HASBRO, INC.
For the period ended Jun 29, 2025. Filed Jul 31, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 29, 2025 · Filed Jul 31, 2025
HAS$118.91-0.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-30; filed 2025-05-06.
0000046080-25-000069
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-29; filed 2025-07-31.
0000046080-25-000128
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 93 previous paragraphs and 150 current paragraphs.
47 unchanged; 41 reworded; 50 added; 5 removed; 0 previous and 12 current paragraphs rearranged.
Tables are not compared: 7 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (50)
Current report
•Partner Scale: Drive profitable reach through strategic relationships and partnerships, including with retail, licensors and licensees.
Current report
As a result of the estimated impact of tariffs and other macroeconomic headwinds on the Company's forward-looking forecasts, in the second quarter of 2025, the Company assessed its goodwill for potential impairment, resulting in the recognition of a non-cash goodwill impairment of $1,021.9 million in the Consumer Products segment. See further detail in Note 5, Goodwill, to the consolidated financial statements.
Current report
While the final impact of tariffs remains uncertain, the Company continues to execute decisively against the evolving tariff backdrop. The Company is forecasting a broad range of potential outcomes and based on updated trade policy developments, the Company has estimated $60 million of expense in our full year 2025 financial statements.
Current report
During 2025, the Company experienced a slight decrease in revenue from $995.3 million for the three months ended June 30, 2024 to $980.8 million for the three months ended June 29, 2025. The decrease in revenue is driven by volumes declines in our Consumer Products segment, partially offset by an increase in our Wizards of the Coast and Digital Gaming segment, with an increased demand for tabletop gaming.
Current report
The Company experienced operating loss of $798.2 million and $627.5 million for the three and six months ended June 29, 2025, respectively, as compared to operating profit of $212.1 million and $328.3 million for the three and six months ended June 30, 2024, respectively, primarily driven by the $1,021.9 million non-cash goodwill impairment recorded in the Consumer Products segment in the second quarter of 2025.
Current report
GROW BRANDS: Net revenues in the Grow Brands portfolio increased $27.9 million, or 4%, in the second quarter of 2025, compared to the second quarter of 2024. The net revenue increase primarily reflects higher net revenues from MAGIC: THE GATHERING, which was partially offset by lower net revenues from PLAY-DOH and MARVEL products. The lower net revenues from MARVEL are attributed to the timing of movie and content releases.
Current report
OPTIMIZE BRANDS: Net revenues in the Optimize Brands portfolio decreased $9.5 million, or 6%, in the second quarter of 2025, compared to the second quarter of 2024. The net revenue decrease is primarily driven by lower net revenues from STAR WARS and PEPPA PIG products, partially offset by an increase in revenue from DUEL MASTERS products.
Current report
REINVENT BRANDS: Net revenues in the Reinvent Brands portfolio decreased $32.9 million, or 26%, in the second quarter of 2025 compared to the second quarter of 2024. The net revenue decrease is primarily driven by lower net revenues from NERF, partially offset by an increase in revenue from BEYBLADE and MY LITTLE PONY products.
Current report
Impairment of Goodwill -During the second quarter of 2025, the Company recorded a $1,021.9 million non-cash goodwill impairment charge associated with goodwill assigned to reporting units within the Company's Consumer Products segment. There were no goodwill impairment charges in the second quarter of 2024. See further detail in Note 5, Goodwill, to the consolidated financial statements for further information.
Current report
Loss on disposal of business - During the second quarter of 2025, the Company did not recognize a Loss on disposal of business. During the second quarter of 2024, the Company recorded a $15.3 million Loss on disposal of business from certain purchase price and related adjustments relating to the divestiture of the eOne Film and TV business.
Current report
During the second quarter of 2025, exclusive of the impairment of goodwill, the Company recorded a net discrete tax benefit of $5.9 million compared to a net discrete tax benefit, exclusive of the adjustment to the Loss on disposal of the eOne Film and TV business, of $1.1 million in the second quarter of 2024.
Current report
The net discrete tax benefit recorded in the second quarter of 2025 is primarily associated with the release of a valuation allowance. The net discrete tax benefit recorded in the second quarter of 2024 is primarily associated with the release of various uncertain tax positions.
Current report
Wizards of the Coast and Digital Gaming segment net revenues increased 16% in the second quarter of 2025 to $522.4 million from $452.0 million in the second quarter of 2024. The net revenue increase in the Wizards of the Coast and Digital Gaming segment during the second quarter of 2025 was primarily attributable to increase in Tabletop Gaming revenue which increased 32.1% behind growth in MAGIC: THE GATHERING, primarily due to strong demand for Final Fantasyas well as other various Backlist sets. This was offset in a decrease in digital licensing revenue related to MONOPOLY GO! and Baldur's Gate 3. The higher net revenues for Baldur's Gate 3 in the second quarter of 2024 was due primarily to the release of the game during the third quarter of 2023.
Current report
Wizards of the Coast and Digital Gaming segment operating profit was $241.9 million, or 46.3% of segment net revenues for the second quarter of 2025, compared to operating profit of $247.1 million, or 54.7% of segment net revenues, for the second quarter of 2024. Operating profit decreased during the second quarter of 2025 due to increased royalty expense, driven by an increase in sales of MAGIC: THE GATHERING, primarily due to strong demand for Final Fantasy, for which the Company is obligated to pay a royalty.
Current report
The Consumer Products segment net revenues decreased 16% to $442.4 million for the second quarter of 2025 compared to $524.5 million for the second quarter of 2024 primarily driven by broader industry trends and shifts in product mix. The net revenue decrease primarily reflects lower net revenues from NERF, PLAY-DOH, STAR WARS, and MARVEL products. These declines in revenue were partially offset by revenue growth in consumer product licensing revenue. The lower net revenues from STAR WARS and MARVEL products are attributed to the timing of movie and content releases.
Current report
Corporate and Other operating loss was $16.7 million for the second quarter of 2025 compared to an operating loss of $24.7 million for the second quarter of 2024. The decrease in operating loss in the second quarter of 2025 as compared to the second quarter of 2024 primarily reflects the net impact of the two prior period non-recurring adjustments recorded during the second quarter of 2024. Refer to Note 1, Basis of Presentation, to the consolidated financial statements for further information on the two non-recurring adjustments.
