HASBRO, INC.

(1)Basis of Presentation

In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position of Hasbro, Inc. and all consolidated subsidiaries ("Hasbro" or the "Company") as of September 27, 2026, September 28, 2025, and December 28, 2025, and the results of its operations and cash flows and shareholders' equity for the periods ended September 27, 2026 and September 28, 2025 in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and condensed notes thereto. Actual results could differ from those estimates.

The three months ended September 27, 2026 and September 28, 2025 were 13-week periods. The nine months ended September 27, 2026 and September 28, 2025 were 39-week periods.

The results of operations for the three and nine months ended September 27, 2026 are not necessarily indicative of results to be expected for the full year 2026, nor were those of the comparable 2025 periods representative of those actually experienced for the full year 2025.

These consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company filed with the SEC audited consolidated financial statements for the fiscal year ended December 28, 2025 in the Company's Annual Report on Form 10-K for the year ended December 28, 2025 ("2025 Form 10-K"), which includes all such information and disclosures and, accordingly, should be read in conjunction with the financial information included herein. Certain amounts have been reclassified to conform to current year presentation. Prior period amounts have been reclassified to present licensing revenue separately from net sales in the Consolidated Statements of Operations. The reclassification had no effect on total net revenues, operating profit (loss), net earnings (loss) or shareholders’ equity.

Significant Accounting Policies

The Company's significant accounting policies are summarized in Note 1, Summary of Significant Accounting Policies, to the consolidated financial statements included in the Company's 2025 Form 10-K. We believe that at September 27, 2026, there has been no material change to this information except as noted below.

Software Development Costs

Capitalized software development costs include both direct costs for internally developed titles and payments to third-party software developers under development agreements that have been incurred by the Company subsequent to establishing the technological feasibility of a software title. Software development costs are capitalized within Other assets in the Company’s accompanying Consolidated Balance Sheets.

We evaluate the future recoverability of capitalized software development costs on a quarterly basis. For titles that have been released to the general public, recoverability is primarily assessed based on the title's actual performance and expected future performance. For titles that are scheduled to be released in the future, recoverability is evaluated based on the expected performance of the specific titles to which the cost relates. When we determine that capitalized costs of the title are unlikely to be recovered by product sales or when we decide to abandon a project, an impairment or write-off of software development costs capitalized is charged in the period in which such determination is made.

Write-offs of unreleased titles are recorded within Selling, distribution and administration in the Company's accompanying Consolidated Statements of Operations. During the nine months ended September 27, 2026, the Company recorded a $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. The Company did not write-off any unreleased titles in the three and nine months ended September 28, 2025.

Tariffs

In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the United States were unauthorized. Subsequently, on March 4, 2026, the U.S. Court of International Trade ("CIT") ordered U.S. Customs and Border Protection ("CBP") to refund all previously collected IEEPA tariffs, including applicable interest. Pursuant to a court order from the CIT, the CBP developed and implemented a process to facilitate refunds through its Consolidated Administration and Processing of Entries ("CAPE") system, launching Phase 1 on April 20, 2026 and Phase 2 on June 29, 2026, with Phase 3 expected to launch during the fourth quarter.

Based on the nature, timing and liquidation status of the IEEPA tariffs previously collected from Hasbro by the CBP, Hasbro submitted refund claims totaling $44.2 million within CAPE during the three and nine months ended September 27, 2026, aligning with the launch of Phase 2 of CAPE within the third quarter. During the three and nine months ended September 27, 2026, Hasbro received $43.4 million of tariff refunds from the U.S. Department of Treasury associated with our claims under Phase 2, inclusive of $41.5 million of principal and $1.9 million of interest. The remainder of Phase 2 refunds outstanding, which reflects approximately $2.7 million of principal, is currently recorded as a receivable within Prepaid expenses and other current assets on the Consolidated Balance Sheets.

Based upon the U.S. Supreme Court's ruling, the related CIT proceedings, and the receipt of cash payment for substantially all of the Company's Phase 2 submissions, the Company has concluded that the recovery of the remaining previously incurred IEEPA tariffs, which are categorized in Phase 3, is probable. Accordingly, as of September 27, 2026, the Company has recorded a receivable of $10.3 million relating to the Phase 3 refunds within Prepaid expenses and other current assets on the Consolidated Balance Sheets. The estimate reflects the Company's judgment regarding the portion of previously recognized IEEPA tariffs expected to be recoverable through the refund process administered by CBP and it may be subject to change based on the ultimate resolution of refund claims. The ultimate amount of recoveries may differ from the Company's estimates, based on additional guidance from CBP, the resolution of specific entry-level claims or other administrative developments. To the extent there are changes in the amounts of refund claims that are considered to be probable of collection, such changes will be recognized in the period in which the information impacting our assessment becomes known to the Company.

