Hasbro Reports First Quarter 2026 Financial Results

Hasbro Reports First Quarter 2026 Financial Results PAWTUCKET, R.I.--( BUSINESS WIRE)--Hasbro, Inc. (NASDAQ: HAS), a leading games, IP, and toy company, today reported financial results for the first quarter 2026.

Hasbro's First Quarter 2026 Financial Results: MAGIC: THE GATHERING Drives Growth in Revenue, Operating Profit and Net Earnings

“The first quarter was a strong start to the year and reflects tailwinds from our Playing to Win strategy,” said Chris Cocks, Hasbro Chief Executive Officer. “Wizards continues to break records, supported by MAGIC: THE GATHERING’s flywheel of player growth and expanded distribution. In Consumer Products, we delivered another quarter of growth in our toy and game business, and remain on track to grow the entire segment for the full year 2026.”

"Our first quarter results demonstrate continued top-line momentum and disciplined execution,” said Gina Goetter, Hasbro Chief Financial Officer and Chief Operating Officer. “We remain focused on delivering our annual objectives by driving operating leverage, investing behind our highest-return brands, and returning cash to shareholders as we build on this solid start to the year.”

First Quarter 2026 Results

First Quarter 2026 Segment Details

See the financial tables accompanying the press release for a reconciliation of GAAP to non-GAAP financial measures.

2026 Company Outlook and Capital Allocation

For the full year, the Company continues to expect:

2026 Capital Allocation priorities:

Previously Disclosed Unauthorized Network Access

In late March 2026, we identified unauthorized access to our network. Based on analysis with the assistance of outside cybersecurity experts and information to date, we believe that the unauthorized access has been contained and we are continuing to make progress in fully restoring our systems and operations.

During the second quarter of 2026, we began incurring costs related to the unauthorized network access, including legal and remediation costs. The full scope of the costs and related impacts has not been determined.

We plan to seek reimbursement of certain costs, expenses and losses related to the unauthorized network access by submitting claims to our cybersecurity insurers. While the receipt, timing and amount of any such reimbursements is not known at this time, we are currently in the process of documenting our claims. The timing of recognizing insurance recoveries may differ from the timing of recognizing the associated expenses.

Dividend Announcement

During the first quarter, the Company paid $99 million in cash dividends to shareholders. The Board of Directors has declared a quarterly cash dividend of $0.70 per common share payable on June 11, 2026, to shareholders of record at the close of business on June 1, 2026.

Conference Call Webcast

Hasbro will webcast its first quarter 2026 earnings conference call at 8:30 a.m. Eastern Time today. To listen to the live webcast and access the accompanying presentation slides, please go to https://investor.hasbro.com. The replay of the call will be available on Hasbro’s website approximately 2 hours following completion of the call.

About Hasbro

Hasbro is a leading games, IP and toy company whose mission is to create joy and community through the magic of play. Hasbro delivers groundbreaking play experiences for fans of all ages around the world, through physical and digital games, video games, toys, licensed consumer products, location-based entertainment, film, TV and more.

Through its franchise-first approach, Hasbro unlocks value from both new and legacy IP, including MAGIC: THE GATHERING, DUNGEONS & DRAGONS, MONOPOLY, HASBRO GAMES, NERF, TRANSFORMERS, PLAY-DOH and PEPPA PIG, as well as premier partner brands. Powered by its portfolio of thousands of iconic marks and a diversified network of partners and subsidiary studios, Hasbro brings fans together wherever they are, from tabletop to screen.

For more than a decade, Hasbro has been consistently recognized for its corporate citizenship, including being named one of the 100 Best Corporate Citizens by 3BL Media.

