Spin Master (TOY) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $732.7M, down 0.3% YoY; adjusted EBITDA was $194.7M versus $195.5M. YTD revenue rose 0.2% to $1,497.6M and adjusted EBITDA increased 7.2% to $263.5M.

• Entertainment growth, including PAW Patrol: The Dino Movie, offset declines in Toys and Digital Games; PAW Patrol, Melissa & Doug, and Toca Boca World each delivered double-digit growth.

• Operating cash flow more than doubled YTD, supporting investment, debt repayment, dividends, and share repurchases.

Financial highlights

• Q3 operating income was $112.5M versus $151.0M; adjusted operating income was $148.4M versus $162.4M.

• Q3 net income was $79.0M versus $106.8M; adjusted net income was $106.2M versus $115.2M. Diluted EPS was $0.77 versus $1.03; adjusted diluted EPS was $1.03 versus $1.11.

• YTD operating income was $123.9M versus $76.5M; adjusted operating income was $143.8M versus $155.6M. Net income was $76.7M versus $35.8M; adjusted net income was $90.7M versus $95.8M.

• Q3 operating cash flow was $102.2M versus $62.6M and free cash flow was $64.9M versus $21.6M; YTD operating cash flow was $262.9M versus $113.5M and free cash flow was $155.2M versus negative $4.4M.

Outlook and guidance

• FY26 guidance reiterated: revenue growth expected to be stable to low-single-digit, with adjusted EBITDA growth in the mid- to upper-single digits.

• Q4 targets modest revenue growth and similar adjusted EBITDA growth; visibility remains limited, with 50% of POS in the quarter and most orders expected to be domestic replenishment.

• Direct movie-related revenue and EBITDA contribution is expected to be ~$25M in 2026 and is not expected to recur in 2027.

• Hapiko plans wider Stickerbox distribution in H2 2027, with expanded reach and its install base expected to support recurring revenue.