In connection with the above, Hasbro recorded a total of $54.5 million of tariff recoveries as a reduction to Cost of sales within the Consolidated Statements of Operations during the three and nine months ended September 27, 2026. In addition, $1.9 million of associated interest was recorded to Interest income within the Consolidated Statements of Operations during the three and nine months ended September 27, 2026.

The Company expects to receive the remaining $13.0 million of Phase 2 and Phase 3 IEEPA tariff refunds that are currently recorded as a receivable within the next six months, in addition to an insignificant amount of associated interest. The ultimate amount and timing of these remaining recoveries remain subject to CBP's administrative processing and resolution of related CIT proceedings.

Recently Adopted Accounting Pronouncements

During the three and nine months ended September 27, 2026, there were no recently adopted accounting standards that had a material effect on the Company’s financial statements.

Accounting Standards Issued But Not Yet Adopted

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures. The new standard requires enhanced additional disclosures related to certain expense categories. The new standard is effective for fiscal years beginning after December 15, 2026. We are assessing the effect on our 2027 annual consolidated financial statement disclosures and in future interim periods thereafter. At this time, we anticipate adoption will result in additional disclosures within our consolidated financial statements; however adoption will not impact our consolidated balance sheets or statements of operations.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40). The standard removes all references to the previously existing software development project stages and requires entities to start capitalizing software costs when management has authorized and committed funding to a software project and it is probable that the project will be completed with its intended functionality. The new standard is effective for fiscal years beginning after December 15, 2027. Early adoption is permitted and can be applied prospectively, retrospectively, or utilizing a modified transition approach. We are currently assessing the impact of this ASU on our consolidated financial statements.

All other ASUs issued but not yet adopted were assessed and determined to be not applicable or are not expected to have a material impact on our consolidated financial statements or financial statement disclosures.

(2)Unauthorized Network Access

In late March 2026, the Company identified unauthorized access to its 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.

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. For the entirety of the third quarter, the Company was able to operate under pre-incident order processing, shipping, and invoicing practices.

The Company incurred incremental expenses of approximately $1.0 million and $11.8 million, respectively, during the three and nine months ended September 27, 2026 as a result of the unauthorized access, including for third-party IT recovery and forensic experts, professional services and other costs incurred to investigate and remediate the attack. The Company did not recognize any insurance proceeds during the three and nine months ended September 27, 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.

(3)Revenue Recognition

Revenue is recognized when control of the promised goods, functional intellectual property or production is transferred to the customers or licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The majority of the Company’s revenues are derived from sales of finished products to customers. In addition to revenues from sales of products, we separately record Licensing revenue, which represents royalties earned from the out-licensing of the Company’s trademarks, characters and other brand and intellectual property rights, including to digital gaming, merchandise and co-branding licensees and television station affiliates. Refer to Note 1, Summary of Significant Accounting Policies, of the Company's 2025 Form 10-K for the Company's revenue recognition accounting policy.

Contract Assets and Liabilities

In the ordinary course of business, the Company enters into arrangements that result in the recognition of contract assets and contract liabilities. The Company records the current portion of contract assets and contract liabilities in Prepaid expenses and other current assets and Accrued liabilities, respectively, and the long-term portion within Other assets and Other liabilities, respectively, in the Company's Consolidated Balance Sheets.

The opening and closing balances of contract assets and contract liabilities are as follows:

For the nine months ended September 27, 2026, the Company recognized revenue of $119.6 million that was included in the December 28, 2025 contract liability balance. For the nine months ended September 28, 2025, the Company recognized revenue of $193.2 million that was included in the December 29, 2024 contract liability balance.

Unsatisfied Performance Obligations

As of September 27, 2026, revenue for unsatisfied performance obligations expected to be recognized in the future is $921.3 million, primarily for intellectual property to be made available in the future under existing agreements with merchandise and co-branding licensees and television station affiliates. Of this amount, we expect to recognize approximately $67.1 million in the remainder of 2026, $209.3 million in 2027, $161.8 million in 2028, and $483.1 million thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less or (ii) licenses of intellectual property that are solely based on the sales of the licensee.

