Hasbro Reports Q1 Financial Results
MAGIC: THE GATHERING Drives Growth in Revenue, Operating Profit and Net Earnings
Reiterates 2026 Guidance and Declares Dividend
Pawtuckett, RI — Hasbro reported financial results for the first quarter 2026.
“The first quarter was a strong start to the year and reflects tailwinds from our Playing to Win strategy,” said Chris Cocks, Hasbro Chief Executive Officer. “Wizards continues to break records, supported by Magic the Gathering’s flywheel of player growth and expanded distribution. In Consumer Products, we delivered another quarter of growth in our toy and game business, and remain on track to grow the entire segment for the full year 2026.”
“Our first quarter results demonstrate continued top-line momentum and disciplined execution,” said Gina Goetter, Hasbro Chief Financial Officer and Chief Operating Officer. “We remain focused on delivering our annual objectives by driving operating leverage, investing behind our highest-return brands, and returning cash to shareholders as we build on this solid start to the year.”
First Quarter 2026 Results
- Hasbro, Inc.’s revenue increased 13% vs. LY, driven by growth in Wizards and Digital Gaming (+26%) and flat Consumer Products revenues, partially offset by a decline in Entertainment (-24%).
- Operating profit was $270 million (+58% vs. LY) and Adjusted operating profit was $287 million, (+29% vs. LY) reflecting a strong topline and favorable mix.
- Reported net earnings were $1.39 per diluted share and Adjusted net earnings per diluted share were $1.47.
- Returned $106 million to shareholders through the quarterly dividend and share repurchases.
- During the quarter, the Company deployed $96 million toward debt reduction including the issuance of $400 million of new notes. The proceeds of which will be used to fully repay its November 2026 maturities, with the balance applied to the repurchase of higher-rate, longer-dated securities.
First Quarter 2026 Segment Details
- Wizards and Digital Gaming Segment
- Revenue increased 26%, led by MAGIC: THE GATHERING (+36%). Digital and licensed gaming grew 3%.
- MAGIC: THE GATHERING growth was fueled by Q1 releases of Lorwyn Eclipsed and Teenage Mutant Ninja Turtles Universes Beyond, along with continued strength in backlist titles.
- Monopoly Go! contributed $41 million of revenue in the first quarter.
- Operating profit of $298 million (+29% vs. LY), with a 51% operating margin, reflects the benefit of scale and favorable business mix.
- Consumer Products Segment
- Revenues were flat and reflect share growth in key GEM2 categories offset by challenging licensing compares in the prior year.
- Q1 highlights include growth in Star Wars toys and games with momentum building ahead of The Mandalorian and Grogu movie.
- Operating loss of $48 million and Adjusted operating loss of $41 million (-31% vs. LY) reflects normal seasonality, incremental tariff expense and challenging licensing compares in the prior year.
- Entertainment Segment
- Revenue decline of 24% related to the nature and timing of deals.
- Operating profit of $17 million and Adjusted operating profit of $20 million up 17% due to lower royalty expense.
See the financial tables accompanying the press release for a reconciliation of GAAP to non-GAAP financial measures.
2026 Company Outlook and Capital Allocation
For the full year, the Company continues to expect:
- Total Hasbro revenue up 3-5% in constant currency.
- Adjusted operating margin of 24-25%.
- Adjusted EBITDA of $1.40 billion to $1.45 billion.
2026 Capital Allocation priorities:
- Invest in core business.
- Return cash to shareholders through dividends and share repurchases.
- Continue to pay down debt.
