Hasbro, Inc.

What they do

Hasbro develops, markets and licenses toys, games and entertainment IP, selling through retailers, ecommerce and its Hasbro PULSE direct-to-consumer platform. It operates three reported segments: Wizards and Digital Gaming (tabletop and digital games including Magic: The Gathering and licensed titles), Consumer Products (toys and games under owned and partner brands), and Entertainment (film, TV and related content). It also licenses brands to third parties for consumer products, theme parks and location-based entertainment.

Revenue drivers

• Wizards and Digital Gaming — Tabletop and digital games led by Magic: The Gathering, which surpassed $500 million in quarterly revenue for the first time in Q2 2026, plus licensed digital games such as Monopoly Go!. Segment revenue grew 27% year over year in Q2 2026 at a 41% operating margin.
• Consumer Products — Toys and games under owned brands (BEYBLADE, TRANSFORMERS, Hasbro Gaming, PEPPA PIG) and partner brands such as MARVEL and Star Wars. Revenue rose 5% in Q2 2026 but the segment posted a $15 million operating loss.
• Entertainment — Film, TV and content revenue, which declined 20% in Q2 2026 due to the nature and timing of deals, with $6 million of operating profit.
• Licensing — Outbound licensing of Hasbro IP for digital games, consumer products and location-based entertainment, described in the 10-K as a strong operating profit contributor, including Monopoly Go! revenue of $44 million in Q2 2026.

Recent performance

Q2 2026 revenue rose 16% year over year, with Wizards and Digital Gaming up 27% and Consumer Products up 5%, partly offset by a 20% Entertainment decline. Operating profit was $253 million and adjusted operating profit $282 million, including a $56 million impairment tied to a refocused Digital Games portfolio for 2028 and beyond. Reported diluted EPS was $1.12 and adjusted diluted EPS $1.28. Year-to-date revenue is up 15%, with reported diluted EPS of $2.51. Full-year 2025 revenue was $4.70 billion with a net loss of $322.4 million and a $2.80 dividend per share.

Strategy

Management is executing a 'Playing to Win' strategy centered on a franchise-first approach to Magic: The Gathering, Monopoly, Transformers, Dungeons & Dragons, NERF and PEPPA PIG, with emphasis on play occasions, older consumers and partner co-investment. The company is pursuing digital and licensing expansion, including the Marvel sets in Magic: The Gathering Arena, a 2027 Warner Bros. Discovery Harry Potter toy licensing deal, and a new AI studio called Sixth Wall Studio. An Operational Excellence program has delivered almost $800 million of gross cost savings toward a prior $1.0 billion commitment. Hasbro also plans to lean into a $1 billion share repurchase authorization while reducing debt.

Risks

• Tariff exposure — Hasbro recognized $17.7 million of tariff costs in cost of sales in the first half of 2026 and is seeking refunds of IEEPA tariffs paid, with timing and amounts uncertain.
• Cybersecurity incident — Unauthorized network access identified in late March 2026 disrupted order processing, shipping and invoicing, hurt Q2 net sales and operating profit, and cost about $10.8 million in incremental expenses.
• Consumer Products profitability — The toy segment posted a $15 million operating loss in Q2 2026 despite 5% revenue growth, reflecting tariffs, mix and seasonality.
• Digital Games portfolio reset — A $56 million impairment in 2026 reflects a refocused Digital Games slate for 2028 and beyond, highlighting dependence on a small number of digital titles such as Monopoly Go!.

Outlook

Management raised its full-year 2026 financial outlook, citing broad-based Q2 strength and conviction in the Magic: The Gathering release slate. It pointed to line of sight for continued Magic growth in 2027 and signaled intent to lean into the $1 billion share repurchase authorization while balancing business investment with returning cash. The company also deployed $147 million toward debt reduction in the first half of 2026, including $400 million of new notes to repay November 2026 maturities.