HASBRO, INC.
For the period ended Jun 28, 2026. Filed Jul 30, 2026.
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 28, 2026 · Filed Jul 30, 2026
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 2026-03-29; filed 2026-05-13.
0000046080-26-000026
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-06-28; filed 2026-07-30.
0000046080-26-000050
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 101 previous paragraphs and 148 current paragraphs.
52 unchanged; 42 reworded; 38 added; 7 removed; 0 previous and 16 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 (38)
Current report
•The release of Marvel Super Heroes, along with all past and future Marvel sets, within Magic: The Gathering Arena, allowing players to jump into the Marvel Universe through Hasbro's online adaption of the iconic Magic: The Gathering card game.
Current report
•The launch of Sixth Wall Studio, a new AI studio dedicated to bringing iconic characters into the AI era through new channels, such as behavioral licensing.
Current report
The impacts of these system disruptions included order processing, shipping, and invoicing delays, resulting in a negative impact on net sales and operating profit during the second quarter, particularly within the Consumer Products segment. As of June 28, 2026, the Company has since returned to pre-incident order processing, shipping, and invoicing practices.
Current report
The Company also incurred incremental expenses of approximately $10.8 million during the three and six months ended June 28, 2026 as a result of the unauthorized network access, including for third-party IT recovery and forensic experts, professional services and other costs incurred to investigate and remediate the attack. The Company expects to incur a less significant amount of additional costs related to the incident in future periods. The Company has not recognized any insurance proceeds during the three months ended June 28, 2026 related to the unauthorized network access. The timing of recognizing insurance recoveries, if any, may differ from the timing of recognizing the associated expenses.
Current report
The Company's revenue increased from $1,867.9 million for the six months ended June 29, 2025 to $2,139.8 million for the six months ended June 28, 2026. The increase in revenue is driven primarily by growth in our Wizards of the Coast and Digital Gaming segment, specifically within tabletop gaming.
Current report
The Company recorded an operating profit of $252.5 million and $522.8 million for the three and six months ended June 28, 2026, respectively, as compared to an operating loss of $798.2 million and $627.5 million for the three and six months ended June 29, 2025, respectively. The change in operating profit was driven by the improved revenue growth discussed above, as well as a one-time $1,021.9 million non-cash goodwill impairment recorded in the Consumer Products segment in the second quarter of 2025. No such impairment occurred during the three and six months ended June 28, 2026.
Current report
REINVENT BRANDS: Net revenues in the Reinvent Brands portfolio increased $2.7 million, or 3.4%, in the second quarter of 2026 compared to the second quarter of 2025. The net revenue increase is primarily driven by higher product sales for Beybladeand other vault brands, partially offset by lower sales in Nerf and Furby.
Current report
Royalties– Royalties for the second quarter of 2026 increased to $89.9 million, or 7.9% of net revenues, compared to $84.5 million, or 8.6% of net revenues, for the second quarter of 2025. The increase in Royalties during the second quarter of 2026 was directly driven by an increase in sales relating to Magic: The Gathering Universes Beyond sets, such as Marvel Super Heroes, as well as increased toy and game sales on licensed brands such as Marvel and Star Wars.
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 was no such impairment charge recorded during the second quarter of 2026.
Current report
Interest expense– Interest expense was $46.5 million for the second quarter of 2026, compared to $40.6 million in the second quarter of 2025. Higher interest expense in 2026 is primarily the result of an increase in outstanding debt driven by issuance of the 2031 Notes, partially offset by debt repurchases of the Company's outstanding 2027, 2040, and 2044 Notes.
Current report
During the second quarter of 2026, the Company recorded a net discrete tax benefit of $1.0 million primarily associated with the release of uncertain tax positions resulting from the expiration of certain international statutes of limitations. 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. Exclusive of the impairment of goodwill, the Company recorded a net discrete tax benefit of $5.9 million, primarily associated with the release of a valuation allowance.
Current report
(1)% Change is not meaningful ("NM") for these segments
Current report
Consumer Products segment net revenues increased to $463.0 million for the second quarter of 2026 compared to $442.4 million for the second quarter of 2025, primarily driven by the timing of retail orders in North America and an enhanced slate of entertainment content releases. The net revenue increase primarily reflects higher net revenues for toys and games, particularly for certain Grow Brands such as Marvel and Star Wars, which were positively impacted by an uptick in demand in advance of major theatrical releases throughout 2026 with no comparable releases in the prior year. The increase in toy and game revenues was partially offset by a decrease in licensing revenues, primarily attributable to the lapping of licensing revenue related to My Little Pony, which decreased $9.7 million.
Current report
Entertainment segment operating profit was $5.6 million, or 43.8% of segment net revenues for the second quarter of 2026, compared to an operating profit of $6.1 million, or 38.1% of segment net revenues for the second quarter of 2025. The decrease in operating profit in the Entertainment segment operating results during the second quarter of 2026 was primarily driven by the decrease in revenue discussed above.
Current report
RESULTS OF OPERATIONS
Current report
Net revenues– Net revenues for the first six months of 2026 increased 14.6% to $2,139.8 million from $1,867.9 million for the first six months of 2025, primarily driven by a $261.3 million, or 26.5%, increase in the Wizards of the Coast and Digital Gaming segment as well as a $20.2 million, or 2.4%, increase in the Consumer Products segment, offset by a $9.6 million, or 22.5%, decrease in the Entertainment segment. See the Segment Results discussion below for further details.