Current report
RESULTS OF OPERATIONS
Current report
Net revenues -Net revenues for the first six months of 2025 increased 7% to $1,867.9 million from $1,752.6 million for the first six months of 2024 primarily driven by a $216.2 million, or 28%, increase in the Wizards of the Coast and Digital Gaming segment, partially offset by a $96.8 million, or 10%, decrease in the Consumer Products segment and a $4.1 million, or 9%, decrease in the Entertainment segment. See the Segment Results discussion below for further details.
Current report
OPERATING COSTS AND EXPENSES
Current report
Cost of sales -Cost of sales for the first six months of 2025 was $429.8 million, or 23.0% of net revenues, compared to $441.9 million, or 25.2% of net revenues, for the first six months of 2024. The Cost of sales decrease was driven primarily by lower sales volumes, supply chain productivity, and cost savings initiatives, offset by a 2024 recording of a non-recurring $26.7 million benefit related to a historical over-accrual of vendor commitment liabilities as discussed in Note 1, Basis of Presentation, to the consolidated financial statements.
Current report
Advertising -Advertising expense for the first six months of 2025 was $119.0 million, or 6.4% of net revenues, compared to $111.9 million, or 6.4% of net revenues, for the first six months of 2024. The Advertising expense increase during the first six months of 2025 was primarily driven by the timing of sales initiatives in the Consumer Products segment.
Current report
Impairment of goodwill -During the first six months of 2025, the Company recorded a $1,021.9 million non-cash goodwill impairment charge associated with goodwill assigned to reporting units within the Company's Consumer Products segment. There were no goodwill impairment charges during the first six months of 2024. See further detail in Note 5, Goodwill, to the consolidated financial statements for further information.
Current report
Selling, distribution and administration -Selling, distribution and administration expenses decreased to $552.4 million, or 29.6% of net revenues for the first six months of 2025, from $553.3 million, or 31.6% of net revenues, for the first six months of 2024. The decrease in Selling, distribution and administration expenses during the first six months of 2025 primarily due to cost savings initiatives, a non-recurring $31.1 million expense related to historical environmental liabilities during the second quarter of 2024, partially offset by a non-recurring stock-compensation adjustment of $18.1 million recorded during the first quarter of 2024, as discussed in Note 1, Basis of Presentation, to the consolidated financial statements.
Current report
Operating Profit (Loss) -The operating loss for the first six months of 2025 was $627.5 million, or 33.6% of net revenues, compared to an operating profit of $328.3 million, or 18.7% of net revenues, for the first six months of 2024 driven by the factors discussed above.
Current report
NON-OPERATING EXPENSE (INCOME)
Current report
Interest income -Interest income was $14.3 million for the first six months of 2025, compared to $21.3 million in the first six months of 2024. Lower Interest income in 2025 primarily reflects the Company's investments in treasury bills that were higher in 2024 as compared to 2025.
Current report
Other (income) expense, net -Other (income) expense, net was net income of $17.3 million for the first six months of 2025, compared to net expense of $4.2 million in the first six months of 2024. The change in Other (income) expense, net during 2025 was driven primarily by an increase in foreign currency exchange gains the first six months of 2025 as compared to foreign currency exchange losses for the first six months of 2024.
Current report
INCOME TAXES
Current report
Income tax expense totaled $77.1 million on a pre-tax loss of $678.1 million in the first six months of 2025 compared to an income tax expense of $66.3 million on pre-tax income of $263.9 million in the first six months of 2024. Both periods were impacted by discrete tax events. During the first six months of 2025, the Company recorded a non-cash goodwill impairment within the Consumer Products segment of $1,021.9 million with no corresponding tax benefit.
Current report
During the first six months of 2024, the Company recorded a $24.4 million unfavorable adjustment to the 2023 Loss on disposal of the eOne Film and TV business with no corresponding tax benefit. During the first six months of 2025, exclusive of the impairment of goodwill, the Company recorded a net discrete tax benefit of $6.2 million compared to a net discrete tax expense, exclusive of the Loss on disposal of the eOne Film and TV business, of $0.7 million in the first six months of 2024.
Current report
The net discrete tax benefit recorded in the first six months of 2025 is primarily associated with the release of a valuation allowance. The net discrete tax expense recorded in the first six months of 2024 is primarily associated with stock-based compensation.
Current report
SEGMENT RESULTS
Current report
The following table presents Wizards of the Coast and Digital Gaming segment net revenues by category for the six months ended June 29, 2025 and June 30, 2024:
Current report
Wizards of the Coast and Digital Gaming segment operating profit was $471.8 million, or 47.9% of segment net revenues for the first six months of 2025, compared to operating profit of $369.9 million, or 48.1% of segment net revenues, for the first six months of 2024. The operating profit increase during the first six months of 2025 was driven by increased net revenues, contributions from higher digital licensing revenue mix and cost savings initiatives, offset by higher royalty expense related to the strong demand for Final Fantasyfor which the Company is obligated to pay a royalty.
Current report
Consumer Products Segment
Current report
Consumer Products segment operating loss for the first six months of 2025 was $1,073.5 million, or 127.7% of segment net revenues, compared to a segment operating loss of $56.2 million, or 6.0% of segment net revenues, for the first six months of 2024. The increase in operating loss in the first six months of 2025 was driven by decrease in net revenues and a non-cash goodwill impairment charge of $1,021.9 million recorded during 2025. This was offset by savings realized from the Company's cost savings and transformation initiatives.
Current report
Entertainment Segment
Current report
The following table presents Entertainment segment net revenues by category for the six months ended June 29, 2025 and June 30, 2024:
Current report
Entertainment segment net revenues decreased 9% to $42.7 million for the first six months of 2025, compared to $46.8 million for the first six months of 2024. The net revenue decrease in the Entertainment segment during the first six months of 2025 was driven primarily by timing of entertainment streaming renewals.
Current report
Entertainment segment operating loss was $4.9 million, or 11% of segment net revenues, for the first six months of 2025, compared to an operating profit of $4.8 million, or 10% of segment net revenues, for the first six months of 2024. The decrease in Entertainment segment operating results during the first six months of 2025 was primarily driven by a decrease in net revenues, along with a non-recurring Loss on disposal of business of $25.0 million during the first six months of 2025, that was offset by a non-recurring Loss on disposal of business of $24.4 million during the first six months of 2024. Refer to Note 3, Sale of Non-Core Entertainment One Film and TV Business, to the consolidated financial statements for further information on the non-recurring Loss on disposal of business.
