by higher royalties and advertising.
- Growth across key brands including MARVEL, BEYBLADE, TRANSFORMERS, MONOPOLY and licensed products.
Entertainment Segment
- Revenues declined 5% in the quarter related to the timing of deals.
- Operating loss of $11 million compared to operating profit of $6 million in the first quarter 2024.
- Adjusted operating profit of $17 million compared to adjusted operating profit of $18 million in the first quarter 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
The Company is not changing its full year guidance issued on February 20, 2025, given the uncertainty of the current tariff environment. The Company’s capital allocation priorities are 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 first 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 June 4, 2025, to shareholders of record at the close of business on May 21, 2025.
Find more information in the source description.