Current report
GROW BRANDS: Net revenues in the Grow Brands portfolio increased $291.0 million, or 20.8%, in the first six months of 2026, compared to the first six months of 2025. The net revenue increase primarily reflects higher net revenues from Magic: The Gathering, which grew by $256.6 million, or 33.8%, driven by strong performance of Lorwyn Eclipsedand Secrets of Strixhaven, as well as Universes Beyond sets such as Teenage Mutant Ninja Turtlesand Marvel Super Heroes, which released within the first six months of 2026. Growth in this category was also impacted by increased demand in toys and games associated with the licensed Marveland Star Wars brands, driven by a strong content slate in 2026 with no comparable releases in the prior year.
Current report
OPERATING COSTS AND EXPENSES
Current report
Product development– Product development expense for the first six months of 2026 was $171.6 million, or 8.0% of net revenues, compared to $158.0 million, or 8.5% of net revenues, for the first six months of 2025. The increase in Product development expense during the first six months of 2026 was primarily due to the Company's higher incremental investment in the developments of Grow Brands under the Company's Playing to Win strategy.
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 was no such impairment charge recorded during the first six months of 2026.
Current report
Selling, distribution and administration– Selling, distribution and administration expenses increased to $597.8 million, or 27.9% of net revenues for the first six months of 2026, from $552.4 million, or 29.6% of net revenues, for the first six months of 2025. The increase in Selling, distribution and administration expenses during the first six months of 2026 was primarily the result of a one-time $56.4 million non-cash impairment charge related to the Company's decision to refocus the Digital Games portfolio, which included the cancellation of certain titles scheduled for release in 2028 and beyond, as well as $10.8 million of incremental operating costs incurred as a result of the unauthorized network access, partially offset by benefits from cost savings initiatives that have occurred over the last 12 months.
Current report
Operating profit (loss)– Operating profit for the first six months of 2026 was $522.8 million, or 24.4% of net revenues, compared to an operating loss of $627.5 million, or 33.6% of net revenues, for the first six months of 2025 driven by the factors discussed above.
Current report
NON-OPERATING EXPENSE
Current report
Interest expense– Interest expense for the first six months of 2026 totaled $88.3 million compared to $82.2 million in the first six months of 2025. Higher interest expense in 2026 is primarily the result of an increase in outstanding debt driven by issuance of the 2031 Notes, partially offset by debt repurchases of the Company's outstanding 2027, 2040, and 2044 Notes.
Current report
Other expense (income), net– Other expense (income), net resulted in expense of $4.7 million for the first six months of 2026, compared to income of $17.3 million in the first six months of 2025. The change in Other expense (income), net during 2026 was driven primarily by variations in the movement of foreign currencies in the first six months of 2026 when compared to the first six months of 2025.
Current report
INCOME TAXES
Current report
SEGMENT RESULTS
Current report
(1)% Change is not meaningful ("NM") for these segments
Current report
Wizards of the Coast and Digital Gaming segment net revenues increased 26.5% in the first six months of 2026 to $1,245.8 million from $984.5 million in the first six months of 2025. Tabletop Gaming revenue increased 31.8% behind growth in Magic: The Gathering, primarily due to strong demand for Lorwyn Eclipsedand Secrets of Strixhaven, as well as Universes Beyond sets such as Teenage Mutant Ninja Turtlesand Marvel Super Heroes. This growth was accompanied by an increase in digital licensing revenue related to Monopoly Go!, which contributed $85.7 million of revenue during the year.
Current report
Wizards of the Coast and Digital Gaming segment operating profit was $567.7 million, or 45.6% of segment net revenues for the first six months of 2026, compared to operating profit of $471.8 million, or 47.9% of segment net revenues, for the first six months of 2025. The operating profit increase during the first six months of 2026 was primarily driven by increased net revenues, as discussed above. Operating margin decreased during the first six months of 2026, primarily driven by a one-time $56.4 million non-cash impairment charge related to the Company's decision to refocus the Digital Games portfolio, which included the cancellation of certain titles scheduled for release in 2028 and beyond.
Current report
Consumer Products Segment
Current report
The Consumer Products segment net revenues increased 2.4% to $860.9 million for the first six months of 2026 compared to $840.7 million for the first six months of 2025 primarily driven by broader industry trends and timing of retail orders. The net revenue increase primarily reflects higher toy and game revenues, particularly for certain Grow Brands such as Marvel and Star Wars, which were positively impacted by a rise in demand in advance of major theatrical releases throughout 2026 with no comparable releases in the prior year. The increase in toy and game revenues was partially offset by a decrease in licensing revenues, primarily attributable to the lapping of licensing revenue related to My Little Pony, which decreased $10.8 million.
Current report
Consumer Products segment operating loss for the first six months of 2026 was $62.0 million, or 7.2% of segment net revenues, compared to a segment operating loss of $1,073.5 million, or 127.7% of segment net revenues, for the first six months of 2025. The change in operating loss in the first six months of 2026 was primarily driven by the non-cash goodwill impairment charge of $1,021.9 million recorded during 2025, offset by tariff costs in 2026 of approximately $14.5 million.
Current report
Entertainment Segment
Current report
Entertainment segment net revenues decreased 22.5% to $33.1 million for the first six months of 2026, compared to $42.7 million for the first six months of 2025. The net revenue decrease in the Entertainment segment during the first six months of 2025 was driven primarily by timing of entertainment streaming renewals and other content deals.
