HASBRO (HAS)·Q4 2025 Earnings Summary
Hasbro Crushes Q4 as MAGIC Revenue Surges 141%, Announces $1B Buyback
February 10, 2026 · by Fintool AI Agent
Hasbro delivered a blowout Q4, crushing estimates across the board as its transformation into a "digital-first play and IP company" gains traction. MAGIC: THE GATHERING posted its strongest quarter ever, driving the Wizards segment to 86% revenue growth and 45% operating margins. The company announced a $1 billion buyback program and issued guidance calling for continued profitable growth in 2026.
Did Hasbro Beat Earnings?
Resounding yes. Hasbro delivered one of its strongest earnings beats in recent memory:
The company has now beaten EPS estimates for six consecutive quarters, with the beat magnitude accelerating as the Wizards of the Coast segment becomes a larger share of the mix.
Earnings History:
Ask Fintool AI AgentWhat Drove the Outperformance?
Wizards of the Coast: The Profit Engine
The Wizards segment was the clear star, contributing $630.4M in revenue (+86% YoY) with a stunning 45% operating margin:
MAGIC: THE GATHERING delivered record results:
- Q4 revenue of $502.4M (+141% vs. prior year quarter)
- Full year revenue of $1.72B (+59% YoY) — the franchise's strongest year ever
- Avatar: The Last Airbender became the 3rd highest-selling set in Magic history, trailing only Lord of the Rings and Final Fantasy
- Secret Lair delivered its largest quarter ever, with backlist sales also hitting a record
- Lorwyn (Jan 2026 release) is already the fastest-selling IP premiere set ever, surpassing Tarkir
Digital and Licensed Gaming grew 3% QoQ to $135.7M, with Monopoly Go! contributing $168M for the full year.
Consumer Products: Recovering
Consumer Products revenue rose 7% YoY to $800.0M, better than the flat expectations, driven by:
- Normalized retailer shelf resets after earlier disruptions
- Strong holiday sell-through in TRANSFORMERS, Marvel, and HASBRO GAMING
- North America +12% YoY, Europe +15% YoY
However, adjusted operating margin compressed to 6.7% (vs 8.0% PY) due to tariff costs.
How Did the Stock React?
Hasbro shares rose +3.1% on the day to $96.76, touching a 52-week high of $97.41 intraday. After-hours trading pushed shares to $97.40.* The stock has gained 97% from its 52-week low of $49.00, reflecting investor confidence in the Playing to Win transformation.
*Values retrieved from S&P Global
What Did Management Guide?
Hasbro issued constructive 2026 guidance that came in largely ahead of consensus:
*Values retrieved from S&P Global
Segment-Level Guidance:
Management noted Wizards margins will absorb higher royalty expense from Universes Beyond and incremental costs for the 2027 video game launches (Exodus and Warlock).
CEO Chris Cocks emphasized the strategic priorities: "We expect that momentum to carry into 2026. We engaged one billion fans, secured new partnerships, and made progress in our evolution into a digital-first play and IP company."
CFO Gina Goetter highlighted capital allocation: "Looking ahead, we will continue to balance investment in the business with shareholder returns, including through a $1.0 billion share repurchase program."
What Changed From Last Quarter?
The sequential improvement in Wizards more than offset typical Q4 seasonality in Consumer Products. Total Gaming revenue (MAGIC + D&D + Hasbro Gaming) hit $867.8M in Q4, up 60% YoY.
Ask Fintool AI AgentFull Year 2025 Highlights
The full year demonstrated the success of the Playing to Win transformation:
Segment Performance (Full Year):
Capital Allocation Priorities
Hasbro outlined clear capital allocation priorities for 2026:
- Invest in core business — continued digital gaming expansion and IP development
- Return cash to shareholders — $1.0B new buyback authorization plus $0.70/share quarterly dividend
- Pay down debt — spent $225M on debt reduction in 2025, achieving targets ahead of schedule
Balance Sheet Health:
Note: Equity declined due to $1.02B non-cash goodwill impairment in Q2 2025 related to Consumer Products segment (tariff-driven).
Key Risks and Concerns
Tariff Exposure: Management flagged ongoing tariff headwinds, particularly for Consumer Products which sources heavily from China. The Q2 2025 goodwill impairment was triggered by tariff implementation.
Consumer Products Weakness: While Q4 improved, full-year Consumer Products revenue declined 4% with compressed margins. The segment faces structural challenges as Hasbro shifts focus to higher-margin digital gaming.
