Hasbro (HAS) investor relations material

Executive summary

• Q1 2026 revenue grew 13% year-over-year, led by a 26% increase in Wizards of the Coast & Digital Gaming, while Consumer Products was flat and Entertainment declined 24%.

• Magic: The Gathering's Lorwyn Eclipsed set became the best-selling premier set ever, with backlist sales at record levels and overall Magic revenue up 36%.

• Adjusted operating profit rose 29% to $287 million, with operating margin up 4 points to 28.7% year-over-year.

• Net earnings increased by $100 million to $198 million, and adjusted EPS reached $1.47, up $0.43 year-over-year.

• $106 million was returned to shareholders via dividends and share repurchases; $96 million deployed to reduce debt, with $400 million in new notes issued to refinance maturities.

Financial highlights

• Net revenue for Q1 was $1,000.2 million, up 13% year-over-year, with adjusted operating profit of $287 million, up 29%.

• Adjusted operating margin rose to 28.7%, up 360 basis points, and adjusted EPS was $1.47, up 41% year-over-year.

• Wizards segment revenue grew 26% to $582 million, with operating profit up 29% to $298 million and a 51.2% margin.

• Consumer Products revenue was $398 million, flat year-over-year, with an adjusted operating loss of $41 million due to higher royalties and tariffs.

• Adjusted EBITDA was $339 million, up 24% year-over-year; operating cash flow was $338 million.

Outlook and guidance

• Full-year 2026 guidance maintained: consolidated revenue growth of 3%-5% year-over-year (constant currency), adjusted operating margin of 24%-25%, and adjusted EBITDA of $1.4-$1.45 billion.

• Wizards expected to deliver mid-single-digit revenue growth with low 40% operating margins; Consumer Products to grow low single-digits with 6%-8% margins.

• Entertainment segment revenue expected to be slightly positive year-over-year with ~50% operating margin.

• Cyber incident expected to shift $40-$60 million of Consumer Products revenue from Q2 to Q3, with full-year guidance unchanged.

• Medium-term guidance (2025–2027): mid-single digit revenue CAGR, 50–100bps annual margin expansion, $1B gross cost savings.