Full Year 2025 Highlights
- Full year Hasbro revenue increased 14% driven by record 45% growth in the Wizards of the Coast and Digital Gaming segment. Consumer Products declined 4% and Entertainment was down 4%.
- MAGIC: THE GATHERING finished its strongest year ever, up 59% vs. PY with a successful Q4 Avatar: The Last Airbender set and ongoing strength in backlist and Secret Lair.
- Operating profit of $11 million and operating margin of 0.2% reflects the second quarter 2025 non-cash goodwill impairment.
- Adjusted operating profit of $1,140 million (+36% vs. PY) and adjusted operating margin of 24.2% (+3.9 points vs. PY), driven by favorable business mix and benefits from cost transformation efforts.
- Reported net loss of $2.30 per share; adjusted net earnings of $5.54 per diluted share.
- Returned $393 million to shareholders via dividends.
- EBITDA of $197 million and Adjusted EBITDA of $1.36 billion, ahead of guidance.
- Spent $225 million on debt reduction through the combination of bond repurchases and prefunding maturities, achieving debt targets ahead of schedule.
- Operating cash flow of $893 million vs. $847 million in the prior year driven by improved profitability.
Full Year 2025 Segment Details
Wizards of the Coast and Digital Gaming Segment
- Revenue grew 45% driven by standout performance in MAGIC: THE GATHERING and growth in licensed digital gaming.
- MAGIC: THE GATHERING revenues increased 59% powered by Universes Beyond sets, backlist and Secret Lair.
- Digital and Licensed Gaming increased 6% with Monopoly Go! contributing $168 million for the full year 2025.
- Operating profit of $1,007 million increased 59%, with a 46.0% operating margin highlighting the over-performance and favorable business mix.
Consumer Products Segment
- Revenue decreased 4%, which was better than expected, as shifts in retail order timing impacted full year results.
- Highlights include growth in PEPPA PIG, HASBRO GAMING, TRANSFORMERS, Marvel and Beyblade.
- Operating loss of $943 million includes a second quarter 2025 non-cash goodwill impairment.
- Adjusted operating profit of $113 million, down 26% versus last year behind lower revenues and tariff costs.
Entertainment Segment
- Revenue decline of 4% driven by lower digital and ad revenues.
- Operating margin of 0.5%; adjusted operating margin of 51.4% down versus PY due to lower revenues.
Fourth Quarter 2025 Highlights
- Hasbro revenues increased 31% vs. PY, with growth in Wizards and Digital Gaming (+86%) and Consumer Products (+7%) partially offset by a decline in Entertainment (-5%).
- Operating profit of $298 million (+$238 million vs. PY) with an operating margin of 20.6%.
- Adjusted operating profit was $315 million (+$202 million vs. PY) with an operating margin of 21.8%, an approximate 12-point improvement versus last year.
- Net earnings of $1.41 per diluted share; adjusted net earnings of $1.51 per diluted share benefiting from favorable business mix and improved profitability.
See the financial tables accompanying the press release for a reconciliation of GAAP to non-GAAP financial measures.
2026 Company Outlook
For the full year, the Company expects:
- 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. The Board of Directors authorized a new share repurchase program of up to $1.0 billion, replacing the Company’s prior 2018 authorization.
- Continue to pay down debt.