Accounts Receivable and Allowance for Credit Losses

The Company’s balance for accounts receivable on the Consolidated Balance Sheets as of September 27, 2026 and September 28, 2025 primarily represents billed amounts relating to contracts with customers. Unbilled amounts, typically relating to the minimum guarantees recognized in advance of contractual billing schedules, are recorded as contract assets within the Consolidated Balance Sheets. A summary of the related allowance for credit losses activity for accounts receivable and contract assets is as follows:

Disaggregation of Revenues

The Company disaggregates its revenues from contracts with customers by reportable segment: Wizards of the Coast and Digital Gaming, Consumer Products, and Entertainment. The Company further disaggregates revenues within its Wizards of the Coast and Digital Gaming segment by category: Tabletop Gaming and Digital and Licensed Gaming; within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; and within its Entertainment segment by category: Family Brands and Film and TV. Finally, the Company disaggregates its revenues into three brand categories: Grow Brands, Optimize Brands, and Reinvent Brands. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category:

The following table represents consolidated Consumer Products segment net revenues by major geographic region:

The following table represents consolidated Entertainment segment net revenues by category:

The following table represents consolidated net revenues by brand portfolio:

(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 have been reclassified into the brands' new brand category.

(4)Sale of Entertainment One Film and TV Business

On December 27, 2023, the Company completed the sale of its Entertainment One film and television business ("eOne Film and TV") to Lions Gate Entertainment Corp., Lions Gate Entertainment Inc. and Lions Gate International Motion Pictures S.à.r.l (collectively "Lionsgate"), pursuant to the terms of an Equity Purchase Agreement dated August 3, 2023, among Hasbro and Lionsgate for a purchase price of $375.0 million in cash, subject to certain purchase price adjustments plus the assumption by Lionsgate of production financing loans. The Equity Purchase Agreement also included a holdback amount that was retained by Lionsgate upon the execution of the sale but remained recoverable by Hasbro if certain terms were not satisfied by Lionsgate within 30 days of the first anniversary of the agreement.

During the nine months ended September 28, 2025, the Company was informed by Lionsgate of the satisfaction of the requirements under the agreement and the final holdback amount was settled, resulting in a $25.0 million Loss on disposal of business on the Consolidated Statements of Operations. During the nine months ended September 27, 2026, no further amounts were recorded to Loss on disposal of business.

(5)Earnings (Loss) Per Common Share

Net earnings (loss) per share data was computed as follows:

For both the three and nine months ended September 27, 2026,0.2 million of options and other share-based awards were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive. For the three and nine months ended September 28, 2025,0.5 million and 3.6 million of options and other share-based awards, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive. With respect to the nine months ended September 28, 2025,2.9 million awards would have been included in the calculation of diluted shares had the Company not reported a net loss. Assuming that these options and other share-based awards were included, under the treasury stock method, this would have resulted in an additional 1.3 million shares being included in the diluted earnings per share calculation for the nine months ended September 28, 2025.

(6)Other Comprehensive Earnings (Loss)

Components of Other comprehensive earnings (loss) are presented within the Consolidated Statements of Comprehensive Earnings (Loss), net of tax. Income tax effects are released from Accumulated other comprehensive loss ("AOCL") at the effective tax rate during the period in which the components are released.

Changes in the components of AOCL are as follows:

Gains (Losses) on Derivative Instruments

As of September 27, 2026, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $0.4 million in AOCL. These instruments hedge payments related to inventory purchased in the nine months ended September 27, 2026 or forecasted to be purchased through 2028, intercompany expenses expected to be paid or received during 2026 and 2027 and cash receipts for sales made at the end of the third quarter of 2026 or forecasted to be made through 2028. These amounts will be reclassified into the Consolidated Statements of Operations upon the sale of the related inventory or recognition of the related sales or expenses.

In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the 5.10% Notes due 2044. At the date of debt issuance, these contracts were terminated and the fair value on the date of settlement was deferred in AOCL and is being amortized to Interest expense over the life of the related Notes using the effective interest rate method. At September 27, 2026, deferred losses, net of tax, of $10.6 million related to these instruments remained in AOCL. For the three months ended September 27, 2026 and September 28, 2025, previously deferred losses, net of tax, of $0.1 million and $0.2 million, respectively, related to these instruments were reclassified from AOCL to net earnings. For the nine months ended September 27, 2026 and September 28, 2025, previously deferred losses, net of tax, of $2.2 million and $0.6 million, respectively, related to these instruments were reclassified from AOCL to net earnings.

