Hasbro (NASDAQ:HAS) executives said the company exited 2025 with accelerating momentum under its “Playing to Win” strategic roadmap, highlighting sharp fourth-quarter growth, record profitability, and an expanding slate of partnerships intended to support future toy and game launches.
CEO Chris Cocks said the strategy is built on two pillars—play and partnership—and argued those efforts are showing up in both brand reach and financial performance. Cocks said Hasbro refined its brand reach methodology using a large consumer survey across eight major markets and third-party data, concluding the company now “reaches more than 1 billion people every year.”
Fourth-quarter surge and record full-year profitability
For the full year, Goetter said net revenue grew 14% to $4.7 billion. Adjusted operating profit increased 36% to $1.1 billion, and adjusted operating margin reached 24.2%, which management described as a record. Adjusted EPS for the year was $5.54.
Goetter also emphasized ongoing cost transformation progress, saying the company generated more than $175 million of gross savings in 2025 and has delivered almost $800 million of gross cost savings toward a $1 billion commitment.
Wizards of the Coast drives growth, while consumer products returns to quarterly growth
Management attributed much of the quarter’s upside to Wizards of the Coast. Goetter said Wizards revenue grew 86% in the fourth quarter to $630 million, driven by Magic, which rose 141% year-over-year on the strength of Avatar: The Last Airbender and Final Fantasy holiday releases. Wizards operating profit was $284 million, translating to a 45% margin for the quarter.
For the full year, Goetter said Wizards revenue increased 45% to $2.2 billion, with operating profit of “just over $1 billion” and a 46% operating margin. Magic revenue grew nearly 60% for the year, and management cited a record year for Secret Lair and backlist sales.
Cocks said Avatar: The Last Airbender, which launched in late November, became the third-highest-selling set in Magic’s history, behind The Lord of the Rings and Final Fantasy. He added that the momentum carried into the new year, with Lorwyn becoming the “fastest-selling Magic IP premiere set ever,” surpassing Tarkir.
During Q&A, Cocks said Magic’s growth is being fueled by multiple vectors, including distribution and player growth, describing a “virtuous cycle” of more places to buy, more players, and longer engagement that supports set performance and backlist. He said organized play participation surpassed 1 million unique players through the end of 2025, up 22% year-over-year, and that the Wizards Play Network exceeded 10,000 active stores worldwide, up more than 20%.
In consumer products, Goetter said fourth-quarter revenue rose 7% to $800 million, with strength in Hasbro Gaming and Marvel. Adjusted operating profit was $54 million, with improved mix and promotional discipline, while supply chain productivity “nearly offset” tariffs. For the full year, however, consumer products revenue declined 4% to $2.4 billion; adjusted operating profit was $113 million, and Goetter said the business absorbed nearly $70 million of tariff impact. She also said Hasbro exited the year with owned inventory at a record low of 75 days.
Entertainment, management said, performed in line with expectations, delivering stable revenue and margins consistent with an “asset-led strategy.”
Partnership slate expands across toys, entertainment, and games
Cocks highlighted several new or expanded partnerships, including Hasbro’s addition as a co-master toy licensee for K-Pop Demon Hunters, which he called Netflix’s most popular film. He also said Hasbro announced the primary toy license for “The World of Harry Potter” and the upcoming HBO original Harry Potter series with Warner Bros. Discovery. Cocks also referenced previously announced partnerships for Voltron with Amazon MGM Studios and Street Fighter with Legendary Pictures, which he said will begin in the back half of 2026 and build into 2027.
On the Wizards side, Cocks said the 2026 Magic lineup includes original IP (including Lorwyn and Strixhaven) and a slate of “Universes Beyond” collaborations, naming Teenage Mutant Ninja Turtles, Marvel Super Heroes, The Hobbit, and Star Trek.
When asked why partnerships are accelerating, Cocks said Hasbro’s “superpower” is “inspiring a lifetime of play,” arguing the company can engage consumers across ages and product categories, from preschool through adult collectors. Goetter added that licenses help build scale in a “productive way” and said management views 2026 as an inflection point back to consumer products growth, with that growth continuing into 2027 and 2028.
Digital strategy: Monopoly Go! stability and self-published games in development
Management reiterated its digital ambitions, pointing to both licensed and self-published titles. Goetter said Monopoly Go! remained a steady revenue and profit stream in 2025, contributing $168 million, and said monthly revenue has remained largely consistent. In Q&A, Goetter said the company is planning for the title to remain “pretty stable” in 2026, citing a roughly $12 million to $14 million monthly run rate, with user acquisition expense decreasing and continued value capture by partner Scopely.
Cocks also discussed Hasbro’s self-published video game pipeline, referencing a new gameplay trailer for the science fiction RPG Exodus and a reveal of a D&D action-adventure game, Warlock. He said both titles have been in development since 2019, and that trailers have generated more than 100 million views across channels since debuting at the Game Awards. Management expects both games to launch in 2027, beginning with Exodus in the first part of the year.
2026 guidance: modest growth, margin stability, and capital returns
For 2026, Goetter guided to consolidated revenue growth of 3% to 5% year-over-year on a constant currency basis, with growth across all segments. The company expects operating margins of 24% to 25% and adjusted EBITDA of $1.4 billion to $1.45 billion.
- Wizards of the Coast: mid-single-digit revenue growth; operating margins in the low 40% range, reflecting higher royalty expense and incremental costs tied to planned 2027 video game releases.
- Consumer products: low single-digit revenue growth; operating margins of 6% to 8%, supported by a stronger entertainment slate (including four Disney film-related product cycles) and cost leverage.
- Entertainment: slightly positive revenue; operating margins of approximately 50%.
Goetter said the outlook assumes approximately $150 million of gross cost savings in 2026 and described expected phasing: stronger revenue growth in the first half, which she said will pressure margins due to higher royalty expense, with margin expansion in the second half driven by mix, productivity, and operating expense leverage. She also said tariff costs are expected to be relatively flat year-over-year in the back half, with much of the incremental cost in the first half.
In capital allocation, Goetter said priorities remain investing behind high-return growth (led by Wizards and digital gaming), paying down debt, and returning cash to shareholders through the dividend. She added the company is restarting share repurchases, with the board authorizing a new $1 billion share repurchase program.
While Hasbro did not provide EPS guidance, Goetter flagged modeling items below operating income, including higher expected interest expense tied to planned refinancing and lower non-operating income, resulting in what she described as an approximately $40 million year-over-year headwind to EPS even as operating income grows.
About Hasbro (NASDAQ:HAS)
Hasbro, Inc is a global play and entertainment company, known for designing, manufacturing and marketing a diverse portfolio of toys, games and consumer products. Founded in 1923 as Hassenfeld Brothers and headquartered in Pawtucket, Rhode Island, the company has grown into one of the foremost names in the toy industry, with a presence in retail, digital and entertainment channels worldwide.
The company’s brand portfolio features iconic properties such as Monopoly, Play-Doh, Nerf, My Little Pony and Transformers.
