Hasbro (HAS) investor relations material

Executive summary

• Q2 2026 revenue grew 16% year-over-year to $1.14 billion, led by 27% growth in Wizards and Digital Gaming and 5% in Consumer Products, while Entertainment declined 20%.

• Magic: The Gathering posted over 32% growth in Q2 and over 34% in the first half, with the Marvel Super Heroes set becoming the fastest to reach $300 million and surpassing $500 million for the first time.

• Adjusted operating profit rose 14% to $282 million, with adjusted EPS at $1.28, impacted by a $56 million non-cash impairment for canceled digital games.

• Returned $133 million to shareholders in Q2 and $239 million year-to-date via dividends and share repurchases.

• Digital strategy refocused, with cost discipline and a shift toward high-potential franchises.

Financial highlights

• Q2 adjusted EBITDA grew 9% to $330 million; six-month adjusted EBITDA up 16% to $670 million.

• Q2 adjusted net earnings were $184 million; six-month adjusted net earnings reached $395 million.

• Gross margin for Q2 was 75.8%, slightly down from 76.4% last year.

• Operating cash flow for the first half increased to $604 million.

• Cost transformation/Operational Excellence program delivered $70 million in savings YTD toward a $150 million annual and $1 billion cumulative target.

Outlook and guidance

• Full-year 2026 revenue growth guidance raised to 5%-7% in constant currency, with growth across all segments.

• Adjusted operating margin guidance increased to 25%-26%; adjusted EBITDA expected at $1.45-$1.5 billion.

• Wizards segment expected to grow revenue low double digits, with operating margins in the low 40% range.

• Consumer Products revenue to grow low single digits, with 6%-8% adjusted operating margin.

• Digital spend to peak in 2026, declining at least 25% by 2028.