Hasbro’s fourth-quarter results were well received by the market, reflecting significant growth in both revenue and profitability. Management attributed the strong performance to the resurgence of its consumer products division, led by MONOPOLY, Peppa Pig, and Marvel, as well as remarkable momentum in its Wizards of the Coast segment. CEO Chris Cocks highlighted the success of Magic: The Gathering, noting that “Magic delivered a record fourth quarter,” and credited robust player growth and expanded distribution for the gains. Cost transformation initiatives and improved product mix also contributed to notable margin expansion.
Is now the time to buy HAS? Find out in our full research report (it’s free for active Edge members).
Hasbro (HAS) Q4 CY2025 Highlights:
- Revenue: $1.45 billion vs analyst estimates of $1.26 billion (31.3% year-on-year growth, 14.4% beat)
- Adjusted EPS: $1.51 vs analyst estimates of $0.95 (59.3% beat)
- Adjusted EBITDA: $372.2 million vs analyst estimates of $267.2 million (25.7% margin, 39.3% beat)
- EBITDA guidance for the upcoming financial year 2026 is $1.43 billion at the midpoint, above analyst estimates of $1.31 billion
- Operating Margin: 20.6%, up from 5.4% in the same quarter last year
- Market Capitalization: $14.38 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Hasbro’s Q4 Earnings Call
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Megan Clapp (Morgan Stanley) asked how Hasbro plans to sustain Magic: The Gathering’s growth into 2026. CEO Chris Cocks cited distribution expansion, robust player growth, and a strong release pipeline as key drivers.
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James Hardiman (Citigroup) requested clarity on Wizards’ margin outlook given new cost pressures. CFO Gina Goetter explained that margins remain solid but will face headwinds from increased royalty expenses and early investments in upcoming video game launches.
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Gerrick Johnson (Seaport Research) questioned the slowdown in licensing revenues. Goetter attributed this to difficult comps in My Little Pony trading cards and emphasized ongoing health in other licensing categories.
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Stephen Laszczyk (Goldman Sachs) probed Hasbro’s AI strategy, especially regarding video games. Cocks described AI as a major productivity tool, improving design processes and paving the way for new digital and physical product categories.
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Christopher Horvers (JPMorgan) asked for a breakdown of operating margin headwinds. Goetter pointed to rising royalties, tariff costs, and increased product development spending as the main factors limiting further expansion.
Catalysts in Upcoming Quarters
In coming quarters, our analysts will watch (1) the performance of new entertainment tie-ins and licensed products in consumer products, (2) the sustained player engagement and growth in Wizards of the Coast, and (3) the realization of cost savings from ongoing supply chain and operational initiatives. The pace of digital gaming expansion and the effectiveness of AI deployment in product development will also be important markers for Hasbro’s execution.
Hasbro currently trades at $104.25, up from $96.76 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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