Forward Looking Statement Safe Harbor

Certain statements in this press release contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be identified by the use of forward-looking words or phrases, include statements relating to: our business strategies and plans; products, gaming and entertainment; anticipated cost savings; expected debt repayments and share repurchases; expected impact of tariffs or refunds thereof; anticipated impact of moving our Rhode Island operations to Boston, Massachusetts; expectations relating to the impact of unauthorized access to the Company’s network, including on our financial condition and results of operations, findings from our investigation into the unauthorized access, including identification of data that may have been impacted, and the effectiveness of our containment and remediation efforts; expected impact of newly issued accounting pronouncements and tax legislation; financial targets; and expectations for our future performance. Our actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties.

Factors that might cause such a difference include, but are not limited to:

The statements contained herein are based on our current beliefs and expectations. We undertake no obligation to make any revisions to the forward-looking statements contained in this press release or to update them to reflect events or circumstances occurring after the date of this press release.

Non-GAAP Financial Measures

The financial tables accompanying this press release 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 disposal of business, and eOne Film and TV business divestiture related costs. Also included in this press release are the non-GAAP financial measures of EBITDA and Adjusted EBITDA. EBITDA represents net earnings attributable to Hasbro, Inc. excluding interest expense, income tax expense, net earnings attributable to noncontrolling interests, depreciation and amortization of intangibles. Adjusted EBITDA also excludes strategic transformation initiatives, restructuring and severance costs, loss on disposal of business, eOne Film and TV business divestiture related costs, and the impact of stock compensation. As required by SEC rules, we have provided reconciliations on the attached schedules of these measures to the most directly comparable GAAP measure. Management believes that Adjusted net earnings, Adjusted net earnings per diluted share, Adjusted operating profit and Adjusted operating margin provide investors with an understanding of the underlying performance of our business absent unusual events. Management believes that EBITDA and Adjusted EBITDA are appropriate measures for evaluating the operating performance of our business because they reflect the resources available for strategic opportunities including, among others, to invest in the business, strengthen the balance sheet and make strategic acquisitions. The Company is not able to reconcile its forward-looking non-GAAP adjusted operating margin and adjusted EBITDA measures because the Company cannot predict with certainty the timing and amounts of discrete items such as charges associated with its cost-savings program, which could impact GAAP results. Constant currency is also a non-GAAP financial measure. The impact of changes in foreign currency exchange rates used to translate the consolidated statements of operations is quantified by translating the current or future period revenues at the prior period exchange rates and comparing this amount to the prior period reported revenues. The Company believes that the presentation of the impact of changes in exchange rates, which are beyond the Company’s control, is helpful to an investor’s understanding of the performance of the underlying business. These non-GAAP measures should be considered in addition to, not as a substitute for, or superior to, net earnings or other measures of financial performance prepared in accordance with GAAP as more fully discussed in our consolidated financial statements and filings with the SEC. As used herein, "GAAP" refers to accounting principles generally accepted in the United States of America.

HAS-E

(Tables Attached)

HASBRO, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (1)

(Unaudited)

(Millions of Dollars)

March 29, 2026

March 30, 2025

ASSETS

Current Assets:

Cash and cash equivalents

857.1

621.1

Short-term investments

498.2

—

Accounts receivable, net

712.6

656.6

Inventories

280.5

295.8

Prepaid expenses and other current assets

416.6

339.3

Total current assets

2,765.0

1,912.8

Property, plant and equipment, net

393.9

293.6

Goodwill

1,256.5

2,278.4

Other intangible assets, net

441.2

503.1

Other assets

1,073.7

1,052.1

Total assets

5,930.3

6,040.0

LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY

Current Liabilities:

Current portion of long-term debt

497.0

—

Accounts payable

280.7

284.8

Accrued liabilities

893.7

871.2

Total current liabilities

1,671.4

1,156.0

Long-term debt

3,094.9

3,331.5

Other liabilities

489.8

355.0

Total liabilities

5,256.1

4,842.5

Total shareholders' equity

674.2

1,197.5

Total liabilities, noncontrolling interests and shareholders' equity

5,930.3

6,040.0

(1) Amounts may not sum due to rounding

HASBRO, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (1)

