Hasbro Posts 16 Percent Q2 Gaming Jump
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Hasbro (HAS -1. 03%), the company behind well-known toys and games MAGIC: THE GATHERING card games and MONOPOLY board games, released its second quarter 2025 earnings on July 23, 2025....
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July 23, 2025
03:43 PM
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Hasbro (HAS -1. 03%), the company behind well-known toys and games MAGIC: THE GATHERING card games and MONOPOLY board games, released its second quarter 2025 earnings on July 23, 2025
On the other hand, The standout news was strong outperformance in non-GAAP earnings per and GAAP revenue, driven by record sales in Wizards & Digital Gaming, particularly MAGIC: THE GATHERING, while traditional toys and Consumer ducts faced a 16% decline in revenue
Adjusted non-GAAP earnings per reached $1. 30, beating the $0. 78 analyst consensus (Non-GAAP) by 66
On the other hand, GAAP revenue was $980
Furthermore, 8 million, exceeding analyst estimates by $100. 4 million and down 1% from the prior year due to growth in gaming (this bears monitoring), given current economic conditions
Meanwhile, The quarter demonstrated Hasbro's continued focus on digital transformation and operational discipline, but also included a substantial $1. 0 billion non-cash goodwill impairment in the Consumer ducts segment, reflecting structural challenges in traditional toys, in light of current trends
Conversely, MetricQ2 2025Q2 2025 EstimateQ2 2024Y/Y ChangeEPS (Non-GAAP)$1, given current economic conditions. 6%Revenue$980
Nevertheless, 8 million$880 (which is quite significant)
However, 4 million$995. 3 million-1
Furthermore, 5%Adjusted Operating fit$247, given the current landscape. 1 million$248, amid market uncertainty
Meanwhile, 8 million(0, given the current landscape. 7%)Wizards & Digital Gaming Revenue$522, in today's market environment. 4 million$452 (an important development). 0 million15. 6%Consumer ducts Revenue$442. 4 million$524. 5 million(15
Moreover, 7%) Source: Analyst estimates for the quarter vided by FactSet
On the other hand, In contrast, Understanding Hasbro's and Key Focus AreasHasbro duces toys, games, and entertainment ducts that span iconic brands such as MAGIC: THE GATHERING collectible card games, DUNGEONS & DRAGONS roleplaying games, and MONOPOLY board games, in light of current trends
Nevertheless, Its is structured around three main reporting segments: Wizards & Digital Gaming, Consumer ducts, and Entertainment
The company's recent focus centers on leveraging its strongest intellectual perties, growing its digital and direct-to-consumer es, and pursuing operational excellence to manage costs
Furthermore, These strategies have become increasingly important as Hasbro shifts toward gaming and licensing as core fit drivers amid volatility in traditional toys, in light of current trends
Moreover, Franchises MAGIC: THE GATHERING and Monopoly Go, given current economic conditions
Digital games play a bigger role in driving performance, while innovation and cost management aim to tect fitability across segments, in light of current trends
The analysis reveals Quarter in Review: Performance and ChangesWizards & Digital Gaming continued to be Hasbro's standout growth engine
Segment revenue rose 16% from the prior year, supported by a 23% increase in MAGIC: THE GATHERING sales to $412 million
The recent Final Fantasy Universes Beyond set release was singled out as the largest in the card game’s history
Tabletop gaming revenue was up 32% to $406, in today's financial world. 3 million, offsetting a 20% decline in digital/licensed gaming, which was cycling past prior-year settlements and licensing gains, given current economic conditions
Furthermore, Monopoly Go, a digital board game app, contributed $44 million in revenue, reinforcing the growing impact of licensed digital perties
Wizards’ segment operating margin declined from 54. 3% due to higher royalty expenses
The Consumer ducts segment reported a 16% GAAP revenue drop to $442. 4 million, with adjusted operating fit close to break-even
Hasbro recognized a $1 (this bears monitoring). 02 billion non-cash goodwill impairment related to increased tariff exposure
The company pointed to BEYBLADE spinning battle tops, TRANSFORMERS action figures, and MONOPOLY games as brand bright spots, though underlying demand for toys remained soft
In contrast, Regionally, Consumer ducts revenue fell 23% in North America and 26% in Latin America (GAAP), while Europe and Asia Pacific saw modest increases
However, Hasbro’s Entertainment division remains a minor contributor ing past divestitures, with revenues down 15% in the quarter due to the nature and timing of deals
Segment revenue fell 15% to $16 million, with adjusted operating fit of $10 million compared to $18 million in the second quarter of 2024
Furthermore, Both film/TV content sales and Family Brands revenue declined in the first half of 2025 due to the timing of deals
Additionally, The quarter also gress on cost-saving grams, with total gross cost reductions since 2022 reaching apximately $600 million, considering recent developments
Furthermore, Hasbro reported $320 million in net savings since this gram was initiated in 2022 and remains on track with initiatives to mitigate supply chain and tariff risks
The quarter’s results benefited from these savings, helping keep adjusted operating fit stable year-over-year despite headwinds in traditional toys, in this volatile climate
Moreover, Hasbro continues to stress the importance of new licensing agreements, noting recent extensions with Disney for MARVEL and STAR WARS brands (quite telling)
On the other hand, Licensing and digital revenues are more resilient against tariffs, viding a buffer for company-wide results, considering recent developments
Looking Ahead: Outlook and Investor Watch PointsManagement raised its outlook for total revenue in FY2025, now expecting mid-single digit growth in constant currency, up from earlier guidance of “slight” full-year revenue growth
Additionally, The company jects an adjusted operating margin in the 22%–23% range for FY2025, and adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $1 (something worth watching), given current economic conditions. 17 billion to $1. 20 billion, considering recent developments
Hasbro’s guidance assumes continued tariff pressures and factors in potential toy category declines similar to those seen during major recessions such as the 2008–2009 period
Hasbro’s management highlighted risk factors for the remainder of the year, in today's market environment
What the data shows is se include continued retailer volatility, non-cash impairments in traditional toys reflecting deeper structural change, and pressure on segment margins within the high-growth Wizards unit due to rising royalty costs, in today's financial world
The company has not changed its plans for Consumer ducts for now, leaving this outlook unchanged amid uncertainty
In contrast, Supply chain diversification efforts are, but significant results are not expected to materialize until 2026
The quarterly dividend was kept steady at $0
Revenue and net income presented using U
Generally accepted accounting principles (GAAP) unless otherwise noted (which is quite significant)
However, The Author JesterAI is our friendly Foolish AI, in today's financial world
It's based on a variety of Large Language Models (LLMs) and prietary Motley Fool systems to generate summaries of news (this bears monitoring), in light of current trends
What the data shows is Motley Fool stands behind the work of our editorial team and JesterAI, and takes ultimate responsibility for the content of everything JesterAI duces, in light of current trends
JesterAI JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and prietary Motley Fool systems (fascinating analysis)
All published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article
JesterAI cannot own stocks and so it has no positions in any stocks mentioned, given the current landscape
The Motley Fool recommends Hasbro
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