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Mar 30

Hasbro Q1 2025 Earnings Report

Hasbro reported a strong first quarter with significant growth in digital and tabletop gaming revenue and improved profitability.

Key Takeaways

Hasbro delivered a solid Q1 2025, led by exceptional growth in its Wizards and Digital Gaming segment. Despite a decline in consumer products and entertainment revenue, the company achieved higher margins and net income driven by a favorable business mix.

Wizards and Digital Gaming revenue rose 46%, fueled by strong MAGIC: THE GATHERING and digital game sales.

Adjusted EPS increased to $1.04, reflecting a more profitable product mix.

Operating income reached $170,700,000 with adjusted margins improving to 25.1%.

Consumer Products and Entertainment segments faced modest revenue declines but showed operational efficiency gains.

Total Revenue
$887M
Previous year: $757M
+17.1%
EPS
$1.04
Previous year: $0.61
+70.5%
Adjusted Operating Margin
25.1%
Previous year: 19.6%
+28.1%
Operating Margin
19.2%
Previous year: 15.3%
+25.5%
Operating Cash Flow
$138M
Previous year: $178M
-22.3%
Gross Profit
$658M
Previous year: $528M
+24.6%
Cash and Equivalents
$621M
Previous year: $570M
+8.9%
Free Cash Flow
$124M
Previous year: $132M
-5.8%
Total Assets
$6.08B
Previous year: $6.2B
-2.0%

Hasbro

Hasbro

Hasbro Revenue by Segment

Hasbro Revenue by Geographic Location

Forward Guidance

Hasbro maintained its full-year guidance amid tariff uncertainties while emphasizing continued margin growth and strategic cost savings.

Positive Outlook

  • Extended licensing deal with Disney supports future revenue.
  • Wizards segment continues strong growth trajectory.
  • Strategic focus on higher-margin segments driving profitability.
  • Cost savings program progressing towards $1B target.
  • Adjusted EBITDA up 59% YoY indicating strong operational leverage.

Challenges Ahead

  • Tariff uncertainty could impact future cost structure.
  • Consumer Products segment still facing headwinds.
  • Entertainment revenue impacted by deal timing.
  • Operating cash flow declined vs. prior year.
  • Exposure to global economic conditions and currency fluctuations remains a risk.

Revenue & Expenses

Visualization of income flow from segment revenue to net income