Hasbro (HAS) Q4 2025 earnings summary

Executive summary

• Achieved 14% year-over-year revenue growth for 2025, led by a 45% surge in Wizards of the Coast & Digital Gaming, with MAGIC: THE GATHERING posting record results and Monopoly Go! contributing significantly.

• Q4 2025 revenue increased 31% year-over-year, with Wizards up 86% and Consumer Products up 7%.

• Adjusted operating profit and EPS reached record levels, reflecting strong operating leverage and transformation benefits.

• Secured major new partnerships, including Harry Potter, Voltron, Street Fighter, and expanded collaborations with Disney and Netflix.

• Announced a new $1 billion share repurchase program and declared a quarterly dividend of $0.70 per share.

Financial highlights

• Full-year 2025 net revenue was $4.7 billion (+14% YoY); adjusted operating profit was $1.14 billion (+36% YoY) with a 24.2% margin; adjusted EBITDA reached $1.36 billion.

• Q4 net revenue was $1.5 billion (+31% YoY); adjusted operating profit was $315 million (+180% YoY) with a 21.8% margin.

• Reported a $1.02 billion non-cash goodwill impairment in Consumer Products due to tariffs, resulting in a net loss of $2.30 per share.

• Operating cash flow for FY 2025 was $893 million, up $46 million YoY; $393 million returned to shareholders via dividends.

• Debt reduced by $225 million through bond repurchases and prefunding maturities.

Outlook and guidance

• 2026 consolidated revenue expected to grow 3%-5% year-over-year on a constant currency basis, with growth across all segments.

• Adjusted operating margin guidance: 24%-25%; adjusted EBITDA: $1.4-$1.45 billion.

• Wizards segment to deliver mid-single-digit revenue growth, with margins in the low 40% range, absorbing higher royalties and video game launch costs.

• Consumer Products revenue to grow low single digits, with 6%-8% operating margins; entertainment revenue slightly positive with ~50% margin.

• $150 million in gross cost savings targeted for 2026; margin expansion expected in the second half as business mix and productivity improve.