HASBRO, INC.
For the period ended Sep 28, 2025. Filed Nov 5, 2025.
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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.
Sep 28, 2025 · Filed Nov 5, 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 2025-06-29; filed 2025-07-31.
0000046080-25-000128
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-09-28; filed 2025-11-05.
0000046080-25-000164
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 150 previous paragraphs and 150 current paragraphs.
67 unchanged; 69 reworded; 14 added; 8 removed; 6 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 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 (14)
Current report
In the third quarter of 2025, we announced we will relocate our Rhode Island operations to 400 Summer Street in the Seaport District of Boston, Massachusetts, which is expected to occur in the fourth quarter of 2026. This new location will be the primary headquarters for our toys, board games, and licensing businesses, and a majority of our corporate services. We believe this strategic move positions us to accelerate innovation, attract top talent, and drive long-term growth in line with our Playing to Win strategy which emphasizes play-driven engagement and collaboration with partners.
Current report
The Company had an increase in operating profit from $301.9 million for the three months ended September 29, 2024 compared to $341.1 million for the three months ended September 28, 2025. This increase in operating profit is primarily driven by the revenue growth discussed above, as well as benefits from cost savings initiatives that have occurred over the last 12 months.
Current report
See below for further discussion on the consolidated and segment results of operations for the three and nine months ended September 28, 2025 and September 29, 2024.
Current report
Fantasy Universes Beyond set released in June, as well as Edges of Eternitiesand Marvel's Spider-Man Universes Beyond sets, which released during Q3.
Current report
OPTIMIZE BRANDS: Net revenues in the Optimize Brands portfolio decreased $1.3 million, or 0.6%, in the third quarter of 2025, compared to the third quarter of 2024, as moderate declines for certain brands within the category were partially offset by growth of PEPPA PIG, stemming from the launch of Baby Evie during 2025.
Current report
Cost of sales– Cost of sales for the third quarter of 2025 was $414.3 million, or 29.9% of net revenues, compared to $378.9 million, or 29.6% of net revenues, for the third quarter of 2024. The increase in cost of sales was primarily the result of an increase in net revenues period over period, as well as approximately $20 million of incremental cost related to the impacts of tariffs, primarily as it relates to products imported into the United States to be sold domestically.
Current report
Royalties– Royalties for the third quarter of 2025 increased to $114.3 million, or 8.2% of net revenues, compared to $98.0 million, or 7.6% of net revenues, for the third quarter of 2024. The increase in Royalties during the third quarter of 2025 was directly driven by an increase in sales relating to MAGIC: THE GATHERING Universes Beyond sets, including Final Fantasyand Marvel's Spider-Man, for which the Company is obligated to pay a royalty.
Current report
The Consumer Products segment net revenues decreased 7% to $796.9 million for the third quarter of 2025 compared to $860.1 million for the third quarter of 2024, primarily driven by broader industry trends and timing of retail orders. The net revenue decrease primarily reflects lower net revenues driven by declining sales volumes for certain Reinvent Brands, such as NERF, and lapping of licensing revenue related to MY LITTLE PONY, which decreased $21.7 million, or 64.7%. Declines in the North America, Asia Pacific, and Latin American geographic regions were offset by an increase of 12% across Europe, which returned to growth in the quarter.
Current report
Consumer Products segment operating profit for the third quarter of 2025 was $80.1 million, or 10.1% of segment net revenues, compared to a segment operating profit of $121.0 million, or 14.1% of segment net revenues, for the third quarter of 2024. The decrease in operating profit in the third quarter of 2025 was driven by a decrease in net revenues, as well as increased costs associated with tariffs of approximately $20 million.
Current report
Corporate and Other operating profit was $2.0 million for the third quarter of 2025 compared to an operating loss of $10.1 million for the third quarter of 2024. The increase in operating profit in the third quarter of 2025 as compared to the third quarter of 2024 primarily reflects the impacts of cost saving initiatives at the Company.
