Hasbro (HAS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue rose 17% year-over-year to $887.1 million, led by 46% growth in Wizards of the Coast and Digital Gaming, while Consumer Products declined 4% but outperformed expectations.

• Adjusted operating profit increased 50% to $222 million (25.1% margin), with reported operating profit up 47% to $171 million (19.2% margin), reflecting cost discipline and favorable mix.

• Adjusted EPS rose to $1.04, and GAAP EPS was $0.70, driven by improved profitability and business mix.

• Operating cash flow was $138 million, with $98 million returned to shareholders via dividends and $50 million in debt reduction.

• Transformation and cost-saving initiatives, including the "Playing to Win" strategy, contributed to improved profitability and reduced losses in Consumer Products.

Financial highlights

• Net revenues: $887.1 million (up 17% year-over-year).

• Adjusted operating profit: $222 million (up 50%), reported operating profit: $171 million (up 47%).

• Adjusted EBITDA: $274 million (up 59% year-over-year).

• Net earnings attributable to Hasbro: $98.6 million (up from $58.2 million year-over-year).

• Cash and cash equivalents: $621.1 million at quarter end.

Outlook and guidance

• Full-year 2025 guidance unchanged despite tariff and macro uncertainty; net revenues expected up slightly, adjusted operating margin 21–22%, adjusted EBITDA $1.1–$1.15 billion.

• Wizards segment outlook raised: mid to high teens revenue growth and low 40s operating margin expected.

• Estimated gross tariff impact for 2025 is $100–$300 million, with net profit impact of $60–$180 million after mitigation.

• Accelerating cost savings program, targeting $1 billion in gross savings by 2027.