Of the amounts included in AOCL at September 27, 2026, the Company expects net loss of approximately $0.2 million to be reclassified to the Consolidated Statements of Operations within the next twelve months. However, the amount ultimately realized in earnings is dependent on the fair value of the hedging instruments on the settlement dates.

Refer to Note 14, Derivative Financial Instruments, to the consolidated financial statements for additional discussion on reclassifications from AOCL to earnings.

(7)Goodwill

Changes in the carrying amount of goodwill, by operating segment, are as follows:

We assess goodwill and other intangible assets with indefinite lives for impairment each year, or more frequently if events or changes in circumstances indicate an asset may be impaired. For goodwill and indefinite-lived intangible assets, our policy is to assess for impairment as of the beginning of each fiscal fourth quarter. The Company may perform a qualitative assessment and bypass the quantitative impairment testing process, if it is not more likely than not that the carrying value of a reporting unit exceeds its fair value. During the three and nine months ended September 27, 2026, there were no events or changes in circumstances necessitating an interim impairment test.

Due to increased tariffs, including reciprocal tariffs, announced by the U.S. government in April 2025, the escalation of ongoing trade policy disputes between international governments, the financial performance of certain reporting units being lower than previously forecasted, and other macroeconomic headwinds, in April 2025, the Company noted downward revisions to operating income and cash flow forecasts for certain of its reporting units within the Consumer Products and Entertainment segments. As a result, during the nine months ended September 28, 2025, the Company performed an interim quantitative impairment test for the North America, Europe, Asia Pacific, and Latin America Consumer Products reporting units, as well as the Family Brands reporting unit within the Entertainment segment. Additionally, due to our ongoing transformation, we concluded that, as of the second quarter of 2025, the North America, Europe, Asia Pacific, and Latin America reporting units had similar economic characteristics and should be aggregated for purposes of testing goodwill for impairment. Our conclusion was based on a detailed analysis of the aggregation criteria set forth in FASB Accounting Standards Codification ("ASC") Topic 280, Segment Reporting, and in FASB ASC Topic 350, Intangibles - Goodwill and Other. These reporting units serve similar clients and have similar products, and as of the second quarter of 2025 had similar sourcing and distribution methods that along with our ongoing transformation has resulted in similar economic characteristics.

As a result of the quantitative tests performed prior to and following the aggregation, in April 2025, the Company determined that the carrying values of our regional Consumer Products reporting units exceeded their expected fair values and recorded pre-tax non-cash impairment charges of $1,021.9 million within the Consolidated Statements of Operations for the nine months ended September 28, 2025. The fair values of North America and Europe were determined considering a discounted cash flow model which was primarily based on management’s future revenue and cost estimates, which included the estimated impact of tariff policies in effect and the related macroeconomic environment, and a discount rate. The fair value of the Asia Pacific and Latin America reporting units were determined considering a discounted cash flow model weighted equally with the market approach which was primarily based on multiples of comparable public companies. No impairments were recorded related to the Family Brands reporting unit.

(8)Investments in Productions

Investments in productions are predominantly monetized on a title-by-title basis and are recorded within Other assets in the Company's Consolidated Balance Sheets to the extent they are considered recoverable against future revenues. These amounts are being amortized to program cost amortization using a model that reflects the consumption of the asset as it is released through various channels including broadcast licenses, theatrical release and home entertainment. Amounts capitalized are reviewed periodically on an individual title basis and any portion of the unamortized amount that appears not to be recoverable from future net revenues is expensed as part of program cost amortization during the period the loss becomes evident.

The Company's unamortized investments in productions consisted of the following:

The Company's program cost amortization consisted of the following:

(9)Additional Balance Sheet Information

Prepaid expenses and other current assets include contract assets, current of $111.0 million, $129.8 million, and $142.4 million as of September 27, 2026, September 28, 2025, and December 28, 2025, respectively.

Other assets include deferred tax assets of $265.1 million, $376.5 million, and $286.8 million as of September 27, 2026, September 28, 2025, and December 28, 2025, respectively, and unamortized software development costs of$406.0 million,$359.9 million, and$385.6 million as of September 27, 2026, September 28, 2025, and December 28, 2025, respectively.

