Spin Master
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Spin Master (TOY) investor relations material

Spin Master Q4 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q4 2025 earnings summary5 Mar, 2026

Executive summary

  • 2025 was challenging for U.S. toy sales due to tariffs and economic uncertainty, with FY 2025 revenue at $2,112.9M, down 6.6% year-over-year, and a net loss of $148.5M; strategic adjustments set up a return to profitable growth in 2026.

  • Digital games saw over 20% growth in revenues and adjusted operating income, driven by investments in Toca Boca World and Piknik, with FY 2025 revenue at $199.0M, up 21%.

  • Entertainment focused on expanding PAW Patrol, with new content and a third movie planned for 2026; FY 2025 revenue was $145.2M, down 8.4%.

  • Supply chain diversification and IT investments improved operational efficiency.

  • Over $80 million was returned to shareholders via dividends and share buybacks in 2025.

Financial highlights

  • Toy gross product sales declined 8% in 2025, mainly due to a 12% reduction in retailer inventory levels; FY 2025 gross product sales were $2,054.8M, down 7.9%.

  • Operating cash flow reached $308 million despite U.S. headwinds; inventory reduced by 20%.

  • CapEx was $185 million, including $24 million for IT upgrades and $33 million for a new L.A. office; total capital expenditures in 2025 were $184.2M.

  • Free cash flow for FY 2025 was $123.6M, down from $215.5M in FY 2024.

  • Net debt (excluding leases) held flat year-over-year; year-end cash and cash equivalents stood at $104.6 million.

Outlook and guidance

  • 2026 guidance: stable to low single-digit revenue growth, mid to high single-digit adjusted EBITDA growth.

  • Entertainment expected to grow with the PAW Patrol movie; digital games to see modest growth after a strong 2025.

  • Toy segment to benefit from new movie, M&D improvements, innovation, and new licenses.

  • Q1 2026 expected to see a significant year-over-year decline in toy revenues, with easier comps in later quarters.

  • CapEx for 2026 anticipated at $150 million, with $25 million for enterprise software upgrades.

Melissa & Doug pricing and category expansion
Retailer shift from FOB to domestic fulfillment
Digital Games partnership revenue sustainability
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Frequently asked questions

Spin Master Corp. engages in the creation, design, manufacture, and marketing of children's toys, games, and entertainment products. Its products include action figures and collectibles, role play toys, radio-controlled vehicles to its portfolio of boys brands; and dolls/fashion accessories and developmental plush products for its girls brands. The company was founded by Ronnen Harary, Anton Rabie, Ben Varadi, and Johnny Vacanti on January 6, 1994 and is headquartered in Toronto, Canada.

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