Core Viewpoint - Build-A-Bear Workshop is considered a potential growth stock due to its ongoing buyback initiatives, but it must first stabilize its profit margins [1] Group 1: Company Performance - The company has been identified as a hold in previous analyses primarily due to its fluctuating margins [1] Group 2: Investment Considerations - The ongoing buybacks may indicate a positive outlook for growth, but the need for margin stabilization is critical for long-term investment viability [1]

Core Insights - Hasbro, Inc. is recognized as one of the 15 Best Dividend Leaders to buy currently [1] - Wells Fargo initiated coverage with an Equal Weight rating and a price target of $98, noting challenges in the toy industry and Hasbro's market share loss [2] Financial Performance - In Q4 2025, Hasbro reported a 30% increase in revenue and a nearly 180% rise in adjusted operating profit [4] - The Consumer Products segment returned to growth, with Wizards of the Coast experiencing an 86% sales increase, primarily driven by Magic: The Gathering and related digital releases [4] Strategic Initiatives - CEO Chris Cocks highlighted the "Playing to Win" strategy, focusing on Play and Partnership, which has contributed to the company's turnaround and growth [3] - New licensing partnerships were announced, including connections to Harry Potter and the upcoming HBO series, as well as collaborations with Voltron and Street Fighter, expected to launch in late 2026 and expand into 2027 [5] Company Overview - Hasbro, Inc. operates in the game, intellectual property, and toy sectors, providing play experiences through physical and digital games, video games, and toys [6]

Group 1 - Mattel, Inc. reported a disappointing quarter, leading to a stock plunge of approximately 25% the following day due to slowed replenishment orders from U.S. retailers and aggressive inventory clearance [1] - The company plans to invest an additional $150 million in organic growth initiatives for 2026, particularly focusing on its digital games business [1] - Longleaf Partners Fund highlighted that over 80% of Mattel's value is derived from strong brands like Hot Wheels, Barbie, and UNO, and the company is in its strongest position in over a decade [2] Group 2 - Mattel executed stock repurchases totaling $600 million in 2025, with expectations for additional repurchases at discounted prices in 2026 [2] - The toy business continues to grow, with gross margins remaining robust at 50% [2] - Upcoming releases for 2026 include movies for Masters of the Universe and Matchbox, along with two video games, indicating a promising outlook for owned intellectual property [2]

Financial Data and Key Metrics Changes - For Q4, net sales were $273 million, up 9% compared to Q3, exceeding expectations [26] - Gross margin was at 41%, slightly higher than guidance, maintaining above 40% for seven of the last eight quarters [26] - SG&A expenses decreased by 12% year-over-year to $91 million [26] - Adjusted EBITDA for Q4 was $23 million, at the high end of expectations [26] Business Line Data and Key Metrics Changes - Funko core product lines are expected to grow high single digits year-over-year in 2026, while Loungefly is projected to decline by double digits due to SKU cuts [28][29] - The Bitty Pop! product line has shown strong growth, contributing positively to sales [31] Market Data and Key Metrics Changes - In the EU, sales increased by 20% from January 2025 to January 2026, outperforming market growth [22] - The company is the second largest collectible brand by market share in Europe, following Pokémon [22] Company Strategy and Development Direction - The "Make Culture Pop!" strategy focuses on participating in cultural moments and expanding into new markets, particularly in Asia and Latin America [10][24] - A new Chief International Officer has been appointed to drive growth in Asia and Latin America, targeting significant opportunities in these regions [24] - The company aims to leverage its relationships with licensors and creators to tap into emerging cultural trends, especially from Asia [25] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing a strong entertainment slate and growth in collectibles, licensed IP, and the kidult market as key drivers [32][33] - The company expects net sales to be flat to up 3% in 2026, with a substantial improvement in profitability anticipated [28][30] Other Important Information - The company has renewed licenses with major studios, ensuring a strong position for the upcoming film slate [45] - The introduction of a new program called HyperStrike aims to enhance speed in product development and capitalize on viral trends [16][20] Q&A Session Summary Question: Describe the shape of the flat to +3% guidance past Q1 - The guidance is expected to be consistent throughout the year, with Q2 anticipated to show growth over last year [34] Question: To what extent does Funko view original content creation as a growth driver? - Original content creation is seen as a long-term growth driver, with plans to partner with major studios for development [35] Question: Does Funko need to use any of its extended credit agreement in 2026? - The company does not expect to need additional borrowing and plans to manage operations on cash flows [38] Question: Can you break out the POS trends and inventory restocking domestically versus Europe? - Double-digit growth in POS sales was observed in Europe, while the US saw improving trends throughout Q4 [39] Question: What would you highlight as the key initiatives to drive top line results and margin versus 2025? - Key initiatives include leveraging the content slate, expanding international growth, and launching new products [40]