Current report
Program cost amortization– Program cost amortization decreased to $21.0 million, or 0.6% of net revenues, for the first nine months of 2025 from $24.5 million, or 0.8% of net revenues, for the first nine months of 2024.
Current report
Advertising– Advertising expense for the first nine months of 2025 was $227.3 million, or 7.0% of net revenues, compared to $213.8 million, or 7.0% of net revenues, for the first nine months of 2024. The increase in Advertising expense during the first nine months of 2025 was primarily driven by additional spend necessary to support top line growth opportunities within the Grow Brands category, specifically within the Wizards of the Coast and Digital Gaming segment.
Current report
(1)% Change is not meaningful ("NM") for these segments.
Current report
During the three and nine months ended September 28, 2025, the Company entered into leases that have not yet commenced with estimated aggregated future lease payments of approximately $207.3 million. These leases are expected to commence between the fourth quarter of 2025 through 2026, with initial lease terms ranging from 10 years to 12 years.
Removed paragraphs (8)
Previous report
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 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.
Previous report
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 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.
Previous 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.
Previous 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.
Previous report
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 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.
Reworded paragraphs (69)
Previous wording
The following discussion and analysis should be read together with the accompanying unaudited consolidated financial statements and the notes thereto included in this Quarterly Report and the audited consolidated financial statements and the notes thereto in the 2024 Annual Report.
Current wording
The following discussion and analysis should be read together with the accompanying unaudited consolidated financial statements and the notes thereto included in this Quarterly Report and the audited consolidated financial statements and the notes thereto in the Company's 2024 Form 10-K.
Previous wording
Hasbro, Inc. (“Hasbro”) is a leading game, intellectual property ("IP"), and toy company whose mission is to create joy and community through the magic of play. With over 100 years of expertise, we deliver play experiences to kids, families, and fans around the world, through physical and digital games, video games, toys, licensed consumer products, location-based entertainment, film, TV and more.
Current wording
Hasbro, Inc. (“Hasbro”) is a leading games, intellectual property ("IP"), and toy company whose mission is to create joy and community through the magic of play. With over 100 years of expertise, we deliver groundbreaking play experiences to kids, families, and fans around the world, through physical and digital games, video games, toys, licensed consumer products, location-based entertainment, film, TV and more.
Previous wording
Through our franchise-first approach, we unlock value from both new and legacy IP, including MAGIC: THE GATHERING, DUNGEONS & DRAGONS, MONOPOLY, HASBRO GAMES, NERF, TRANSFORMERS, PLAY-DOH and PEPPA PIG, as well as premier partner brands. Powered by our portfolio of iconic brands and a diversified network of partners and subsidiary studios, we bring fans together wherever they are, from tabletop to screen.
Current wording
Through our franchise-first approach, we unlock value from both new and legacy IP, including MAGIC: THE GATHERING, DUNGEONS & DRAGONS, MONOPOLY, HASBRO GAMES, NERF, TRANSFORMERS, PLAY-DOH and PEPPA PIG, as well as premier partner brands. Powered by our portfolio of thousands of iconic marks and a diversified network of partners and subsidiary studios, we bring fans together wherever they are, from tabletop to screen.
Previous 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.
Current wording
Significant changes in trade policy announced by the U.S. government 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
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 wording
The Company has recognized approximately $20 million of tariff costs during the first nine months of 2025. 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.
Previous 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.
Current wording
The Company experienced an increase in revenue from $1,281.3 million for the three months ended September 29, 2024 compared to $1,387.5 million for the three months ended September 28, 2025, and an increase in revenue from $3,033.9 million for the nine months ended September 29, 2024 compared to $3,255.4 million for the nine months ended September 28, 2025. The 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
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 wording
The Company had an operating loss of $286.4 million for the nine months ended September 28, 2025, as compared to operating profit of $630.2 million for the nine months ended September 29, 2024, primarily driven by the $1,021.9 million non-cash goodwill impairment recorded in the Consumer Products segment in the second quarter of 2025, offset by strength within the Wizards of the Coast and Digital Gaming segment during 2025.
Previous 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.
