Gaming Division Lifts Quarterly Results
Hasbro exceeded Wall Street expectations for its fiscal second quarter, driven by strong performance in its digital gaming segment. The company reported adjusted earnings per share of $1.30, well above the 78 cents analysts had anticipated, and revenue of $980.8 million, beating the projected $880 million. However, shares dropped about 4% in early trading as broader structural challenges remained in focus.
Wizards of the Coast and digital gaming led the quarter with $522.4 million in revenue, a 16% year-over-year increase. Demand was particularly strong for titles like Magic: The Gathering and the mobile game Monopoly Go!, which CEO Chris Cocks highlighted as central to the brand’s long-term momentum.
Traditional Toys Weigh on Performance
Despite digital gains, Hasbro’s core toy business continued to struggle. The consumer products segment posted a 16% revenue decline to $442.4 million. The company cited weaker retailer demand, shifting order schedules, and regional volatility as contributing factors. Tariffs also added to the pressure, particularly on imported goods.
The entertainment segment generated just $16 million, a 15% drop compared to the prior year, signaling continued challenges in that business line.
Massive Goodwill Write-Down Drives Net Loss
Hasbro posted a net loss of $855.8 million, or $6.10 per share, for the quarter, down sharply from a net income of $138.5 million last year. The loss stemmed from a $1 billion goodwill impairment related to its consumer products division, as well as costs from restructuring and severance.
Excluding these one-time charges, the company’s adjusted profit remained strong, reflecting effective cost management, supplier diversification, and selective price increases designed to offset the impact of tariffs.
Upgraded Outlook Reflects Confidence
Encouraged by gaming momentum, Hasbro raised its full-year guidance. It now expects mid-single-digit revenue growth, adjusted EBITDA between $1.17 billion and $1.2 billion, and operating margins in the 22% to 23% range. The forecast suggests that the company sees continued opportunity in digital and tabletop gaming, even as it navigates softness in toys and trade policy uncertainty.
CEO Chris Cocks emphasized that Magic: The Gathering remains a key growth engine, stating that the franchise’s success reflects “the power of Magic’s community” and ongoing engagement across platforms.
