Hasbro Q4 Earnings Call Highlights

Financial Performance - For the full year, net revenue grew 14% to $4.7 billion, with adjusted operating profit increasing 36% to $1.1 billion and an adjusted operating margin reaching a record 24.2% [1][6] - In Q4, net revenue was $1.5 billion, up 31% year-over-year, while adjusted operating profit rose 180% to $315 million, producing an adjusted operating margin of 21.8% [2][6] Business Segments - Wizards of the Coast led the quarter's growth, with Q4 revenue up 86% to $630 million and operating profit of $284 million, translating to a 45% margin [5][7] - For the full year, Wizards revenue increased 45% to $2.2 billion, with an operating profit of just over $1 billion and a 46% operating margin [8] Strategic Initiatives - CEO Chris Cocks emphasized a strategy built on "play and partnership," stating that the company now reaches over 1 billion people annually [3] - Hasbro is expanding its partnership slate, including new licenses for K-Pop Demon Hunters and The World of Harry Potter, which are expected to support future product launches [13][15] 2026 Guidance - For 2026, Hasbro guided for consolidated revenue growth of 3% to 5% and operating margins of 24% to 25%, with adjusted EBITDA projected at $1.4 billion to $1.45 billion [4][18] - The company expects mid-single-digit revenue growth for Wizards of the Coast and low single-digit growth for consumer products, supported by a stronger entertainment slate [18] Cost Management - The company achieved over $175 million in gross savings in 2025 and is committed to a total of $1 billion in cost savings [6][12] - Hasbro is restarting buybacks with a new $1 billion share repurchase program while focusing on high-return growth investments [4][20]