“Our third-quarter results demonstrated steady progress against our 2026 strategic priorities,” said Christina Miller, CEO, Spin Master. “I am proud of the collaboration and flawless execution of Paw Patrol: The Dino Movie across our entire company. By fully aligning our creative centers, we expanded our global audience, driving increased viewership across the Paw Patrol content universe and a 25% increase in related toy sales in the quarter. We returned Melissa & Doug to growth through increased shelf space, continued global expansion, and new product innovation. And we took steps toward fully realizing Toca Boca World by successfully bridging digital acquisition and engagement with physical retail and brand partnerships, resulting in an increase in players and double-digit growth in revenue. Our focus remains on driving disciplined, long-term expansion, investing in innovation, entering new categories, and shaping the future of play with acquisitions like Hapiko.”

“We have more than doubled operating cash flow in 2026 through disciplined operational execution and working capital management improvements,” said Jonathan Roiter, CFO, Spin Master. “This has provided us with resources to reinvest in multiple organic and inorganic growth initiatives across the business, including advanced technology, innovation, and content, while repaying significant debt and returning capital to shareholders through our dividend and active share buyback program.”

Consolidated Financial Highlights for Q3 2026 as compared to the same period in 2025

• Revenue was stable at $732.7 million, decreasing 0.3%. Constant Currency Revenue1 was $732.0 million, declining 0.4%.
• Operating Income was $112.5 million, a decrease of 25.5%.
• Adjusted Operating Income1 was $148.4 million, a decrease of 8.6%.
• Net Income was $79.0 million or $0.77 per share (diluted) compared to $106.8 million or $1.03 per share (diluted).
• Adjusted Net Income1 was $106.2 million or $1.03 per share (diluted) compared to $115.2 million or $1.11 per share (diluted).
• Adjusted EBITDA1 was stable at $194.7 million, decreasing by 0.4%
• Adjusted EBITDA Margin1 was 26.6% in both periods.
• Cash provided by operating activities was $102.2 million compared to $62.6 million.
• Free Cash Flow1 was $64.9 million compared to $21.6 million.
• Repurchased and cancelled 605,757 subordinate voting shares for $8.8 million (C$12.4 million) in Q3 2026 through the Company’s Normal Course Issuer Bid. Subsequent to September 30, 2026, the Company repurchased and cancelled 212,400 subordinate voting shares for $3.1 million.
• On August 26, 2026, the Company completed the acquisition of 100% of the shares of Hapiko Inc., a Brooklyn-based children’s technology-related company, for total consideration of $36.2 million.
• Subsequent to September 30, 2026, the Company declared a quarterly dividend of C$0.12 per outstanding subordinate voting share and multiple voting share, payable on January 8, 2027.

Director Appointment

The Company announced that Kate Rouch has been appointed to Spin Master’s Board of Directors. A seasoned marketing executive, Ms. Rouch has built global brands at some of the world’s most influential technology companies. Most recently she served as OpenAI’s first Chief Marketing Officer, building and leading its global marketing organization and has also held leadership positions at Meta and Coinbase. Ms. Rouch is a graduate of Harvard University and has been named one of the world’s 10 Most Influential CMOs by Forbes.

2026 Outlook

For the full year 2026, the Company continues to expect:

• Revenue: stable to low single digit percentage growth compared to 2025.
• Adjusted EBITDA1: mid to high single digit percentage growth compared to 2025.

Consolidated Financial Results as compared to the same period in 2025

Segmented Financial Results as compared to the same period in 2025

Toys Segment Results

The following table provides a summary of the Toys segment operating results, for the three months ended September 30, 2026 and 2025:

