HAS — Hasbro, Inc.

Hasbro Q2 2026 Earnings Call Summary

1. Key Financial Results and Metrics

• Net Revenue: $1.14 billion, up 16% year-over-year.
• Adjusted Operating Profit: $282 million, a 14% increase, with an adjusted operating margin of 24.8%, down 40 basis points due to higher operating expenses and a $56 million non-cash impairment charge.
• Adjusted Earnings Per Share (EPS): $1.28, down 2% year-over-year.
• First Half Performance: Net revenue of $2.1 billion, up 15%; adjusted operating profit of $569 million, up 21%; adjusted EBITDA of $670 million, up 16%.
• Wizards Segment Revenue: Grew 27% to $664 million, driven by Magic: The Gathering, which was up 32%.
• Consumer Products Revenue: Grew 5% to $463 million, with North America up 17%.

2. Strategic Updates and Business Highlights

• Magic: The Gathering: Continues to be a strong performer, with record launches and a growing player base. The company is raising its full-year outlook for the Wizards segment.
• New Product Launches: Successful launches include Blooms for Play-Doh and a multi-year licensing agreement with Nintendo for The Legend of Zelda.
• Digital Strategy: Hasbro is focusing on profitable franchises and partnerships, with a significant reduction in digital spending expected by 2028.
• Cost Transformation Program: On track to deliver $150 million in savings for the year, contributing to margin stability despite rising costs.

3. Forward Guidance and Outlook

• Full-Year Revenue Growth: Expected to be 5%-7% year-over-year on a constant currency basis.
• Adjusted Operating Margins: Forecasted to be between 25%-26%.
• Wizards Segment: Expected to grow revenue in the low double-digit range, with margins in the low 40% range.
• Consumer Products: Anticipated to grow low single digits, with margins of 6%-8%.
• Entertainment Segment: Expected to show slight positive revenue growth with operating margins around 50%.

4. Bad News, Challenges, or Points of Concern

• Impairment Charge: A $56 million non-cash write-down related to canceled digital games, reflecting a strategic pivot in digital investments.
• Operating Margin Pressure: Adjusted operating margin decreased due to higher input costs and royalties.
• Cyber Incident Recovery: Although operations have returned to normal, the company lost approximately $25 million in revenue, less than previously forecasted but still a concern.
• Market Volatility: Retail dynamics and consumer behavior remain unpredictable, especially heading into the holiday season.

5. Notable Q&A Insights

• Magic's Growth Durability: CEO Chris Cocks emphasized the growing player base and distribution as key factors for sustained growth in Magic. He noted the importance of new partnerships and initiatives to maintain momentum.
• Consumer Products Outlook: CFO Gina Goetter highlighted the cautious approach to holiday forecasting, reflecting lessons learned from past experiences.
• Digital Game Strategy: The company is shifting focus to fewer, higher-quality digital games, with a partnership model to mitigate risks and lower costs.
• Marvel Super Heroes Performance: Strong initial sales were noted, with good sell-through rates and reorders, although comparisons to Final Fantasy were cautioned against due to differing release dynamics.

This summary encapsulates Hasbro's Q2 2026 performance, highlighting both the positive trajectory in key segments and the challenges faced in the current market environment.