Spin Master reports strong Q2 2026 results
Spin Master reported a strong second quarter of 2026, with revenue and profitability improving significantly compared with the same period last year. The company said the results were driven by solid sales of core brands, including PAW Patrol and Monster Jam, as well as new products.
- Revenue rose 8.9% to US$436.4 million, compared with US$400.7 million in Q2 2025.
- Operating income reached US$45.7 million, compared with an operating loss of US$52.4 million a year earlier.
- Net income was US$29.7 million, or US$0.29 per diluted share, versus a net loss of US$46.5 million, or US$0.46 per diluted share, in Q2 2025.
- Adjusted EBITDA increased to US$51.6 million, up US$22.9 million, while the adjusted EBITDA margin improved to 11.8% from 7.2%.
- Free cash flow improved to US$19.2 million, compared with negative US$15.2 million in the prior-year quarter.
The Toys segment was the main driver of the improvement. Toy revenue increased 12.0% to US$361.1 million, while Toy Gross Product Sales rose 11.5% to US$413.7 million. The company said shipments ahead of the theatrical release of PAW Patrol: The Dino Movie contributed to the increase. Results in the prior-year quarter had also been affected by a slowdown in U.S. retailer orders related to global tariff policies.
The Entertainment segment generated US$31.2 million in revenue, down 2.8%, primarily due to lower ongoing distribution revenue from PAW Patrol: The Mighty Movie. Digital Games revenue declined 4.8% to US$44.1 million, mainly because of lower in-game purchases in Toca Boca World, although strategic distribution partnerships partly offset the decline.
Spin Master also highlighted its cash generation and capital allocation. During Q2, the company repurchased and cancelled 697,358 subordinate voting shares for US$9.3 million. It subsequently repurchased another 95,681 shares for US$1.5 million. The company also declared a quarterly dividend of C$0.12 per share, payable October 9, 2026.
For the full year 2026, Spin Master reiterated its existing outlook, continuing to expect revenue growth ranging from stable to low single digits compared with 2025 and adjusted EBITDA growth in the mid- to high-single-digit range.
CEO Christina Miller said the company remains focused on innovation, expanding into collectibles and strategic trading cards, and increasing the global reach of its brands across retail, screen and online platforms. CFO Jonathan Roiter said the strong free cash flow has allowed Spin Master to return capital to shareholders while reducing debt; since the Melissa & Doug acquisition, the company says it has reduced gross debt by more than US$350 million and returned almost US$200 million in capital to shareholders.