Showing the first 40 of 50 passages. Open the source sections for the rest.
Removed paragraphs (5)
Previous report
•Partner Scale: Capitalize on our partners’ investments and scale to enhance our brands through strategic relationships and licensing arrangements.
Previous report
Although the final impact of tariffs is uncertain, from the Company’s scenario planning, assuming tariffs on imports from China to the United States ranging from 50% to 145%, and tariffs on imports from the rest of the world at 10%, we currently estimate between $100 million and $300 million of negative gross impact to operating profit in 2025, before any mitigation measures. Factoring in all mitigating levers, we currently estimate a negative net profit impact to the Company between $60 million and $180 million for 2025. The range of outcomes is dependent on final trade policy, customer order patterns, and impacts on consumer purchasing from tariffs and related economic conditions. The impact may be greater than set forth above. The Company also currently anticipates that tariffs will result in purchasing shifting later in the year, with a negative impact to second quarter revenues.
Previous report
The Company has made strong progress towards its ongoing transformation efforts while achieving an operating profit of $170.7 million during the three months ended March 30, 2025 as compared to $116.2 million for the three months ended March 31, 2024, respectively. See the below discussion for the consolidated and segment results of operations.
Previous report
Wizards of the Coast and Digital Gaming segment operating profit was $230.0 million, or 49.8% of segment net revenues for the first quarter of 2025, compared to operating profit of $122.8 million, or 38.8% of segment net revenues, for the first quarter of 2024. Operating profit increased during the first quarter of 2025 driven by increased net revenues and continued growth in digital licensing.
Previous report
Corporate and Other operating loss was $4.2 million for the first quarter of 2025 compared to an operating profit of $34.5 million for the first quarter of 2024. The decrease in operating profit in the first quarter of 2025 as compared to the first quarter of 2024 primarily reflects a non-recurring benefit from the reversal of stock compensation expense recorded in the first quarter of 2024. Refer to Note 1, Basis of Presentation, to the consolidated financial statements for further information on the stock compensation adjustment.
Reworded paragraphs (41)
Previous wording
Over the last several years, Hasbro has continued our transformation for our business and we began to see tangible results from our initiatives. Specifically, we focused our efforts on strategic investments in our most valuable and profitable franchises across games, licensing, toys and entertainment. We also made significant progress in our cost-savings initiatives and further strengthened our leadership team with industry veterans and turnaround experts.
Current wording
Hasbro has continued our business transformation and we are seeing tangible results. We are focusing our efforts on strategic investments in our most valuable and profitable franchises across games, licensing, toys and entertainment. We have made significant progress in our cost-savings initiatives and further strengthened our leadership team with industry veterans and turnaround experts.
Previous wording
In the first quarter of 2025, we launched our refreshed strategy "Playing to Win" to refocus the Company on play and partnership. Through play fueled brand engagement and partner scaled co-investment, we plan to expand our consumer reach as a games, IP, and toy company. We have set goals and objectives to be one of the most profitable and diverse toy and game companies globally, powered by multi-segment and multi-generational franchises. Playing to Win includes five strategic building blocks:
Current wording
In the first quarter of 2025, we launched our refreshed strategy "Playing to Win" to refocus the Company on play and partnership. Through play fueled brand engagement and partner scaled co-investment, we plan to expand our consumer reach as a games, IP, and toy company. Our objective is to be one of the most profitable and diverse toy and game companies globally, powered by multi-segment and multi-generational franchises. Playing to Win includes five strategic building blocks:
Previous wording
•Profitable Franchises: Focus on improving the fundamentals of profitable, play-focused brands, through innovation, partnership, operational excellence, managed cost-discipline and retail execution.
Current wording
•Profitable Franchises: Deliver on the fundamentals of profitable, play-focused brands, through innovation, partnership, operational excellence, managed cost-discipline and retail execution.
Previous wording
The impact of tariffs on the Company's business operations was not significant during the first three months of 2025 and throughout 2024; however significant changes in trade policy announced by the U.S. government during the second quarter of 2025 could result in material adverse impacts to our forward-looking financial results. The Company monitors the impact of tariffs to its business operations on an ongoing basis and may need to implement actions such as imposing price adjustments or making changes in our supply chain sourcing strategies in order to mitigate the impact of tariffs in future periods. The impacts of tariffs may lead to reduced economic activity, increased costs, reduced demand and changes in purchasing behaviors for some or all of our products, potential unrealizability of some of our existing assets, or other economic outcomes that could have a material adverse impact on our sales volumes, prices, and our financial results.
Current wording
The impact of tariffs on the Company's business operations was not significant during the first six months of 2025 and throughout 2024; however significant changes in trade policy announced by the U.S. government during the second quarter of 2025 could adversely impact our forward-looking financial results. The Company monitors the impact of tariffs to its business operations on an ongoing basis and may need to implement actions such as imposing price adjustments or making changes in our supply chain sourcing strategies in order to mitigate the impact of tariffs in future periods. The impacts of tariffs may lead to reduced economic activity, increased costs, reduced demand and changes in purchasing behaviors for some or all of our products, actual or potential impairments, write-downs or unrealizability of some of our existing assets, or other economic outcomes that could have a material adverse impact on our sales volumes, prices, and our financial results.
Previous wording
During 2025, the Company experienced an increase in revenue from $757.3 million for the three months ended March 31, 2024 to $887.1 million for the three months ended March 30, 2025. The increase in revenue for the three months ended March 30, 2025 from the three months ended March 31, 2024 is driven primarily by growth in our Wizards of the Coast and Digital Gaming segment, inclusive of increased demand for both tabletop and licensed digital gaming, partially offset by a decrease in our Consumer Products segment related to volume declines.
Current wording
The Company experienced an increase in revenue from $1,752.6 million for the six months ended June 30, 2024 to $1,867.9 million for the six months ended June 29, 2025. This increase in revenue is driven primarily by growth in our Wizards of the Coast and Digital Gaming segment, inclusive of increased demand for both tabletop and licensed digital gaming, partially offset by volume declines in our Consumer Products segment.
Previous wording
Net revenues -Net revenues for the first quarter of 2025 increased 17% to $887.1 million from $757.3 million for the first quarter of 2024 primarily driven by a $145.8 million, or 46%, increase in the Wizards of the Coast and Digital Gaming segment, offset by a $14.7 million, or 4%, decline in the Consumer Products segment, and a $1.3 million, or 5%, decline in the Entertainment segment. See the Segment Results discussion below for further details.
