Core Insights - The competitive landscape between Hasbro and Mattel is shifting, with Hasbro gaining an edge due to its successful trading card game division, Wizards of the Coast [3][4]. Financial Performance - For fiscal year 2025, Hasbro's revenue increased by 14% to $4.7 billion, while Mattel's net sales decreased by 1% to $5.3 billion [4]. - Hasbro's stock rose approximately 46% over the past year, trading around $100, whereas Mattel's shares fell over 20%, trading at about $17 [5]. Business Segments - Hasbro's Wizards of the Coast division, which includes Dungeons & Dragons and Magic: The Gathering, saw a revenue increase of 45% to $2.1 billion in 2025, contributing significantly to the company's profits [9][12]. - The digital gaming segment of Hasbro also experienced a 6% revenue increase in 2025, driven by the success of "Monopoly Go!" [14]. Market Trends - The overall toy industry in the U.S. saw a 6% increase in total annual dollar sales in 2025, with unit sales rising by 3%, indicating a stable demand despite economic pressures [19][20]. - Mattel's flagship brands, including Barbie and Fisher-Price, are facing sales declines, while its vehicles division reported an 11% increase in gross billings [17]. Future Outlook - Hasbro plans to launch new Magic sets based on popular franchises in 2026, forecasting mid-single-digit growth for its Wizards business [13]. - Mattel is beginning to invest in digital gaming, acquiring full ownership of its Mattel163 joint venture, which could enhance its profit margins over time [15][16].

For the full year, Goetter said net revenue grew 14% to $4.7 billion. Adjusted operating profit increased 36% to $1.1 billion, and adjusted operating margin reached 24.2%, which management described as a record. Adjusted EPS for the year was $5.54.Chief Financial Officer and Chief Operating Officer Gina Goetter said Hasbro delivered a strong finish to 2025 despite what she described as macro volatility and “meaningful transformation actions.” In the fourth quarter, net revenue was $1.5 billion, up 31% year- ...

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 ...

Financial Data and Key Metrics Changes - In Q4 2025, Hasbro reported net revenue of $1.5 billion, a 31% increase year-over-year, with adjusted operating profit rising 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 from the previous year [18][20] - Adjusted earnings per diluted share were $5.54 for the full year [18] Business Line Data and Key Metrics Changes - The Wizards of the Coast segment saw revenue grow 86% in Q4 to $630 million, with Magic sales up 141% driven by successful releases [18][19] - Consumer products revenue in Q4 was $800 million, up 7%, while for the full year, it declined 4% to $2.4 billion, reflecting resilience despite tariff impacts [20] - The entertainment segment performed in line with expectations, delivering stable revenue and adjusted margins [20] Market Data and Key Metrics Changes - Hasbro's brands now reach over 1 billion people annually, significantly exceeding initial estimates of 585 million [4] - The company reported a 22% year-over-year increase in unique players participating in organized play for Magic, with over 1 million players by the end of 2025 [9] Company Strategy and Development Direction - Hasbro's strategic roadmap, "Playing to Win," focuses on two pillars: play and partnership, aiming to drive growth and profitability [4] - The company is expanding its partnerships with major franchises, including Harry Potter and K-Pop, to enhance its product offerings and market reach [7][12] - Hasbro is leveraging AI to improve productivity and innovation, aiming to free up over 1 million hours of lower-value work for more creative endeavors [13][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's growth trajectory despite market volatility, highlighting the successful execution of the "Playing to Win" strategy [16] - The outlook for 2026 anticipates consolidated revenue growth of 3% to 5% year-over-year, with operating margins expected to be between 24% and 25% [22][23] - The company expects Wizards to remain a primary growth engine, supported by a robust pipeline and sustained engagement across gaming [22] Other Important Information - Hasbro generated $893 million in operating cash flow and ended the year with $777 million in cash, returning $393 million to shareholders through dividends [22] - The board has authorized a new $1 billion share repurchase program, indicating confidence in the company's cash flows [26] Q&A Session Summary Question: Can you unpack the assumptions underlying the Magic guide for the year? - Management highlighted several growth vectors, including distribution growth and robust player engagement, indicating a virtuous cycle of increased participation and sales [32][33] Question: What is driving the momentum in expanded partnerships? - Management noted that Hasbro's unique ability to engage consumers across generations makes it a partner of choice, leading to a strong pipeline of multi-generational brands [37][39] Question: How do you view the toy industry POS outlook for 2026? - Management indicated that while traditional toy markets may decline, Hasbro's focus on gamified and entertainment-driven categories is expected to see robust growth [88] Question: What are the expectations for Monopoly Go in 2026? - Management expects stable performance with a run rate of $12 million to $14 million per month, indicating effective value capture strategies [72]