Current report
Corporate and Other
Current report
Corporate and Other operating loss was $5.8 million for the first six months of 2026 compared to an operating loss of $20.9 million for the first six months of 2025. The operating loss in the first six months of 2026 was lower when compared to the operating loss in the first six months of 2025 as a result of benefits from cost saving initiatives that have occurred over the last 12 months, partially offset by incremental costs incurred related to the unauthorized network access described above.
Current report
Company has invested the proceeds from the 2031 Notes into Short-term investments that is expected to be utilized to repay the 2026 Notes, while simultaneously using any excess funds to repurchase longer-dated outstanding debt.
Removed paragraphs (7)
Previous report
•The launch of LUMEE, a joint venture with Animaj, that will unite our digital advertising inventory and insights to power advertising sales and brand partnerships within the Entertainment segment.
Previous report
This unauthorized access did not impact our financial results for the first quarter. Due to the Company’s implementation of containment measures, certain systems were proactively taken offline and were subsequently or are currently being brought online sequentially. We are continuing to work with cybersecurity and forensic experts to identify and review any files potentially impacted. We plan to take additional actions as appropriate based on our review and findings, including providing any notifications deemed appropriate.
Previous report
We have continued to execute business continuity plans to enable us to take orders, ship product and conduct other key operations. Importantly, MAGIC: THE GATHERING shipments and its release cadence continued as planned in the second quarter, including the April 2026 release of Secrets of Strixhaven. For the Consumer Products segment, we have been shipping product, but we do anticipate some impact to second quarter revenues and operating profit due to expected order processing, shipping and invoicing delays. Given continued strength in point-of-sale, the expectation is that the majority of any delayed shipping in the second quarter will be made up in the back-half of 2026.
Previous report
During the second quarter of 2026, we began incurring costs related to the unauthorized network access, including legal and remediation costs. We plan to seek reimbursement of certain costs, expenses and losses related thereto by submitting claims to our cybersecurity insurers. While the receipt, timing and amount of any such reimbursements are not known at this time, we are currently in the process of documenting our claims.
Previous report
The Company also had an increase in operating profit from $170.7 million for the three months ended March 30, 2025 to $270.3 million for the three months ended March 29, 2026. 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.
Previous report
Interest expense– Interest expense remained flat for the first quarter of 2026 compared to first quarter of 2025, totaling $41.8 million and $41.6 million, respectively.
Previous report
The Consumer Products segment net revenues decreased slightly to $397.9 million for the first quarter of 2026 compared to $398.3 million for the first quarter of 2025, primarily driven by broader industry trends and timing of retail orders. The net revenue decrease primarily reflects lower net revenues driven by decreased sales volumes for certain Grow Brands such as HASBRO GAMING and Marvel, partially offset by increases in Star Wars, which was driven by increased consumer demand stemming from upcoming theatrical releases. The net revenue decrease was also attributable to decreased sales volume for certain Optimize Brands such as PLAY-DOH and TRANSFORMERS.
Reworded paragraphs (42)
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 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, toys, licensed consumer products, location-based entertainment, film, TV and more.
Previous wording
In fiscal year 2025, we launched our refreshed strategy "Playing to Win" to refocus the Company on inspiring a lifetime of play across more categories, more partners, and more ways to engage. Through play fueled brand engagement and partner scaled co-investment, including video games, artificial intelligence ("AI"), enabled entertainment, and licensing, we plan to expand our consumer reach as a games, IP, and toy company.
Current wording
In fiscal year 2025, we launched our refreshed strategy "Playing to Win" to refocus the Company on inspiring a lifetime of play across more categories, more partners, and more ways to engage. Through play fueled brand engagement and partner scaled co-investment, we plan to expand our consumer reach as a games, IP, and toy company.
Previous wording
In the first quarter of 2026, we made exciting new steps on executing the Playing To Win strategy, including:
Current wording
In the first half of 2026, we've made exciting new steps on executing the Playing to Win strategy, including:
Previous 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 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. During the first three months of 2026, the Company recognized approximately $8.3 million of tariff costs within Cost of sales.
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 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. During the first three and six months of 2026, the Company recognized approximately $9.4 million and $17.7 million of tariff costs within Cost of sales, respectively.
Previous wording
On February 20, 2026, the U.S. Supreme Court issued a ruling against the International Emergency Economic Powers Act ("IEEPA") tariffs that we have been paying to the U.S. government since the enactment on April 2, 2025. This could impact our results in 2026 and we are continuing to evaluate the accounting impacts including our ability to apply for and obtain refunds on tariffs previously paid.
Current wording
On February 20, 2026, the U.S. Supreme Court issued a ruling against the International Emergency Economic Powers Act ("IEEPA") tariffs that we and other companies paid to the U.S. government since the enactment on April 2, 2025. In the third quarter of 2026, we made our first application to the U.S. Customs and Border Protection ("CBP") agency seeking a refund for a majority of the IEEPA tariffs we paid, and we plan to submit additional applications later this year when we are permitted. The ultimate timing and amounts received is uncertain and subject to processing by the CBP. These amounts could impact our results in 2026.
Previous wording
In late March 2026, we identified unauthorized access to our network. Upon discovery, we promptly activated our security incident response protocols, implemented containment measures, including proactively taking certain systems offline, and launched an investigation with the assistance of third-party cybersecurity professionals. Based on analysis with the assistance of outside cybersecurity experts and information to date, we believe the unauthorized access has been contained and we are making progress in fully restoring our systems and operations.