Current wording
Net revenues -Net revenues for the second quarter of 2025 decreased 1% to $980.8 million from $995.3 million for the second quarter of 2024 primarily driven by a $82.1 million, or 16%, decrease in the Consumer Products segment, and a $2.8 million, or 15%, decrease in the Entertainment segment, offset by a $70.4 million, or 16%, increase in the Wizards of the Coast and Digital Gaming segment. See the Segment Results discussion below for further details.
Previous wording
Cost of sales -Cost of sales for the first quarter of 2025 was $204.5 million, or 23.1% of net revenues, compared to $204.2 million, or 27.0% of net revenues, for the first quarter of 2024. The decrease in cost of sales as a percent of net revenues was primarily the result of a shift in product mix, driven by an increase in both digital and consumer product licensing revenue during the quarter.
Current wording
Cost of sales -Cost of sales for the second quarter of 2025 was $225.3 million, or 23.0% of net revenues, compared to $237.7 million, or 23.9% of net revenues, for the second quarter of 2024. The decrease in cost of sales was primarily the result of a shift in product mix, driven by an increase in both digital and consumer product licensing revenue during the quarter, offset by a non-recurring $26.7 million benefit related to a historical over-accrual of vendor commitment liabilities that was recorded during the second quarter of 2024.
Previous wording
Program cost amortization -Program cost amortization decreased slightly to $7.4 million, or 0.8% of net revenues, for the first quarter of 2025 from $8.1 million, or 1.1% of net revenues, for the first quarter of 2024. Program costs are capitalized as incurred and amortized primarily using the individual-film-forecast method which matches costs to the related recognized revenue and is based upon the current slate of entertainment projects.
Current wording
Program cost amortization -Program cost amortization decreased slightly to $6.2 million, or 0.6% of net revenues, for the second quarter of 2025 from $8.5 million, or 0.9% of net revenues, for the second quarter of 2024. Program costs are capitalized as incurred and amortized primarily using the individual-film-forecast method which matches costs to the related recognized revenue and is based upon the current slate of entertainment projects.
Previous wording
Royalties -Royalty expense for the first quarter of 2025 increased to $57.0 million, or 6.4% of net revenues, compared to $50.9 million, or 6.7% of net revenues, for the first quarter of 2024. Fluctuations in Royalty expense are generally related to the volume of content releases and deliveries and entertainment-driven products sold. The increase in Royalty expense during the first quarter of 2025 was directly driven by an increase in sales for partner brands such as MARVEL, for which the Company is obligated to pay a royalty.
Current wording
Royalties -Royalty expense for the second quarter of 2025 increased to $84.5 million, or 8.6% of net revenues, compared to $55.3 million, or 5.6% of net revenues, for the second quarter of 2024. Fluctuations in Royalty expense are generally related to the volume of content releases and deliveries and entertainment-driven products sold. The increase in Royalty expense during the second quarter of 2025 was directly driven by an increase in sales from MAGIC: THE GATHERING, primarily due to strong demand for Final Fantasy, for which the Company is obligated to pay a royalty.
Previous wording
Product development -Product development expense for the first quarter of 2025 was $80.5 million, or 9.1% of net revenues, compared to $65.5 million, or 8.6% of net revenues, for the first quarter of 2024. The increase in Product development expense during the first quarter of 2025 was primarily due to higher incremental investment in the development of Grow Brands under the Company's new "Playing to Win" strategy.
Current wording
Product development -Product development expense for the second quarter of 2025 was $77.5 million, or 7.9% of net revenues, compared to $70.4 million, or 7.1% of net revenues, for the second quarter of 2024. The increase in Product development expense during the second quarter of 2025 was primarily due to higher incremental investment in the development of Grow Brands under the Company's "Playing to Win" strategy.
Previous wording
Advertising -Advertising expense for the first quarter of 2025 was $55.4 million, or 6.2% of net revenues, compared to $51.5 million, or 6.8% of net revenues, for the first quarter of 2024. The Advertising expense increase during the first quarter of 2025 was primarily driven by the timing of sales initiatives in Consumer Products segment.
Current wording
Advertising -Advertising expense for the second quarter of 2025 was $63.6 million, or 6.5% of net revenues, compared to $60.4 million, or 6.1% of net revenues, for the second quarter of 2024. The Advertising expense increase during the second quarter of 2025 was primarily driven by the timing of sales initiatives in the Consumer Products segment.
Previous wording
Amortization of intangible assets -Amortization of intangible assets remained flat at $17.0 million, or 1.9% of net revenues, for the first quarter of 2025, compared to $17.0 million, or 2.2% of net revenues, for the first quarter of 2024. The amortization expense was driven by the straight-line amortization of the Company's remaining definite-lived intangible assets.
Current wording
Amortization of intangible assets -Amortization of intangible assets remained flat at $17.2 million, or 1.8% of net revenues, for the second quarter of 2025, compared to $17.1 million, or 1.7% of net revenues, for the second quarter of 2024. The amortization expense was driven by the straight-line amortization of the Company's remaining definite-lived intangible assets.
Previous wording
Selling, distribution and administration -Selling, distribution and administration expenses increased to $269.6 million, or 30.4% of net revenues for the first quarter of 2025, from $234.8 million, or 31.0% of net revenues, for the first quarter of 2024. The increase in Selling, distribution and administration expenses during the first quarter of 2025 is primarily the result of a non-recurring stock-compensation benefit of $18.1 million recorded during the first quarter of 2024, as well as an increase in the Company's bad debt provision, partially offset by benefits from cost savings initiatives.
Current wording
Selling, distribution and administration -Selling, distribution and administration expenses decreased to $282.8 million, or 28.8% of net revenues for the second quarter of 2025, from $318.5 million, or 32.0% of net revenues, for the second quarter of 2024. The decrease in Selling, distribution and administration expenses during the second quarter of 2025 is primarily the result of a non-recurring $31.1 million expense related to historical environmental liabilities recorded during the second quarter of 2024 and benefits from cost savings initiatives.
Previous wording
Operating Profit -Operating profit for the first quarter of 2025 was $170.7 million, or 19.2% of net revenues, compared to an operating profit of $116.2 million, or 15.3% of net revenues, for the first quarter of 2024 driven by the factors discussed above.
