Hasbro (HAS) Q1 2025 earnings summary

Executive summary

• Q1 2025 revenue increased 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 rose 50% to $222 million (25.1% margin), with reported operating profit up 47% to $171 million (19.2% margin), reflecting improved mix and cost discipline.

• EPS was $0.70 reported and $1.04 adjusted per diluted share, with net earnings attributable to Hasbro up 69% to $98.6 million.

• Operating cash flow was $138 million, down from $178 million last year due to timing of receivables.

• $98 million was returned to shareholders via dividends and $50 million in debt was repaid during the quarter.

Financial highlights

• Net revenue for Q1 was $887.1 million, up 17% year-over-year.

• Adjusted operating profit reached $222 million (up 50%), with a 25.1% adjusted margin (up 5.5 points year-over-year).

• Adjusted EPS rose to $1.04 (up from $0.61 year-over-year).

• Adjusted EBITDA was $274.3 million, up 59% year-over-year.

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

Outlook and guidance

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

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

• Tariffs could impact 2025 operating profit by $100–$300 million before mitigation, with net profit impact estimated at $60–$180 million.

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

• Capital allocation priorities include investing in core business, strengthening the balance sheet, and returning cash to shareholders.