• Toy Revenue declined by $19.4 million, or 3.0%, to $631.0 million primarily due to lower Toy Gross Product Sales1 and higher sales allowances. Constant Currency Toy Revenue1 was $630.1 million, a decrease of 3.1%.
• Toy Gross Product Sales declined by $15.5 million, or 2.1%, to $727.2 million, primarily driven by lower shipment volumes related to partner licensed brands, partially offset by shipments for the theatrical release of Paw Patrol: The Dino Movie and higher sales of Melissa & Doug. Constant Currency Toy Gross Product Sales1 was $726.3 million, a decrease of 2.2%.
• Sales Allowances increased by $3.5 million to $97.5 million. As a percentage of Toy Gross Product Sales, Sales Allowances increased to 13.4% from 12.7%, primarily driven by changes in geographic and customer mix.
• Toys Operating Income decreased by $8.7 million to $120.1 million, primarily driven by lower Toy Revenue and higher marketing expense due to a shift in timing of marketing spend in the Toys segment into the second half of the year, partially offset by lower administrative and selling expenses. Toys Operating Margin was 19.0% compared to 19.8%.
• Toys Adjusted EBITDA1 decreased by $10.4 million, primarily driven by lower Toy Revenue and higher marketing expenses, partially offset by lower administrative and selling expenses.
• Toys Adjusted EBITDA Margin1 was 23.1% compared to 24.0%, primarily driven by lower Toy Revenue resulting in lower operating leverage.

Entertainment Segment Results

The following table provides a summary of Entertainment segment operating results, for the three months ended September 30, 2026 and 2025:

• Entertainment Revenue increased by $20.0 million to $52.8 million, primarily driven by distribution revenue from the delivery of the Paw Patrol: The Dino Movie and higher ongoing distribution revenue from the PAW Patrol series.
• Entertainment Operating Income declined by $0.6 million to $11.3 million, primarily driven by $11.7 million of impairment for entertainment content development assets, reflecting changes in strategies, partially offset by the delivery of the PAW Patrol: The Dino Movie (distribution revenue less amortization of production costs) and higher ongoing distribution revenue from the PAW Patrol series. Entertainment Operating Margin decreased from 36.3% to 21.4%.
• Entertainment Adjusted Operating Income1 increased by $11.1 million to $23.3 million, primarily due to the delivery of PAW Patrol: The Dino Movie in the current year (distribution revenue less amortization of production costs), higher ongoing distribution revenue from the PAW Patrol series, and lower marketing expenses.
• Entertainment Adjusted Operating Margin1 increased from 37.2% to 44.1%, primarily due to lower operating expenses, partially offset by the dilutive effect of the delivery of PAW Patrol: The Dino Movie in the current year.

Digital Games Segment Results

The following table provides a summary of Digital Games segment operating results, for the three months ended September 30, 2026 and 2025:

• Digital Games Revenue declined by $2.6 million to $48.9 million, driven by lower strategic distribution partnership revenue, partially offset by higher in-game purchases in Toca Boca World, reflecting higher user engagement and growth in subscriptions across Piknik.
• Digital Games Operating Loss was $8.1 million, compared to Digital Games Operating Income of $15.9 million. The change was primarily due to $12.1 million of impairment for digital game and app development assets, lower strategic distribution partnership revenue in the current year and higher marketing expenses. The impairment reflects the strategic decision to continue to streamline the Digital Games business and concentrate investments in core areas with long-term growth potential. Digital Games Operating Margin decreased from 30.9% to (16.6)%.
• Digital Games Adjusted Operating Income1 declined by $12.0 million to $5.3 million, primarily driven by lower strategic distribution partnership revenue and higher marketing expenses.
• Digital Games Adjusted Operating Margin1 decreased from 33.6% to 10.8%, primarily driven by lower strategic distribution partnership revenue.

Liquidity

The Company has a committed unsecured revolving credit facility (the “Facility”) with a borrowing capacity of $510.0 million and contains certain financial covenants. On May 26, 2026, the Company entered into an agreement to amend its existing Facility, which now matures on May 26, 2031. The amendment also introduced an additional three-year revolver tranche with a borrowing capacity of $225.0 million that matures on May 26, 2029. This new tranche was used to settle the $225.0 million non-revolving credit facility (“Acquisition Facility”) that was originally entered into on November 20, 2023 to fund the acquisition of Melissa & Doug, which was cancelled on May 26, 2026.

As at September 30, 2026, there was $163.0 million outstanding (December 31, 2025 – $42.0 million) under the Facility. For the nine months ended September 30, 2026, the Company drew $137.0 million (2025 – $25.0 million) on the Facility, and repaid $241.0 million (2025 – $30.0 million) against the Facility. For the nine months ended September 30, 2026, the weighted average interest rates on the Facility was 5.1% (2025 – 5.7%).

