Hasbro, Inc., parent company of Magic: The Gathering producer Wizards of the Coast, has reported financial results for the third quarter 2025.
“Hasbro delivered another quarter of growth, highlighting the strength of our brands and Playing to Win strategy,” said Chris Cocks, Chief Executive Officer, Hasbro, Inc. “Wizards of the Coast led the way as Magic: The Gathering continues to break records. Consumer Products POS and market share accelerated ahead of the holiday, and our high-margin licensing business is unlocking new opportunities. With major announcements coming at The Game Awards in December, we’re poised to enter 2026 with momentum.”
“Our teams delivered another quarter of disciplined execution and operational progress,” said Gina Goetter, Hasbro Chief Financial Officer and Chief Operating Officer. “We managed tariff volatility with agility, protected margins through cost productivity and pricing discipline, and continued to advance our transformation initiatives. These actions position Hasbro to close the year from a position of strength, and we remain firmly on track to achieve our mid-term financial commitments.”
Third Quarter 2025 Results
- Hasbro, Inc.'s revenue increased 8% vs. LY, driven by double-digit growth in Wizards and Digital Gaming, partially offset by expected softness in Consumer Products tied to U.S. retail order timing.
- Magic: The Gathering revenue grew 55% fueled by Q3 releases of Edge of Eternities and Marvel's Spider-Man, along with continued strength in backlist titles and Secret Lair.
- Operating profit was $341 million (+13% vs. LY) and Adjusted operating profit was $356 million, (+8% vs. LY) reflecting record MAGIC performance, cost discipline, and operating leverage.
- Reported net earnings were $1.64 per diluted share and Adjusted net earnings per diluted share were $1.68.
- Returned $98 million to shareholders through the quarterly dividend.
Third Quarter 2025 Segment Details
- Wizards of the Coast and Digital Gaming Segment
- Revenue increased 42%, led by Magic: The Gathering (+55%) and licensed digital gaming (+21%).
- Magic performance reflected strong tabletop and digital releases and continued momentum in Secret Lair and backlist products.
- Operating profit of $252 million (+39% vs. LY), with a 44% operating margin, reflects the benefit of scale and favorable business mix.
- Consumer Products Segment
- Revenue decreased 7%, in line with expectations, primarily due to U.S. retailer order timing tied to later holiday shelf resets.
- Q3 highlights include growth in Peppa Pig, GI Joe, Marvel, and Beyblade with momentum building across many brands in advance of the holiday season.
- Operating profit of $80 million and Adjusted operating profit of $89 million was down (-32% vs. LY) primarily driven by tariff expense and unfavorable mix.
- Entertainment Segment
- Revenues increased 8% in the quarter reflecting deal timing within the portfolio.
- Operating profit of $8 million and Adjusted operating profit of $11 million down 14% due to timing.
Year to Date 2025 Results
- Year to date Hasbro, Inc. revenue increased 7%, behind growth in Wizards and Digital Gaming (+33%) offsetting Consumer Products (-9%).
- Operating loss of $286 million reflects a second quarter 2025 non-cash goodwill impairment.
- Adjusted operating profit of $825 million (+14% vs. LY) reflects favorable business mix and continued cost transformation benefits.
- Reported net loss of $3.74 per share and Adjusted net earnings of $4.03 per diluted share, a $0.47 improvement versus the same period last year.
- Returned $294 million to shareholders via dividends and spent $120 million on debt repayment through the combination of bond repurchases and prefunding maturities via treasuries.
Year to Date 2025 Segment Details
- Wizards of the Coast and Digital Gaming Segment
- Revenue increased 33% behind momentum in Magic: The Gathering and licensed digital gaming.
- Year to date Monopoly Go! contributed $126M of revenue.
- Operating profit of $723 million increased 31% and operating margin was 46.5%, flat vs. LY with favorable volume and mix offsetting higher royalty expense.
- Consumer Products Segment
- Revenue decreased 9% in line with expectations, with growth in licensing offset by declines in Toy due to retailer order timing.
- Operating loss of $993 million includes a second quarter 2025 non-cash goodwill impairment.
- Adjusted operating profit of $59 million, a 36% decline versus the same period in 2024 as lower revenues and costs associated with tariffs offset productivity gains.
- Entertainment Segment
- Revenues declined 4% in the period related to the timing of deals.
- Operating profit of $3 million and Adjusted operating profit of $39 million were down vs. LY due to deal timing.
2025 Company Outlook and Capital Allocation
For the full year, the Company now expects:
- Total Hasbro revenue to grow high-single digits in constant currency.
- Adjusted operating margin of 22%-23%.
- Adjusted EBITDA of $1.24 to $1.26 billion.
The Company’s capital allocation priorities remain to invest in the core business; strengthen its balance sheet and progress towards its leverage target; and return cash to shareholders.
Dividend Announcement
During the third quarter, the Company paid $98 million in cash dividends to shareholders. The Board of Directors has declared a quarterly cash dividend of $0.70 per common share payable on December 3, 2025, to shareholders of record at the close of business on November 19, 2025.