Current wording
Operating profit (loss) -Operating loss for the second quarter of 2025 was $798.2 million, or 81.4% of net revenues, compared to an operating profit of $212.1 million, or 21.3% of net revenues, for the second quarter of 2024 driven by the factors discussed above.
Previous wording
Interest income -Interest income was $8.9 million for the first quarter of 2025, compared to $8.3 million in the first quarter of 2024. Higher Interest income in 2025 primarily reflects higher cash balances in 2025 compared to 2024, partially offset by lower average interest rates.
Current wording
Interest income -Interest income was $5.4 million for the second quarter of 2025, compared to $13.0 million in the second quarter of 2024. Lower Interest income in 2025 primarily reflects the Company's investments in treasury bills that were higher in 2024 as compared to 2025.
Previous wording
Other expense, net -Other expense, net was $1.4 million for the first quarter of 2025, compared to Other expense, net of $5.0 million in the first quarter of 2024. The change in Other expense, net during 2025 was driven primarily by variations in the movement of foreign currencies in the first quarter of 2025 when compared to the first quarter of 2024.
Current wording
Other (income) expense, net -Other (income) expense, net was net income of $18.7 million for the second quarter of 2025, compared to net income of $0.8 million in the second quarter of 2024. The change in Other (income) expense, net during 2025 was driven primarily by variations in the movement of foreign currencies in the second quarter of 2025 when compared to the second quarter of 2024.
Previous wording
Income tax expense totaled $37.1 million on pre-tax income of $136.6 million in the first quarter of 2025 compared to income tax expense of $21.9 million on pre-tax income of $81.0 million in the first quarter of 2024. Both periods were impacted by discrete tax events including the accrual of potential interest and penalties on uncertain tax positions. During the first quarter of 2025, the Company recorded a net discrete tax benefit of $0.3 million compared to a net discrete tax expense of $1.8 million in the first quarter of 2024.
Current wording
Income tax expense totaled $40.0 million on a pre-tax loss of $814.7 million in the second quarter of 2025 compared to an income tax expense of $44.4 million on pre-tax income of $182.9 million in the second quarter of 2024. Both periods were impacted by discrete tax events. During the second quarter of 2025, the Company recorded a non-cash goodwill impairment within the Consumer Products segment of $1,021.9 million with no corresponding tax benefit. The second quarter of 2024 included a $15.3 million unfavorable adjustment to the 2023 Loss on disposal of the eOne Film and TV business with no corresponding tax benefit.
Previous wording
The net discrete tax benefit for the first quarter of 2025 is primarily associated with stock-based compensation offset by activity related to uncertain tax benefits. The net discrete tax expense for the first quarter of 2024 is primarily associated with stock-based compensation. Absent discrete items, the tax rates for the first quarter of 2025 and 2024 were 23.1% and 22.4%, respectively. The increase in the base rate of 23.1% for the first quarter of 2025, relative to the first quarter of 2024, is primarily due to the mix of jurisdictions where the Company earned its profits.
Current wording
Absent discrete items, the tax rates for the second quarter of 2025 and 2024 were 22.1% and 22.9%, respectively. The decrease in the base rate to 22.1% for the second quarter of 2025 relative to the second quarter of 2024 is primarily due to the mix of jurisdictions where the Company earned its profits.
Previous wording
Consumer Products segment operating loss for the first quarter of 2025 was $43.9 million or 11.0% of segment net revenues, compared to a segment operating loss of $46.9 million or 11.4% of segment net revenues, for the first quarter of 2024. The decrease in operating loss in the first quarter of 2025 was driven by savings realized from the Company's cost savings and transformation initiatives, offset by a decrease in net revenues, higher royalty expenses, reflecting the mix of products sold, and higher advertising costs.
Current wording
Consumer Products segment operating loss for the second quarter of 2025 was $1,029.5 million, or 232.7% of segment net revenues, compared to a segment operating loss of $9.3 million, or 1.8% of segment net revenues, for the second quarter of 2024. The increase in operating loss in the second quarter of 2025 was driven by decrease in net revenues and a non-cash goodwill impairment charge of $1,021.9 million recorded during the second quarter of 2025. This was partially offset by savings realized from the Company's cost savings and transformation initiatives.
Previous wording
Entertainment segment net revenues decreased 5% to $26.7 million for the first quarter of 2025, compared to $28.0 million for the first quarter of 2024. The net revenue decrease in the Entertainment segment during the first quarter of 2025 was driven primarily by the timing of entertainment streaming renewals.
Current wording
Entertainment segment net revenues decreased 15% to $16.0 million for the second quarter of 2025, compared to $18.8 million for the second quarter of 2024. The net revenue decrease in the Entertainment segment during the second quarter of 2025 was driven primarily by the timing of entertainment streaming renewals.
Previous wording
Entertainment segment operating loss was $11.2 million, or 41.9% of segment net revenues for the first quarter of 2025, compared to an operating profit of $5.8 million, or 21% of segment net revenues for the first quarter of 2024. The decrease in operating profit in Entertainment segment operating results during the first quarter of 2025 was driven by a non-recurring Loss on disposal of business of $25.0 million recorded during the quarter.
Current wording
Entertainment segment operating profit was $6.1 million, or 38.1% of segment net revenues for the second quarter of 2025, compared to an operating loss of $1.0 million, or 5% of segment net revenues for the second quarter of 2024. The increase in operating profit in Entertainment segment operating results during the second quarter of 2025 was driven by a non-recurring Loss on disposal of business of $15.3 million recorded during the second quarter of 2024.
Previous wording
GROW BRANDS: Net revenues in the Grow Brands portfolio increased $131.7 million, or 25%, in the first quarter of 2025, compared to the first quarter of 2024. The net revenue increase primarily reflects higher net revenues from MAGIC: THE GATHERING, MONOPOLY, and MARVEL product sales and digital game licensing related to MONOPOLY GO!, which were partially offset by lower net revenues from GI JOE products.
Current wording
GROW BRANDS: Net revenues in the Grow Brands portfolio increased $159.6 million, or 13%, in the first six months of 2025, compared to the first six months of 2024. The net revenue increase primarily reflects higher net revenues from MAGIC: THE GATHERING, and MONOPOLY product sales and digital game licensing related to MONOPOLY GO!, which were partially offset by lower net revenues from PLAY-DOH and GI JOE products.