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HASBRO, INC. |
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|
CONDENSED CONSOLIDATED BALANCE SHEETS (1) |
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|
(Unaudited) |
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|
(Millions of Dollars) |
|||||
|
|
March 29, 2026 |
|
March 30, 2025 |
||
|
ASSETS |
|
|
|
||
|
Current Assets: |
|
|
|
||
|
Cash and cash equivalents |
$ |
857.1 |
|
$ |
621.1 |
|
Short-term investments |
|
498.2 |
|
|
— |
|
Accounts receivable, net |
|
712.6 |
|
|
656.6 |
|
Inventories |
|
280.5 |
|
|
295.8 |
|
Prepaid expenses and other current assets |
|
416.6 |
|
|
339.3 |
|
Total current assets |
|
2,765.0 |
|
|
1,912.8 |
|
Property, plant and equipment, net |
|
393.9 |
|
|
293.6 |
|
Goodwill |
|
1,256.5 |
|
|
2,278.4 |
|
Other intangible assets, net |
|
441.2 |
|
|
503.1 |
|
Other assets |
|
1,073.7 |
|
|
1,052.1 |
|
Total assets |
$ |
5,930.3 |
|
$ |
6,040.0 |
|
|
|
|
|
||
|
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS’ EQUITY |
|||||
|
Current Liabilities: |
|
|
|
||
|
Current portion of long-term debt |
$ |
497.0 |
|
$ |
— |
|
Accounts payable |
|
280.7 |
|
|
284.8 |
|
Accrued liabilities |
|
893.7 |
|
|
871.2 |
|
Total current liabilities |
|
1,671.4 |
|
|
1,156.0 |
|
Long-term debt |
|
3,094.9 |
|
|
3,331.5 |
|
Other liabilities |
|
489.8 |
|
|
355.0 |
|
Total liabilities |
|
5,256.1 |
|
|
4,842.5 |
|
Total shareholders’ equity |
|
674.2 |
|
|
1,197.5 |
|
Total liabilities, noncontrolling interests and shareholders’ equity |
$ |
5,930.3 |
|
$ |
6,040.0 |
|
(1) Amounts may not sum due to rounding |
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HASBRO, INC. |
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CONSOLIDATED STATEMENTS OF OPERATIONS (1) |
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(Unaudited) |
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(Millions of Dollars and Shares Except Per Share Data) |
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|
Three Months Ended |
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|
March 29, 2026 |
|
March 30, 2025 |
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|
Amount |
|
% of Net Revenues |
|
Amount |
|
% of Net Revenues |
||||||
|
Net revenues |
$ |
1,000.2 |
|
|
100.0 |
% |
|
$ |
887.1 |
|
|
100.0 |
% |
|
Costs and expenses: |
|
|
|
|
|
|
|
||||||
|
Cost of sales |
|
236.1 |
|
|
23.6 |
% |
|
|
204.5 |
|
|
23.1 |
% |
|
Program cost amortization |
|
4.0 |
|
|
0.4 |
% |
|
|
7.4 |
|
|
0.8 |
% |
|
Royalties |
|
77.7 |
|
|
7.8 |
% |
|
|
57.0 |
|
|
6.4 |
% |
|
Product development |
|
78.0 |
|
|
7.8 |
% |
|
|
80.5 |
|
|
9.1 |
% |
|
Advertising |
|
60.4 |
|
|
6.0 |
% |
|
|
55.4 |
|
|
6.2 |
% |
|
Amortization of intangible assets |
|
14.6 |
|
|
1.5 |
% |
|
|
17.0 |
|
|
1.9 |
% |
|
Loss on disposal of business |
|
— |
|
|
— |
% |
|
|
25.0 |
|
|
2.8 |
% |
|
Selling, distribution and administration |
|
259.1 |
|
|
25.9 |
% |
|
|
269.6 |
|
|
30.4 |
% |
|
Total costs and expenses |
|
729.9 |
|
|
73.0 |
% |
|
|
716.4 |
|
|
80.8 |
% |
|
Operating profit |
|
270.3 |
|
|
27.0 |
% |
|
|
170.7 |
|
|
19.2 |
% |
|
Non-operating expense: |
|
|
|
|
|
|
|
||||||
|
Interest expense |
|
41.8 |
|
|
4.2 |
% |
|
|
41.6 |
|
|
4.7 |
% |
|
Interest income |
|
(10.1 |
) |
|
(1.0 |
)% |
|
|
(8.9 |
) |
|
(1.0 |
)% |
|
Other (income) expense, net |
|
(5.5 |
) |
|
(0.5 |
)% |
|
|
