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    HAS
    Earnings call· Jun 2026(Q2 FY26)

    HASBRO, INC. HAS

    Jul 21, 2026 Source

    Executive summary

    Hasbro Q2 FY26 — Strong Magic Growth and Raised Full-Year Outlook

    Hasbro delivered a strong second quarter, driven by exceptional growth in Magic: The Gathering and a recovering Consumer Products segment, leading to a raised full-year outlook. The company is strategically refining its digital gaming investments, taking a non-cash write-down to focus on high-conviction titles and partnerships, which is expected to reduce future digital spend. This disciplined approach, coupled with robust brand performance and increased capital returns, positions Hasbro for continued top and bottom-line growth.

    Highlights

    5

    • Magic: The Gathering revenue grew over 32% in Q2 FY26 and 34% in H1 FY26.

    • Consolidated net revenue increased 16% year-over-year to $1.14 billion in Q2 FY26.

    • Adjusted operating profit rose 14% to $282 million in Q2 FY26.

    • Full-year revenue guidance increased to 5-7% constant currency growth, and adjusted operating margin raised to 25-26%.

    • Share repurchase target increased from $100 million to a minimum of $200 million for FY26.

    Concerns

    4

    • Adjusted operating margin decreased by 40 basis points to 24.8% in Q2 FY26 due to incremental operating expenses and a $56 million non-cash impairment charge.

    • Adjusted EPS decreased 2% to $1.28 in Q2 FY26, impacted by the digital game write-off.

    • Wizards operating margin declined 560 basis points to 40.7% in Q2 FY26 due to the impairment charge.

    • Consumer Products adjusted operating loss was $7.5 million in Q2 FY26 due to higher input costs, royalties, and operating expense timing.

    Guidance & targets

    12
    CategoryTargetConfidence
    Consolidated revenue growth
    5% to 7% year-over-year on a constant currency basis
    high materiality
    High
    Adjusted operating margins
    25% to 26%
    high materiality
    High
    Adjusted EBITDA
    $1.45 billion to $1.5 billion
    high materiality
    High
    Wizards revenue growth
    low double-digit range
    medium materiality
    High
    Wizards operating margins
    low 40% range
    medium materiality
    High
    Wizards operating margins
    high 30% to low 40% range
    medium materiality
    Medium
    Consumer Products revenue growth
    low single digits
    medium materiality
    Medium
    Consumer Products adjusted operating margin
    6% to 8% range
    medium materiality
    Medium
    Entertainment segment revenue growth
    slightly positive year-over-year
    low materiality
    Medium
    Entertainment segment operating margins
    approximately 50%
    low materiality
    Medium
    Total digital spend reduction
    at least 25% annually
    medium materiality
    High
    Share repurchase target
    minimum of $200 million
    high materiality
    High

    Segment performance

    3
    SegmentRevenueYoYQoQMargin
    Wizards of the Coast and Digital Gaming
    Powered by Magic, especially Strixhaven and Marvel Super Heroes releases. Margin impacted by $56 million impairment. Increased initial print runs for Magic releases improved operational efficiency and met demand.
    Magic: The Gathering revenue growth: 32% (Q2)Magic: The Gathering revenue growth: 34% (H1)Operating margin: 40.7%Operating margin change: down 560 bps YoY
    		$664 million27%—$270 million
    Consumer Products
    North America business benefited from lapping last year's later shelf set timing. Revenue impact from cyber event was less than forecasted ($25 million lost vs. $40-$60 million assumed). Operating loss due to higher input costs, royalties, and timing of operating expenses.
    North America business growth: 17%
    		$463 million5%—($7.5 million)
    Entertainment
    Revenue decline against a difficult prior-year compare. Margin improvement due to favorable mix within Family Brands and Film and TV.
    Operating margin: 67.2%Operating margin change: up more than 400 bps
    		$12.8 milliondown 20%—$8.6 million

    Operational metrics

    19
    Adjusted EBITDA
    $330 millionup 9%
    Q2 FY26

    Total Hasbro adjusted EBITDA.

    Adjusted EBITDA
    $670 millionup 16%
    H1 FY26

    Total Hasbro adjusted EBITDA.