As at September 30, 2026, the Company had available liquidity of $635.0 million, comprised of $47.5 million in cash and $587.5 million under the Company’s committed credit facilities.

Cash Flows for Q3 2026 as compared to the same period in 2025

Cash flows provided by operating activities were $102.2 million compared to $62.6 million driven by change in changes in non-cash working capital. Changes in non-cash working capital decreased by $81.3 million as compared to a decrease of $119.9 million.

Cash used in investing activities was $70.6 million for the three months ended September 30, 2026 compared to $42.7 million primarily as a result of the acquisition of Hapiko and higher investments in computer software, partially offset by lower investments in leasehold improvements, equipment, intellectual property and Entertainment content development.

Cash flows used in financing activities were $32.9 million for the three months ended September 30, 2026 compared to $19.2 million, driven by repayment of $94.6 million towards loans and borrowings (2025 – $nil), lease payments of $8.1 million (2025-$2.5 million), partially offset by $87.0 million drawn from loans and borrowings (2025 – $nil).

Free Cash Flow1 was $64.9 million compared to $21.6 million, primarily due to changes in non-cash working capital.

Dividends

The Company’s Board of Directors declared a dividend of C$0.12 per outstanding subordinate voting share and multiple voting share, payable on January 8, 2027 to shareholders of record at the close of business on December 24, 2026. The dividend is designated to be an eligible dividend for purposes of section 89(1) of the Income Tax Act (Canada).

Forward-Looking Statements

Certain statements, other than statements of historical fact, contained in this Press Release constitute “forward-looking information” within the meaning of certain securities laws, including the Securities Act (Ontario), and are based on expectations, estimates and projections as of the date on which the statements are made in this Press Release. The words “plans”, “expects”, “projected”, “estimated”, “forecasts”, “anticipates”, “indicative”, “intend”, “guidance”, “outlook”, “potential”, “prospects”, “seek”, “strategy”, “targets” or “believes”, or variations of such words and phrases or statements that certain future conditions, actions, events or results “will”, “may”, “could”, “would”, “should”, “might” or “can”, or negative versions thereof, “be taken”, “occur”, “continue” or “be achieved”, and other similar expressions, identify statements containing forward-looking information. Statements of forward-looking information in this Press Release include, without limitation, statements with respect to: future financial performance and growth expectations, as well as the drivers and trends in respect thereof; the Company’s priorities, plans and strategies; content, digital game and product pipeline and launches, as well as their impacts; deployment of cash; dividend policy and future dividends; and financial position, cash flows, liquidity and financial performance.

Forward-looking statements are necessarily based upon management’s perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made in this Press Release, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being incorrect. In addition to any factors and assumptions set forth above in this Press Release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: the Company will not have any unusual adjustments resulting from unexpected disruptions including regulatory actions impacting global trade, other macro-economic risks and uncertainties, and/or unforeseeable legal matters or non-recurring items; the Company will be able to successfully expand its portfolio across new channels and formats, and internationally; the Company’s ability to achieve other expected benefits through acquisitions; management’s estimates and expectations in relation to future economic and business conditions and other factors in relation to the Company’s financial performance; the absence of significant undisclosed costs or liabilities associated with the transactions; Melissa & Doug’s business will perform in line with the industry; there are no material changes to Melissa & Doug’s core customer base; the Company’s dividend payments being subject to the discretion of the Board of Directors and dependent on a variety of factors and conditions existing from time to time; alternate uses for the Company’s cash resources; seasonality; ability of factories to manufacture products, including labour size and allocation, tooling, raw material and component availability, ability to shift between product mix, and customer acceptance of delayed delivery dates; the steps taken will create long term shareholder value; the expanded use of advanced technology, robotics and innovation the Company applies to its products will have a level of success consistent with its past experiences; the Company will continue to successfully secure, maintain and renew broader licenses from third parties for premiere children’s properties consistent with past practices, and the success of the licenses; the expansion of sales and marketing offices in new markets will increase the sales of products in that territory; the Company will be able to successfully identify and integrate strategic acquisition and minority investment opportunities; the Company will be able to maintain its distribution capabilities; the Company will be able to leverage its global platform to grow sales from acquired brands; the Company will be able to recognize and capitalize on opportunities earlier than its competitors; the Company will be able to continue to build and maintain strong, collaborative relationships; the Company will maintain its status as a preferred collaborator; the culture and business structure of the Company will support its growth; the current business strategies of the Company will continue to be desirable on an international platform; the Company will be able to expand its portfolio of owned branded IP and successfully license it to third parties; use of advanced technology and robotics in the Company’s products will expand; the Company will be able to continue to develop and distribute entertainment content in the form of movies, TV shows and short form content; the Company will be able to continue to design, develop and launch mobile digital games to be distributed globally via app stores; access of entertainment content on mobile platforms will expand; fragmentation of the market will continue to create acquisition opportunities; the Company will be able to maintain its relationships with its employees, suppliers, retailers and license partners; the Company will continue to attract qualified personnel to support its development requirements; the Company’s key personnel will continue to be involved in the Company products, mobile digital games and entertainment properties will be launched as scheduled; and the availability of cash for dividends and that the risk factors noted in this Press Release, collectively, do not have a material impact on the Company.