Q4 and Full Year 2025 Earnings February 10, 2026 USE OF NON-GAAP FINANCIAL MEASURES Supplemental Financial Data The financial tables accompanying this presentation include non-GAAP financial measures as defined under SEC rules, specifically Adjusted operating profit. Adjusted operating margin. Adjusted net earnings and Adjusted net earnings per diluted share. which exclude, where applicable, acquired intangible amortization, strategic transformation initiatives, restructuring and severance costs, loss on di ...

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]

Core Insights - Unity Software Inc. is focusing on partnerships as a key element of its turnaround strategy, aiming for long-term growth opportunities rather than just product adoption [1][4] - Recent multi-year agreements with Tencent, Scopely, and Nintendo are designed to enhance integration across Unity's Create and Grow platforms [1][9] Partnerships and Industry Integration - The partnership with Tencent solidifies Unity's position in the Chinese gaming market, which is the largest globally [2] - Scopely's agreement encompasses development and monetization, linking Unity's engine to mobile games like Monopoly Go! [2] - Collaboration with Nintendo ensures that the Unity 6 engine is optimized for the Switch 2, enhancing third-party development capabilities [2] Expansion Beyond Gaming - Unity is also expanding its presence in the automotive and healthcare sectors, with its technology being utilized in BMW's 3D asset management and integrated into Mercedes-Benz's operating system [3] - Medical partners are using Unity's tools for advanced visualization, showcasing the versatility of its technology [3] Financial Performance and Valuation - Unity's stock has increased by 31.4% over the past three months, outperforming the Zacks Internet - Software industry and the Zacks Computer and Technology sector [8][9] - The company is trading at a premium with a forward 12-month price-to-sales ratio of 8.2, indicating strong market confidence [13] Earnings Growth Estimates - Earnings per share for Unity are projected to grow by 146.4% in 2025 and 8.8% in 2026, reflecting positive financial momentum [12] - The Zacks Consensus Estimate for earnings in 2025 is $0.78, with a year-over-year growth estimate of 146.43% [14]

Core Insights - The "Coin Master" genre continues to evolve with new entries like "Monopoly Go!" and "Coin Master: Board Adventure," indicating ongoing competition and market opportunities [1][3][31] Game Evolution - The genre began with Jelly Button's "Pirate Kings," which inspired Moon Active's "Coin Master," leading to significant revenue growth [5] - Scopely's "Monopoly Go!" builds on the established mechanics of "Coin Master" while leveraging a well-known IP to attract a broader audience [5][9] Market Dynamics - "Monopoly Go!" has not cannibalized "Coin Master" but rather opened a new market segment, with both games maintaining stable revenues since the launch of "Monopoly Go!" [6][8] - The introduction of "Monopoly Go!" has attracted a different demographic, increasing engagement among board game players by 1100% compared to regular users [9] Revenue Insights - "Monopoly Go!" achieved $5 billion in revenue within two years without negatively impacting "Coin Master," which has maintained its revenue stream [8][22] - The casual board game genre has seen downloads reach 1.5 billion, with "Monopoly Go!" benefiting from high monetization potential [22] Competitive Landscape - New challengers like "Carnival Tycoon" and "Animals & Coins" are entering the market, contributing to a fragmented landscape and slightly decreasing revenue per download [19][21] - "Dice Dreams," developed by SuperPlay, has seen significant revenue growth post "Monopoly Go!" launch, indicating that the market is not a zero-sum game [23][29] Future Outlook - The "Coin Master" genre is transitioning from a "duopoly" to a "multiplayer" environment, with expectations of increased market saturation as new titles emerge [21] - Moon Active's upcoming title "Coin Master: Board Adventure" aims to compete directly with "Monopoly Go!" by incorporating similar gameplay mechanics [31]