Components of accrued liabilities were as follows:

(10)Long-Term Debt and Other Financing

The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings are as follows:

During the three and nine months ended September 27, 2026, the Company repurchased $29.1 million and $154.1 million, respectively, of its 2027, 2040, and 2044 Notes and recorded a loss on extinguishment of $0.1 million and a gain on extinguishment of $1.6 million, respectively, in Other expense (income), net in the Consolidated Statements of Operations. For the three and nine months ended September 28, 2025, the Company repurchased $3.1 million and $65.0 million, respectively, of its 2026 and 2027 Notes and recorded a gain on extinguishment of $0.1 million and $1.5 million, respectively, which were recorded in Other expense (income), net in the Consolidated Statements of Operations.

2031 Notes

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.

Other Financing Arrangements

On February 20, 2026, the Company entered into a Fourth Amended and Restated Revolving Credit Agreement (the "Amended Agreement") with Bank of America, N.A., as administrative agent, swing line lender, Letter of Credit issuer and lender, and certain other financial institutions, as Letter of Credit issuers and/or lenders. The Amended Agreement amends and restates the Borrower's Third Amended and Restated Revolving Credit Agreement dated as of September 5, 2023.

The Amended Agreement provides the Company with a senior unsecured revolving credit facility (the “Revolving Facility”) with commitments in an aggregate principal amount of $1.1 billion. The Amended Agreement also provides for a potential additional incremental commitment increase of up to $550.0 million. Additionally, the Amended Agreement extends the term of the Revolving Facility from September 5, 2028 to February 20, 2031. The Amended Agreement contains sub-facilities that permit the Borrower to use up to $75.0 million of the Revolving Facility for the issuance of letters of credit and up to $50.0 million for swing line loans.

The Amended Agreement contains affirmative and negative covenants typical of this type of facility, including: (a) restrictions on the Company’s and its domestic subsidiaries’ ability to allow liens on their assets, (b) restrictions on the incurrence of indebtedness, (c) restrictions on the Company’s and certain of its subsidiaries’ ability to engage in certain mergers, (d) the requirement that the Company maintain a Consolidated Interest Coverage Ratio of no less than 3.00:1.00 as of the end of any fiscal quarter and (e) the requirement that the Company maintain: a Consolidated Net Total Leverage Ratio of no more than (i)3.75:1.00 for each of the first, second and fourth fiscal quarters of each year and (ii)4.00:1.00 for the third fiscal quarter of each year. The Company hasno outstanding borrowings under the Amended Agreement as of September 27, 2026. In connection with the execution of the Amended Agreement, the Company capitalized $1.8 million of deferred financing costs.

The Company also has a supplier finance program which provides participating suppliers the option of receiving payment in advance of an invoice due date, to be paid by certain administering banks, on the basis of invoices that the Company has confirmed as valid and approved. The Company’s obligation is to make payment in the invoice amount negotiated with participating suppliers, to the administering banks on the invoice due date. The Company’s suppliers are not required to participate in the supplier finance program. The early payment transactions between the Company’s supplier and the administering bank are subject to an agreement between those parties, and the Company does not participate in any financial aspect of the agreements between the Company’s suppliers and the administering banks. The Company has not pledged any assets to the administering bank under the supplier financing program. The Company or the administering bank may terminate the agreement upon at least 30 days’ written notice. The amount of obligations confirmed under the program that remain unpaid by the Company were $118.8 million, $100.1 million, and $45.7 millionas of September 27, 2026, September 28, 2025, and December 28, 2025, respectively. These obligations are presented within Accounts payable in our Consolidated Balance Sheets. The activity related to this program is reflected within the operating activities section of the Consolidated Statements of Cash Flows.

(11)Income Taxes

The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions. In the normal course of business, the Company is regularly audited by U.S. federal, state and local, and international tax authorities in various tax jurisdictions.

The effective tax rate ("ETR") was 19.2% and 19.8% for the three and nine months ended September 27, 2026, and 23.4% and (39.8)% for the three and nine months ended September 28, 2025. The following items impacted the ETR during 2026 and 2025:

•During the three months ended September 27, 2026 the Company recorded a net discrete tax benefit of $16.8 million, primarily associated with the release of uncertain tax positions resulting from a settlement of an IRS audit. During the three months ended September 28, 2025 the Company recorded a net discrete tax benefit of $5.7 million, primarily associated with the second quarter of 2025 non-cash impairment of goodwill.