Current wording
In late March 2026, the Company identified unauthorized access to our network. Upon discovery, the Company promptly activated its security incident response protocols, implemented containment measures, including proactively taking certain systems offline, and launched an investigation with the assistance of third-party cybersecurity professionals. Simultaneously, the Company implemented its business continuity plans, including manual ordering and processing procedures at a reduced rate of operations in order to continue servicing its customers.
Previous wording
The Company experienced an increase in revenue from $887.1 million for the three months ended March 30, 2025 to $1,000.2 million for the three months ended March 29, 2026. 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.
Current wording
The Company's revenue increased from $980.8 million for the three months ended June 29, 2025 to $1,139.6 million for the three months ended June 28, 2026. The increase in revenue is driven primarily by growth in our Wizards of the Coast and Digital Gaming segment, specifically within tabletop gaming driven by Magic: The Gathering.
Previous wording
See below for further discussion on the consolidated and segment results of operations for the three months ended March 29, 2026 and March 30, 2025.
Current wording
See below for further discussion on the consolidated and segment results of operations for the three and six months ended June 28, 2026 and June 29, 2025.
Previous wording
Net revenues– Net revenues for the first quarter of 2026 increased 12.7% to $1,000.2 million from $887.1 million for the first quarter of 2025 driven by growth of $119.9 million, or 25.9%, in the Wizards of the Coast and Digital Gaming segment. This growth was partially offset by a $6.4 million, or 24.0%, decrease in the Entertainment segment as well as a $0.4 million, or 0.1%, decrease in the Consumer Products segment. See the Segment Results discussion below for further details.
Current wording
Net revenues– Net revenues for the second quarter of 2026 increased 16.2% to $1,139.6 million from $980.8 million for the second quarter of 2025 primarily driven by growth of $141.4 million, or 27.1%, in the Wizards of the Coast and Digital Gaming segment and $20.6 million, or 4.7%, in the Consumer Products segment. This growth was partially offset by a $3.2 million, or 20%, 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 $126.7 million, or 19.2%, in the first quarter of 2026, compared to the first quarter of 2025. The net revenue increase primarily reflects higher net revenues from MAGIC: THE GATHERING, which grew by $123.3 million, or 35.6%, driven by strong performance of the Lorwyn Eclipsed and the Teenage Mutant Ninja Turtles Universes Beyond set released in the first quarter of 2026.
Current wording
GROW BRANDS: Net revenues in the Grow Brands portfolio increased $164.3 million, or 22.2%, in the second quarter of 2026, compared to the second quarter of 2025. The net revenue increase primarily reflects higher net revenues from Magic: The Gathering, which grew by $133.3 million, or 32.3%, driven by strong performance of Secrets of Strixhaven, as well as the Universes Beyond Marvel Super Heroesset released during the quarter. Growth in this category was also impacted by increased demand in toys and games associated with the licensed Marveland Star Wars brands, driven by a strong content slate in 2026 with no comparable releases in the prior year.
Previous wording
OPTIMIZE BRANDS: Net revenues in the Optimize Brands portfolio decreased $3.8 million, or 2.9%, in the first quarter of 2026, compared to the first quarter of 2025, driven by lower net revenues from TRANSFORMERS and PLAY-DOH. The declines were partially offset with an increase in net revenue from GI JOE.
Current wording
OPTIMIZE BRANDS: Net revenues in the Optimize Brands portfolio decreased $8.2 million, or 5.1%, in the second quarter of 2026, compared to the second quarter of 2025, driven by lower net revenues from Play-Doh and Duel Masters. The declines were partially offset with an increase in net revenue from GI Joe.
Previous wording
Cost of sales– Cost of sales for the first quarter of 2026 was $236.1 million, or 23.6% of net revenues, compared to $204.5 million, or 23.1% of net revenues, for the first quarter of 2025. The increase in cost of sales was primarily the result of an increase in net revenues period over period, shift in product mix, as well as approximately $8.3 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 wording
Cost of sales– Cost of sales for the second quarter of 2026 was $272.4 million, or 23.9% of net revenues, compared to $225.3 million, or 23.0% of net revenues, for the second quarter of 2025. The increase in cost of sales was primarily the result of an increase in net revenues period over period, shift in product mix, as well as approximately $9.4 million of cost related to the impacts of tariffs, primarily as it relates to products imported into the United States to be sold domestically.
Previous wording
Program cost amortization– Program cost amortization decreased to $4.0 million, or 0.4% of net revenues, for the first quarter of 2026 from $7.4 million, or 0.8% of net revenues, for the first quarter of 2025. 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 to $3.1 million, or 0.3% of net revenues, for the second quarter of 2026 from $6.2 million, or 0.6% of net revenues, for the second quarter of 2025. 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 first quarter of 2026 was $78.0 million, or 7.8% of net revenues, compared to $80.5 million, or 9.1% of net revenues, for the first quarter of 2025. The decrease in Product development expense during the first quarter of 2026 was primarily due to the Company's cost saving initiatives over the last 12 months, partially offset with 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 second quarter of 2026 was $93.6 million, or 8.2% of net revenues, compared to $77.5 million, or 7.9% of net revenues, for the second quarter of 2025. The increase in Product development expense during the second quarter of 2026 was primarily due to the 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 2026 was $60.4 million, or 6.0% of net revenues, compared to $55.4 million, or 6.2% of net revenues, for the first quarter of 2025. The Advertising expense increase during the first quarter of 2026 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 wording
Advertising– Advertising expense for the second quarter of 2026 was $74.8 million, or 6.6% of net revenues, compared to $63.6 million, or 6.5% of net revenues, for the second quarter of 2025. The Advertising expense increase during the second quarter of 2026 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 decreased to $14.6 million, or 1.5% of net revenues, for the first quarter of 2026, compared to $17.0 million, or 1.9% of net revenues, for the first quarter of 2025. The amortization expense was driven by the straight-line amortization of the Company's definite-lived intangible assets.