(Unaudited)

(Millions of Dollars and Shares Except Per Share Data)

Three Months Ended

March 29, 2026

March 30, 2025

Amount

% of Net Revenues

Amount

% of Net Revenues

Net revenues

1,000.2

100.0

887.1

100.0

Costs and expenses:

Cost of sales

236.1

23.6

204.5

23.1

Program cost amortization

4.0

0.4

7.4

0.8

Royalties

77.7

7.8

57.0

6.4

Product development

78.0

7.8

80.5

9.1

Advertising

60.4

6.0

55.4

6.2

Amortization of intangible assets

14.6

1.5

17.0

1.9

Loss on disposal of business

—

25.0

2.8

Selling, distribution and administration

259.1

25.9

269.6

30.4

Total costs and expenses

729.9

73.0

716.4

80.8

Operating profit

270.3

27.0

170.7

19.2

Non-operating expense:

Interest expense

41.8

4.2

41.6

4.7

Interest income

(10.1

)

(1.0

(8.9

)

(1.0

Other (income) expense, net

(5.5

)

(0.5

1.4

0.2

Total non-operating expense, net

26.2

2.6

34.1

3.8

Earnings before income taxes

244.1

24.4

136.6

15.4

Income tax expense

44.6

4.5

37.1

4.2

Net earnings

199.5

19.9

99.5

11.2

Net earnings attributable to noncontrolling interests

1.1

0.1

0.9

0.1

Net earnings attributable to Hasbro, Inc.

198.4

19.8

98.6

11.1

Net earnings per common share:

Basic

1.41

0.71

Diluted

1.39

0.70

Cash dividends declared per common share

0.70

Weighted average number of shares

Basic

140.8

139.8

Diluted

143.2

141.0

(1) Amounts may not sum due to rounding

HASBRO, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (1)

(Unaudited)

(Millions of Dollars)

Three months ended

March 29, 2026

March 30, 2025

Cash flows from operating activities:

Net earnings

199.5

99.5

Loss on disposal of business

—

25.0

Other non-cash adjustments

72.8

77.9

Changes in operating assets and liabilities

65.4

(64.3

)

Net cash provided by operating activities

337.7

138.1

Cash flows from investing activities:

Additions to property, plant and equipment

(22.2

)

(13.8

)

Additions to software development

(27.7

)

(29.4

)

Purchase of investments

(423.0

)

(10.0

)

Other

0.8

Net cash utilized by investing activities

(472.1

)

(52.4

)

Cash flows from financing activities:

Proceeds from borrowings

399.4

—

Repayments of borrowings

(68.4

)

(49.2

)

Repurchases of common stock

(7.7

)

—

Share-based compensation transactions

37.7

3.8

Dividends paid

(98.5

)

(97.9

)

Payments related to tax withholding for share-based compensation

(41.5

)

(17.7

)

Payments of financing costs

(4.1

)

—

Other

(1.8

)

(1.4

)

Net cash provided (utilized) by financing activities

215.1

(162.4

)

Effect of exchange rate changes on cash

(0.2

)

2.8

Net increase (decrease) in cash, cash equivalents and restricted cash

80.5

(73.9

)

Cash, cash equivalents and restricted cash at beginning of year

776.6

695.0

Cash, cash equivalents and restricted cash at end of period

857.1

621.1

(1) Amounts may not sum due to rounding

HASBRO, INC.