Core Insights - Hasbro, Inc. is set to report its second-quarter fiscal 2025 results on July 23, with earnings expected to decline significantly compared to the previous year [1][9] Earnings Estimates - The Zacks Consensus Estimate for earnings is 78 cents per share, reflecting a 36.1% decrease from $1.22 reported a year ago [2][9] - Revenue estimates stand at $873 million, indicating a 12.3% decline from the prior-year quarter [2] Revenue Performance - The Consumer Products segment is projected to see a revenue decline of 23.6% year over year to $400.9 million [4] - Conversely, revenues from Wizards of the Coast & Digital Gaming and Entertainment are expected to increase by 2.1% and 1% year over year, reaching $461.4 million and $19 million, respectively [4] Market Challenges - Hasbro's revenue growth is likely impacted by macroeconomic uncertainties and tariff-related disruptions, particularly in the Consumer Products segment [3] - A slowdown in direct import activity and ongoing SKU rationalization may further constrain revenue growth [3] Margin Pressures - The company faces significant margin pressure due to rising input costs associated with tariffs and supply chain shifts, estimating a gross impact of $100 million to $300 million for the year [6] - Despite cost-saving initiatives, near-term expenses related to logistics and royalty increases are expected to compress operating margins in Q2 [6][9] Earnings Prediction Model - The current model does not predict an earnings beat for Hasbro, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [7]

Core Viewpoint - Hasbro, Inc. is expected to benefit from strong performance in MAGIC: The Gathering, operational adjustments, and licensing partnerships, while facing challenges from an uncertain macro environment [1] Group 1: Growth Drivers - Hasbro's Playing to Win strategy is showing early momentum in 2025, focusing on high-growth categories and enhanced consumer engagement, with significant gains from MAGIC: The Gathering and Monopoly Go! [2] - The company is safeguarding key price points ($9.99 and $19.99) and collaborating with retailers to maintain shelf space for major new releases, while operational adjustments aim to boost flexibility and mitigate trade-related risks [3] - Hasbro is prioritizing investments in promising franchises like MAGIC: THE GATHERING and Play-Doh, while optimizing profitability from lower-growth brands and reinventing the NERF business model [4] Group 2: Licensing and Revenue Projections - Hasbro is expanding its licensing strategy with Disney, securing broader rights across Marvel and Star Wars properties, which supports scaling intellectual property through collaborative partnerships [5] - The model predicts a year-over-year revenue increase of 11.2% in 2025 for Digital and Licensed Gaming, reaching $524.7 million [5] Group 3: Cost Management and Financial Performance - The company is expediting a $1 billion cost savings initiative to address ongoing tariff challenges, with total adjusted EBITDA reaching $274 million in the fiscal first quarter, a 59% year-over-year increase [6] - Hasbro aims for $175 million to $225 million in gross cost savings this year, supported by strong performance from the Wizards segment and accelerated cost reductions [7] Group 4: Macro Environment and Challenges - Hasbro is navigating a challenging macroeconomic environment with rising tariff rates on imports from China, estimating a gross financial impact between $100 million and $300 million depending on policy developments [10] - The company anticipates a net profit impact ranging from $60 million to $180 million due to trade policy shifts and consumer behavior, despite stability from its games and licensing segments [11]