1.4 |
|
|
0.2 |
% |
|
Total non-operating expense, net |
|
26.2 |
|
|
2.6 |
% |
|
|
34.1 |
|
|
3.8 |
% |
|
Earnings before income taxes |
|
244.1 |
|
|
24.4 |
% |
|
|
136.6 |
|
|
15.4 |
% |
|
Income tax expense |
|
44.6 |
|
|
4.5 |
% |
|
|
37.1 |
|
|
4.2 |
% |
|
Net earnings |
|
199.5 |
|
|
19.9 |
% |
|
|
99.5 |
|
|
11.2 |
% |
|
Net earnings attributable to noncontrolling interests |
|
1.1 |
|
|
0.1 |
% |
|
|
0.9 |
|
|
0.1 |
% |
|
Net earnings attributable to Hasbro, Inc. |
$ |
198.4 |
|
|
19.8 |
% |
|
$ |
98.6 |
|
|
11.1 |
% |
|
|
|
|
|
|
|
|
|
||||||
|
Net earnings per common share: |
|
|
|
|
|
|
|
||||||
|
Basic |
$ |
1.41 |
|
|
|
|
$ |
0.71 |
|
|
|
||
|
Diluted |
$ |
1.39 |
|
|
|
|
$ |
0.70 |
|
|
|
||
|
Cash dividends declared per common share |
$ |
0.70 |
|
|
|
|
$ |
0.70 |
|
|
|
||
|
Weighted average number of shares |
|
|
|
|
|
|
|
||||||
|
Basic |
|
140.8 |
|
|
|
|
|
139.8 |
|
|
|
||
|
Diluted |
|
143.2 |
|
|
|
|
|
141.0 |
|
|
|
||
|
(1) Amounts may not sum due to rounding |
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HASBRO, INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (1) |
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|
(Unaudited) |
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|
(Millions of Dollars) |
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|
|
Three months ended |
||||||
|
|
March 29, 2026 |
|
March 30, 2025 |
||||
|
Cash flows from operating activities: |
|
|
|
||||
|
Net earnings |
$ |
199.5 |
|
|
$ |
99.5 |
|
|
Loss on disposal of business |
|
— |
|
|
|
25.0 |
|
|
Other non-cash adjustments |
|
72.8 |
|
|
|
77.9 |
|
|
Changes in operating assets and liabilities |
|
65.4 |
|
|
|
(64.3 |
) |
|
Net cash provided by operating activities |
|
337.7 |
|
|
|
138.1 |
|
|
|
|
|
|
||||
|
Cash flows from investing activities: |
|
|
|
||||
|
Additions to property, plant and equipment |
|
(22.2 |
) |
|
|
(13.8 |
) |
|
Additions to software development |
|
(27.7 |
) |
|
|
(29.4 |
) |
|
Purchase of investments |
|
(423.0 |
) |
|
|
(10.0 |
) |
|
Other |
|
0.8 |
|
|
|
0.8 |
|
|
Net cash utilized by investing activities |
|
(472.1 |
) |
|
|
(52.4 |
) |
|
|
|
|
|
||||
|
Cash flows from financing activities: |
|
|
|
||||
|
Proceeds from borrowings |
|
399.4 |
|
|
|
— |
|
|
Repayments of borrowings |
|
(68.4 |
) |
|
|
(49.2 |
) |
|
Repurchases of common stock |
|
(7.7 |
) |
|
|
— |
|
|
Share-based compensation transactions |
|
37.7 |
|
|
|
3.8 |
|
|
Dividends paid |
|
(98.5 |
) |
|
|
(97.9 |
) |
|
Payments related to tax withholding for share-based compensation |
|
(41.5 |
) |
|
|
(17.7 |
) |
|
Payments of financing costs |
|
(4.1 |
) |
|
|
— |
|
|
Other |
|
(1.8 |
) |
|
|
(1.4 |
) |
|
Net cash provided (utilized) by financing activities |
|
215.1 |
|
|
|
(162.4 |
) |
|
Effect of exchange rate changes on cash |
|
(0.2 |
) |
|
|
2.8 |
|
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
80.5 |
|
|
|
(73.9 |
) |
|
Cash, cash equivalents and restricted cash at beginning of year |
|
776.6 |
|
|
|
695.0 |
|
|
Cash, cash equivalents and restricted cash at end of period |
$ |
857.1 |
|
|
$ |
621.1 |
|
|
(1) Amounts may not sum due to rounding |
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HASBRO, INC. |
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SEGMENT RESULTS – AS REPORTED AND AS ADJUSTED (1) |
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|
(Unaudited) |