Current wording
Amortization of intangible assets– Amortization of intangible assets decreased to $14.6 million, or 1.3% of net revenues, for the second quarter of 2026, compared to $17.2 million, or 1.8% of net revenues, for the second quarter of 2025. The amortization expense was driven by the straight-line amortization of the Company's definite-lived intangible assets.
Previous wording
Selling, distribution and administration– Selling, distribution and administration expenses decreased to $259.1 million, or 25.9% of net revenues for the first quarter of 2026, from $269.6 million, or 30.4% of net revenues, for the first quarter of 2025. The decrease in Selling, distribution and administration expenses during the first quarter of 2026 is primarily the result of benefits from cost savings initiatives that have occurred over the last 12 months.
Current wording
Selling, distribution and administration– Selling, distribution and administration expenses increased to $338.7 million, or 29.7% of net revenues for the second quarter of 2026, from $282.8 million, or 28.8% of net revenues, for the second quarter of 2025. The increase in Selling, distribution and administration expenses during the second quarter of 2026 is primarily the result of a one-time $56.4 million non-cash impairment charge related to the Company's decision to refocus the Digital Games portfolio, which included the cancellation of certain titles scheduled for release in 2028 and beyond, as well as $10.8 million of incremental costs incurred as a result of the unauthorized network access, partially offset by benefits from cost savings initiatives that have occurred over the last 12 months.
Previous wording
Operating profit– Operating profit for the first quarter of 2026 was $270.3 million, or 27.0% of net revenues, compared to operating profit of $170.7 million, or 19.2% of net revenues, for the first quarter of 2025, driven by the factors discussed above.
Current wording
Operating profit (loss)– Operating profit for the second quarter of 2026 was $252.5 million, or 22.2% of net revenues, compared to operating loss of $798.2 million, or 81.4% of net revenues, for the second quarter of 2025 driven by the factors discussed above.
Previous wording
Interest income– Interest income was $10.1 million for the first quarter of 2026, compared to $8.9 million in the first quarter of 2025. Higher Interest income in 2026 primarily reflects the Company's cash balance and investments in treasury securities, which were substantially higher in 2026 as compared to 2025.
Current wording
Interest income– Interest income was $12.9 million for the second quarter of 2026, compared to $5.4 million in the second quarter of 2025. Higher Interest income in 2026 primarily reflects the Company's cash balance and investments in treasury securities, which were substantially higher in 2026 as compared to 2025.
Previous wording
Other (income) expense, net– Other (income) expense, net resulted in income of $5.5 million for the first quarter of 2026, compared to expense of $1.4 million in the first quarter of 2025. The change in Other (income) expense, net during 2026 was driven primarily by variations in the movement of foreign currencies in the first quarter of 2026 when compared to the first quarter of 2025.
Current wording
Other expense (income), net– Other expense (income), net resulted in expense of $10.2 million for the second quarter of 2026, compared to income of $18.7 million in the second quarter of 2025. The change in Other expense (income), net during 2026 was driven primarily by variations in the movement of foreign currencies in the second quarter of 2026 when compared to the second quarter of 2025.
Previous wording
Income tax expense totaled $44.6 million on a pre-tax income of $244.1 million in the first quarter of 2026 compared to an income tax expense of $37.1 million on pre-tax income of $136.6 million in the first quarter of 2025. Both periods were impacted by discrete tax events.
Current wording
Income tax expense totaled $47.4 million on a pre-tax income of $208.7 million in the second quarter of 2026 compared to an income tax expense of $40.0 million on pre-tax loss of $814.7 million in the second quarter of 2025. Both periods were impacted by discrete tax events.
Previous wording
Absent discrete items, the tax rates for the first quarter of 2026 and 2025 were 21.9% and 23.1%, respectively. The decrease in the base rate to 21.9% for the first quarter of 2026 relative to the first quarter of 2025 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 2026 and 2025 were 23.2% and 22.1%, respectively. The increase in the base rate for the second quarter of 2026 relative to the second quarter of 2025 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 for the Company's reportable segments:
Current wording
The following table presents net external revenues and operating profit for the Company's reportable segments for the three months ended June 28, 2026 and June 29, 2025:
Previous wording
Wizards of the Coast and Digital Gaming segment net revenues increased 25.9% in the first quarter of 2026 to $582.0 million from $462.1 million in the first quarter of 2025. The net revenue increase in the Wizards of the Coast and Digital Gaming segment during the first quarter of 2026 was primarily attributable to increase in Tabletop Gaming revenue which increased 34.0% behind growth in MAGIC: THE GATHERING Universes Beyond sets, primarily due to strong demand for Lorwyn Eclipsed, Teenage Mutant Ninja Turtles, as well as other various backlist titles. This growth was accompanied by an increase in digital licensing revenue related to MONOPOLY GO!, which contributed $41.4 million of revenue during the quarter.
