Core Insights - Hasbro's shares surged 7.5% to a 6-year high following strong fourth-quarter earnings and an optimistic outlook for 2026 [1] - The company reported a 31% increase in revenue year-over-year, reaching $1.45 billion, with adjusted earnings per share rising to $1.51 from $1.04 [1][2] - The stock has more than doubled since late 2023, when the company faced challenges and laid off 20% of its workforce [3] Financial Performance - Revenue for the fourth quarter increased by 31% compared to the same period last year, totaling $1.45 billion [1] - Adjusted earnings per share rose to $1.51, up from $1.04 in the same quarter of 2024 [1] - The company's revenue forecast for 2026 predicts an increase of 3% to 5%, exceeding analysts' expectations [6] Strategic Initiatives - CEO Chris Cocks has implemented a turnaround strategy called "Playing to Win," focusing on digital gaming and the Wizards of the Coast division [4] - The company divested its film and TV subsidiary eOne to Lionsgate in December 2023, shifting focus away from Hollywood [4] - Hasbro is leveraging licensing deals with major franchises such as Harry Potter, Kpop, and Voltron to enhance its product offerings [5] Licensing and Partnerships - Hasbro announced a multi-year deal with Warner Bros. Discovery for Harry Potter toys and games, coinciding with the franchise's 25th anniversary [5] - The licensing agreement for Kpop, a major animated film, is shared with Mattel, targeting a diverse audience [4][5] - Voltron is set for a live-action reboot, reinforcing its status as a significant collector brand from the 1970s and 80s [5]

Financial Data and Key Metrics Changes - In Q4, net revenue was $1.5 billion, up 31% year-over-year, with adjusted operating profit increasing 180% to $315 million, resulting in a 21.8% operating margin [17][18] - 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 of 24.2%, up nearly 400 basis points [18][20] - Adjusted earnings per diluted share were $5.54 for the full year [18] Business Line Data and Key Metrics Changes - Wizards revenue grew 86% to $630 million in Q4, driven by Magic, which was up 141% year-over-year [18][19] - Consumer products revenue in Q4 was $800 million, up 7%, while for the full year, it declined 4% to $2.4 billion [19][20] - Adjusted operating profit for Wizards was $284 million in Q4, resulting in a 45% operating margin, while consumer products delivered an adjusted operating profit of $113 million [19][20] Market Data and Key Metrics Changes - The company reached over 1 billion people annually through its brands, significantly increasing from an initial estimate of 585 million [6][7] - The Wizards Play Network saw a 22% increase in unique players participating in organized play, with over 1 million players by the end of 2025 [10] Company Strategy and Development Direction - The "Playing to Win" strategy focuses on two pillars: play and partnership, aiming to drive growth and profitability [5][6] - The company is expanding its partnerships with major franchises, including Harry Potter and K-Pop, to enhance its product offerings and market reach [8][12] - The company is leveraging AI to improve productivity and innovation, expecting to free up over 1 million hours of lower-value work [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in returning to growth despite market volatility, with expectations for continued momentum in 2026 [16][21] - The company anticipates consolidated revenue growth of 3% to 5% year-over-year for 2026, with operating margins between 24% and 25% [22][24] - Management highlighted the importance of a strong entertainment slate and consumer engagement in driving future growth [22][23] Other Important Information - The company plans to restart share repurchases with a new $1 billion program, reinforcing its commitment to returning capital to shareholders [25] - The company achieved $893 million in operating cash flow and ended the year with $777 million in cash on the balance sheet [21] Q&A Session Summary Question: Magic's growth and future guidance - Management discussed several growth vectors for Magic, including distribution growth and player engagement, indicating a robust pipeline for 2026 [29][31] Question: Partnerships and their impact on growth - Management emphasized the strategic importance of partnerships in driving growth and enhancing brand engagement, with expectations for continued positive impact on revenue [35][39] Question: Wizards' margin performance - Management explained that while margins expanded in 2025, some contraction is expected in 2026 due to increased royalty expenses and costs associated with upcoming video game releases [43][45] Question: Consumer products revenue outlook - Management indicated that consumer products revenue is expected to grow low single digits, supported by a strong entertainment slate from partners [47][49] Question: Digital gaming pipeline - Management highlighted ongoing investments in digital gaming, with expectations for strong performance from upcoming titles like Exodus and Warlock [76][84]

Hasbro (NasdaqGS:HAS) Q4 2025 Earnings call February 10, 2026 08:30 AM ET Company ParticipantsChris Cocks - CEOFred Wightman - VP of Investor RelationsGina Goetter - CFO and COOConference Call ParticipantsArpine Kocharyan - Equity Research AnalystChristopher Horvers - Senior Equity Research AnalystEric Handler - Senior Research AnalystGerrick Johnson - Senior Equity AnalystJames Hardiman - Senior Equity Research AnalystKylie Cohu - Senior Equity Research AnalystMegan Alexander - Equity Research AnalystSteph ...