•During the nine months ended September 27, 2026 the Company recorded a net discrete tax benefit of $26.6 million, primarily associated with share-based compensation and the release of uncertain tax positions resulting from a settlement of an IRS audit. During the nine months ended September 28, 2025 the Company recorded a non-cash goodwill impairment of $1,021.9 million within the Consumer Products segment with a tax benefit of $5.4 million and an unfavorable adjustment to the Loss on disposal of the eOne Film and TV business of $25.0 million with no tax benefit. The Company also recorded a net discrete tax benefit of $6.5 million, primarily associated with the release of a valuation allowance.

(12)Fair Value of Financial Instruments

The Company measures certain financial instruments at fair value. The fair value hierarchy consists of three levels:

•Level 1 fair values are based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access;

•Level 2 fair values are those based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities;

•Level 3 fair values are based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

There have been no transfers between levels within the fair value hierarchy.

As of September 27, 2026, September 28, 2025 and December 28, 2025, the Company had the following assets and liabilities measured at fair value in its Consolidated Balance Sheets:

Marketable securities are classified as available-for-sale since the Company does not have the positive intent and ability to hold the marketable securities until the maturity date. At September 27, 2026, the Company held $576.4 million of available-for-sale securities, of which $576.2 million consisted of U.S. Treasury securities. These investments are recorded at fair value within Short-term investments in the Company's Consolidated Balance Sheets based on their contractual maturity dates, with an insignificant amount of unrealized gains and losses excluded from net income and deferred as a component of Other comprehensive earnings (loss), net of related tax effects, until realized. The accretion of discounts (amortization of premiums) is accounted for in the Company's Consolidated Statements of Operations within Interest income. At September 27, 2026, accrued interest receivable on available-for-sale securities totaled $8.7 million and was included within Accounts Receivable in the Consolidated Balance Sheets.

The Company's derivative financial instruments primarily consist of foreign currency forward and option contracts. The Company uses current forward rates of the respective foreign currencies to measure the fair value of these contracts. There were no changes in these valuation techniques during the nine months ended September 27, 2026.

Other Fair Value Measurements

The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At September 27, 2026, September 28, 2025, and December 28, 2025, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at September 27, 2026, September 28, 2025, and December 28, 2025 also include certain assets and liabilities measured at fair value, as described above. Refer to Note 10, Long-Term Debt and Other Financing, to the consolidated financial statements for the fair value of the Company's outstanding debt.

(13)Leases

During the first nine months of 2026, the Company entered into several significant new operating leases, primarily relating to office and warehousing facilities located within the United States, with initial lease terms ranging from approximately 10 to 12 years.

The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right-of-use assets, included in our Consolidated Balance Sheets as of September 27, 2026:

(1)Lease cash flow activity is displayed net within the Statements of Cash Flows, total gross Right of Use Assets and Lease Liabilities added during the nine months ended September 27, 2026 were $227.5 million

(2)Included in Accrued liabilities on the Consolidated Balance Sheets

(3)Included in Other liabilities on the Consolidated Balance Sheets

(4)Included in Property, plant and equipment on the Consolidated Balance Sheets

(14)Derivative Financial Instruments

The Company uses foreign currency forward and option contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. These over-the-counter contracts, which hedge future currency requirements related to purchases of inventory, product sales and other cross-border transactions not denominated in the functional currency of the business unit, are primarily denominated in United States, Canadian and Hong Kong dollars as well as Euros and British pound sterling.

All contracts are entered into with a number of counterparties, all of which are major financial institutions. The Company believes that a default by a single counterparty would not have a material adverse effect on the financial condition of the Company. The Company does not enter into derivative financial instruments for speculative purposes. Cash flow activity associated with the Company's derivative financial instruments is recorded within cash flows from operating activities on the Consolidated Statement of Cash Flows.

Cash Flow Hedges

All of the Company's designated foreign currency forward contracts are considered to be cash flow hedges. These instruments hedge a portion of the Company's currency requirements associated with anticipated inventory purchases, product sales and other cross-border transactions.

The notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:

Undesignated Hedges

The Company also enters into foreign currency forward contracts to minimize the impact of changes in the fair value of intercompany loans due to foreign currency changes. The Company does not use hedge accounting for these contracts as changes in the fair values of these contracts are substantially offset by changes in the fair value of the intercompany loans. As of September 27, 2026, September 28, 2025 and December 28, 2025, the total notional amounts of the Company's undesignated derivative financial instruments were $240.9 million, $242.7 million, and $191.5 million, respectively.

Fair Value Measurement

The Company has a master agreement with each of its counterparties that allows for the netting of outstanding forward contracts. The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the Consolidated Balance Sheets as follows:

The fair values of the Company's undesignated derivative financial instruments were recorded in the Consolidated Balance Sheets as follows:

Net realized (losses) gains on cash flow hedging activities have been reclassified from Other comprehensive earnings, net of tax to Net earnings (loss) as follows:

In addition, the Company recorded a net loss of $1.7 million and $5.0 million on its undesignated financial instruments for the three and nine months ended September 27, 2026, respectively, and a net gain of $4.2 million and $13.4 million for the three and nine months ended September 28, 2025, respectively, relating to the change in fair value of such derivative financial instruments, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the contracts relate. Such amounts are recorded within Other expense (income), net within the Consolidated Statements of Operations.

For additional information related to the Company's derivative financial instruments refer to Note 6, Other Comprehensive Earnings (Loss) and Note 12, Fair Value of Financial Instruments, to the consolidated financial statements.

(15)Restructuring Actions

Starting in 2022, the Company implemented its Operational Excellence program ("the Program"), an ongoing enterprise-wide initiative intended to improve our business through programs that include targeted cost-savings, supply chain transformation and certain other restructuring actions designed to drive growth and enhance shareholder value. The Company's organizational structure changes have resulted and will further result in workforce reductions as well as the reallocation of people and resources. The Company currently anticipates that these changes will be substantially complete over the next three months.

Charges related to the Program were recorded in Selling, distribution and administration expense within Corporate and other. Going forward, the Company may implement further cost-saving initiatives under the Program that could result in additional restructuring charges including severance and other employee charges.

The liability balance associated with the Program-related restructuring actions consisted of severance payments recorded within Accrued liabilities in the Consolidated Balance Sheets as follows:

Total restructuring charges incurred to date under the Program as of September 27, 2026 equals $193.9 million.

(16)Commitments and Contingencies

Contingencies – The Company is subject to claims related to product and other commercial matters. In determining costs to accrue related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. The Company accrues for matters when losses are both probable and estimable. Any amounts accrued for these matters are monitored on an ongoing basis and are updated based on new developments or new information as it becomes available for each matter.

Litigation and Other Claims – The Company from time to time may be subject to lawsuits and other claims related to product, commercial, employee, cybersecurity, securities, environmental and other matters in the normal course of business. In determining costs to accrue related to these items, the Company carefully analyzes cases and considers the likelihood of adverse judgments or outcomes, as well as the potential range of possible loss. The Company accrues for matters when losses are both probable and estimable. Any amounts accrued for these matters are monitored on an ongoing basis and are updated based on new developments or new information as it becomes available for each matter.

Environmental Liabilities – The Company monitors for any estimated environmental contingencies related to its current physical locations and former owned or leased facilities in which it is responsible for environmental matters. The Company has estimated a $30.0 million environmental liability related primarily to one previously owned manufacturing facility (environmental liability assumed as part of a historical acquisition), in which the Company is solely responsible for the mitigation and remediation activities.

Contractual obligations and commercial commitments, as detailed in the Company's 2025 Form 10-K, did not materially change outside of certain payments made in the normal course of business, except as disclosed above and in Note 10, Long-Term Debt and Other Financing and Note 13, Leases, to the consolidated financial statements.

(17)Segment Reporting

The Company's reportable segments are strategic business units that offer different products and services. They are managed separately because the business requires different technology and marketing strategies. The Company'sthree reportable segments are as follows:

•The Wizards of the Coast and Digital Gaming business engages in the promotion of the Company's brands through the development of trading card, role-playing and digital game experiences based on Hasbro and Wizards of the Coast games. Additionally, we license certain of our brands to other third-party digital game developers who transform Hasbro brand-based characters and other intellectual properties, into digital gaming experiences.