Current wording
Net revenues– Net revenues for the third quarter of 2025 increased 8.3% to $1,387.5 million from $1,281.3 million for the third quarter of 2024 primarily driven by growth of $168.0 million, or 41.6%, in the Wizards of the Coast and Digital Gaming segment, as well as a $1.4 million, or 8%, increase in the Entertainment segment. This growth was offset by a $63.2 million, or 7.3%, decrease in the Consumer Products segment. See the Segment Results discussion below for further details.
Previous wording
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 wording
GROW BRANDS: Net revenues in the Grow Brands portfolio increased $167.0 million, or 19.9%, in the third quarter of 2025, compared to the third quarter of 2024. The net revenue increase primarily reflects higher net revenues from MAGIC: THE GATHERING, which grew by $163.2 million, or 55.1%, driven by strong performance of the Final
Previous wording
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 wording
REINVENT BRANDS: Net revenues in the Reinvent Brands portfolio decreased $59.5 million, or 27.2%, in the third quarter of 2025 compared to the third quarter of 2024. The net revenue decrease is primarily driven by lower product sales for NERF, as well as lapping of licensing revenues for MY LITTLE PONY, which decreased $21.7 million, or 64.7%.
Previous 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.
Current wording
Program cost amortization– Program cost amortization decreased slightly to $7.4 million, or 0.5% of net revenues, for the third quarter of 2025 from $7.9 million, or 0.6% of net revenues, for the third 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
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.
Current wording
Product development– Product development expense for the third quarter of 2025 was $97.6 million, or 7.0% of net revenues, compared to $76.3 million, or 6.0% of net revenues, for the third quarter of 2024. The increase in Product development expense during the third 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 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.
Current wording
Advertising– Advertising expense for the third quarter of 2025 was $108.3 million, or 7.8% of net revenues, compared to $101.9 million, or 8.0% of net revenues, for the third quarter of 2024. The Advertising expense increase during the third quarter of 2025 was primarily driven by additional spend necessary to support top line growth opportunities within the Grow Brands category, specifically within the Wizards of the Coast and Digital Gaming segment.
Previous 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.
Current wording
Amortization of intangible assets– Amortization of intangible assets remained flat at $17.2 million, or 1.2% of net revenues, for the third quarter of 2025, compared to $17.1 million, or 1.3% of net revenues, for the third 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 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.
Current wording
Selling, distribution and administration– Selling, distribution and administration expenses decreased to $287.3 million, or 20.7% of net revenues for the third quarter of 2025, from $299.3 million, or 23.4% of net revenues, for the third quarter of 2024. The decrease in Selling, distribution and administration expenses during the third quarter of 2025 is primarily the result of benefits from cost savings initiatives that have occurred over the last 12 months.
Previous 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.
Current wording
Operating profit– Operating profit for the third quarter of 2025 was $341.1 million, or 24.6% of net revenues, compared to operating profit of $301.9 million, or 23.6% of net revenues, for the third quarter of 2024 driven by the factors discussed above.
Previous wording
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 wording
Interest expense– Interest expense for the third quarter of 2025 totaled $40.8 million compared to $46.2 million in the third quarter of 2024. The decrease in Interest expense primarily reflects lower outstanding borrowings existing as of the end of the third quarter of 2025 as compared to those outstanding as of the third quarter of 2024.
Previous 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.
Current wording
Interest income– Interest income was $6.3 million for the third quarter of 2025, compared to $14.7 million in the third quarter of 2024. Lower Interest income in 2025 primarily reflects the Company's investments in treasury bills, which were substantially higher in 2024 as compared to 2025.
Previous 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.
Current wording
Other expense (income), net– Other expense (income), net resulted in expense of $1.4 million for the third quarter of 2025, compared to income of $19.9 million in the third quarter of 2024. The change in Other expense (income), net during 2025 was driven primarily by variations in the movement of foreign currencies in the third quarter of 2025 when compared to the third quarter of 2024.