Current wording
Wizards of the Coast and Digital Gaming segment net revenues increased 27.1% in the second quarter of 2026 to $663.8 million from $522.4 million in the second quarter of 2025. The net revenue increase in the Wizards of the Coast and Digital Gaming segment during the second quarter of 2026 was primarily attributable to an increase in Tabletop Gaming revenue which grew 30.0% behind demand in Magic: The Gathering, driven by the release of the Secrets of Strixhavenand Universes Beyond Marvel Super Heroes sets. This growth was accompanied by an increase in digital licensing revenue related to Monopoly Go!, which contributed $44.2 million of revenue during the quarter.
Previous wording
Wizards of the Coast and Digital Gaming segment operating profit was $297.7 million, or 51.2% of segment net revenues for the first quarter of 2026, compared to operating profit of $230.0 million, or 49.8% of segment net revenues, for the first quarter of 2025. Operating profit increased during the first quarter of 2026 due to increased net revenues, as discussed above. Operating margin also increased during the first quarter of 2026, primarily driven by increased net revenues and product mix in 2026 as compared to 2025.
Current wording
Wizards of the Coast and Digital Gaming segment operating profit was $270.0 million, or 40.7% of segment net revenues for the second quarter of 2026, compared to operating profit of $241.9 million, or 46.3% of segment net revenues, for the second quarter of 2025. Operating profit increased during the second quarter of 2026 due to increased net revenues, as discussed above. Operating margin decreased during the second quarter of 2026, primarily driven by a one-time $56.4 million non-cash impairment charge related to the Company's decision to refocus the Digital Games portfolio, which included the cancellation of certain titles scheduled for release in 2028 and beyond.
Previous wording
Consumer Products segment operating loss for the first quarter of 2026 was $47.5 million, or 11.9% of segment net revenues, compared to a segment operating loss of $43.9 million, or 11.0% of segment net revenues, for the first quarter of 2025. The increase in operating loss in the first quarter of 2026 was driven primarily by increased costs associated with tariffs of approximately $8.3 million.
Current wording
Consumer Products segment operating loss for the second quarter of 2026 was $14.5 million, or 3.1% of segment net revenues, compared to a segment operating loss of $1,029.5 million, or 232.7% of segment net revenues, for the second quarter of 2025. The change in operating loss in the second quarter of 2026 was driven primarily by the non-cash goodwill impairment charge of $1,021.9 million recorded during the second quarter of 2025, offset by tariff costs of approximately $6.2 million.
Previous wording
Entertainment segment net revenues decreased 24.0% to $20.3 million for the first quarter of 2026, compared to $26.7 million for the first quarter of 2025. The net revenue decrease in the Entertainment segment during the first quarter of 2026 was driven primarily by the timing of entertainment streaming renewals, partially offset with continued momentum relating to investments in the PEPPA PIG brand.
Current wording
Entertainment segment net revenues decreased 20.0% to $12.8 million for the second quarter of 2026, compared to $16.0 million for the second quarter of 2025. The net revenue decrease in the Entertainment segment during the second quarter of 2026 was driven primarily by the timing of entertainment streaming renewals and other content deals.
Previous wording
Corporate and Other operating profit was $2.8 million for the first quarter of 2026 compared to an operating loss of $4.2 million for the first quarter of 2025. The increase in operating profit in the first quarter of 2026 as compared to the first quarter of 2025 primarily reflects the impacts of cost saving initiatives at the Company.
Current wording
Corporate and Other operating loss was $8.6 million for the second quarter of 2026 compared to an operating loss of $16.7 million for the second quarter of 2025. The change in operating loss in the second quarter of 2026 as compared to the second quarter of 2025 primarily reflects the impacts of cost saving initiatives at the Company over the last 12 months, partially offset by incremental costs incurred related to the unauthorized network access described above.
Previous wording
REINVENT BRANDS: Net revenues in the Reinvent Brands portfolio decreased $9.8 million, or 10.3%, in the first quarter of 2026 compared to the first quarter of 2025. The net revenue decrease is primarily driven by lower product sales for vault brands, partially offset by higher sales in BEY BLADE and NANOMALS.
Current wording
REINVENT BRANDS: Net revenues in the Reinvent Brands portfolio decreased $7.0 million, or 4.0%, in the first six months of 2026 compared to the first six months of 2025. The net revenue decrease is primarily driven by lower product sales for Baby Alive, Furby, and other vault brands, partially offset by higher sales in Beyblade and Nanomals.
Previous wording
Royalties– Royalties for the first quarter of 2026 increased to $77.7 million, or 7.8% of net revenues, compared to $57.0 million, or 6.4% of net revenues, for the first quarter of 2025. The increase in Royalties during the first quarter of 2026 was directly driven by an increase in sales relating to MAGIC: THE GATHERING Universes Beyond sets, including Final Fantasy, Avatar: The Last Airbender, and Teenage Mutant Ninja Turtles, for which the Company is obligated to pay a royalty.
Current wording
Royalties– Royalties for the first six months of 2026 increased to $167.6 million, or 7.8% of net revenues, compared to $141.5 million, or 7.6% of net revenues, for the first six months of 2025. The increase in Royalties for the first six months of 2026 was directly driven by an increase in sales relating to Magic: The Gathering Universes Beyond sets, such as Teenage Mutant Ninja Turtlesand Marvel Super Heroes, as well as increased toy and game sales on licensed brands such as Marvel and Star Wars.
