Hasbro reported financial results for the fourth quarter and full year 2025
CEO Chris Cocks said 2025 marked a return to growth under the Playing to Win strategy, with one billion fans engaged, new partnerships secured, and continued progress toward becoming a digital-first play and IP company. CFO/COO Gina Goetter highlighted strong execution and transformation-driven cost savings, record MAGIC performance, and a balanced approach to investment and shareholder returns, including a $1.0 billion share repurchase program.
Full Year 2025 Highlights
Revenue increased 14%, driven by 45% growth in Wizards of the Coast and Digital Gaming. Consumer Products declined 4% and Entertainment declined 4%.
MAGIC: THE GATHERING had its strongest year ever, up 59% vs. PY, supported by a successful Q4 Avatar: The Last Airbender set and strength in backlist and Secret Lair.
Operating profit was $11 million with a 0.2% margin, reflecting a Q2 2025 non-cash goodwill impairment.
Adjusted operating profit rose 36% to $1,140 million, with a 24.2% margin (+3.9 points vs. PY), driven by favorable mix and cost transformation benefits.
Reported net loss was $2.30 per share; adjusted net earnings were $5.54 per diluted share.
$393 million was returned to shareholders via dividends.
EBITDA was $197 million; adjusted EBITDA was $1.36 billion, ahead of guidance.
$225 million was spent on debt reduction through bond repurchases and prefunding maturities, achieving debt targets early.
Operating cash flow increased to $893 million from $847 million, reflecting improved profitability.
Segment Performance
Wizards of the Coast and Digital Gaming revenue grew 45%, with MAGIC up 59%. Digital and Licensed Gaming rose 6%, with Monopoly Go! contributing $168 million. Operating profit increased 59% to $1,007 million, with a 46.0% margin.
Consumer Products revenue decreased 4%, impacted by retail order timing. Growth was seen in PEPPA PIG, HASBRO GAMING, TRANSFORMERS, Marvel, and Beyblade. Operating loss of $943 million included the Q2 goodwill impairment. Adjusted operating profit declined 26% to $113 million due to lower revenue and tariff costs.
Entertainment revenue declined 4% due to lower digital and ad revenues. Operating margin was 0.5%; adjusted operating margin was 51.4%, down vs. PY.
Fourth Quarter 2025 Highlights
Revenue increased 31% vs. PY, with Wizards and Digital Gaming up 86% and Consumer Products up 7%, partially offset by a 5% decline in Entertainment.
Operating profit was $298 million (+$238 million vs. PY) with a 20.6% margin.
Adjusted operating profit was $315 million (+$202 million vs. PY) with a 21.8% margin, up approximately 12 points vs. last year.
Net earnings were $1.41 per diluted share; adjusted net earnings were $1.51 per diluted share.
See financial tables for GAAP to non-GAAP reconciliation.
2026 Outlook
For full year 2026, the Company expects:
– Revenue growth of 3%-5% in constant currency.
– Adjusted operating margin of 24%-25%.
– Adjusted EBITDA of $1.40 billion to $1.45 billion.
Capital Allocation Priorities 2026
– Invest in the core business.
– Return cash to shareholders through dividends and share repurchases, including a new $1.0 billion authorization replacing the 2018 program.
– Continue debt reduction.
Dividend
A quarterly cash dividend of $0.70 per common share was declared, payable March 4, 2026, to shareholders of record as of February 18, 2026.
Conference Call
The Q4 and full year 2025 earnings call will be webcast at 8:30 a.m. ET, with replay available approximately two hours after completion.