Previous wording
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 wording
Income tax expense totaled $71.3 million on a pre-tax income of $305.2 million in the third quarter of 2025 compared to an income tax expense of $67.0 million on pre-tax income of $290.3 million in the third quarter of 2024. Both periods were impacted by discrete tax events.
Previous wording
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 wording
During the third quarter of 2025, the Company recorded a net discrete tax benefit of $5.7 million primarily associated with a benefit related to the impairment of goodwill, recorded in the second quarter of 2025, compared to a net discrete tax expense of $1.1 million in the third quarter of 2024 primarily associated with interest accruals on uncertain tax positions. Refer to Note 5, Goodwill, to the consolidated financial statements for further information.
Previous 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.
Current wording
Absent discrete items, the tax rates for the third quarter of 2025 and 2024 were 25.2% and 22.7%, respectively. The increase in the base rate to 25.2% for the third quarter of 2025 relative to the third quarter of 2024 is primarily due to the mix of jurisdictions where the Company earned its profits.
Previous wording
The following table presents net external revenues and operating profit (loss) for the Company's reportable segments:
Current wording
The following table presents net external revenues and operating profit for the Company's reportable segments:
Previous wording
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 wording
Wizards of the Coast and Digital Gaming segment net revenues increased 41.6% in the third quarter of 2025 to $572.0 million from $404.0 million in the third quarter of 2024. The net revenue increase in the Wizards of the Coast and Digital Gaming segment during the third quarter of 2025 was primarily attributable to increase in Tabletop Gaming revenue which increased 48.9% behind growth in MAGIC: THE GATHERING Universes Beyond sets, primarily due to strong demand for Final Fantasy, Edge of Eternities, and Marvel's Spider-Man, as well as other various backlist titles. This growth was accompanied by an increase in digital licensing revenue related to MONOPOLY GO!, which contributed $43.1 million of revenue during the quarter.
Previous wording
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 wording
Wizards of the Coast and Digital Gaming segment operating profit was $251.5 million, or 44.0% of segment net revenues for the third quarter of 2025, compared to operating profit of $181.2 million, or 44.9% of segment net revenues, for the third quarter of 2024. Operating profit increased during the third quarter of 2025 due to increased net revenues, as discussed above, while operating margin decreased slightly as a result of an increased royalty expense, driven by the success of MAGIC: THE GATHERING Universes Beyond sets such as Final Fantasyand Marvel's Spider-Man, for which the Company is obligated to pay a royalty.
Previous 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.
Current wording
Entertainment segment net revenues increased 8.1% to $18.6 million for the third quarter of 2025, compared to $17.2 million for the third quarter of 2024. The net revenue increase in the Entertainment segment during the third quarter of 2025 was driven primarily by the timing of entertainment streaming renewals and momentum relating to investments in the PEPPA PIG brand.
Previous 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.
Current wording
Entertainment segment operating profit was $7.5 million, or 40.3% of segment net revenues for the third quarter of 2025, compared to an operating profit of $9.8 million, or 57.0% of segment net revenues for the third quarter of 2024. The decrease in operating profit in Entertainment segment operating results during the third quarter of 2025 was driven by a decrease in royalty income allocated to the Entertainment segment, driven by the decreased sales volumes within the Consumer Products segment as discussed above.
Previous wording
The following table presents the consolidated results of operations for the six months ended June 29, 2025 and June 30, 2024:
Current wording
The following table presents the consolidated results of operations for the nine months ended September 28, 2025 and September 29, 2024:
Previous wording
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 wording
Net revenues– Net revenues for the first nine months of 2025 increased 7.3% to $3,255.4 million from $3,033.9 million for the first nine months of 2024, primarily driven by a $384.2 million, or 32.8%, increase in the Wizards of the Coast and Digital Gaming segment, partially offset by a $160.0 million, or 8.9%, decrease in the Consumer Products segment and a $2.7 million, or 4.2%, decrease in the Entertainment segment. See the Segment Results discussion below for further details.
Previous 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.