Previous wording
Loss on disposal of business– There was no Loss on disposal of business for the first quarter of 2026, compared to $25.0 million, or 2.8% of net revenues, for the first quarter of 2025. The Loss on disposal of business for 2025 represents the loss recognized associated with the divestiture of the Company's non-core film and TV business (the "eOne Film and TV business") within the Entertainment segment. Refer to Note 3, Sale of Entertainment One Film and TV Business, in our condensed notes to consolidated financial statements for additional information on the sale of the eOne Film and TV business.
Current wording
Loss on disposal of business – During the first six months of 2025, the Company recorded a $25.0 million loss on disposal of business associated with the divestiture of the Company's non-core film and TV business (the "eOne Film and TV business") within the Entertainment segment. No such charges were recorded during the first six months of 2026.
Previous wording
During the first quarter of 2026, the Company recorded a net discrete tax benefit of $8.8 million primarily associated with share-based compensation. During the first quarter of 2025, the Company recorded an unfavorable adjustment to the Loss on Sale of the Film and TV reporting unit of $25.0 million, which generated no tax benefit, and recognized a net discrete tax benefit of $0.3 million primarily associated with share-based compensation.
Current wording
During the first six months of 2026, the Company recorded a net discrete tax benefit of $9.8 million primarily associated with share-based compensation. 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 and an unfavorable adjustment to the Loss on disposal of the eOne Film and TV business of $25.0 million. Neither adjustment had a corresponding tax benefit. The Company also recorded a net discrete tax benefit of $6.2 million, primarily associated with the release of a valuation allowance.
Previous wording
Entertainment segment operating profit was $17.3 million, or 85.2% of segment net revenues for the first quarter of 2026, compared to an operating loss of $11.2 million, or 41.9% of segment net revenues for the first quarter of 2025. The increase in operating profit in the Entertainment segment operating results during the first quarter of 2026 was driven by the non-recurring $25.0 million Loss on disposal of business that was recorded in 2025.
Current wording
Entertainment segment operating profit was $22.9 million, or 69.2% of segment net revenues, for the first six months of 2026, compared to an operating loss of $4.9 million, or 11.5% of segment net revenues, for the first six months of 2025. The increase in operating profit in the Entertainment segment during the first six months of 2026 was driven by the non-recurring $25.0 million Loss on disposal of business that was recorded in 2025.
Previous wording
The impact of tariffs recognized by the Company in Cost of sales was approximately $8.3 million during the first three months of 2026. Significant changes in trade policy announced by the U.S. government 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.
Current wording
The impact of tariffs recognized by the Company in Cost of sales was approximately $17.7 million during the first six months of 2026. Significant changes in trade policy announced by the U.S. government 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. As of June 28, 2026, no application related to refunds of amounts paid to date had been submitted to the CBP. In the third quarter of 2026, we made our first application to the CBP seeking a refund for a majority of the IEEPA tariffs we paid, and we plan to submit additional applications later this year when we are permitted. The ultimate timing and amounts received is uncertain and subject to processing by the CBP. These amounts could impact our results in 2026.
Previous wording
As of March 29, 2026, the Company's cash and cash equivalents totaled $857.1 million and the Company's Short-term investments totaled $498.2 million. The majority of the Company’s cash and cash equivalents held outside of the United States as of March 29, 2026 are denominated in the U.S. dollar.
Current wording
As of June 28, 2026, the Company's cash and cash equivalents totaled $880.5 million and the Company's Short-term investments totaled $497.7 million. The majority of the Company’s cash and cash equivalents held outside of the United States as of June 28, 2026 are denominated in the U.S. dollar.
Previous wording
On February 20, 2026, the Company entered into a Fourth Amended and Restated Revolving Credit Agreement which amended and restated the third amended and restated revolving credit agreement to extend the maturity date through February 20, 2031 and reduce the aggregate principal amount to $1.1 billion. The revolving credit facility also provides for a potential additional incremental commitment increase of up to $550.0 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 29, 2026. The Company had no borrowings outstanding under its revolving credit facility as of March 29, 2026. However, letters of credit outstanding under this facility as of March 29, 2026 were approximately $3.3 million. Amounts available and unused under the revolving credit facility at March 29, 2026 were approximately $1.1 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 March 29, 2026. Of the amount utilized under, or supported by, the uncommitted lines, the full $8.4 million represented letters of credit.
Current wording
On February 20, 2026, the Company entered into a Fourth Amended and Restated Revolving Credit Agreement which amended and restated the third amended and restated revolving credit agreement to extend the maturity date through February 20, 2031 and reduce the aggregate principal amount to $1.1 billion. The revolving credit facility also provides for a potential additional incremental commitment increase of up to $550.0 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 28, 2026. The Company had no borrowings outstanding under its revolving credit facility as of June 28, 2026. However, letters of credit outstanding under this facility as of June 28, 2026 were approximately $3.3 million. Amounts available and unused under the revolving credit facility at June 28, 2026 were approximately $1.1 billion, inclusive of borrowings under the Company’s commercial paper program. The Company also has other uncommitted lines from various banks, of which approximately $7.4 million was utilized as of June 28, 2026. Of the amount utilized under, or supported by, the uncommitted lines, the full $7.4 million represented letters of credit.