SEGMENT RESULTS - AS REPORTED AND AS ADJUSTED (1)

(Unaudited)

(Millions of Dollars)

Three Months Ended March 29, 2026

Three Months Ended March 30, 2025

Operating Results:

As Reported

Non-GAAP Adjustments

Adjusted

As Reported

Non-GAAP Adjustments

Adjusted

% Change

Total Company Results:

External Net Revenues

1,000.2

—

1,000.2

887.1

—

887.1

Operating Profit

270.3

16.7

287.0

170.7

51.7

222.4

Operating Margin

27.0

1.7

28.7

19.2

5.8

25.1

Segment Results:

Wizards of the Coast and Digital Gaming:

External Net Revenues

582.0

—

582.0

462.1

—

462.1

Operating Profit

297.7

—

297.7

230.0

—

230.0

Operating Margin

51.2

—

51.2

49.8

—

49.8

Consumer Products:

External Net Revenues

397.9

—

397.9

398.3

—

398.3

Operating Loss

(47.5

)

7.0

(40.5

)

(43.9

)

12.9

(31.0

)

-31

Operating Margin

-11.9

1.8

-10.2

-11.0

3.2

-7.8

Entertainment:

External Net Revenues

20.3

—

20.3

26.7

—

26.7

-24

Operating Profit (Loss)

17.3

3.0

20.3

(11.2

)

28.6

17.4

Operating Margin

85.2

14.8

100.0

-41.9

>100%

65.2

Corporate and Other:

Operating Profit (Loss)

2.8

6.7

9.5

(4.2

)

10.2

6.0

(1) Amounts may not sum due to rounding

Three Months Ended

Wizards of the Coast and Digital Gaming Net Revenues by Category:

March 29, 2026

March 30, 2025

% Change

Tabletop Gaming

460.7

343.8

Digital and Licensed Gaming

121.3

118.3

Net revenues

582.0

462.1

Three Months Ended

Consumer Products Segment Net Revenues by Major Geographic Region:

March 29, 2026

March 30, 2025

% Change

North America

215.4

231.4

-7

Europe

99.6

85.0

Asia Pacific

53.8

Latin America

29.1

28.1

Net revenues

397.9

398.3

Three Months Ended

Entertainment Segment Net Revenues by Category:

March 29, 2026

March 30, 2025

% Change

Family Brands

18.6

22.4

-17

Film and TV

1.7

4.3

-60

Net revenues

20.3

26.7

-24

Three Months Ended

Supplementary Hasbro Gaming Information:

March 29, 2026

March 30, 2025

% Change

MAGIC: THE GATHERING

469.6

346.3

Hasbro Total Gaming (1)

663.9

550.1

(1) Hasbro Total Gaming includes all gaming revenue, most notably DUNGEONS & DRAGONS, MAGIC: THE GATHERING and Hasbro Gaming.

HASBRO, INC.

NON-GAAP RECONCILIATION

(Unaudited)

(Millions of Dollars)

Three Months Ended

Reconciliation of EBITDA and Adjusted EBITDA: (1)

March 29,

2026

March 30,

2025

Net earnings attributable to Hasbro, Inc.

198.4

98.6

Interest expense

41.8

41.6

Income tax expense

44.6

37.1

Net earnings attributable to noncontrolling interests

1.1

0.9

Depreciation expense

11.3

17.2

Amortization of intangibles

14.6

17.0

EBITDA

311.8

212.4

Share-based compensation

20.9

18.4

Strategic transformation initiatives (2)

1.1

7.2

Restructuring and severance costs (3)

5.6

5.9

Loss on disposal of business (4)

—

25.0

eOne Film and TV business divestiture related costs (5)

—

5.4

Adjusted EBITDA

339.4

274.3

(1) Amounts may not sum due to rounding

(2) Strategic transformation initiatives costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to support the organization in identifying, realizing and capturing savings to create efficiencies and improve business processes and operations.

(3) Restructuring and severance associated with cost-savings initiatives across the Company.

(4) Loss on disposal of a business related to the sale of the eOne Film and TV business executed on December 27, 2023. The costs are included in Loss on disposal of business within the Entertainment segment.

(5) eOne Film and TV business divestiture related costs as a result of the sale of the eOne Film and TV business and certain retained liabilities.

HASBRO, INC.