Previous wording
OPTIMIZE BRANDS: Net revenues in the Optimize Brands portfolio decreased $9.7 million, or 7%, in the first quarter of 2025, compared to the first quarter of 2024. The net revenue decrease is primarily driven by lower net revenues from PEPPA PIG products, partially offset by an increase in revenue from TRANSFORMERS products, which was driven by increased consumer demand stemming from the September 2024 theatrical release of Transformers One with our partners at Paramount.
Current wording
OPTIMIZE BRANDS: Net revenues in the Optimize Brands portfolio decreased $19.2 million, or 6%, in the first six months of 2025, compared to the first six months of 2024. The net revenue decrease is primarily driven by lower net revenues from PEPPA PIG and STAR WARS products, partially offset by an increase in net revenue from DUEL MASTERS and TRANSFORMERS products. TRANSFORMERS products were driven by increased consumer demand stemming from the September 2024 theatrical release of Transformers One with our partners at Paramount.
Previous wording
REINVENT BRANDS: Net revenues in the Reinvent Brands portfolio increased $7.8 million, or 8%, in the first quarter of 2025 compared to the first quarter of 2024. Higher net revenues from BEY BLADE products, following the Company's successful reintroduction of the brand, as well as higher consumer product licensing revenues relating to MY LITTLE PONY, which were partially offset by decreases in revenue from NERF.
Current wording
REINVENT BRANDS: Net revenues in the Reinvent Brands portfolio decreased $25.1 million, or 11%, in the first six months of 2025 compared to the first six months of 2024. The net revenue decrease is primarily driven by lower net revenues from NERF products, partially offset by an increase in net revenues from BEY BLADE products, following the Company's successful reintroduction of the brand, as well as higher consumer product licensing revenues relating to MY LITTLE PONY.
Previous wording
Loss on disposal of business - Loss on disposal of business for the first quarter of 2025 was $25.0 million, or 2.8% of net revenues, compared to $9.1 million, or 1.2% of net revenues, for the first quarter of 2024. The increase in Loss on disposal of business was driven by the settlement of a holdback provision relating to the divestiture of the eOne Film and TV business.
Current wording
Loss on disposal of business - Loss on disposal of business for the first six months of 2025 was $25.0 million, or 1.3% of net revenues, as compared to $24.4 million, or 1.4% of net revenues, for the first six months of 2024. The Loss on disposal of business relates to the divestiture of the eOne Film and TV business. See further detail in Note 3, Sale of Non-Core Entertainment One Film and TV Business, to the consolidated financial statements for further information.
Previous wording
Interest expense -Interest expense for the first quarter of 2025 totaled $41.6 million compared to $38.5 million in the first quarter of 2024. The increase in Interest expense primarily reflects a higher average interest rate on the outstanding borrowings existing as of the end of the first quarter of 2025 as compared to those outstanding as of the first quarter of 2024.
Current wording
Interest expense -Interest expense for the first six months of 2025 totaled $82.2 million compared to $81.5 million in the first six months of 2024. The slight increase in Interest expense primarily reflects a higher average interest rate on the outstanding borrowings existing partially offset by lower average borrowings as of the end of the second quarter of 2025 as compared to those outstanding as of the second quarter of 2024.
Previous wording
Wizards of the Coast and Digital Gaming segment net revenues increased 46.1% in the first quarter of 2025 to $462.1 million from $316.3 million in the first quarter of 2024. The net revenue increase in the Wizards of the Coast and Digital Gaming segment during the first quarter of 2025 was primarily attributable to revenue contributions from higher digital licensing related to MONOPOLY GO!, as well as an increase in Tabletop Gaming revenue which increased 50.7% behind growth in MAGIC: THE GATHERING, primarily due to strong demand for Aetherdriftand Tarkir Dragonstorm, as well as other various Backlist sets.
Current wording
Wizards of the Coast and Digital Gaming segment net revenues increased 28% in the first six months of 2025 to $984.5 million from $768.3 million in the first six months of 2024. Tabletop Gaming revenue increased 40% behind growth in MAGIC: THE GATHERING primarily due to strong demand for Final Fantasy, Tarkir, Dragon Storm and Aetherdrift. The net revenue increase in Digital and Licensed Gaming during the first six months of 2025 was primarily attributable to revenue contributions from higher digital licensing of MONOPOLY GO!.
Previous wording
The Consumer Products segment net revenues decreased 4% to $398.3 million for the first quarter of 2025 compared to $413.0 million for the first quarter of 2024 primarily driven by broader industry trends and shifts in product mix. The net revenue decrease primarily reflects lower net revenues from NERF, GI JOE and PLAY-DOH products. These declines in revenue were partially offset by revenue growth from BEY BLADE, MARVEL, and TRANSFORMERS products, as well as an increase in consumer product licensing revenue from MY LITTLE PONY.
Current wording
The Consumer Products segment net revenues decreased 10% to $840.7 million for the first six months of 2025 compared to $937.5 million for the first six months of 2024 primarily driven by broader industry trends and shifts in product mix. The net revenue decrease primarily reflects lower net revenues from NERF, PLAY-DOH, Hasbro Gaming, GI JOE and STAR WARS products. These declines in revenue were partially offset by revenue growth from BEY BLADE and TRANSFORMERS products, as well as an increase in consumer product licensing revenue from MY LITTLE PONY.
Previous wording
The Company enters into purchase orders with vendors and other parties in the ordinary course of business. Refer to Item 7 of our 2024 Annual Report for additional information regarding the Company’s cash obligations and commitments as of the end of fiscal year 2024. Additionally, refer to Note 14, Commitments and Contingencies, tothe consolidated financial statements for a discussion of the Company’s commitments and contingencies. Contractual obligations and commercial commitments, as detailed in the Company's 2024 Form 10-K, did not materially change outside of certain payments made in the normal course of business and as otherwise set forth in this report.
Current wording
Refer to Item 7 of our 2024 Annual Report for additional information regarding the Company’s cash obligations and commitments as of the end of fiscal year 2024. Additionally, refer to Note 14, Commitments and Contingencies, tothe consolidated financial statements for a discussion of the Company’s commitments and contingencies. Contractual obligations and commercial commitments, as detailed in the Company's 2024 Form 10-K, did not materially change outside of certain payments made in the normal course of business and as otherwise set forth in this report.