Financial Data and Key Metrics Changes - For Q4, net sales were $273 million, up 9% compared to expectations, indicating better performance than anticipated [26] - Gross margin was reported at 41%, slightly higher than guidance, maintaining above 40% for seven of the last eight quarters [26] - SG&A expenses decreased by 12% year-over-year to $91 million [27] - Adjusted EBITDA for Q4 was $23 million, at the high end of expectations [27] Business Line Data and Key Metrics Changes - Funko's core product lines are expected to grow in high single digits year-over-year, while Loungefly is projected to decline in double digits due to SKU cuts [28][29] - The Bitty Pop! product line has shown strong growth, contributing positively to sales [31] Market Data and Key Metrics Changes - In the EU, sales increased by 20% from January 2025 to January 2026, outperforming market growth [22] - The company is the second largest collectible brand by market share in the EU, following Pokémon [22] Company Strategy and Development Direction - The "Make Culture POP!" strategy focuses on participating in cultural moments and expanding into new markets, particularly in Asia and Latin America [10][25] - A new Chief International Officer has been appointed to drive growth in Asia and Latin America, targeting significant toy markets [24] - The company is exploring original content creation as a long-term growth driver, leveraging partnerships with major studios [35][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing a strong entertainment slate and trends in collectibles, licensed IP, and kidult demographics as growth drivers [32][33] - The company expects net sales to be flat to up 3% in 2026, with a substantial improvement in profitability [28][30] Other Important Information - The company has launched a new program called HyperStrike to quickly design and manufacture products in response to pop culture moments [16] - Funko has renewed licenses with major studios, ensuring a strong lineup for the upcoming film slate [45] Q&A Session Summary Question: Describe the shape of the flat to +3% guidance past Q1 - The guidance is expected to be consistent throughout the year, with Q2 anticipated to show growth over last year [34] Question: To what extent does Funko view original content creation as a growth driver? - Original content creation is seen as a serious long-term growth driver, with a focus on storytelling through partnerships with major studios [35] Question: Does Funko need to use any of its extended credit agreement in 2026? - The company does not expect to need additional borrowing and plans to manage on operating cash flows [38] Question: Can you break out the POS trends and inventory restocking domestically versus Europe? - Double-digit growth in POS sales was observed in Europe, with improving trends in the U.S. throughout Q4 [39] Question: What would you highlight as the key initiatives to drive top line results and margin versus 2025? - Key initiatives include leveraging the content slate, expanding international growth, and launching new products [40]

Financial Data and Key Metrics Changes - For Q4 2025, net sales were $273 million, up 9% compared to Q3, exceeding expectations [25] - Gross margin was at 41%, slightly higher than guidance, marking the seventh of the last eight quarters above 40% [25] - SG&A expenses decreased by 12% year-over-year to $91 million [26] - Adjusted EBITDA for Q4 was $23 million, at the high end of expectations [26] - For 2026, net sales are expected to be flat to up 3% compared to 2025, with adjusted EBITDA projected between $70 million and $80 million [27] Business Line Data and Key Metrics Changes - Funko core product lines are expected to grow high single digits year-over-year, while Loungefly is projected to decline by double digits due to SKU cuts [27][28] - The Bitty Pop! product line has shown strong growth, contributing positively to sales [30] Market Data and Key Metrics Changes - In Europe, sales increased by 20% from January 2025 to January 2026, outperforming market growth [22] - The company is the second largest collectible brand by market share in Europe, following Pokémon [22] Company Strategy and Development Direction - The "Make Culture Pop!" strategy focuses on participating in cultural moments and expanding the brand's presence in collectibles [10] - The company aims to grow in Asia and Latin America, appointing a new Chief International Officer to drive this initiative [23] - Funko is exploring original content creation as a long-term growth driver, leveraging partnerships with major studios [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing a strong entertainment slate and growth in collectibles, licensed IP, and the "kidult" market [32][33] - The company is confident in maintaining gross margins due to renewed licensing agreements and cost management strategies [29] Other Important Information - Funko launched a new program called HyperStrike to quickly design and manufacture products in response to cultural trends [15] - The company is expanding its product offerings, including a partnership with Rideback for new storytelling initiatives [21] Q&A Session Summary Question: Describe the shape of the flat to +3% guidance past Q1 - The growth is expected to be consistent throughout the year, with Q2 anticipated to show improvement over last year [34] Question: To what extent does Funko view original content creation as a growth driver? - Original content is seen as a potential long-term growth driver, with a focus on storytelling through partnerships with major studios [35] Question: Does Funko need to use any of its extended credit agreement in 2026? - The company does not expect to need additional borrowing and plans to manage operations with existing cash flows [37] Question: Can you break out the POS trends and inventory restocking domestically versus Europe? - Europe continues to see double-digit growth in POS sales, while the US has shown improving trends throughout Q4 [39] Question: What would you highlight as the key initiatives to drive top line results and margin versus 2025? - Key initiatives include a strong content slate, growth in Bitty Pop!, and international expansion [40]

Q4 2025 EARNINGS March 12, 2026 Q4 EARNINGS | 2025 1 Presentation Disclosures This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Any statements contained in this presentation that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding our product offerings, our strategic plan and speed to market, future financial results, including without limitation, full-year ...

Financial Data and Key Metrics Changes - Total revenues for Q4 2025 were $154.5 million, an increase of 2.7% year-over-year, with full-year revenues reaching $529.8 million, up 6.7% from the previous year [20][24] - Pre-tax income for Q4 was $21.5 million, down from $27.5 million last year, impacted by approximately $6 million in tariffs and related costs [23] - Earnings per share for the full year were $3.99, representing a 5% growth, although tariffs reduced EPS by approximately $0.65 [24] Business Line Data and Key Metrics Changes - Net retail sales for Q4 were $139.5 million, essentially flat compared to last year, while e-commerce demand decreased by 13.6% for the quarter [20][22] - Commercial revenue, reflecting wholesale sales, increased by 42.2% for the quarter and 23.4% for the year, indicating strong growth in this segment [22] Market Data and Key Metrics Changes - The company expanded its international footprint significantly, entering eight new countries in 2025, doubling its international presence to 36 countries in two years [7][11] - The U.S. market saw continued expansion with new store openings, including co-branded locations with Hello Kitty [9][10] Company Strategy and Development Direction - The company focuses on three strategic initiatives: expanding experiential retail locations, advancing digital transformation, and leveraging brand equity for new revenue streams [6][11] - Plans for 2026 include opening at least 50 net new locations, primarily in the partner-operated model, to support international growth [10][25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience despite challenges from tariffs and supply chain disruptions, highlighting a record revenue year and ongoing strategic initiatives [4][16] - The outlook for 2026 anticipates mid-single-digit revenue growth, with pre-tax income expected to range from a decline to low single-digit growth due to tariff impacts [25][26] Other Important Information - The CEO announced retirement plans, with the COO set to take over, emphasizing a planned succession process [3][29] - The company has successfully launched new products, such as Mini Beans, which have generated significant sales and expanded distribution [14][15] Q&A Session Summary Question: Discussion on personalization and expansion - Management acknowledged the importance of in-store personalization and customization, with plans to expand these offerings in key markets [49][50] Question: Inventory management and tariff impacts - The CFO discussed elevated inventory levels due to tariffs and ongoing investments to support growth, emphasizing proactive management strategies [51][52] Question: Long-term investments and digital business - Management confirmed ongoing strategic investments in digital capabilities and infrastructure to support future growth, despite short-term impacts [57][58] Question: International expansion and new partners - The COO detailed recent international expansions and the strategy to open new locations in both existing and new markets [61][62] Question: Pre-tax margin guidance - The CFO explained the expected impact of tariffs and investments on pre-tax margins, indicating a cautious outlook for the upcoming year [65][66]