Current wording
GROW BRANDS: Net revenues in the Grow Brands portfolio increased $326.6 million, or 15.8%, in the first nine months of 2025, compared to the first nine months of 2024. The net revenue increase primarily reflects higher net revenues from MAGIC: THE GATHERING, which grew by $347.6 million, or 39.9%, driven by strong performance of Universes Beyond sets such as Final Fantasy, Edges of Eternitiesand Marvel's Spider-Man. This growth was accompanied by an increase in MONOPOLY product sales and digital game licensing revenues related to MONOPOLY GO!, offset by lower net revenues from PLAY-DOH and other Hasbro Gaming products.
Previous wording
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 wording
OPTIMIZE BRANDS: Net revenues in the Optimize Brands portfolio decreased $20.5 million, or 3.9%, in the first nine months of 2025, compared to the first nine 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 products.
Previous 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.
Current wording
REINVENT BRANDS: Net revenues in the Reinvent Brands portfolio decreased $84.6 million, or 19.3%, in the first nine months of 2025 compared to the first nine months of 2024. The net revenue decrease is primarily driven by lower product sales for NERF, as well as lapping of licensing revenues for MY LITTLE PONY of $12.6 million, or 24.6%, partially offset by an increase in net revenues from BEYBLADE products, following the Company's successful reintroduction of the brand.
Previous wording
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 wording
Cost of sales– Cost of sales for the first nine months of 2025 was $844.1 million, or 25.9% of net revenues, compared to $820.8 million, or 27.1% of net revenues, for the first nine months of 2024. The increase in Cost of sales was driven by increased sales volumes, as well as approximately $20 million of tariff costs, offset by the 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. Cost of sales as a percentage of net revenues decreased as a result of supply chain efficiencies and favorable product mix.
Previous wording
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 wording
Royalties– Royalties for the first nine months of 2025 increased to $255.8 million, or 7.9% of net revenues, compared to $204.2 million, or 6.7% of net revenues, for the first nine months of 2024. Fluctuations in Royalties are generally related to the volume of content releases and deliveries and entertainment-driven products sold. The increase in Royalties for the first nine months of 2025 was directly driven by an increase in sales relating to MAGIC: THE GATHERING Universes Beyond sets, such as Final Fantasyand Marvel's Spider-Man, for which the Company is obligated to pay a royalty.
Previous wording
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 wording
Product development– Product development expense for the first nine months of 2025 was $255.6 million, or 7.9% of net revenues, compared to $212.2 million, or 7.0% of net revenues, for the first nine months of 2024. The increase in Product development expense during the first nine months 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
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 wording
Amortization of intangibles– Amortization of intangible assets remained flat at $51.4 million, or 1.6% of net revenues, for the first nine months of 2025, as compared to $51.2 million, or 1.7% of net revenues, for the first nine months of 2024. The amortization expense was driven by the straight-line amortization of the Company's remaining definite-lived intangible assets.
Previous wording
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 wording
Impairment of goodwill– During the first nine 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 nine months of 2024. See further detail in Note 5, Goodwill, to the consolidated financial statements for further information.
Previous 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.
Current wording
Loss on disposal of business – Loss on disposal of business for the first nine months of 2025 was $25.0 million, or 0.8% of net revenues, as compared to $24.4 million, or 0.8% of net revenues, for the first nine 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
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 wording
Selling, distribution and administration– Selling, distribution and administration expenses decreased to $839.7 million, or 25.8% of net revenues for the first nine months of 2025, from $852.6 million, or 28.1% of net revenues, for the first nine months of 2024. The decrease in Selling, distribution and administration expenses during the first nine months of 2025 was primarily due to cost savings initiatives and 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.
Previous wording
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 wording
Operating (Loss) Profit– Operating loss for the first nine months of 2025 was $286.4 million, or 8.8% of net revenues, compared to an operating profit of $630.2 million, or 20.8% of net revenues, for the first nine months of 2024 driven by the factors discussed above.
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Previous report — wording carried elsewhere
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 report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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.
Previous report — wording carried elsewhere
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 report — wording carried 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.
Previous report — wording carried 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.