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|
(Millions of Dollars) |
|||||||||||||||||||||||||||
|
|
|
Three Months Ended March 29, 2026 |
|
Three Months Ended March 30, 2025 |
|
|
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|
Operating Results: |
|
As Reported |
|
Non-GAAP Adjustments |
|
Adjusted |
|
As Reported |
|
Non-GAAP Adjustments |
|
Adjusted |
|
% Change |
|||||||||||||
|
Total Company Results: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
External Net Revenues |
|
$ |
1,000.2 |
|
|
$ |
— |
|
|
$ |
1,000.2 |
|
|
$ |
887.1 |
|
|
$ |
— |
|
|
$ |
887.1 |
|
|
13 |
% |
|
Operating Profit |
|
$ |
270.3 |
|
|
$ |
16.7 |
|
|
$ |
287.0 |
|
|
$ |
170.7 |
|
|
$ |
51.7 |
|
|
$ |
222.4 |
|
|
29 |
% |
|
Operating Margin |
|
|
27.0 |
% |
|
|
1.7 |
% |
|
|
28.7 |
% |
|
|
19.2 |
% |
|
|
5.8 |
% |
|
|
25.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Segment Results: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Wizards of the Coast and Digital Gaming: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
External Net Revenues |
|
$ |
582.0 |
|
|
$ |
— |
|
|
$ |
582.0 |
|
|
$ |
462.1 |
|
|
$ |
— |
|
|
$ |
462.1 |
|
|
26 |
% |
|
Operating Profit |
|
$ |
297.7 |
|
|
$ |
— |
|
|
$ |
297.7 |
|
|
$ |
230.0 |
|
|
|
— |
|
|
$ |
230.0 |
|
|
29 |
% |
|
Operating Margin |
|
|
51.2 |
% |
|
|
— |
|
|
|
51.2 |
% |
|
|
49.8 |
% |
|
|
— |
|
|
|
49.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Consumer Products: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
External Net Revenues |
|
$ |
397.9 |
|
|
$ |
— |
|
|
$ |
397.9 |
|
|
$ |
398.3 |
|
|
$ |
— |
|
|
$ |
398.3 |
|
|
0 |
% |
|
Operating Loss |
|
$ |
(47.5 |
) |
|
$ |
7.0 |
|
|
$ |
(40.5 |
) |
|
$ |
(43.9 |
) |
|
$ |
12.9 |
|
|
$ |
(31.0 |
) |
|
-31 |
% |
|
Operating Margin |
|
|
-11.9 |
% |
|
|
1.8 |
% |
|
|
-10.2 |
% |
|
|
-11.0 |
% |
|
|
3.2 |
% |
|
|
-7.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Entertainment: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
External Net Revenues |
|
$ |
20.3 |
|
|
$ |
— |
|
|
$ |
20.3 |
|
|
$ |
26.7 |
|
|
$ |
— |
|
|
$ |
26.7 |
|
|
-24 |
% |
|
Operating Profit (Loss) |
|
$ |
17.3 |
|
|
$ |
3.0 |
|
|
$ |
20.3 |
|
|
$ |
(11.2 |
) |
|
$ |
28.6 |
|
|
$ |
17.4 |
|
|
17 |
% |
|
Operating Margin |
|
|
85.2 |
% |
|
|
14.8 |
% |
|
|
100.0 |
% |
|
|
-41.9 |
% |
|
>100% |
|
|
65.2 |
% |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Corporate and Other: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Operating Profit (Loss) |
|
$ |
2.8 |
|
|
$ |
6.7 |
|
|
$ |
9.5 |
|
|
$ |
(4.2 |
) |
|
$ |
10.2 |
|
|
$ |
6.0 |
|
|
58 |
% |
|
(1) Amounts may not sum due to rounding |
|||||||||||||||||||||||||||
|
|
|
Three Months Ended |
|||||||
|
Wizards of the Coast and Digital Gaming Net Revenues by Category: |
|
March 29, 2026 |
|
March 30, 2025 |
|
% Change |
|||
|
Tabletop Gaming |
|
$ |
460.7 |
|
$ |
343.8 |
|
34 |
% |
|
Digital and Licensed Gaming |
|
|
121.3 |
|
|
118.3 |
|
3 |
% |
|
Net revenues |
|
$ |
582.0 |
|
$ |
462.1 |
|
26 |
% |
|
|
|
Three Months Ended |
|||||||
|
Consumer Products Segment Net Revenues by Major Geographic Region: |
|
March 29, 2026 |
|
March 30, 2025 |
|
% Change |
|||
|
North America |
|
$ |
215.4 |
|
$ |
231.4 |
|
-7 |
% |
|
Europe |
|
|
99.6 |
|
|
85.0 |
|
17 |
% |
|
Asia Pacific |
|
|
53.8 |
|
|
53.8 |
|
0 |
% |
|
Latin America |
|
|
29.1 |
|
|
28.1 |
|
4 |
% |
|
Net revenues |
|
$ |
397.9 |
|
$ |
398.3 |
|
0 |
% |
|
|