Previous wording
The impact of tariffs on the Company's business operations was not significant during the first three months of 2025 and throughout 2024; however significant changes in trade policy announced by the U.S. government during the second quarter of 2025 could result in material adverse impacts to our forward-looking financial results, including the timing and extent of cash flows based upon timing in customer buying patterns and changes in our supply chain sourcing strategies.
Current wording
The impact of tariffs on the Company's business operations was not significant during the first six months of 2025 and throughout 2024; however significant changes in trade policy announced by the U.S. government during the second quarter of 2025 could adversely impact our forward-looking financial results, including the timing and extent of cash flows based upon timing in customer buying patterns and changes in our supply chain sourcing strategies.
Previous wording
As of March 30, 2025, the Company's cash and cash equivalents totaled $621.1 million. The majority of the Company’s cash and cash equivalents held outside of the United States as of March 30, 2025 are denominated in the U.S. dollar.
Current wording
As of June 29, 2025, the Company's cash and cash equivalents totaled $546.9 million. The majority of the Company’s cash and cash equivalents held outside of the United States as of June 29, 2025 are denominated in the U.S. dollar.
Previous wording
The Company’s revolving credit facility with Bank of America, provides the Company with commitments having a maximum aggregate principal amount of $1.25 billion. The revolving credit facility also provides for a potential additional incremental commitment increase of up to $500.0 million subject to agreement of the lenders. The Company's revolving credit facility contains certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness. The Company was in compliance with all covenants as of March 30, 2025. The Company had no borrowings outstanding under its revolving credit facility as of March 30, 2025. However, letters of credit outstanding under this facility as of March 30, 2025 were approximately $3.7 million. Amounts available and unused under the revolving credit facility at March 30, 2025 were approximately $1.25 billion, inclusive of borrowings under the Company’s commercial paper program. The Company also has other uncommitted lines from various banks, of which approximately $7.8 million was utilized as of March 30, 2025. Of the amount utilized under, or supported by, the uncommitted lines, the full $7.8 million represented letters of credit.
Current wording
The Company’s revolving credit facility with Bank of America, provides the Company with commitments having a maximum aggregate principal amount of $1.25 billion. The revolving credit facility also provides for a potential additional incremental commitment increase of up to $500.0 million subject to agreement of the lenders. The Company's revolving credit facility contains certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness. The Company was in compliance with all covenants as of June 29, 2025. The Company had no borrowings outstanding under its revolving credit facility as of June 29, 2025. However, letters of credit outstanding under this facility as of June 29, 2025 were approximately $3.7 million. Amounts available and unused under the revolving credit facility at June 29, 2025 were approximately $1.25 billion, inclusive of borrowings under the Company’s commercial paper program. The Company also has other uncommitted lines from various banks, of which approximately $8.4 million was utilized as of June 29, 2025. Of the amount utilized under, or supported by, the uncommitted lines, the full $8.4 million represented letters of credit.
Previous wording
As of March 30, 2025, the Company had $3,331.5 million of Long-term debt due at varying times from 2026 through 2044. From time to time, the Company or its affiliates may seek to retire or purchase outstanding debt through cash purchases, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. During 2025, the Company repurchased $50.4 million of its outstanding debt.
Current wording
As of June 29, 2025, the Company had $3,320.9 million of Long-term debt due at varying times from 2026 through 2044. From time to time, the Company or its affiliates may seek to retire or purchase outstanding debt through cash purchases, in open-market purchases, privately negotiated transactions or otherwise. Such repurchases, if any, will be upon such terms and at such prices as we may determine, and will depend on prevailing market conditions, our liquidity requirements, contractual restrictions and other factors. During 2025, the Company repurchased $61.9 million of its outstanding debt.
Previous wording
The Company has a supplier finance program which provides participating suppliers the option of receiving payment in advance of an invoice due date, to be paid by certain administering banks, on the basis of invoices that the Company has confirmed as valid and approved. The Company’s obligation is to make payment in the invoice amount negotiated with participating suppliers, to the administering banks on the invoice due date. The Company’s suppliers are not required to participate in the supplier finance program. The early payment transactions between the Company’s supplier and the administering bank are subject to an agreement between those parties, and the Company does not participate in any financial aspect of the agreements between the Company’s suppliers and the administering banks. The Company has not pledged any assets to the administering bank under the supplier financing program. The Company or the administering bank may terminate the agreement upon at least 30 days’ written notice.
Current wording
The Company has a supplier finance program which provides participating suppliers the option of receiving payment in advance of an invoice due date, to be paid by certain administering banks, on the basis of invoices that the Company has confirmed as valid and approved. The Company’s obligation is to make payment in the invoice amount negotiated with participating suppliers, to the administering banks on the invoice due date. The Company’s suppliers are not required to participate in the supplier finance program. The early payment transactions between the Company’s supplier and the administering bank are subject to an agreement between those parties, and the
Previous wording
The amount of obligations confirmed under the supplier finance program that remain unpaid by the Company were $51.2 million, $47.7 million, and $66.2 millionas of March 30, 2025, March 31, 2024 and December 29, 2024, respectively. These obligations are presented within Accounts payable in the Company's Consolidated Balance Sheets. The activity related to this program is reflected within the operating activities section of the Consolidated Statements of Cash Flows.
Current wording
The amount of obligations confirmed under the supplier finance program that remain unpaid by the Company were $67.8 million, $72.4 million, and $66.2 millionas of June 29, 2025, June 30, 2024 and December 29, 2024, respectively. These obligations are presented within Accounts payable in the Company's Consolidated Balance Sheets. The activity related to this program is reflected within the operating activities section of the Consolidated Statements of Cash Flows.
Previous wording
Net cash provided by Operating activities in the first three months of 2025 was $138.1 million compared to $177.8 million in the first three months of 2024. The $39.7 million decrease in net cash provided by Operating activities after adjusting for non-cash items, was primarily attributable to changes in net working capital primarily the timing of accounts receivable in the first three months of 2024, partially offset by improved net income in the first three months of 2025 compared to first three months of 2024.
Current wording
Net cash provided by Operating activities in the first six months of 2025 was $209.4 million compared to $365.1 million in the first six months of 2024. The $155.7 million decrease in net cash provided by Operating activities after adjusting for non-cash items, was primarily attributable to changes in net working capital including the timing of inventory and payment of the net deemed repatriation tax, in the first six months of 2025 compared to first six months of 2024.