Hasbro (NasdaqGS:HAS) Q4 2025 Earnings call February 10, 2026 08:30 AM ET Speaker7At this time, I'd like to turn the call over to Fred Wightman, Vice President, Hasbro Investor Relations. Please go ahead.Speaker2Thank you and good morning, everyone. Joining me today are Chris Cocks, Hasbro's Chief Executive Officer, and Gina Goetter, Hasbro's Chief Financial Officer and Chief Operating Officer. We will begin today's call with Chris and Gina providing commentary on the company's performance before taking you ...

Core Insights - Hasbro, Inc. reported strong third-quarter 2025 revenue growth, primarily driven by the Wizards of the Coast and Digital Gaming segments, reinforcing its strategic growth engine [1] Group 1: Financial Performance - Wizards of the Coast achieved a 42% revenue increase to $572 million, with Magic: The Gathering rising 55% year over year due to successful collaborations like Final Fantasy and Spider-Man [2] - The operating profit for Wizards of the Coast surged 39% to $252 million, reflecting a 44% margin, highlighting the scalability of Magic and the advantages of brand partnerships [2] - Hasbro raised its 2025 revenue outlook, now expecting high single-digit growth on a constant currency basis, up from mid-single digits, with adjusted EBITDA projected between $1.24 billion and $1.26 billion [6] Group 2: Segment Highlights - Dungeons & Dragons is experiencing its strongest start ever, aided by new rulebooks and a digital expansion that has significantly increased traffic to D&D Beyond by nearly 50% [3] - Hasbro's digital titles, including Monopoly Go! and SORRY! World, are performing well in mobile charts, indicating strong engagement in digital gaming [3] Group 3: Strategic Outlook - Management emphasized that Wizards and Digital Gaming are essential for sustained growth, with guidance indicating a 36-38% revenue increase for Wizards and margins near 44% [4] - The company’s "Playing to Win" strategy, focused on high-engagement franchises and digital experiences, is proving effective, positioning Hasbro to maintain its leadership in the global play and gaming market [5]

Financial Data and Key Metrics Changes - In Q4 2024, total Hasbro revenue was $1.1 billion, down 3% excluding the eOne divestiture, and down 15% including eOne [41] - For the full year, total Hasbro revenue was $4.1 billion, down 7% excluding eOne, and down 17% including eOne [44] - Adjusted operating profit for Q4 was $113 million, with an adjusted operating margin of 10.2%, a 14-point improvement year-on-year [43] - Full year adjusted net earnings were $563 million, leading to a $4.01 earnings per diluted share [47] Business Line Data and Key Metrics Changes - Wizards of the Coast revenue grew 4% for the full year, with a record profit margin of 41.8%, a six-point improvement over last year [44][45] - Consumer Products revenue declined 12% for the full year, but brands like Beyblade, Furby, and My Little Pony saw growth [45] - The Entertainment segment revenue declined by 88% due to the sale of eOne, but excluding this impact, revenue declined 4% [46] Market Data and Key Metrics Changes - The toy industry is expected to be flat over the next three years, with growth peaks driven by strength in broader entertainment [50] - Hasbro's licensing business has grown by 60% over the last three years, making it the third largest entertainment licensor globally [22] Company Strategy and Development Direction - Hasbro's new strategic plan, "Playing to Win," focuses on play and partnerships, aiming for a return to growth and profitability [19][31] - The strategy includes five key building blocks: aging up play experiences, leadership in digital play, expansion in fashion and collectibles, partnerships, and profitable franchises [26][30] - The company plans to increase its cost-saving target from $750 million to $1 billion by 2027 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the core business's momentum, particularly in Wizards and digital games, while acknowledging challenges in certain segments like NERF and Star Wars [41][45] - The company anticipates modest revenue growth in 2025, with continued margin expansion and a mid-single-digit revenue CAGR projected through 2027 [31][62] Other Important Information - Hasbro reduced debt by $83 million in Q4, bringing the gross leverage ratio to 3.2 times adjusted EBITDA [48] - The company plans to diversify its manufacturing footprint to reduce reliance on China, aiming to decrease the percentage of US toy volume from China to under 40% over the next two years [61] Q&A Session Summary Question: Consumer Products top line guidance and market share performance - Management expects the toy industry to be flattish in 2025, with trading cards and building blocks driving growth [70] - Closeout volume was down, impacting top line and share results, but management anticipates share gains in many categories despite challenges with Star Wars and NERF [75] Question: Clarification on medium-term guidance and self-publishing video games - Margin expansion is cumulative, with a goal of growing 50 to 100 basis points each year [79] - Video game launches will contribute to revenue and profit, but will also impact margins due to capitalized expenses [80] Question: MAGIC business and upcoming launches - Final Fantasy is expected to be a best-selling MAGIC set, with strong pre-order demand [91] - Spider-Man is anticipated to perform well, although it will be a smaller release compared to Final Fantasy [93] Question: Medium-term guidance and growth drivers - Growth is expected from MAGIC, a stronger entertainment slate, and the video game launch of Exodus [100] Question: Tariffs and guidance assumptions - The guidance primarily considers the impact of tariffs from China, with minimal sourcing from Canada and Mexico [114] Question: Profitability and debt paydown implications - EBITDA projections align with the company's targets, but tax rates and interest expenses may impact earnings per share in 2025 and 2026 [128]