Financial Data and Key Metrics Changes - Total revenues for fiscal 2025 reached approximately $529.8 million, representing a 6.7% year-over-year increase, marking the highest revenue in the company's history [24][31] - Pre-tax income for the year was $67.2 million, slightly impacted by approximately $11 million in tariff-related costs, with earnings per share at $3.99, reflecting a 5% growth [25][31] - For the fourth quarter, total revenues were $154.5 million, a 2.7% increase year-over-year, while net retail sales were essentially flat at $139.5 million [21][22] Business Line Data and Key Metrics Changes - The direct-to-consumer business saw a 13.6% decrease in e-commerce demand for the fourth quarter, primarily due to traffic declines and tough comparisons from previous strong product launches [23] - Commercial revenue, which includes wholesale sales, increased by 42.2% for the quarter and 23.4% for the year, indicating strong growth in this segment [23] Market Data and Key Metrics Changes - The company expanded its international footprint significantly, entering eight new countries in 2025, doubling its international presence to 36 countries over two years [7][64] - The U.S. market remains a stronghold, with the company continuing to expand its corporate store footprint, including new experiential locations [9][10] Company Strategy and Development Direction - The company is focused on three strategic initiatives: expanding experiential retail locations, advancing digital transformation, and leveraging brand equity to create new revenue streams [6][11] - The new CEO, Chris Hurt, plans to continue the company's growth strategy, emphasizing organic growth, location expansion, wholesale and outbound licensing, and enhancing gifting and personalization opportunities [36][39] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from tariffs and supply chain disruptions but expressed confidence in the company's resilience and ability to navigate these issues [4][16] - The outlook for 2026 anticipates mid-single-digit revenue growth, driven by the addition of at least 50 new experience locations, primarily in international markets [26][28] Other Important Information - The company has successfully launched a new line of pre-stuffed branded Mini Beans, achieving over 3 million units sold and securing a multi-million dollar wholesale order with Walmart [15][16] - The transition of leadership from Sharon John to Chris Hurt is part of a planned succession process, with expectations for continued growth under Hurt's leadership [3][30] Q&A Session Summary Question: Discussion on personalization and in-store experiences - Management highlighted the importance of expanding personalization options in-store, including embroidery and customization, as a key growth area [48][50] Question: Inventory management and tariff impacts - The CFO discussed elevated inventory levels due to tariffs and ongoing investments to support growth, emphasizing proactive management strategies [52][54] Question: Long-term investments in digital and operations - Management confirmed ongoing strategic investments, particularly in digital capabilities and international expansion, with a focus on long-term growth [59][61] Question: Momentum in commercial and franchise businesses - The company is exploring new partners and countries for expansion, with significant opportunities identified in existing markets like Italy and Germany [63][64] Question: Pre-tax margin guidance and influencing factors - The CFO explained the expected impact of tariffs and investments on pre-tax margins, indicating a range of mid-single-digit decline to low single-digit growth for the upcoming year [68][70]

Financial Data and Key Metrics Changes - Total revenues for fiscal 2025 reached $529.8 million, representing a 6.7% increase year-over-year, marking the highest revenue in the company's history [24][16] - Pre-tax income was $67.2 million, slightly impacted by approximately $11 million in tariff-related costs, with earnings per share at $3.99, reflecting a 5% growth for the year [24][19] - Gross margin for Q4 was 55.2%, down 140 basis points compared to the previous year, primarily due to tariffs [22] Business Line Data and Key Metrics Changes - Net retail sales for Q4 were $139.5 million, essentially flat year-over-year, while e-commerce demand decreased by 13.6% for the quarter [20][21] - Commercial revenue, which includes wholesale sales, increased by 42.2% for the quarter and 23.4% for the year, indicating strong growth in this segment [22] Market Data and Key Metrics Changes - The company expanded its international footprint significantly, entering eight new countries in 2025, doubling its international presence to 36 countries [7][4] - The U.S. market remains a stronghold, with the company planning to open at least 50 new experience locations in 2026, primarily in international partner-operated formats [10][25] Company Strategy and Development Direction - The company focuses on three strategic initiatives: expanding experiential retail locations, advancing digital transformation, and leveraging brand equity for new revenue streams [5][11] - The new CEO, Chris Hurt, aims to continue the company's growth by optimizing the omni-channel model and expanding the global footprint through various business models [34][36] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from tariffs and supply chain disruptions but expressed confidence in the company's resilience and ability to execute long-term strategies [5][16] - The outlook for 2026 anticipates mid-single-digit revenue growth, with pre-tax income expected to range from a decline to low single-digit growth due to ongoing tariff impacts [25][26] Other Important Information - The company launched a new animated series, Kabu, which has already garnered over 1 million views, showcasing its efforts to build a proprietary IP ecosystem [15][14] - The transition of leadership from Sharon John to Chris Hurt is part of a planned succession process aimed at sustaining the company's growth trajectory [3][29] Q&A Session Summary Question: Discussion on expansion and personalization opportunities - Management highlighted the importance of in-store personalization and customization, particularly in tourist locations, and plans to roll out these features more broadly [49][50] Question: Inventory management and tariff impacts - The CFO discussed elevated inventory levels due to tariffs and investments for growth, emphasizing proactive management strategies to mitigate impacts [51][53] Question: Long-term investments in digital and operations - Management confirmed ongoing strategic investments in digital capabilities and operations, with a focus on long-term growth despite short-term challenges [58][60] Question: International expansion and new partners - The company opened in eight new countries and plans to continue expanding with both new and existing partners, particularly in markets like Italy and Germany [63][64] Question: Pre-tax margin guidance and influencing factors - The CFO explained the expected impact of tariffs on pre-tax margins, with a range reflecting both costs and strategic investments for future growth [67][68]