    Cost transformation program savings
    $70 millionagainst our full year commitment of $150 million
    H1 FY26

    Program remains on track.

    Debt reduction
    $147 million
    H1 FY26

    Part of capital allocation priorities.

    Total shareholder returns
    $239 million
    H1 FY26
    Revenue lost due to cyber incident
    $25 millioncompared to our previous assumption of $40 million to $60 million
    Q2 FY26

    Operations fully restored ahead of schedule.

    Non-cash write-down for capitalized digital game costs
    $56 million
    Q2 FY26

    Reflects tightening scope of digital gaming efforts.

    Magic: The Gathering Arena cumulative revenue
    nearly $1 billion
    since 2019

    One of the most successful digital TCGs.

    D&D Beyond registered accounts
    more than 30 million
    current

    Reaches more than 3 in 4 Hobby role playing games each year.

    MONOPOLY GO! lifetime revenue
    exceed $8 billion
    this summer

    Partner-led success with Scopely.

    Magic revenue growth
    mid-single digits
    Q3 FY26

    Part of the implied guidance for the back half of the year.

    Magic revenue growth
    down low single digits
    Q4 FY26

    Part of the implied guidance for the back half of the year.

    Consumer Products revenue growth
    up low single digits
    Q3 FY26

    Behind innovation for holidays and normal shelf reset timing.

    Consumer Products revenue growth
    up low single digits
    Q4 FY26

    Behind innovation for holidays and normal shelf reset timing.

    Marketing spend for video game launches
    approximately $20 million
    H2 FY26

    Included in back-half operating margin for Wizards.

    Incremental marketing expense
    $50 million to $75 million
    FY27

    Contributes to the range in FY27 Wizards operating margin.

    Magic distribution channel mix
    70%
    current

    All three tranches (hobby, mass, international) are growing.

    Magic distribution channel mix
    20%
    current

    All three tranches (hobby, mass, international) are growing.

    Magic distribution channel mix
    10%
    current

    All three tranches (hobby, mass, international) are growing.

    Industry KPIs

    6
    MetricValueDetails
    EPS$1.28USD
    Revenue$1.14 billionUSD
    Operating margin24.8%%
    Adjusted EBITDA ebita$330 millionUSD
    Operating income EBIT$282 millionUSD
    Share buyback capital return$200 millionUSD

    Product announcements

    8
    ProductTypeDetails
    Bloomslaunch
    The Legend of Zelda inspired productslaunch
    Hasbro games for Toniebox 2launch
    My Little Pony trading cardslaunch
    Monopoly Big Board Buckslaunch
    Exodusroadmap
    Warlockroadmap
    CharacterOSlaunch

    Deals & partnerships

    6
    NintendoMultiyear licensing agreement to develop products inspired by The Legend of Zelda franchise.multiyear

    Collaboration will come to life in 2027, with product reveals at San Diego Comic Con.

    ScopelyPartnership for the mobile game MONOPOLY GO!on track to exceed $8 billion in lifetime revenue

    MONOPOLY GO! is a major success, proving the value of partner-led digital economics.

    AristocratPartnership for the slot title Monopoly Big Board Bucks.

    Example of successful partner-led digital gaming.

    ToniesPartnership for Hasbro games on Toniebox 2.

    Extends Hasbro's brands through partners.

    KayouPartnership to bring My Little Pony trading cards to the U.S.

    Extends Hasbro's brands through partners.

    ElevenLabsClose partner for CharacterOS, Hasbro's new behavioral licensing platform.

    ElevenLabs' iconic marketplace is used for licensing pilots of Hasbro characters through CharacterOS.

    Risks & headwinds

    5
    Non-cash write-down for capitalized costs of canceled digital gamesQ2 FY26

    $56 million

    Mitigation: Focus digital investment on high-upside franchises, cost discipline, and partnership-led economics; 2026 is peak investment year, expect 25% annual spend reduction by 2028.

    Wizards operating margin compressionQ2 FY26

    down 560 basis points to 40.7% in Q2 FY26

    Mitigation: Volume growth in Magic more than offsets impacts; continued investment in supply chain and manufacturing capabilities.