•The Consumer Products segment engages in the sourcing, marketing and sales of toy and game products around the world. The Consumer Products business also promotes the Company's brands through the out-licensing of our trademarks, characters and other brand and intellectual property rights to third parties, through the sale of branded consumer products such as toys and apparel. Additionally, through license agreements with third parties, we develop and sell products based on popular third-party brands.

•The Entertainment segment develops, produces, and monetizes Hasbro-branded entertainment content including film, television, children’s programming, digital content and live entertainment focused on Hasbro-owned properties.

Corporate and other is not an operating segment. Amounts included in Corporate and other primarily consist of corporate overhead and other costs that are not attributable to, and do not represent the results of, any operating segment or other business activity, including restructuring, severance and strategic transformation costs, as well as certain assets benefiting more than one segment. Corporate and other also includes certain intercompany revenue recorded to facilitate transactions between segments, which is fully offset by a corresponding elimination of intersegment revenue and therefore does not result in any net revenue or operating results attributable to Corporate and other. Because Corporate and other does not include the revenues or operating results of any operating segment that is not reportable, or of any other business activity, the Company does not present a separate “all other” category. Corporate and other is presented as a reconciling item in the reconciliation of the total of the reportable segments’ operating profit (loss) to consolidated earnings (loss) before income taxes.

Segment performance is measured at the operating profit level. Intersegment sales and transfers are reflected in management reports at amounts approximating cost. Certain shared costs, including global development and marketing expenses and corporate administration, are allocated to segments based upon expenses and foreign exchange rates fixed at the beginning of the year, with adjustments to actual expenses and foreign exchange rates included in Corporate and other. We do not present a measure of total assets for our reportable segments as this information is not used by the chief operating decision maker ("CODM") to allocate resources and assess performance.

Information by segment and a reconciliation to reported amounts for the three months ended September 27, 2026 are as follows:

(2)Managed expenses consist of product development and selling and administrative expense. Product development is included in Product Development in the Consolidated Statements of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statements of Operations.

(3)Corporate and other expense primarily consists of unallocated corporate expenses, including restructuring, severance and strategic transformation costs, as well as intersegment eliminations and cross-charges.

Information by segment and a reconciliation to reported amounts for the three months ended September 28, 2025 are as follows:

(1)Distribution expenses consist of shipping and warehousing expense and are included in Selling, distribution and administration in the Consolidated Statement of Operations.

(2)Managed expenses consist of product development and selling and administrative expense. Product development is included in Product Development in the Consolidated Statements of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statements of Operations.

(3)Corporate and other income, net primarily consists of unallocated corporate expenses, including restructuring, severance and strategic transformation costs, as well as intersegment eliminations and cross-charges.

Information by segment and a reconciliation to reported amounts for the nine months ended September 27, 2026 are as follows:

(2)Managed expenses consist of product development and selling and administrative expense. Product development is included in Product Development in the Consolidated Statements of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statements of Operations. Managed expenses for the Wizards of the Coast and Digital Gaming segment included a $56.4 million non-cash impairment charge related to the Company's decision to refocus the Digital Games portfolio. Refer to Note 1, Basis of Presentation, for further information.

(3)Corporate and other expense primarily consists of unallocated corporate expenses, including restructuring, severance and strategic transformation costs, as well as intersegment eliminations and cross-charges.

Information by segment and a reconciliation to reported amounts for the nine months ended September 28, 2025 are as follows:

(2)Managed expenses consist of product development, selling and administrative expense, impairment of goodwill, and loss on disposal of business. Product development is included in Product Development in the Consolidated Statements of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statements of Operations. Impairment of goodwill is included in the Impairment of goodwill in the Consolidated Statements of Operations. Loss on disposal of business is included in Loss on disposal of business in the Consolidated Statements of Operations. Managed expenses for the Consumer Products segment included a $1,021.9 million non-cash loss associated with the impairment of the reporting units within the Consumer Products segment. Managed expenses for the Entertainment segment included a $25.0 million non-cash loss associated with the sale of the eOne Film and TV business.

(3)Corporate and other expense primarily consists of unallocated corporate expenses, including restructuring, severance and strategic transformation costs, as well as intersegment eliminations and cross-charges.

Other supplemental information by segments is as follows:

(1)The amounts of depreciation disclosed by reportable segments are included within Cost of sales, Product development, and Selling, distribution and administration in the Consolidated Statements of Operations. Intangible asset amortization is included within Amortization of intangible assets in the Consolidated Statements of Operations.