Financial Performance Highlights - Hasbro's total revenue increased by 8% to $1.388 million in Q3 2025 [8], driven by Wizards of the Coast & Digital Gaming which grew by 42% [7, 14, 15] - Adjusted EPS was $1.68, impacted by a higher tax rate and FX [7] - For the first nine months of 2025, total Hasbro revenues were up 7% to $3,255 million [9, 10], also driven by Wizards and Licensing [9] - Adjusted operating profit for the first nine months increased by 14% year-over-year [9] - Adjusted EPS for the first nine months was $4.03, a $0.47 improvement year-over-year [9] - Q3 2025 net earnings attributable to Hasbro, Inc was $233.2 million [62] Segment Performance - Wizards of the Coast & Digital Gaming revenue increased by 42% in Q3 2025 [7, 14, 15], with tabletop gaming up 49% to $441.8 million [75] and digital and licensed gaming up 21% to $130.2 million [75] - Consumer Products revenue declined by 7% in Q3 2025 [7, 14, 15], but there was growth across brands including PEPPA, Marvel, GI JOE and Beyblade [7] - Entertainment segment revenue increased by 8% in Q3 2025 [14, 15] Inventory and Cash Flow - Total Hasbro owned inventory was up 6% year-over-year in Q3 2025 to $375 million [26, 27] - Operating cash flow declined $98 million year-over-year to $490 million for the first nine months of 2025 [39, 40] Guidance - The company updated its 2025 guidance, expecting net revenues to be up high-single digits in constant currency [41] - Adjusted EBITDA is projected to be between $1.24 billion and $1.26 billion [41]

Q2 2025 Financial Performance - Hasbro's total revenue decreased by 1% to $981 million in Q2 2025, with growth in Wizards of the Coast & Digital Gaming offset by declines in Consumer Products [7] - Wizards of the Coast & Digital Gaming segment revenue increased by 16% to $522 million, driven by MAGIC: THE GATHERING and Monopoly Go! [6, 13] - Consumer Products segment revenue declined by 16% to $442 million, despite growth in consumer products licensing [6, 13] - Hasbro reported a net loss of $856 million, or $6.10 per share, impacted by a $1022 million non-cash goodwill impairment [7, 6] - Adjusted EPS was $1.30, an $0.08 improvement compared to Q2 2024 [6] - Adjusted operating profit was approximately flat year-over-year at $247 million, driven by favorable business mix and improved cost structure [6, 7] - EBITDA was a loss of $742 million, while adjusted EBITDA was $302 million, a decrease of 4% [7] YTD 2025 Financial Performance - Hasbro's total revenue increased by 7% to $1868 million for the first six months of 2025, with momentum in Wizards and licensing offsetting declines in Consumer Products [8, 10] - Wizards of the Coast & Digital Gaming segment revenue increased by 28% to $985 million [8, 16] - Consumer Products segment revenue declined by 10% to $841 million [8, 16] - Hasbro reported a net loss of $757 million, or $5.41 per share, impacted by a $1022 million non-cash goodwill impairment [8, 10] - Adjusted EPS was $2.35, a $0.52 improvement compared to 1H 2024 [8] - Adjusted operating profit increased by 18% to $470 million, driven by higher revenues and favorable business mix [8, 10] - EBITDA was a loss of $530 million, while adjusted EBITDA was $576 million, an increase of 19% [10] 2025 Guidance - Hasbro updated its FY 2025 guidance, projecting net revenues to be up mid-single digits in constant currency [40] - Adjusted operating margin is expected to be between 22% and 23% [40] - Adjusted EBITDA is projected to be between $1.17 billion and $1.20 billion [40]

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]