By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. Known and unknown risk factors, many of which are beyond the control of the Company, could cause actual results to differ materially from the forward-looking information in this Press Release. Such risks and uncertainties include, without limitation, risks outlined in the “Global Tariffs Uncertainty” section of the Company’s MD&A for the three months and year ended December 31, 2025 (the “Annual MD&A”); concentration of manufacturing and geopolitical risks; uncertainty and adverse changes in general economic conditions and consumer spending habits and the factors discussed in the Company’s disclosure materials, including the Annual MD&A and the Company’s most recent Annual Information Form, filed with the securities regulatory authorities in Canada and available under the Company’s profile on SEDAR+ (www.sedarplus.com). These risk factors are not intended to represent a complete list of the factors that could affect the Company and investors are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The forward-looking statements contained herein are made as of October 28, 2026 and the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Conference call

Christina Miller, Chief Executive Officer and Jonathan Roiter, Chief Financial Officer, will host a conference call to discuss the financial results on Thursday, October 29, 2026 at 9:30 a.m. (ET).

WEBCAST: https://app.webinar.net/LB9R28x2XzZ

A link to the webcast will also be available on the Events & Presentations page of the Investors section of Spin Master’s website at  http://www.spinmaster.com/events.php. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.

DIAL-IN: To join the conference call without operator assistance, you may register and enter your phone number at https:// emportal.ink/4glxxCm to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator: 1-416-945-7677 or 1-888-699-1199.

About Spin Master
Spin Master Corp. (TSX:TOY) is a leading global children’s entertainment company, creating exceptional play experiences across its three creative centres: Toys, Entertainment and Digital Games. With worldwide toy distribution, Spin Master is best known for award-winning brands including PAW Patrol®, Melissa & Doug®, Bakugan® and Rubik’s® Cube, and is the global toy licensee for other iconic properties. Through its in-house entertainment studio, the company creates and produces captivating multiplatform content including powerhouse preschool franchise PAW Patrol, along with other original shows, short-form series and feature films. With an established presence in digital games anchored by Toca Boca® and Piknik™, Spin Master engages close to 60 million active users monthly in open-ended, creative and safe play. With 29 offices spanning nearly 20 countries, Spin Master employs close to 2,500 team members globally.

Condensed consolidated interim statements of financial position

Condensed consolidated interim statements of earnings and comprehensive earnings

Condensed consolidated interim statements of cash flows

Segment Results

The Company’s results from operations by reportable segment for the three months ended September 30, 2026 and 2025 are as follows:

The following tables present the composition of Percentage change in Constant Currency Toy Gross Product Sales, Percentage change in Constant Currency Sales Allowances, Percentage change in Constant Currency Entertainment Revenue, Percentage change in Constant Currency Digital Games Revenue, and Percentage change in Constant Currency Revenue for the three months ended September 30, 2026 and 2025: