Key Takeaways:
Hasbro reported Q2 revenue of $1.14B, up 16%, and raised its full-year guidance as Magic: The Gathering topped $500M in quarterly sales for the first time.
"Magic: The Gathering eclipsed $500 million in quarterly revenue for the first time in its 30-plus year history, led by the record-breaking debut of Marvel Super Heroes," Chris Cocks, Hasbro chief executive officer, said.
Wizards and Digital Gaming segment revenue rose 27% to $663.8M, with operating profit of $270M and a 41% margin. Consumer Products revenue increased 5% to $463M despite a $25M revenue hit from a previously disclosed cyber incident. Entertainment revenue fell 20% to $12.8M on deal timing. Adjusted EPS came in at $1.28, compared with $1.30 a year earlier.
The guidance raise signals management expects momentum in tabletop and digital gaming to persist. Hasbro now sees full-year revenue growth of 5% to 7% in constant currency, up from a prior range of 3% to 5%, with adjusted EBITDA of $1.45B to $1.50B.
Magic: The Gathering generated $545.3M in the quarter, a 32% increase from a year earlier, fueled by the Secrets of Strixhaven and Marvel Super Heroes sets. Digital and licensed gaming revenue rose 17% to $135.5M, including $44M from Monopoly Go! The company recorded a $56M impairment charge tied to a refocusing of its digital games portfolio for 2028 and beyond.
Consumer Products posted an adjusted operating loss of $7.5M, reflecting incremental tariff expense, entertainment-related mix shifts, and normal seasonality. The segment benefited from entertainment releases including Star Wars: The Mandalorian and Grogu, as well as momentum in GEM 2 categories.
Hasbro returned $133M to shareholders in the quarter through dividends and share repurchases. The board declared a quarterly dividend of $0.70 per share, payable Sept. 2. The company also deployed $55M toward debt reduction during the period.
The raised guidance shows that Hasbro's pivot toward gaming and digital is gaining traction. Investors will watch the next quarter's results for continued momentum in Magic: The Gathering and the ramp of new Universes Beyond releases.
This article is for informational purposes only and does not constitute investment advice.