    Consumer Products operating lossQ2 FY26

    adjusted operating loss was $7.5 million in Q2 FY26

    Mitigation: Overall volume growth and cost productivity expected to offset higher costs in the back half; lost Q2 revenue expected to be recouped.

    Revenue loss due to cyber incidentQ2 FY26

    approximately $25 million of revenue was lost in Q2 FY26

    Mitigation: Operations fully restored ahead of schedule; impact was less than forecasted ($40M-$60M).

    Headwinds from oil and trade policyH1 FY26 (and ongoing)

    null

    Mitigation: Executing playbook to offset rising oil costs.

    What to watch in Q3 FY26

    5

    Magic Q3 Revenue Growth

    Q3 FY26
    Currentup 32% in Q2
    Targetmid-single digits

    Why it matters

    Verifies the short-term momentum and durability of Magic's growth as guided by management.

    Our guidance is really unchanged on Waters in the back half of the year. It really factors in that in total, Magic is going to be, call it, up kind of low single digits, which is comprised of the Q3 that is up mid-single digits in a Q4, that is down low single digits.

    Q&A highlights

    5

    What gives confidence in Magic's continued growth beyond 2026, given the high base, and what levers will drive it?

    Chris Cocks cited a growing player base (new and reacquired lapsed players), double-digit distribution growth (WPN and mass market accounts), and exciting partnerships/new initiatives for 2027 and beyond, including fantasy-adjacent Universes Beyond IPs and digital investments for 2028+.

    “Magic player base is growing. New players are growing. We're reacquiring lapsed players I think that fundamentally, it all kind of comes down to the math of how many people are playing the game and purchasing cards.”

    asked by Stephen Laszczyk · answered by Chris Cocks

    2 min read6 chapters

    Detailed Narrative

    01

    Magic: The Gathering's Mega Franchise Status

    Chris Cocks emphasized Magic's longevity and depth, comparing it to major franchises like Pokemon and World of Warcraft. He highlighted its consistent compounding revenue growth of over 17% annually since 2009, growing in 15 of the last 17 years, and its role as a platform with platform-level economics, especially with Universes Beyond. The brand's success is driven by a growing player base, double-digit distribution expansion, and strong new initiatives.

    02

    Digital Strategy Refinement

    Hasbro is focusing its digital investment on high-upside franchises like Magic and D&D, canceling lower-conviction projects, which resulted in a $56 million non-cash write-down. The strategy prioritizes cost discipline, with 2026 being the peak investment year, and a projected 25% annual reduction in total digital spend by 2028. This shift aims for a more focused and profitable digital business.

    03

    Ownable Digital Platforms

    The company is leveraging its proprietary digital platforms, including Magic: The Gathering Arena, which has generated nearly $1 billion since its 2019 introduction, and D&D Beyond, with over 30 million registered accounts. Hasbro also announced CharacterOS, a new behavioral licensing platform for B2B applications, which is expected to bring Hasbro characters into new digital contexts with attractive underlying economics.

    04

    Partnership-Led Digital Growth

    Hasbro is expanding its digital footprint through strategic partnerships, exemplified by the success of MONOPOLY GO!, which is on track to exceed $8 billion in lifetime revenue this summer. The company has over 200 projects active or in development with partners across various gaming segments, allowing Hasbro to scale its digital presence and create major franchise moments without solely bearing all development costs and risks.

    05

    Consumer Products Recovery and GEM-squared Focus

    The Consumer Products segment saw 5% revenue growth in Q2, with North America up 17%, benefiting from a return to historical shelf-set timing and less impact from the cyber event than initially forecasted. The company is strategically focusing on 'GEM-squared' categories (gamified, entertainment-driven, multi-purchased, multigenerational), which continue to outperform the broader toy industry, as demonstrated by the successful launch of Play-Doh Blooms.

    06

    Supply Chain and Production Scaling for Magic

    Hasbro made a deliberate decision to increase initial print and distribution runs for Magic releases in 2026, improving operational efficiency and better meeting demand at launch. This strategy proved successful with Secrets of Strixhaven and Marvel Super Heroes, which were the largest premier and day-one releases in Magic's history, respectively. The company is also investing in increasing fundamental production capacity with print partners for 2027 and 2028.

    AI-generated summary of the company’s earnings call. Not investment advice.