NON-GAAP RECONCILIATION

(Unaudited)

(Millions of Dollars)

Three Months Ended

Reconciliation of Adjusted Operating Profit: (1)

March 29,

2026

March 30,

2025

Operating Profit (Loss):

270.3

170.7

Wizards of the Coast and Digital Gaming

297.7

230.0

Consumer Products

(47.5

)

(43.9

)

Entertainment

17.3

(11.2

)

Corporate and Other

2.8

(4.2

)

Non-GAAP Adjustments:

16.7

51.7

Consumer Products

7.0

12.9

Entertainment

3.0

28.6

Corporate and Other

6.7

10.2

Adjusted Operating Profit (Loss):

287.0

222.4

Wizards of the Coast and Digital Gaming

297.7

230.0

Consumer Products

(40.5

)

(31.0

)

Entertainment

20.3

17.4

Corporate and Other

9.5

6.0

Non-GAAP Adjustments include the following:

Acquired intangible amortization (2)

10.0

12.4

Strategic transformation initiatives (3)

1.1

7.2

Restructuring and severance costs (4)

5.6

5.9

Loss on disposal of business (5)

—

25.0

eOne Film and TV business divestiture related costs (6)

—

1.2

Total

16.7

51.7

(1) Amounts may not sum due to rounding

(2) Represents intangible amortization costs related to the intangible assets acquired in the eOne acquisition. The Company has allocated certain of these intangible amortization costs between the Consumer Products and Entertainment segments, to match the revenue generated from such intangible assets. While amortization of acquired intangibles is being excluded from the related GAAP financial measure, the revenue of the acquired company is reflected within the Company's operating results to which these assets contribute.

(4) Restructuring and severance costs associated with cost-savings initiatives across the Company.

(5) Loss on disposal of a business related to the sale of the eOne Film and TV business executed on December 27, 2023. The costs are included in Loss on disposal of business within the Entertainment segment.

(6) eOne Film and TV business divestiture related costs as a result of the sale of the eOne Film and TV business and certain retained liabilities.

NON-GAAP RECONCILIATION

(Unaudited)

(Millions of Dollars and Shares, Except Per Share Data)

Reconciliation of Net Earnings and Earnings per Share: (1)

Three Months Ended

March 29, 2026

Diluted Per Share Amount

March 30, 2025

Diluted Per Share Amount

Net earnings attributable to Hasbro

198.4

1.39

98.6

0.70

Acquired intangible amortization (2)

7.5

0.05

9.3

0.07

Strategic transformation initiatives (3)

0.8

0.01

5.5

0.04

Restructuring and severance costs (4)

4.3

0.03

4.5

0.03

Loss on disposal of business (5)

—

25.0

0.18

eOne Film and TV divestiture related costs (6)

—

4.1

0.03

Net earnings attributable to Hasbro as adjusted

211.0

1.47

147.0

1.04

(1) Amounts may not sum due to rounding

(3) Strategic transformation initiatives costs represent non-recurring expenses for strategic projects with anticipated long-term benefits to support the organization in identifying, realizing and capturing savings to create efficiencies and improve business processes and operations. These costs primarily consist of third party consulting of $1.1 ($0.8 after-tax) and $7.2 ($5.5 after-tax) for the three months ended March 29, 2026 and March 30, 2025, respectively.

(4) Restructuring and severance costs of $5.6 ($4.3 after-tax) and $5.9 ($4.5 after-tax) for the three months ended March 29, 2026 and March 30, 2025, respectively, associated with cost-savings initiatives across the Company.

(5) Loss on disposal of a business of $25.0 ($25.0 after-tax) for the three months ended March 30, 2025 related to the sale of the eOne Film and TV business executed on December 27, 2023. The costs are included in Loss on Disposal of Business within the Entertainment segment.

(6) eOne Film and TV business divestiture related costs of $5.4 ($4.1 after tax) for the three months ended March 30, 2025 as a result of the sale of the eOne Film and TV business and certain retained liabilities.