Previous wording
Net cash utilized for Investing activities was $52.4 million in the first three months of 2025 compared to net cash utilized for Investing activities of $48.1 million in the first three months of 2024. Additions to property, plant and equipment and software were $13.8 million and $29.4 million, respectively, in the first three months of 2025 compared to $22.1 million and $23.7 million, respectively, in the first three months of 2024. Additionally, a purchase of Long-term Investments of $10.0 million occurred in the first three months of 2025 with no similar activity in the first three months of 2024.
Current wording
Net cash utilized for Investing activities was $89.2 million in the first six months of 2025 compared to net cash utilized for Investing activities of $575.4 million in the first six months of 2024. Additions to property, plant and equipment and software were $29.9 million and $61.8 million, respectively, in the first six months of 2025 compared to $49.5 million and $48.2 million, respectively, in the first six months of 2024. Additionally, a purchase of Long-term Investments of $10.0 million occurred in the first six months of 2025 with compared to the purchase of Short-term Investments of $480.1 million in the first six months of 2024.
Previous wording
Net cash utilized by Financing activities was $162.4 million in the first three months of 2025 compared to net cash utilized of $108.9 million in the first three months of 2024. Financing activities in the first three months of 2025 primarily include dividends paid of $97.9 million, repayments of long-term debt of $49.2 million, and $17.7 million of payments related to tax withholdings for stock compensation coinciding with equity award vesting activity. Financing activities in the first three months of 2024 included $97.2 million of dividends paid and $10.2 million of payments related to tax withholdings for stock compensation coinciding with equity award vesting activity.
Current wording
Net cash utilized by Financing activities was $274.6 million in the first six months of 2025 compared to net cash utilized of $288.5 million in the first six months of 2024. Financing activities in the first six months of 2025 primarily include dividends paid of $196.0 million, repayments of long-term debt of $60.5 million, and $19.9 million of payments related to tax withholdings for stock compensation coinciding with equity award vesting activity. Financing activities in the first six months of 2024 include $500.0 million of proceeds from issuance of the 2034 Notes, $194.6 million of dividends paid and $11.9 million of payments related to tax withholdings for stock compensation coinciding with equity award vesting activity.
Previous wording
The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. As such, management is required to make certain estimates, judgments and assumptions that it believes are reasonable based on the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods presented. The significant accounting policies which management believes are the most critical to aid in fully understanding and evaluating the Company's reported financial results include recoverability of goodwill and intangible assets and income taxes. These critical accounting policies are detailed in the Company's 2024 Form 10-K.
Current wording
Recoverability of Goodwill and Intangible Assets
Previous wording
As of March 30, 2025, the Company had fixed-rate debt of $3.4 billion. The Company may from time to time assess interest rate swaps related to its outstanding debt. The Company did not have any outstanding swaps as of March 30, 2025, March 31, 2024, or December 29, 2024.
Current wording
As of June 29, 2025, the Company had fixed-rate debt of $3.3 billion. The Company may from time to time assess interest rate swaps related to its outstanding debt. The Company did not have any outstanding swaps as of June 29, 2025, June 30, 2024, or December 29, 2024.
Showing the first 40 of 41 pairs. Open the source sections for the rest.
Rearranged current paragraphs (12)
Current report — wording carried from elsewhere
Interest expense -Interest expense for the second quarter of 2025 totaled $40.6 million compared to $43.0 million in the second quarter of 2024. The decrease in Interest expense primarily reflects lower outstanding borrowings existing as of the end of the second quarter of 2025 as compared to those outstanding as of the second quarter of 2024.
Current report — wording carried from elsewhere
The following table presents the consolidated results of operations for the six months ended June 29, 2025 and June 30, 2024:
Current report — wording carried from elsewhere
The following table presents net revenues by brand portfolio category:
Current report — wording carried from elsewhere
Program cost amortization -Program cost amortization decreased to $13.6 million, or 0.7% of net revenues, for the first six months of 2025 from $16.6 million, or 0.9% of net revenues, for the first six months of 2024. Program costs are capitalized as incurred and amortized primarily using the individual-film-forecast method which matches costs to the related recognized revenue and is based upon the current slate of entertainment projects.
Current report — wording carried from elsewhere
Royalties -Royalty expense for the first six months of 2025 increased to $141.5 million, or 7.6% of net revenues, compared to $106.2 million, or 6.1% of net revenues, for the first six months of 2024. Fluctuations in Royalty expense are generally related to the volume of content releases and deliveries and entertainment-driven products sold. The increase in Royalty expense for the first six months of 2025 was directly driven by an increase in sales from MAGIC: THE GATHERING, primarily due to strong demand for Final Fantasy, for which the Company is obligated to pay a royalty.
Current report — wording carried from elsewhere
Product development -Product development expense for the first six months of 2025 was $158.0 million, or 8.5% of net revenues, compared to $135.9 million, or 7.8% of net revenues, for the first six months of 2024. The increase in Product development expense during the first six months of 2025 was primarily due to higher incremental investment in the development of Grow Brands under the Company's "Playing to Win" strategy.
Current report — wording carried from elsewhere
Amortization of intangibles -Amortization of intangible assets remained flat at $34.2 million, or 1.8% of net revenues, for the first six months of 2025, as compared to $34.1 million, or 1.9% of net revenues, for the first six months of 2024. The amortization expense was driven by the straight-line amortization of the Company's remaining definite-lived intangible assets.
Current report — wording carried from elsewhere
Absent discrete items, the tax rates for the first six months of 2025 and 2024 were 22.6% and 22.7%, respectively. The decrease in the base rate to 22.6% for the first six months of 2025 relative to the first six months of 2024 is primarily due to the mix of jurisdictions where the Company earned its profits.
Current report — wording carried from elsewhere
The following table presents net external revenues and operating profit (loss) for the Company's reportable segments for the six months ended June 29, 2025 and June 30, 2024:
Current report — wording carried from elsewhere
Wizards of the Coast and Digital Gaming Segment
Current report — wording carried from elsewhere
The following table presents the Consumer Products segment net revenues by major geographic region for the six months ended June 29, 2025 and June 30, 2024:
Current report — wording carried from elsewhere
Company does not participate in any financial aspect of the agreements between the Company’s suppliers and the administering banks. The Company has not pledged any assets to the administering bank under the supplier financing program. The Company or the administering bank may terminate the agreement upon at least 30 days’ written notice.