MAGIC Concentration: With MAGIC now generating ~37% of total revenue, any slowdown in the franchise would materially impact results.
Relocation Costs: The planned move from Rhode Island to Boston could create near-term disruption and employee retention challenges.
Video Game Execution: Both Exodus and Warlock are planned for 2027 launch after development since 2019. This is Hasbro's first major self-published console game bet — execution risk is material.
Ask Fintool AI AgentMAGIC: THE GATHERING 2026 Product Pipeline
Management detailed an aggressive 2026 release calendar for MAGIC, building on the Universes Beyond crossover success:
MAGIC Player Base Statistics:
- Average tabletop player age: 35 years old
- Average player tenure: 5+ years
- Organized Play participants: >1 million (+22% YoY)
- Wizards Play Network: >10,000 stores globally (+20% YoY)
- Player composition: 80-90% players/player-collectors (vs. collector-only) — more stable than competitors
- Wizards Play Network distribution expected to grow double-digits again in 2026
New IP Partnerships Announced: Harry Potter (announced morning of earnings), K-Pop: Demon Hunters (Netflix's most popular film), Street Fighter (Legendary Pictures), Voltron (Amazon MGM Studios)
CEO Cocks explained the partnership strategy through the "hedgehog concept": "We believe Hasbro's superpower is inspiring a lifetime of play. We are a company that uniquely can engage a consumer as young as two or three and extend that play relationship well into throughout their entire lives." Partners choose Hasbro for this multi-generational engagement capability.
Consumer Products 2026 Entertainment Slate
The Consumer Products segment benefits from a strong entertainment pipeline in 2026:
Market Position in Focus Categories
Hasbro maintained or grew share in most focus categories during FY 2025:
Source: Circana G10 markets. Note: Games category excludes majority of MAGIC and D&D revenue.
FY 2025 POS Growth Brands: PEPPA PIG, Beyblade, Marvel FY 2025 POS Decline Brands: FURBY, NERF, PLAY-DOH, TRANSFORMERS, Star Wars
Operational Excellence Progress
The $1B gross cost savings program remains on track:
Management expects approximately 50% of gross savings to flow through to bottom line.
Q&A Highlights
Key insights from the earnings call Q&A:
Magic Phasing & Player Base: Management expects most Magic growth to come in H1 2026 due to a massive Q4 2025 comp. Chris Cocks emphasized Magic is 80-90% player/player-collector driven vs. collector-only — providing a more stable base than competitor TCGs.
Tariff Impact: Tariff costs were $40M in 2025 (60-65% in Q4), expected to rise to ~$60M in 2026. Supply chain productivity is offsetting costs but not adding to margin.
Consumer Products Quarterly Cadence: Q1 expected down (licensing comps), Q2 up strong (lapping tariff disruption), Q3/Q4 up slightly. Growth will be "really balanced" throughout the year.
Monopoly Go! Outlook: Expected to stay at $12-14M/month run rate through 2026 with decay rates in line with expectations and improved UA efficiency.
AI Strategy: CEO Cocks detailed significant AI investment: "Over the next year, we anticipate these workflows will free up more than 1 million hours of lower-value work." Partnerships with Google Gemini, OpenAI, and 11 Labs. AI-assisted design has reduced toy concept-to-prototype time by ~80%.
Balance Sheet: Gross leverage target achieved at 2.3x (ahead of schedule). Retail inventory ended down high single digits — management called it "the right resting spot" given macro/tariff uncertainty.
Digital Gaming Pipeline: New joint venture with Saber announced, with more partnerships coming. Development shifting to lower-cost talent markets (Montreal, Eastern Europe).
Forward Catalysts
Near-Term (Q1-Q2 2026):
- MAGIC Teenage Mutant Ninja Turtles set (March 6) — high crossover appeal
- Marvel Super Heroes set (June 26) — building on Spider-Man crossover success
- Spider-Man: Brand New Day film (July 31) boosting Consumer Products
- Continued tariff mitigation and supply chain diversification
Medium-Term:
- Star Trek and The Hobbit MAGIC releases in H2 2026
- Harry Potter partnership execution (timing TBD)
- Avengers: Doomsday film (December 2026) driving Marvel toy sales
- Boston headquarters consolidation (efficiency gains)
- Share buyback execution ($1B program)
2026 Consensus Estimates:
*Values retrieved from S&P Global
Hasbro reports Q1 2026 earnings in late April 2026. The company's investor relations materials are available at investor.hasbro.com.