Hasbro, Inc.

Second-quarter net revenue was $1.14 billion, up 16% year over year. Adjusted operating profit was $282 million, up 14%, with adjusted operating margin of 24.8%, down about 40 basis points. Adjusted EPS was $1.28, down 2%, impacted by a $56 million non-cash impairment related to digital gaming efforts. Wizards revenue increased 27% to $664 million, with operating profit up 12% to $270 million and margin at 40.7%; Consumer Products revenue rose 5% to $463 million; Entertainment revenue was $12.8 million, down 20%. For the first half, revenue was $2.1 billion, up 15%, adjusted operating profit was $569 million, up 21%, and adjusted operating margin expanded 150 basis points. Full-year guidance was raised to 5%-7% constant-currency revenue growth, 25%-26% adjusted operating margin, and $1.45 billion-$1.5 billion of adjusted EBITDA. Wizards is expected to grow revenue in the low double-digit range with operating margins in the low 40% range; Consumer Products is still expected to grow low single digits with 6%-8% operating margin; Entertainment is expected to be slightly positive with about 50% margins.

Chris Cocks framed the quarter as evidence that Hasbro’s portfolio is working: Magic is growing with more players, broader distribution, and stronger reorders, while the toy business is also growing and licensing is expanding. He leaned heavily into the idea that Magic is a durable “mega franchise,” pointing to long-term compounding, Universes Beyond, and broad fan engagement as reasons for continued upside. On digital, he said the company is narrowing its focus, cutting lower-conviction projects, and concentrating spending behind trading card games, RPGs, owned platforms, and partnerships.

Gina Goetter emphasized that the quarter benefited from broad-based growth and disciplined operations after the cyber incident was fully recovered. She cited Q2 revenue of $1.14 billion, adjusted operating profit of $282 million, adjusted margin of 24.8%, and the $56 million impairment that reduced adjusted EPS to $1.28. She also noted first-half operating cash flow of $604 million, $147 million of debt reduction, and $239 million returned to shareholders, and said the share repurchase target is being increased from $100 million to at least $200 million while the dividend remains in place. On guidance, she pointed to higher royalties and marketing spend in the back half, digital spending peaking in 2026, and margin support from cost productivity.

Analysts focused on the durability of Magic growth, the impact of higher print runs and supply, the size and treatment of the $56 million digital impairment, and how to think about Marvel Super Heroes versus Final Fantasy. Management said Magic growth is supported by a growing player base, double-digit distribution growth, and a strong 2027+ release slate, while the impairment was tied to projects that no longer fit the digital strategy and will still flow through the P&L. On Marvel Super Heroes, they said sell-through and reorders are strong, inventory is reasonable, and it has done well across channels, especially with new players and mass channels. They also said 2026 is the peak digital spend year, one-to-two significant game releases per year still seems right from 2027 onward, and future development will lean more on co-publishing and lower-cost production.