Previous wording
In March 2026, the Company issued an aggregate of $400.0 million in senior unsecured debt securities that bear a fixed interest rate of 4.65% due 2031 (the "2031 Notes"). In connection with the issuance of the 2031 Notes, the 2031 Notes were issued with an original issuance discount of $0.6 million and the Company capitalized $3.7 million of debt issuance costs. The original issuance discount and debt issuance costs will be amortized over the term of the 2031 Notes. It is anticipated that proceeds from the 2031 Notes, along with existing cash available, will be utilized to repay the 2026 Notes. As of March 29, 2026, the Company had invested the proceeds from the 2031 Notes in Short-term investments.
Current wording
In March 2026, the Company issued an aggregate of $400.0 million in senior unsecured debt securities that bear a fixed interest rate of 4.65% due 2031 (the "2031 Notes"). The 2031 Notes were issued with an original issuance discount of $0.6 million and the Company capitalized $3.7 million of debt issuance costs. The original issuance discount and debt issuance costs will be amortized over the term of the 2031 Notes. As of June 28, 2026, the
Previous wording
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 2026, the Company has repurchased $69.8 million of outstanding debt.
Current wording
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 2026, the Company has repurchased $125.0 million of outstanding debt.
Previous wording
The amount of obligations confirmed under the supplier finance program that remain unpaid by the Company were $48.1 million, $51.2 million, and $45.7 millionas of March 29, 2026, March 30, 2025 and December 28, 2025, 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 $56.5 million, $67.8 million, and $45.7 millionas of June 28, 2026, June 29, 2025 and December 28, 2025, 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 2026 was $337.7 million compared to $138.1 million in the first three months of 2025. The $199.6 million increase in net cash provided by Operating activities after adjusting for non-cash items, was primarily attributable to changes in net working capital, specifically the collection of Accounts receivable, which was a direct result of sales growth in 2025.
Current wording
Net cash provided by Operating activities in the first six months of 2026 was $604.4 million compared to $209.4 million in the first six months of 2025. The $395.0 million increase in net cash provided by Operating activities after adjusting for non-cash items, was primarily attributable to improved operating results, as well as changes in net working capital, specifically the collection of Accounts receivable, which was a direct result of sales growth in 2025, as well as a non-recurring $57.4 million repatriation tax payment that occurred in 2025
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (16)
Current report — wording carried from elsewhere
The following table presents the consolidated results of operations for the six months ended June 28, 2026 and June 29, 2025:
Current report — wording carried from elsewhere
The following table presents net revenues by brand portfolio category:
Current report — wording carried from elsewhere
(1)During the first quarter of 2026, the classification of brands within these categories was reviewed and certain brands were reclassified based on changes in growth, profitability or other characteristics. As such, the respective historical revenues associated within these brands has been reclassified into the brands' new brand category.
Current report — wording carried from elsewhere
OPTIMIZE BRANDS: Net revenues in the Optimize Brands portfolio decreased $12.1 million, or 4.2%, in the first six months of 2026, compared to the first six months of 2025. The net revenue decrease is primarily driven by lower net revenues from Transformers, Play-Doh, and Duel Masters. The declines were partially offset with an increase in net revenue from GI Joe.
Current report — wording carried from elsewhere
Cost of sales– Cost of sales for the first six months of 2026 was $508.5 million, or 23.8% of net revenues, compared to $429.8 million, or 23.0% of net revenues, for the first six months of 2025. The increase in Cost of sales was primarily the result of an increase in net revenues period over period, shift in product mix, as well as approximately $17.7 million of cost related to the impacts of tariffs, primarily as it relates to products imported into the United States to be sold domestically.
Current report — wording carried from elsewhere
Program cost amortization– Program cost amortization decreased to $7.1 million, or 0.3% of net revenues, for the first six months of 2026 from $13.6 million, or 0.7% of net revenues, for the first six months of 2025. 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
Advertising– Advertising expense for the first six months of 2026 was $135.2 million, or 6.3% of net revenues, compared to $119.0 million, or 6.4% of net revenues, for the first six months of 2025. The Advertising expense increase during the first six months of 2026 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 — wording carried from elsewhere
Amortization of intangibles– Amortization of intangible assets decreased to $29.2 million, or 1.4% of net revenues, for the first six months of 2026, as compared to $34.2 million, or 1.8% of net revenues, for the first six months of 2025. The amortization expense was driven by the straight-line amortization of the Company's definite-lived intangible assets.
Current report — wording carried from elsewhere
Interest income– Interest income was $23.0 million for the first six months of 2026, compared to $14.3 million in the first six months of 2025. Higher Interest income in 2026 primarily reflects the Company's cash balance and investments in treasury securities, which were substantially higher in 2026 as compared to 2025.
Current report — wording carried from elsewhere
Income tax expense totaled $92.0 million on a pre-tax income of $452.8 million in the first six months of 2026 compared to an income tax expense of $77.1 million on pre-tax loss of $678.1 million in the first six months of 2025. Both periods were impacted by discrete tax events.
Current report — wording carried from elsewhere
Absent discrete items, the tax rates for the first six months of 2026 and 2025 were 22.5% and 22.6%, respectively. The decrease in the base rate for the first six months of 2026 relative to the first six months of 2025 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 28, 2026 and June 29, 2025:
Current report — wording carried from elsewhere
Wizards of the Coast and Digital Gaming Segment
Current report — wording carried from elsewhere
The following table presents Wizards of the Coast and Digital Gaming segment net revenues by category:
Current report — wording carried from elsewhere
The following table presents the Consumer Products segment net revenues by major geographic region:
Current report — wording carried from elsewhere
The following table presents Entertainment segment net revenues by category: