Hasbro Q4 2025 Hasbro Inc Earnings Call | AllMind AI Earnings | AllMind AI
Q4 2025 Hasbro Inc Earnings Call
Speaker #1: If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Today's conference is being recorded. If you have any objections, you may disconnect at this time.
Speaker #1: At this time, I'd like to turn the call over to Fred Whitman, Vice President HASBRO Investor Relations. Please go
Speaker #1: ahead. Thank you and good morning,
Speaker #2: everyone. Joining me today are Chris Cocks, HASBRO's Chief Executive Officer, and Gina Getter, HASBRO's Chief Financial Officer, and Chief Operating Officer. We will begin today's call with Chris and Gina providing commentary on the company's performance before taking your questions.
Speaker #2: Our earnings release and the presentation slides for today's call are posted on our investor website. The press release and presentation include information regarding non-gap adjustments and non-gap financial measures.
Speaker #2: Our call today will discuss certain adjusted measures which exclude these non-gap adjustments. A reconciliation of gap to non-gap measures is included in the press release and presentation.
Speaker #2: Please note that whenever we discuss earnings per share or EPS, we're referring to earnings per diluted share. Before we begin, I would like to remind you that during this call and the question-and-answer session that follows, members of HASBRO management may make forward-looking statements concerning management's expectations, goals, objectives, and similar matters.
Speaker #2: There are many factors that could cause actual results or events to differ materially from the anticipated results or other expectations expressed in these forward-looking statements.
Speaker #2: These factors include those set forth in our annual report on Form 10-K, our most recent 10-Q, and today's press release and then our other public disclosures.
Speaker #2: We undertake no obligation to update any forward-looking statements made today to reflect events or circumstances occurring after the date of this call. I'd like to turn the call over to Chris Cocks.
Speaker #2: Chris? Thanks, Fred.
Speaker #3: And good morning. Last year, we introduced playing to win. Our strategic roadmap to guide HASBRO from turnaround into a new era of growth and profitability.
Speaker #3: At its core, our two pillars: play and partnership. Those pillars define HASBRO. Our brands have been delighting fans since 1860, when Milton Bradley introduced his first board game.
Speaker #3: Partnership has been equally foundational. We have worked with premier partners for more than 70 years, beginning with the Walt Disney Company in 1954. Today, we work with over 1,000 partners across more than 5,000 collaborations.
Speaker #3: Play and partnership anchor everything we do. They power our mission to bring joy and community to fans of all ages through the magic of play.
Speaker #3: And our KPI for that mission is simple: delight. So how many kids, families, and fans did we delight over the past year? When we announced playing to win, we used objective measures like YouTube views, Sarcana point of sale, box office receipts, and sensor tower data to estimate our annual reach.
Speaker #3: Our initial estimate was 585 million people. It turns out that was conservative. Since then, we have continued to refine our understanding of brand reach.
Speaker #3: In late 2025, we conducted a large-scale survey across eight major markets, reaching tens of thousands of consumers, and combined those results with third-party data to better understand the reach of our brands.
Speaker #3: The result was clear: HASBRO now reaches more than 1 billion people every year. From Transformers movies to families visiting Peppa Pig theme parks to Magic Play-Doh hobby shops around the world, HASBRO positively impacted nearly one in eight consumers globally.
Speaker #3: I'm incredibly proud of that. It puts into perspective why we do what we do and why we're pushing so hard to position this company for its next century.
Speaker #3: Our brands and partnerships create joy for an enormous audience through the simple, powerful magic of play. That delight is not abstract. It is showing up directly in our results.
Speaker #3: Inspiring a lifetime of play is what animates our teams, and in 2025, they translated that passion into outstanding performance. In the fourth quarter, HASBRO grew revenues by more than 30%.
Speaker #3: Adjusted operating profit grew nearly 180%. Our consumer products business returned to growth, up over 7%, with Monopoly, Peppa Pig, and Marvel all growing. Wizards of the Coast capped off a remarkable year with 86% sales growth in the quarter.
Speaker #3: Driven by the combined strength of magic and digital. For the full year, HASBRO grew revenue 14%. Adjusted operating profit margin reached a record level above 24%.
Speaker #3: Adjusted operating profit exceeded 1.1 billion dollars. Also a record. That momentum is being reinforced by partnerships across the company. In toys, we added K-pop Demon Hunters, the global phenomenon and Netflix's most popular film, as a co-master toy licensee.
Speaker #3: That partnership is already underway with a Monopoly deal crossover and many more exciting new role-play interactive plush and games coming over the next few months.
Speaker #3: This morning, we also announced the primary toy license for the World of Harry Potter and the upcoming HBO original Harry Potter series with Warner Bros.
Speaker #3: Discovery. Joining new, recently announced partnerships for Voltron with Amazon, MGM Studios, and Street Fighter with legendary pictures. These collaborations will begin in the back half of 2026 and build into 2027.
Speaker #3: These are iconic franchises with global reach and we are honored to partner with such world-class IP owners. Shifting to Wizards of the Coast, magic delivered a record fourth quarter and grew sales nearly 60% for the full year.
Speaker #3: We have a powerful lineup in 2026. It includes original IP like Laurel and Eclipsed and Secrets of Strixhaven, alongside a blockbuster slate of universes beyond collaborations including Teenage Mutant Ninja Turtles, Marvel superheroes, The Hobbit, and Star Trek.
Speaker #3: Avatar: The Last Airbender, which launched in late November, is now the third highest-selling set in magic's history, trailing only Lord of the Rings and Final Fantasy.
Chris Cocks: Street Fighter with Legendary Pictures. These collaborations will begin in the back half of 2026 and build into 2027. These are iconic franchises with global reach, and we are honored to partner with such world-class IP owners. Shifting to Wizards of the Coast, Magic delivered a record fourth quarter and grew sales nearly 60% for the full year. We have a powerful lineup in 2026. It includes original IP like Lorwyn Eclipsed and Secrets of Strixhaven, alongside a blockbuster slate of Universes Beyond collaborations including Teenage Mutant Ninja Turtles, Marvel Super Heroes, The Hobbit, and Star Trek. Avatar: The Last Airbender, which launched in late November, is now the third-highest-selling set in Magic's history, trailing only Lord of the Rings and Final Fantasy. At the same time, Secret Lair delivered its largest quarter ever, and backlist sales once again set a record.
Chris Cocks: Street Fighter with Legendary Pictures. These collaborations will begin in the back half of 2026 and build into 2027. These are iconic franchises with global reach, and we are honored to partner with such world-class IP owners. Shifting to Wizards of the Coast, Magic delivered a record fourth quarter and grew sales nearly 60% for the full year. We have a powerful lineup in 2026. It includes original IP like Lorwyn Eclipsed and Secrets of Strixhaven, alongside a blockbuster slate of Universes Beyond collaborations including Teenage Mutant Ninja Turtles, Marvel Super Heroes, The Hobbit, and Star Trek. Avatar: The Last Airbender, which launched in late November, is now the third-highest-selling set in Magic's history, trailing only Lord of the Rings and Final Fantasy. At the same time, Secret Lair delivered its largest quarter ever, and backlist sales once again set a record.
Again in the back half of 2026 and build into 2027.
Speaker #3: At the same time, Secret Lair delivered its largest quarter ever and backless sales once again set a record. This balance of tentpole releases, premium offerings, and evergreen play reflects how the magic system is designed to perform.
These are iconic franchises with global reach and we are honored to partner with such World class IP owner owners.
Shifting to Wizards of the coast Magic delivered a record fourth quarter and grew sales nearly 60% for the full year.
Speaker #3: That momentum is carried into the new year. Laurel and Eclipsed has already become the fastest-selling magic IP premiere set ever, surpassing Tarkir. Player growth continues to underpin these results.
We have a powerful lineup in 2026. It includes original IP like Laura Nguyen eclipsed and secrets and strict saving alongside a blockbuster slate of universal beyond collaborations, including teenage mutant Ninja turtles, Marvel superheroes, the habit and Star Trek.
Speaker #3: Through the end of 2025, more than 1 million unique players participated in organized play. Representing a 22% increase year over year. That growth is supported by a global play network.
Avatar, the last Airbender, which launched in late November is now the third highest selling certain magic history trailing only Lord of the rings and final fantasy at the same time secret layer delivered its largest quarter ever and backlist sales once again set a record.
Speaker #3: We now have more than 10,000 active Wizards Play Network stores worldwide. Up over 20% year over year, with expanded reach across traditional retail partners.
Speaker #3: Taken together, this reinforces our confidence in magic's long-term growth. We are building a system of play with multiple entry points, product types, and engagement paths, and that system is positioned to continue driving growth into 2026 and beyond.
This balance of Tentpole releases premium offerings and evergreen play reflects how the magic system is designed to perform.
Chris Cocks: This balance of tentpole releases, premium offerings, and evergreen play reflects how the Magic system is designed to perform. That momentum has carried into the new year. Lorwyn Eclipsed has already become the fastest-selling Magic IP premiere set ever, surpassing Tarkir. Player growth continues to underpin these results. Through the end of 2025, more than 1 million unique players participated in organized play, representing a 22% increase year-over-year. That growth is supported by a global play network. We now have more than 10,000 active Wizards Play Network stores worldwide, up over 20% year-over-year with expanded reach across traditional retail partners. Taken together, this reinforces our confidence in Magic's long-term growth. We are building a system of play with multiple entry points, product types, and engagement paths, and that system is positioned to continue driving growth into 2026 and beyond.
Chris Cocks: This balance of tentpole releases, premium offerings, and evergreen play reflects how the Magic system is designed to perform. That momentum has carried into the new year. Lorwyn Eclipsed has already become the fastest-selling Magic IP premiere set ever, surpassing Tarkir. Player growth continues to underpin these results. Through the end of 2025, more than 1 million unique players participated in organized play, representing a 22% increase year-over-year. That growth is supported by a global play network. We now have more than 10,000 active Wizards Play Network stores worldwide, up over 20% year-over-year with expanded reach across traditional retail partners. Taken together, this reinforces our confidence in Magic's long-term growth.
That momentum has carried into the new year, Laura Nguyen eclipsed has already become the fastest selling magic IP premier set ever surpassing talk here.
Speaker #3: In the fourth quarter, we also shared more about our self-published video game strategy, including a new gameplay trailer for our science fiction RPG, Exodus, and the first reveal of our D&D action-adventure game, Warlock.
Layer growth continues to underpin these results through the end of 2025 more than 1 million unique players participated in Organised play.
Presenting a 22% increase year over year.
Speaker #3: Both titles have been in development since 2019 and are led by some of the most experienced creative and development talent in the industry. The response has validated our confidence.
That growth is supported by a global play network. We now have more than 10000 active Wizards play network stores worldwide up over 20% year over year with expanded reach across traditional retail partners.
Speaker #3: Since debuting at the Game Awards, trailers for these titles have been viewed more than 100 million times across social, gaming, and own channels. We expect both games to launch in 2027, beginning with Exodus in the first part of the year.
Taken together this reinforces our confidence in magics long term growth.
Chris Cocks: We are building a system of play with multiple entry points, product types, and engagement paths, and that system is positioned to continue driving growth into 2026 and beyond. In the fourth quarter, we also shared more about our self-published video game strategy, including a new gameplay trailer for our science fiction RPG Exodus and the first reveal of our D&D action-adventure game Warlock. Both titles have been in development since 2019 and are led by some of the most experienced creative and development talent in the industry. The response has validated our confidence. Since debuting at the Game Awards, trailers for these titles have been viewed more than 100 million times across social, gaming, and owned channels. We expect both games to launch in 2027, beginning with Exodus in the first part of the year.
We are building a system of play with multiple entry points product types and engagement path and that system is positioned to continue driving growth into 2026 and beyond.
Speaker #3: We will share much more later this year, including extended gameplay walkthroughs that allow fans to fully step into the worlds, archetype entertainment, and invoke have built.
Chris Cocks: In the fourth quarter, we also shared more about our self-published video game strategy, including a new gameplay trailer for our science fiction RPG Exodus and the first reveal of our D&D action-adventure game Warlock. Both titles have been in development since 2019 and are led by some of the most experienced creative and development talent in the industry. The response has validated our confidence. Since debuting at the Game Awards, trailers for these titles have been viewed more than 100 million times across social, gaming, and owned channels. We expect both games to launch in 2027, beginning with Exodus in the first part of the year. We will share much more later this year, including extended gameplay walkthroughs that allow fans to fully step into the worlds Archetype Entertainment and Invoke have built.
In the fourth quarter. We also shared more about our self published video game strategy, including a new gameplay trailer for a science fiction RPG exited and the first reveal of our DMD action adventure game Warlock. Both titles have been in development. Since 2019 and are led by some of the most experienced creative and development talent.
Speaker #3: All of this reflects meaningful change, new partnerships, new distribution, new digital capabilities, and it represents only part of what we have in motion. In 2026, we expect our largest year ever with our longest-standing partner, the Walt Disney Company.
In the industry.
The response has validated our confidence.
Speaker #3: We are launching products tied to four major films: Disney and Pixar's Toy Story 5, Star Wars: The Mandalorian and Grogu, Spider-Man: Brand New Day, and Marvel Studios' Avengers: Doomsday.
Since debuting at the game awards trailers for these titles have been viewed more than 100 million times across social gaming and owned channels.
We expect both games to launch in 2027, beginning with <unk> in the first part of the year, we will share much more later this year, including extended gameplay walk throughs that allow fans to fully step into the worlds archetype entertainment and in Boca built.
Speaker #3: Alongside an all-new magic collaboration with Marvel superheroes. We also have a strong lineup of collectibles and exclusives, including standout pulse drops later this year.
Chris Cocks: We will share much more later this year, including extended gameplay walkthroughs that allow fans to fully step into the worlds Archetype Entertainment and Invoke have built. All of this reflects meaningful change: new partnerships, new distribution, new digital capabilities, and it represents only part of what we have in motion. In 2026, we expect our largest year ever with our longest-standing partner, The Walt Disney Company. We are launching products tied to four major films: Disney and Pixar's Toy Story 5, Star Wars: The Mandalorian and Grogu, Spider-Man: Brand New Day, and Marvel Studios' Avengers: Doomsday, alongside an all-new Magic collaboration with Marvel Super Heroes. We also have a strong lineup of collectibles and exclusives, including standout pulse drops later this year. We're introducing creative new ways to experience Play-Doh that age up the brand later this year.
Speaker #3: We're introducing creative new ways to experience Play-Doh that age up the brand later this year. Peppa Pig's baby sister Evie will celebrate a year of firsts as she approaches her first birthday, and we recently announced that Peppa's younger brother, George, is moderately deaf, as we continue to champion stories that reflect real children and families around the world.
All of this reflects meaningful change new partnerships, new distribution, new digital capabilities and it represents only part of what we have in motion.
Chris Cocks: All of this reflects meaningful change: new partnerships, new distribution, new digital capabilities, and it represents only part of what we have in motion. In 2026, we expect our largest year ever with our longest-standing partner, The Walt Disney Company. We are launching products tied to four major films: Disney and Pixar's Toy Story 5, Star Wars: The Mandalorian and Grogu, Spider-Man: Brand New Day, and Marvel Studios' Avengers: Doomsday, alongside an all-new Magic collaboration with Marvel Super Heroes. We also have a strong lineup of collectibles and exclusives, including standout pulse drops later this year. We're introducing creative new ways to experience Play-Doh that age up the brand later this year.
In 2026, we expect our largest year ever with our longest standing partner the Walt Disney Company, we are launching products tied to four major films Disney and Pixar Toy story, five Star Wars, the <unk> and <unk> Spider Man brand, New day, and Marvel Studios Avengers Doomsday.
Speaker #3: Transformers will begin celebrating the 40th anniversary of the 1986 animated film with a new product line and surprises throughout the year. D&D has major category expansions coming later this year, alongside continued growth on D&D Beyond.
Hey, alongside an all new magic collaboration with Marvel superheroes. We also have a strong lineup of collectibles and exclusives, including standout pulse drops later this year.
Speaker #3: We also announced a partnership with HBO and Craig Mazin on a Baldur's Gate series. Coming off the success of The Last of Us, Craig demonstrated what is possible when games serve as premium source material.
We're introducing creative new ways to experience play Doh that age up the brand later this year Peppa pig baby sister EV will celebrate a year efforts as she approaches are first birthday, and we recently announced that peppers younger brother George is moderately depth as we continue to champion stories that reflect real children and families around the.
Speaker #3: That success reinforces our strategy to unlock long-term value by bringing our worlds to life with top-tier creative partners across more than 60 active entertainment projects.
Chris Cocks: Peppa Pig's baby sister Evie will celebrate a year of firsts as she approaches her first birthday, and we recently announced that Peppa's younger brother George is moderately deaf as we continue to champion stories that reflect real children and families around the world. Transformers will begin celebrating the 40th anniversary of the 1986 animated film with a new product line and surprises throughout the year. D&D has major category expansions coming later this year, alongside continued growth on D&D Beyond. We also announced a partnership with HBO and Craig Mazin on a Baldur's Gate series. Coming off the success of The Last of Us, Craig demonstrated what is possible when games serve as premium source material. That success reinforces our strategy to unlock long-term value by bringing our worlds to life with top-tier creative partners across more than 60 active entertainment projects.
Chris Cocks: Peppa Pig's baby sister Evie will celebrate a year of firsts as she approaches her first birthday, and we recently announced that Peppa's younger brother George is moderately deaf as we continue to champion stories that reflect real children and families around the world. Transformers will begin celebrating the 40th anniversary of the 1986 animated film with a new product line and surprises throughout the year. D&D has major category expansions coming later this year, alongside continued growth on D&D Beyond. We also announced a partnership with HBO and Craig Mazin on a Baldur's Gate series. Coming off the success of The Last of Us, Craig demonstrated what is possible when games serve as premium source material. That success reinforces our strategy to unlock long-term value by bringing our worlds to life with top-tier creative partners across more than 60 active entertainment projects.
Speaker #3: Before I close, I want to address AI and how we're using it at human-centric, creator-led approach. AI is a tool that helps our teams move faster, and focus on higher-value work.
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Transformers will begin celebrating the 40th anniversary of the 1986 animated film with a new product line and surprises throughout the year DMD have major category expansions coming later this year alongside continued growth on <unk> beyond.
Speaker #3: But people make the decisions, and people own the creative outcomes. Teams also have choice in how they use it, including not to use it at all when it doesn't fit the work or the brand.
We also announced a partnership with HBO and Craig Nathan on a Baldur's gate series coming off the success of the last of US Craig demonstrated what is possible when game serve as premium source material that success reinforces our strategy to unlock long term value by bringing our worlds to life with top tier creative partners.
Speaker #3: We're beyond experimentation. We're deploying AI across financial planning, forecasting, order management, supply chain operations, training, and everyday productivity. Under enterprise controls, and clear guidelines around responsible use, and IP protection.
Speaker #3: Anyone who knows me knows I'm an enthusiastic AI user, and that mindset extends across the enterprise. We're partnering with best-in-class platforms, including Google Gemini, OpenAI, and 11 Labs, to embed AI into workflows where it adds real value.
Across more than 60 active entertainment projects.
Before I close I wanted to address AI and how we're using it at Hasbro.
Chris Cocks: Before I close, I want to address AI and how we're using it at Hasbro. We're taking a human-centric, creator-led approach. AI is a tool that helps our teams move faster and focus on higher-value work, but people make the decisions, and people own the creative outcomes. Teams also have choice in how they use it, including not to use it at all when it doesn't fit the work or the brand. We're beyond experimentation. We're deploying AI across financial planning, forecasting, order management, supply chain operations training, and everyday productivity under enterprise controls and clear guidelines around responsible use and IP protection. Anyone who knows me knows I'm an enthusiastic AI user, and that mindset extends across the enterprise. We're partnering with best-in-class platforms, including Google Gemini, OpenAI, and 11Labs, to embed AI into workflows where it adds real value. The impact is tangible.
Chris Cocks: Before I close, I want to address AI and how we're using it at Hasbro. We're taking a human-centric, creator-led approach. AI is a tool that helps our teams move faster and focus on higher-value work, but people make the decisions, and people own the creative outcomes. Teams also have choice in how they use it, including not to use it at all when it doesn't fit the work or the brand. We're beyond experimentation. We're deploying AI across financial planning, forecasting, order management, supply chain operations training, and everyday productivity under enterprise controls and clear guidelines around responsible use and IP protection. Anyone who knows me knows I'm an enthusiastic AI user, and that mindset extends across the enterprise. We're partnering with best-in-class platforms, including Google Gemini, OpenAI, and 11Labs, to embed AI into workflows where it adds real value.
We're taking a human centric creator led approach AI as a tool that helps our teams moved faster and focus on higher value work, but people make the decisions and people on the creative outcomes.
Speaker #3: The impact is tangible. Over the next year, we anticipate these workflows will free up more than 1 million hours of lower-value work, and we'll reinvest in that capacity into innovation, creativity, and serving fans.
Teams also have choice in how they use it including not to use it at all when it doesn't fit the work or the brand.
Beyond experimentation, we're deploying AI across financial planning forecasting order management supply chain operations training and everyday productivity under enterprise controls and clear guidelines around responsible use and IP protection.
Speaker #3: Our portfolio of IP and the creators and talent behind it are the foundation of this strategy. Great IP plus great storytelling is durable as technology evolves.
Speaker #3: And it positions us to benefit from disruption rather than being displaced by it. In toys, AI-assisted design paired with 3D printing has fundamentally improved our process.
Anyone who knows me knows I'm, an enthusiastic AI user and that mindset extends across the enterprise, we're partnering with best in class platforms, including Google Gemini Open AI and 11 labs to embed AI into workflows, where it adds real value.
Speaker #3: We've reduced time from concept to physical prototype by roughly 80%, enabling faster iteration and more experimentation, with human judgment and human craft determining what ultimately gets selected and turned into a final product.
Chris Cocks: The impact is tangible. Over the next year, we anticipate these workflows will free up more than 1 million hours of lower-value work, and we're reinvesting that capacity into innovation, creativity, and serving fans. Our portfolio of IP and the creators and talent behind it are the foundation of this strategy. Great IP plus great storytelling is durable as technology evolves, and it positions us to benefit from disruption rather than being displaced by it. In toys, AI-assisted design paired with 3D printing has fundamentally improved our process. We've reduced time from concept to physical prototype by roughly 80%, enabling faster iteration and more experimentation, with human judgment and human craft determining what ultimately gets selected and turned into a final product. We believe the winners in AI will be companies that combine deep IP, creative talent, and disciplined deployment.
The impact is tangible over the next year, we anticipate these workflows will free up more than 1 million hours of lower value work and we're reinvesting that capacity into innovation creativity and serving fans.
Chris Cocks: Over the next year, we anticipate these workflows will free up more than 1 million hours of lower-value work, and we're reinvesting that capacity into innovation, creativity, and serving fans. Our portfolio of IP and the creators and talent behind it are the foundation of this strategy. Great IP plus great storytelling is durable as technology evolves, and it positions us to benefit from disruption rather than being displaced by it. In toys, AI-assisted design paired with 3D printing has fundamentally improved our process. We've reduced time from concept to physical prototype by roughly 80%, enabling faster iteration and more experimentation, with human judgment and human craft determining what ultimately gets selected and turned into a final product. We believe the winners in AI will be companies that combine deep IP, creative talent, and disciplined deployment. That's exactly where Hasbro sits.
Speaker #3: We believe the winners in AI will be companies that combine deep IP, creative talent, and disciplined deployment. That's exactly where HASBRO sits. As we enter 2026, we view playing to win and, more importantly, the execution behind it by our HASBRO Wizards of the Coast and digital studio teams as a clear success.
Our portfolio of IP and the creators and talent behind it are the foundation of this strategy, great IP plus great storytelling as durable as technology evolves and it positions us to benefit from disruption rather than being displaced by it.
Speaker #3: Despite market volatility, and a shifting consumer environment, we return this company to growth in a meaningful way. We delighted more than 1 billion kids, families, and fans.
In toys AI assisted design paired with three D. Printing has fundamentally improved our process. We've reduced time from concept to physical prototype by roughly 80%, enabling faster iteration and more experimentation with human judgment and human craft determining what ultimately gets selected.
Speaker #3: Secured partnerships that further underwrite future growth. Advanced our evolution into a digital-first play and IP company and delivered record profits for our shareholders. In 2026, we expect that momentum to continue.
And turned into a final product.
We believe the winners in AI will be companies that combine deep IP creative talent and disciplined deployment, that's exactly where hasbro sits.
Speaker #3: HASBRO is firmly back on a growth trajectory, powered by play, partnership, new digital capabilities, and, most importantly, our extraordinary brands. With that, I will turn it over to Gina to walk through the financial details and our outlook for 2026.
Chris Cocks: That's exactly where Hasbro sits. As we enter 2026, we view playing to win and, more importantly, the execution behind it by our Hasbro, Wizards of the Coast, and digital studio teams as a clear success. Despite market volatility and a shifting consumer environment, we returned this company to growth in a meaningful way. We delighted more than 1 billion kids, families, and fans, secured partnerships that further underwrite future growth, advanced our evolution to a digital-first play and IP company, and delivered record profits for our shareholders. In 2026, we expect that momentum to continue. Hasbro is firmly back on a growth trajectory powered by play, partnership, new digital capabilities, and, most importantly, our extraordinary brands. With that, I will turn it over to Gina to walk through the financial details and our outlook for 2026. Gina.
Chris Cocks: As we enter 2026, we view playing to win and, more importantly, the execution behind it by our Hasbro, Wizards of the Coast, and digital studio teams as a clear success. Despite market volatility and a shifting consumer environment, we returned this company to growth in a meaningful way. We delighted more than 1 billion kids, families, and fans, secured partnerships that further underwrite future growth, advanced our evolution to a digital-first play and IP company, and delivered record profits for our shareholders. In 2026, we expect that momentum to continue. Hasbro is firmly back on a growth trajectory powered by play, partnership, new digital capabilities, and, most importantly, our extraordinary brands. With that, I will turn it over to Gina to walk through the financial details and our outlook for 2026. Gina.
As we enter 2026, we view playing to win and more importantly, the execution behind it by our Hasbro Wizards of the coast and digital studio teams as a clear success.
Speaker #3: Gina.
Speaker #2: Thanks, Chris. And good morning, everyone. We close 2025 with good momentum in the fourth quarter, and clear evidence that our playing to win strategy is working.
Despite market volatility and a shifting consumer environments. We return this company to growth in a meaningful way.
We delighted more than 1 billion kids families and fans secured partnerships that further underwrite future growth advanced our evolution to a digital first play an IP company and delivered record profits for our shareholders.
Speaker #2: While the year included meaningful transformation actions and macro volatility, performance reflects the advantage of our diverse portfolio, the durability of our gaming-led growth model, and disciplined execution.
In 2026, we expect that momentum to continue.
Speaker #2: We delivered double-digit revenue growth, expanded adjusted operating margins, generated substantial cash flow, and exited the year with increased financial flexibility. Looking at the fourth quarter, net revenue was $1.5 billion, up 31% year over year, with growth coming from both of our main segments.
<unk> is firmly back on a growth trajectory powered by play partnership new digital capabilities and most importantly, our extraordinary brands with that I will turn it over to Gina to walk through the financial details and our outlook for 2026 Gina.
Thanks, Chris and good morning, everyone. We closed 2025 with good momentum in the fourth quarter.
Gina Goetter: Thanks, Chris, and good morning, everyone. We closed 2025 with good momentum in the fourth quarter and clear evidence that our playing-to-win strategy is working. While the year included meaningful transformation actions and macro volatility, performance reflects the advantage of our diverse portfolio, the durability of our gaming-led growth model, and disciplined execution. We delivered double-digit revenue growth, expanded adjusted operating margins, generated substantial cash flow, and exited the year with increased financial flexibility. Looking at the fourth quarter, net revenue was $1.5 billion, up 31% year-over-year, with growth coming from both of our main segments. Adjusted operating profit was $315 million, up 180% versus prior year, resulting in a 21.8% operating margin. Adjusted earnings per diluted share were $1.51, capping a year of accelerating momentum.
Gina Goetter: Thanks, Chris, and good morning, everyone. We closed 2025 with good momentum in the fourth quarter and clear evidence that our playing-to-win strategy is working. While the year included meaningful transformation actions and macro volatility, performance reflects the advantage of our diverse portfolio, the durability of our gaming-led growth model, and disciplined execution. We delivered double-digit revenue growth, expanded adjusted operating margins, generated substantial cash flow, and exited the year with increased financial flexibility. Looking at the fourth quarter, net revenue was $1.5 billion, up 31% year-over-year, with growth coming from both of our main segments. Adjusted operating profit was $315 million, up 180% versus prior year, resulting in a 21.8% operating margin. Adjusted earnings per diluted share were $1.51, capping a year of accelerating momentum.
Speaker #2: Adjusted operating profit was $315 million, up 180% versus prior year, resulting in a 21.8% operating margin. Adjusted earnings per diluted share were $1.51, capping a year of accelerating momentum.
Evidence that are playing to win strategy is working well.
While the year included meaningful transformation actions and macro volatility.
<unk> reflects the advantage of our diverse portfolio the durability of our gaming led growth model and disciplined execution.
Speaker #2: For the full year, net revenue grew 14% to $4.7 billion, driven by exceptional performance in Wizards, and continued progress across the rest of the portfolio.
We delivered double digit revenue growth expanded adjusted operating margins.
Generated substantial cash flow and exited the year with increased financial flexibility.
Speaker #2: Adjusted operating profit increased 36% to $1.1 billion, with an adjusted operating margin of 24.2%, up nearly 400 basis points versus last year. Driven by favorable mix, and cost productivity.
Looking at the fourth quarter net revenue was $1 5 billion up 31% year over year with growth coming from both of our main segments.
Adjusted operating profit was $315 million up 180% versus prior year, resulting in a 21, 8% operating margin.
Speaker #2: Adjusted earnings per diluted share were $5.54. In terms of segment performance, in Q4, Wizards' revenue grew 86% to $630 million, driven by Magic, which was up 141% versus last year, behind the strength of Avatar: The Last Airbender and Final Fantasy's holiday release.
Adjusted earnings per diluted share were $1 51.
Capping a year of accelerating momentum.
For the full year net revenue grew 14% to $4 7 billion driven.
Gina Goetter: For the full year, net revenue grew 14% to $4.7 billion, driven by exceptional performance in Wizards and continued progress across the rest of the portfolio. Adjusted operating profit increased 36% to $1.1 billion, with an adjusted operating margin of 24.2%, up nearly 400 basis points versus last year, driven by favorable mix and cost productivity. Adjusted earnings per diluted share were $5.54. In terms of segment performance, in Q4, Wizards revenue grew 86% to $630 million, driven by Magic, which was up 141% versus last year, behind the strength of Avatar: The Last Airbender and Final Fantasy's holiday release. Operating profit in the quarter was $284 million, resulting in a 45% operating margin. For the full year, Wizards revenue increased 45% to $2.2 billion, with operating profit of just over $1 billion and an operating margin of 46%.
Gina Goetter: For the full year, net revenue grew 14% to $4.7 billion, driven by exceptional performance in Wizards and continued progress across the rest of the portfolio. Adjusted operating profit increased 36% to $1.1 billion, with an adjusted operating margin of 24.2%, up nearly 400 basis points versus last year, driven by favorable mix and cost productivity. Adjusted earnings per diluted share were $5.54. In terms of segment performance, in Q4, Wizards revenue grew 86% to $630 million, driven by Magic, which was up 141% versus last year, behind the strength of Avatar: The Last Airbender and Final Fantasy's holiday release. Operating profit in the quarter was $284 million, resulting in a 45% operating margin. For the full year, Wizards revenue increased 45% to $2.2 billion, with operating profit of just over $1 billion and an operating margin of 46%.
Driven by exceptional performance in Wizards and continued progress across the rest of the portfolio.
Speaker #2: Operating profit in the quarter was $284 million, resulting in a 45% operating margin. For the full year, Wizards' revenue increased 45% to $2.2 billion, with operating profit adjust over $1 billion, and an operating margin of 46%.
Adjusted operating profit increased 36% to $1 1 billion with an adjusted operating margin of 24, 2% up nearly 400 basis points versus last year, driven by favorable mix and cost productivity.
Speaker #2: Magic revenue grew nearly 60%, reinforcing its position as one of the strongest gaming franchises in the industry. Core Magic KPIs remained healthy, with growth in distribution, and a record year for Secret Lair and Backlist.
Adjusted earnings per diluted share were $5 54.
In terms of segment performance in Q4 Wizards revenue grew 86% to $630 million driven by magic, which was up 141% versus last year behind the strength of avatar, the last airbender and final fantasy holiday release.
Speaker #2: Monopoly Go continued to be a steady revenue and profit stream, contributing $168 million with the monthly revenue pool remaining largely consistent as we move through the year.
Operating profit in the quarter was $284 million, resulting in a 45% operating margin.
Speaker #2: The overall mix of business resulted in $420 basis point improvement in margin, and a solid foundation heading into 2026. Consumer products executed well in the fourth quarter, delivering $800 million of revenue, up 7% behind the strength of Hasbro Gaming and Marvel.
For the full year Wizards revenue increased 45% to $2 2 billion with operating profit of just over $1 billion and an operating margin of 46%.
Magic revenue grew nearly 60% reinforcing its position as one of the strongest gaming franchises in the industry.
Gina Goetter: Magic revenue grew nearly 60%, reinforcing its position as one of the strongest gaming franchises in the industry. Core Magic KPIs remained healthy, with growth in distribution and a record year for Secret Lair and Backlist. Monopoly Go continued to be a steady revenue and profit stream, contributing $168 million, with the monthly revenue pool remaining largely consistent as we move through the year. The overall mix of business resulted in 420 basis point improvement in margin and a solid foundation heading into 2026. Consumer products executed well in the fourth quarter, delivering $800 million of revenue, up 7% behind the strength of Hasbro Gaming and Marvel. Adjusted operating profit was $54 million, reflecting improved product mix and promotional discipline, while supply chain productivity nearly offset the cost of tariffs.
Gina Goetter: Magic revenue grew nearly 60%, reinforcing its position as one of the strongest gaming franchises in the industry. Core Magic KPIs remained healthy, with growth in distribution and a record year for Secret Lair and Backlist. Monopoly Go continued to be a steady revenue and profit stream, contributing $168 million, with the monthly revenue pool remaining largely consistent as we move through the year. The overall mix of business resulted in 420 basis point improvement in margin and a solid foundation heading into 2026. Consumer products executed well in the fourth quarter, delivering $800 million of revenue, up 7% behind the strength of Hasbro Gaming and Marvel. Adjusted operating profit was $54 million, reflecting improved product mix and promotional discipline, while supply chain productivity nearly offset the cost of tariffs.
Speaker #2: Adjusted operating profit was $54 million, reflecting improved product mix and promotional discipline, while supply chain productivity nearly offset the cost of tariffs. For the full year, consumer products revenue declined 4% to $2.4 billion, and delivered an adjusted operating profit of $113 million, demonstrating resilience and an improved cost structure even after absorbing nearly $70 million of tariff impact.
Core Magic Kpis remained healthy with growth in distribution and a record year for secret lair and back list.
Monopoly go continue to be a steady revenue and profit stream contributing $168 million with the monthly revenue pool remaining largely consistent as we move through the year.
The overall mix of business resulted in 420 basis point improvement in margin and a solid foundation heading into 2026.
Speaker #2: Owned and retail inventory positions remained healthy, and we exited the year with owned inventory at a record low of $75 days. Entertainment performed in line with expectations for the quarter and the year, delivering stable revenue and adjusted margins consistent with our asset-light strategy.
Consumer products executed well in the fourth quarter, delivering $800 million of revenue up 7% behind the strength of Hasbro gaming and Marvel.
Adjusted operating profit was $54 million.
Reflecting improved product mix and promotional discipline, while supply chain productivity nearly offset the cost of tariffs.
Speaker #2: Our cost transformation efforts contributed over $175 million in gross savings across supply chain, product development, and operating expenses, driving margin expansion and helping to offset the impact from tariffs.
For the full year consumer products revenue declined 4% to $2 4 billion.
Gina Goetter: For the full year, consumer products revenue declined 4% to $2.4 billion and delivered an adjusted operating profit of $113 million, demonstrating resilience and an improved cost structure even after absorbing nearly $70 million of tariff impact. Owned and retail inventory positions remain healthy, and we exited the year with owned inventory at a record low of 75 days. Entertainment performed in line with expectations for the quarter and the year, delivering stable revenue and adjusted margins consistent with our asset-led strategy. Our cost transformation efforts contributed over $175 million in gross savings across supply chain, product development, and operating expenses, driving margin expansion and helping to offset the impact from tariffs. Through 2025, we have delivered almost $800 million of gross cost savings and are well on our path to the $1 billion commitment. From a cash and balance sheet perspective, 2025 was a strong year.
Gina Goetter: For the full year, consumer products revenue declined 4% to $2.4 billion and delivered an adjusted operating profit of $113 million, demonstrating resilience and an improved cost structure even after absorbing nearly $70 million of tariff impact. Owned and retail inventory positions remain healthy, and we exited the year with owned inventory at a record low of 75 days. Entertainment performed in line with expectations for the quarter and the year, delivering stable revenue and adjusted margins consistent with our asset-led strategy. Our cost transformation efforts contributed over $175 million in gross savings across supply chain, product development, and operating expenses, driving margin expansion and helping to offset the impact from tariffs. Through 2025, we have delivered almost $800 million of gross cost savings and are well on our path to the $1 billion commitment.
And delivered an adjusted operating profit of $113 million, demonstrating resilience and an improved cost structure, even after absorbing nearly $70 million of tariff impact.
Speaker #2: Through 2025, we have delivered almost $800 million of gross cost savings and are well on our path to the $1 billion commitment. From a cash and balance sheet perspective, 2025 was a strong year.
Owned and retail inventory positions remain healthy and we exited the year with one inventory at a record low of 75 days.
Speaker #2: We generated $893 million of operating cash flow, ended the year with $777 million of cash on the balance sheet. We returned $393 million to shareholders through dividends, while continuing to reduce debt and invest behind growth.
Entertainment performed in line with expectations for the quarter and the year delivering stable revenue and adjusted margins consistent with our asset light strategy.
Our cost transformation efforts contributed over $175 million in gross savings across supply chain product development and operating expenses driving margin expansion and helping to offset the impact from tariffs.
Speaker #2: We reached our gross leverage target, finishing the year at 2.3 times behind increased earnings and a reduced debt load. Looking ahead to 2026, we are entering the year with momentum, clarity, and a durable foundation.
Through 2025, we have delivered almost $800 million of gross cost savings and are well on our path to the $1 billion commitment.
Speaker #2: Wizards remains our primary growth engine, supported by a robust pipeline and sustained engagement across tabletop, digital, and licensed gaming. And we expect consumer products will benefit from a healthy entertainment pipeline, which will enable improved consistency, and margin performance.
Gina Goetter: From a cash and balance sheet perspective, 2025 was a strong year. We generated $893 million of operating cash flow, ended the year with $777 million of cash on the balance sheet. We returned $393 million to shareholders through dividends while continuing to reduce debt and invest behind growth. We reached our gross leverage target, finishing the year at 2.3x behind increased earnings and a reduced debt load. Looking ahead to 2026, we are entering the year with momentum, clarity, and a durable foundation. Wizards remains our primary growth engine, supported by a robust pipeline and sustained engagement across tabletop, digital, and licensed gaming. We expect consumer products will benefit from a healthy entertainment pipeline, which will enable improved consistency and margin performance.
From a cash and balance sheet perspective, 2025 was a strong year, we generated $893 million of operating cash flow ended the year with $777 million of cash on the balance sheet.
Gina Goetter: We generated $893 million of operating cash flow, ended the year with $777 million of cash on the balance sheet. We returned $393 million to shareholders through dividends while continuing to reduce debt and invest behind growth. We reached our gross leverage target, finishing the year at 2.3x behind increased earnings and a reduced debt load. Looking ahead to 2026, we are entering the year with momentum, clarity, and a durable foundation. Wizards remains our primary growth engine, supported by a robust pipeline and sustained engagement across tabletop, digital, and licensed gaming. We expect consumer products will benefit from a healthy entertainment pipeline, which will enable improved consistency and margin performance. Turning now to guidance, we expect Hasbro consolidated revenue to grow between 3% and 5% year-over-year on a constant currency basis, with growth across each of our segments.
Speaker #2: Turning now to guidance, we expect Hasbro consolidated revenue to grow between 3 and 5 percent year over year on a constant currency basis, with growth across each of our segments.
We returned $393 million to shareholders through dividends, while continuing to reduce debt and invest behind growth.
We reached our gross leverage target, finishing the year at two three times behind increased earnings and a reduced debt load.
Speaker #2: We expect operating margins to be between 24 and 25 percent for the year, reflecting continued operating leverage and discipline execution. And we expect adjusted EBITDA to be in the range of 1.4 to 1.45 billion dollars.
Looking ahead to 2026, we are entering the year with momentum clarity and a durable foundation.
Wizards remains our primary growth engine supported by a robust pipeline and sustained engagement across tabletop digital and licensed gaming and.
Speaker #2: At the segment level, Wizards is expected to deliver mid-single digit revenue growth, supported by a healthy release cadence, and continued engagement across the Magic ecosystem.
And we expect consumer products will benefit from a healthy entertainment pipeline, which will enable improved consistency and margin performance.
Speaker #2: Operating margins are expected to remain in the low 40% range reflecting the underlying strength of the business, while absorbing higher royalty expense and incremental costs associated with our planned 2027 video game releases Exodus and Warlock.
Gina Goetter: Turning now to guidance, we expect Hasbro consolidated revenue to grow between 3% and 5% year-over-year on a constant currency basis, with growth across each of our segments. We expect operating margins to be between 24% and 25% for the year, reflecting continued operating leverage and disciplined execution. We expect adjusted EBITDA to be in the range of $1.4 to $1.45 billion. At the segment level, Wizards is expected to deliver mid-single-digit revenue growth, supported by a healthy release cadence and continued engagement across the Magic ecosystem. Operating margins are expected to remain in the low 40% range, reflecting the underlying strength of the business while absorbing higher royalty expense and incremental costs associated with our planned 2027 video game releases, Exodus, and Warlock.
Turning now to guidance, we expect Hasbro consolidated revenue to grow between 3% and 5% year over year on a constant currency basis with growth across each of our segments.
We expect operating margins to be between 24% and 25% for the year, reflecting continued operating leverage and disciplined execution.
Gina Goetter: We expect operating margins to be between 24% and 25% for the year, reflecting continued operating leverage and disciplined execution. We expect adjusted EBITDA to be in the range of $1.4 to $1.45 billion. At the segment level, Wizards is expected to deliver mid-single-digit revenue growth, supported by a healthy release cadence and continued engagement across the Magic ecosystem. Operating margins are expected to remain in the low 40% range, reflecting the underlying strength of the business while absorbing higher royalty expense and incremental costs associated with our planned 2027 video game releases, Exodus, and Warlock. In consumer products, we expect revenue to grow low single digits year over year, with operating profit margins in the 6% to 8% range. Revenue growth is buoyed by the strong entertainment slate from our partners at The Walt Disney Company, creating leverage through the cost structure.
Speaker #2: In consumer products, we expect revenue to grow low single digits year over year, with operating profit margins in the 6 to 8 percent range.
And we expect adjusted EBITDA to be in the range of one four to $1 $45 billion.
Speaker #2: Revenue growth is buoyed by the strong entertainment slate from our partners at the Walt Disney Company, creating leverage through the cost structure. Entertainment revenue is expected to be slightly positive year over year, with operating margins of approximately 50%, reflecting the asset-light nature of the business and continued discipline around investment.
At the segment level Wizards is expected to deliver mid single digit revenue growth supported by a healthy release cadence and continued engagement across the magic ecosystem.
Operating margins are expected to remain in the low 40% range, reflecting the underlying strength of the business, while absorbing higher royalty expense and incremental costs associated with our planned 2027 video game releases exited and Warlock.
Speaker #2: The 2026 outlook assumes approximately $150 million of gross cost savings from initiatives across supply chain, including the manufacturing diversification efforts, as well as a continuation of our transformation in several areas impacting operating expense.
Gina Goetter: In consumer products, we expect revenue to grow low single digits year over year, with operating profit margins in the 6% to 8% range. Revenue growth is buoyed by the strong entertainment slate from our partners at The Walt Disney Company, creating leverage through the cost structure. Entertainment revenue is expected to be slightly positive year over year, with operating margins of approximately 50%, reflecting the asset-like nature of the business and continued discipline around investment. The 2026 outlook assumes approximately $150 million of gross cost savings from initiatives across supply chain, including the manufacturing diversification efforts, as well as a continuation of our transformation in several areas impacting operating expense.
In consumer products, we expect revenue to grow low single digits year over year with operating profit margins in the 6% to 8% range.
Speaker #2: In terms of phasing, we expect stronger revenue growth in the first half, driven by the timing of entertainment-related releases within consumer products, normalized retail order patterns, and year-over-year shifts in the cadence of Magic set releases.
Revenue growth is buoyed by the strong entertainment slate from our partners at the Walt Disney company, creating leverage through to the cost structure.
Entertainment revenue is expected to be slightly positive year over year with operating margins of approximately 50%, reflecting the asset light nature of the business and continued discipline around investments.
Gina Goetter: Entertainment revenue is expected to be slightly positive year over year, with operating margins of approximately 50%, reflecting the asset-like nature of the business and continued discipline around investment. The 2026 outlook assumes approximately $150 million of gross cost savings from initiatives across supply chain, including the manufacturing diversification efforts, as well as a continuation of our transformation in several areas impacting operating expense. In terms of phasing, we expect stronger revenue growth in the first half, driven by the timing of entertainment-related releases within consumer products, normalized retail order patterns, and year-over-year shifts in the cadence of Magic set releases. The stronger revenue growth in the first half will have a negative impact on margin, as the growth in both segments carries a higher royalty expense.
Speaker #2: The stronger revenue growth in the first half will have a negative impact on margin, as the growth in both segments carries a higher royalty expense.
Speaker #2: Margin expansion will come in the second half, driven by favorable business mix within consumer products, a step up in productivity across supply chain, and leverage within operating expenses.
The 2026 outlook assumes approximately $150 million of gross cost savings from initiatives across supply chain, including the manufacturing diversification efforts as well as the continuation of our transformation in several areas impacting operating expense.
Speaker #2: Tariff costs will be relatively flat year over year in the back half, with much of the incremental costs landing in the front half of the year.
In terms of phasing, we expect stronger revenue growth in the first half driven by the timing of entertainment related releases within consumer products.
Gina Goetter: In terms of phasing, we expect stronger revenue growth in the first half, driven by the timing of entertainment-related releases within consumer products, normalized retail order patterns, and year-over-year shifts in the cadence of Magic set releases. The stronger revenue growth in the first half will have a negative impact on margin, as the growth in both segments carries a higher royalty expense. Margin expansion will come in the second half, driven by a favorable business mix within Consumer Products, a step up in productivity across Supply Chain, and leverage within operating expenses. Tariff costs will be relatively flat year-over-year in the back half, with much of the incremental cost landing in the front half of the year. Capital allocation priorities are largely unchanged from last year.
Speaker #2: Capital allocation priorities are largely unchanged from last year. We will continue to invest in the business, specifically behind our highest return growth opportunities, led by Wizards and digital gaming.
Normalized retail order patterns and year over year shifts and the cadence of magic set releases.
Speaker #2: Second, we are focused on paying down debt and maintaining a healthy balance sheet, and we remain firmly committed to returning cash to shareholders through our dividend.
The stronger revenue growth in the first half will have a negative impact on margin is the growth in both segments carries a higher royalty expense.
Margin expansion will come in the second half driven by favorable business mix within consumer products.
Speaker #2: The board has authorized the first quarter dividend, reinforcing our confidence in the durability of our cash flows. Finally, we are restarting share repurchases, and the board has authorized a new $1 billion share repurchase program, providing additional flexibility to return excess capital to shareholders over time.
Gina Goetter: Margin expansion will come in the second half, driven by a favorable business mix within Consumer Products, a step up in productivity across Supply Chain, and leverage within operating expenses. Tariff costs will be relatively flat year-over-year in the back half, with much of the incremental cost landing in the front half of the year. Capital allocation priorities are largely unchanged from last year. We will continue to invest in the business, specifically behind our highest return growth opportunities led by Wizards and Digital Gaming. Second, we are focused on paying down debt and maintaining a healthy balance sheet, and we remain firmly committed to returning cash to shareholders through our dividend. The board has authorized the Q1 dividend, reinforcing our confidence in the durability of our cash flows.
Step up in productivity across supply chain and leverage within operating expenses.
Tariff costs will be relatively flat year over year in the back half with much of the incremental cost landing in the front half of the year.
Capital allocation priorities are largely unchanged from last year, we will continue to invest in the business specifically behind our highest return growth opportunities led by Wizards and digital gaming.
Speaker #2: While we do not provide EPS guidance, there are a few important items below the operating line to highlight for modeling purposes. First, interest expense is expected to be higher year over year primarily related to planned refinancing activity.
Gina Goetter: We will continue to invest in the business, specifically behind our highest return growth opportunities led by Wizards and Digital Gaming. Second, we are focused on paying down debt and maintaining a healthy balance sheet, and we remain firmly committed to returning cash to shareholders through our dividend. The board has authorized the Q1 dividend, reinforcing our confidence in the durability of our cash flows. Finally, we are restarting share repurchases, and the board has authorized a new $1 billion share repurchase program, providing additional flexibility to return excess capital to shareholders over time. While we do not provide EPS guidance, there are a few important items below the operating line to highlight for modeling purposes. First, interest expense is expected to be higher year-over-year, primarily related to planned refinancing activity.
Second we are focused on paying down debt and maintaining a healthy balance sheet.
Speaker #2: And second, we expect lower non-operating income driven by translational foreign exchange impacts and the absence of prior year benefits related to the Swiss deferred tax asset.
And we remain firmly committed to returning cash to shareholders through our dividend.
The board has authorized a first quarter dividend reinforcing our confidence in the durability of our cash flows.
Speaker #2: Taken together, these items represent approximately a $40 million year-over-year headwind to EPS, even as operating income continues to grow. In summary, the 2026 outlook reflects the progress we've made as we executed the first year of our playing-to-win strategy, and the durability of the business we're building.
Finally, we are restarting share repurchases and the board has authorized a new $1 billion share repurchase program, providing additional flexibility to return excess capital to shareholders over time.
Gina Goetter: Finally, we are restarting share repurchases, and the board has authorized a new $1 billion share repurchase program, providing additional flexibility to return excess capital to shareholders over time. While we do not provide EPS guidance, there are a few important items below the operating line to highlight for modeling purposes. First, interest expense is expected to be higher year-over-year, primarily related to planned refinancing activity. And second, we expect lower non-operating income driven by translational foreign exchange impacts and the absence of prior year benefits related to the SWIFT deferred tax asset. Taken together, these items represent approximately a $40 million year-over-year headwind to EPS, even as operating income continues to grow. In summary, the 2026 outlook reflects the progress we've made as we executed the first year of our playing-to-win strategy and the durability of the business we're building.
While we do not provide EPS guidance. There are a few important items below the operating line to highlight for modeling purposes.
Speaker #2: We base, operating with greater discipline, and allocating capital with intention. As we move through 2026, we believe the cadence of profitability becomes increasingly favorable, keeping us on track to our medium-term financial commitments.
First interest expense is expected to be higher year over year, primarily related to planned refinancing activity.
And second we expect lower non operating income driven by translational foreign exchange impacts and the absence of prior year benefits related to the Swiss deferred tax asset.
Gina Goetter: And second, we expect lower non-operating income driven by translational foreign exchange impacts and the absence of prior year benefits related to the SWIFT deferred tax asset. Taken together, these items represent approximately a $40 million year-over-year headwind to EPS, even as operating income continues to grow. In summary, the 2026 outlook reflects the progress we've made as we executed the first year of our playing-to-win strategy and the durability of the business we're building. We are growing from a stronger earnings base, operating with greater discipline, and allocating capital with intention. As we move through 2026, we believe the cadence of profitability becomes increasingly favorable, keeping us on track to our medium-term financial commitments. And with that, I'll turn it back to the operator for questions.
Speaker #2: And with that, I'll turn it back to the operator for questions.
Speaker #1: Thank you. We'll now be conducting a question-and-answer session. We ask you to please leave yourself to one question and one follow-up so that other callers have a chance to participate.
Taken together these items represent approximately a $40 million year over year headwind to EPS.
Even as operating income continues to grow.
Speaker #1: If you'd like to ask a question at this time, you may press star one from your telephone keypad and a confirmation tone indicate your line is in the question queue.
In summary, the 2026 outlook reflects the progress we've made as we executed the first year of our playing to win strategy and the durability of the business we're building.
Speaker #1: You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys.
Gina Goetter: We are growing from a stronger earnings base, operating with greater discipline, and allocating capital with intention. As we move through 2026, we believe the cadence of profitability becomes increasingly favorable, keeping us on track to our medium-term financial commitments. And with that, I'll turn it back to the operator for questions.
We are growing from a stronger earnings base operating with greater discipline in allocating capital with intention.
Speaker #1: One moment, please, and we pull for questions. Thank you. The first question comes from the line of Megan Clapp with Morgan Stanley. Please just use your questions.
As we move through 2026, we believe the cadence of profitability becomes increasingly favorable keeping us on track to our medium term financial commitments.
Speaker #3: Hi. Good morning, Christina. Thanks for taking our questions. I wanted to start with Magic. Good morning.
And with that I'll turn it back to the operator for questions.
Speaker #3: Obviously, Hello. really impressive growth in the fourth quarter and the year, and really nice to hear the momentum has continued with Morwin into the start of the year.
Thank you we will now be conducting a question and answer session.
Operator: Thank you. We'll now be conducting a question-and-answer session. We ask that you please limit yourself to one question and one follow-up so that other callers have a chance to participate. If you'd like to ask a question at this time, you may press star 1 from your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. The first question comes from the line of Megan Clapp with Morgan Stanley. Please proceed with your questions.
Operator: Thank you. We'll now be conducting a question-and-answer session. We ask that you please limit yourself to one question and one follow-up so that other callers have a chance to participate. If you'd like to ask a question at this time, you may press star 1 from your telephone keypad, and a confirmation tone will indicate your line is in the question queue. You may press star 2 if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up the handset before pressing the star keys. One moment, please, while we poll for questions. Thank you. The first question comes from the line of Megan Clapp with Morgan Stanley. Please proceed with your questions.
We ask you please limit yourself to one question and one follow up so the other callers that have a chance to participate.
Speaker #3: I think a key investor focus and question we still get a lot is, how do you lap what you just delivered as we look into fiscal '26?
If you'd like to ask a question at this time you May press star one from your telephone keypad, a confirmation tone will indicate your line is in the question queue.
Speaker #3: You talked about kind of mid-single digit top-line growth for Wizards. I think most of that's probably driven by Magic. So can you just kind of take a step back and unpack some of the assumptions that are underlying your Magic guide for the year?
Before I start to feel like to remove your question from the queue.
For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys.
Speaker #3: You've got the extra half set, the backlist, obviously momentum remains strong there. You talked about secret layer record in the fourth quarter as well.
One Oh, please pull for questions.
Thank you. The first question comes from the line of Megan Clark with Morgan Stanley. Please proceed with your questions.
Speaker #3: And then the player growth up 20% year over year. Can you talk about just how what you're seeing from some of these newer players plays into it as well?
Hi, good morning, Cristina Thanks for taking our questions.
Megan Clapp: Hi. Good morning, Chris, Gina. Thanks for taking our questions. I wanted to start with Magic. Good morning. Obviously, really impressive growth in the fourth quarter in the year, and really nice to hear the momentum has continued with Lorwyn into the start of the year. I think a key investor focus and question we still get a lot is, "How do you lap what you just delivered as we look into fiscal 2026?" You talked about kind of mid-single-digit top-line growth for Wizards. I think most of that's probably driven by Magic. So can you just kind of take a step back and unpack some of the assumptions that are underlying your Magic guide for the year? You've got the extra half set, the backlist. Obviously, momentum remains strong there. You talked about Secret Lair record in the fourth quarter as well.
Megan Clapp: Hi. Good morning, Chris, Gina. Thanks for taking our questions. I wanted to start with Magic. Good morning. Obviously, really impressive growth in the fourth quarter in the year, and really nice to hear the momentum has continued with Lorwyn into the start of the year. I think a key investor focus and question we still get a lot is, "How do you lap what you just delivered as we look into fiscal 2026?" You talked about kind of mid-single-digit top-line growth for Wizards. I think most of that's probably driven by Magic. So can you just kind of take a step back and unpack some of the assumptions that are underlying your Magic guide for the year? You've got the extra half set, the backlist.
Wanted to <unk> morning, obviously really impressive growth in the fourth quarter and the year and really nice to hear the momentum has continued with borrowing into the start of the year.
Speaker #3: Thank
Speaker #3: Thank you. Yeah.
Speaker #4: Good morning, Megan. I'll start and then Gina can correct everything I say. I think it really comes down to several growth vectors. The first one is distribution growth.
I think a key investor focus in question, we still get a lot is how do you lap what you just delivered as we look into fiscal 'twenty. Six you talked about kind of mid single digit topline growth for Wizards I think most of that is probably driven by magic. So can you just kind of take a step back and unpack some of the assumptions that.
Speaker #4: We're seeing meaningful growth in our Wizards play network. That was up 20% last year. We think it's going to be up double digits this year again.
Our underlying your Magic guide for the year, you've got the extra half set the backlist, obviously momentum remains strong there you talked about secret lair record in the fourth quarter as well and then the.
Speaker #4: We're seeing incremental distribution as the brand expands and the player base expands. So I think mass market and non-WPN-based distribution growth exceeded last year's WPN growth and will exceed it again this year.
Megan Clapp: Obviously, momentum remains strong there. You talked about Secret Lair record in the fourth quarter as well. Then the player growth, up 20% year-over-year. Can you talk about just how what you're seeing from some of these newer players plays into it as well? Thank you.
Megan Clapp: Then the player growth, up 20% year-over-year. Can you talk about just how what you're seeing from some of these newer players plays into it as well? Thank you.
The player growth up 20% year over year can you talk about just how what youre seeing from some of these newer players plays into it as well. Thank you.
Speaker #4: Player growth has been robust. I think the organized play metrics we're giving you are just kind of hardcore or core player growth, the people who play in stores.
Yes, good morning Megan.
Chris Cocks: Yeah. Good morning, Megan. I'll start, and then Gina can correct everything I say. I think it really comes down to several growth vectors. The first one is distribution growth. We're seeing meaningful growth in our Wizards Play Network. That was up 20% last year. We think it's going to be up double digits this year again. We're seeing incremental distribution as the brand expands and the player base expands. So, I think mass market and non-WPN-based distribution growth exceeded last year's WPN growth and will exceed it again this year. Player growth has been robust. I think the organized play metrics we're giving you are just kind of hardcore or core player growth, the people who play in stores. Our metrics for non-kind of hardcore players are a little more loose, but we think that those are growing well in excess of that 20%.
Chris Cocks: Yeah. Good morning, Megan. I'll start, and then Gina can correct everything I say. I think it really comes down to several growth vectors. The first one is distribution growth. We're seeing meaningful growth in our Wizards Play Network. That was up 20% last year. We think it's going to be up double digits this year again. We're seeing incremental distribution as the brand expands and the player base expands. So, I think mass market and non-WPN-based distribution growth exceeded last year's WPN growth and will exceed it again this year. Player growth has been robust. I think the organized play metrics we're giving you are just kind of hardcore or core player growth, the people who play in stores. Our metrics for non-kind of hardcore players are a little more loose, but we think that those are growing well in excess of that 20%.
And then Gino can concur.
Ken correct everything I say.
Speaker #4: Our metrics for non-kind of hardcore players are a little more loose, but we think that those are growing well in excess of that 20%.
[laughter].
I think it really comes down to several growth vectors. The first one is distribution growth, we're seeing meaningful growth in our Wizards play network that was up 20% last year, we think it's going to be up double digits. This year again.
Speaker #4: And importantly, as we're bringing on new kind of casual fans or new-to-Magic fans and collectors, they are sticking around. And you're seeing that evidenced in robust backlist and higher organized play participation.
We're seeing incremental distribution as the brand expands in the player base expands so I think mass market and non wpn based distribution growth exceeded last year wpn growth and we will exceed it again this year.
Speaker #4: So what we're seeing going on with Magic is a virtuous cycle of there's more places to buy, there's more people playing, they're engaging longer, and sticking around.
Player growth has been robust I think the organized play metrics. We're giving you are just kind of hardcore core player growth to people who play in stores.
Speaker #4: And that just leads to increased set-over-set performance like we're seeing with Lorwen. And we see that continuing into 2026. Not to mention, we've got a stacked lineup of partners.
Our our metrics for non kind of hardcore players are a little more loose but.
Speaker #4: You've got Teenage Mutant Ninja Turtles, The Hobbit, Marvel Superheroes, and Star Trek. Plus some real fan-favorite sets like Lorwen and Strixhaven on tap for this year.
But we think that those are growing well in excess of that 20% and.
And importantly, as we're bringing on new kind of casual fans or new to magic fans and collectors. They are sticking around and youre seeing that evidenced in robust backlist and higher organized play participation.
Chris Cocks: Importantly, as we're bringing on new kind of casual fans or new-to-Magic fans and collectors, they are sticking around. And you're seeing that evidenced in robust backlist and higher organized play participation. So what we're seeing going on with Magic is a virtuous cycle of there's more places to buy, there's more people playing, they're engaging longer and sticking around. And that just leads to increased set-over-set performance like we're seeing with Lorwyn. And we see that continuing into 2026. Not to mention, we've got a stacked lineup of partners. You've got Teenage Mutant Ninja Turtles, The Hobbit, Marvel Super Heroes, and Star Trek, plus some real fan-favorite sets like Lorwyn and Strixhaven on tap for this year.
Chris Cocks: Importantly, as we're bringing on new kind of casual fans or new-to-Magic fans and collectors, they are sticking around. And you're seeing that evidenced in robust backlist and higher organized play participation. So what we're seeing going on with Magic is a virtuous cycle of there's more places to buy, there's more people playing, they're engaging longer and sticking around. And that just leads to increased set-over-set performance like we're seeing with Lorwyn. And we see that continuing into 2026. Not to mention, we've got a stacked lineup of partners. You've got Teenage Mutant Ninja Turtles, The Hobbit, Marvel Super Heroes, and Star Trek, plus some real fan-favorite sets like Lorwyn and Strixhaven on tap for this year.
Speaker #3: Yeah. I guess, Megan, good morning. My ad would be as we think about the phasing for the year, there's a front half and a back half.
Speaker #3: And when you split it really most of the growth for the business is going to come in the front half of the year just surely because of what we're comping in Q4.
So what we're seeing going on with Magic is a virtuous cycle of there's more places to buy theres more people playing.
Speaker #3: And if you look kind of quarter by quarter basis, all three first three quarters are going to continue to grow for Magic. It's really about that fourth quarter.
They are engaging longer and sticking around.
<unk>.
That just leads to increased fed overset performance like we're seeing with Laura Nguyen and we see that continuing into 2026.
Speaker #3: So expect really strong performance in the front half of the year, really good performance in the back half of the year as well. It's just we have a massive comp in Q4.
Speaker #3: So expect really strong performance in the front half of the year, really good performance in the back half of the year as well. It's just we have a massive comp in
Not to mention we've got a <unk>.
Stacked lineup of partners, you've got teenage mutant Ninja turtles, the Hobbit Marvel superheroes and Star Trek, plus some real fan favorite sets like Laura Nguyen and strict saving on tap for this year.
Speaker #5: Right. Okay. Super helpful. And then maybe just a follow-up on partnerships. Chris, you talked a lot about playing to win and the growing role partnerships are playing and you're prepared remarks.
Speaker #5: We've obviously seen a step of an announcement over the last week, including Harry Potter this morning. So can you just talk a little bit about what's driving the momentum in this expanded partnership slate and specifically how the business is transformation, what you can maybe now offer the partners has changed the conversations and maybe made you more of a partner of choice and then for Gina, does this change how you think about the medium-term top-line growth for CP just as we you'll have a strong year this year, but a lot of this will layer into '27.
Yes, I guess Meghan good morning, My add would be as we think about the phasing for the year. There is a front half back half and.
Gina Goetter: Yeah. I guess, Megan, good morning. My ad would be, as we think about the phasing for the year, there's a front half and a back half. When you split it, really, most of the growth for the business is going to come in the front half of the year, just purely because of what we're comping in Q4. If you look kind of quarter-by-quarter basis, all three first three quarters are going to continue to grow for Magic. It's really about that fourth quarter. So expect really strong performance in the front half of the year, really good performance in the back half of the year as well. It's just we have a massive comp in Q4.
Gina Goetter: Yeah. I guess, Megan, good morning. My ad would be, as we think about the phasing for the year, there's a front half and a back half. When you split it, really, most of the growth for the business is going to come in the front half of the year, just purely because of what we're comping in Q4. If you look kind of quarter-by-quarter basis, all three first three quarters are going to continue to grow for Magic. It's really about that fourth quarter. So expect really strong performance in the front half of the year, really good performance in the back half of the year as well. It's just we have a massive comp in Q4.
When you split it really most of the growth for the business is going to come in the front half of the year just surely because of what we're comping in Q4, and if you look at it quarter by quarter basis. All three first three quarters are going to continue to grow for magic, it's really about that fourth quarter. So.
Expect really strong performance in the front half of the year really good performance in the back half of the year as well. It's just we have a massive comp in Q4.
Speaker #5: Thanks.
Speaker #4: Yeah.
Alright, Okay Super helpful. And then maybe just a follow up on on partnerships, Chris you talked a lot about playing to win in the growing role of partnerships are playing in your prepared remarks, you've obviously seen a.
Megan Clapp: Right. Okay. Super helpful. And then maybe just a follow-up on partnerships. Chris, you talked a lot about playing to win and the growing role partnerships are playing in your prepared remarks. We've obviously seen a step up in announcements over the last week, including Harry Potter this morning. So can you just talk a little bit about what's driving the momentum in this expanded partnership slate and specifically how the business's transformation, what you can maybe now offer the partners, has changed the conversations and maybe made you more of a partner of choice? And then for Gina, does this change how you think about the medium-term top-line growth for CP just as we you'll have a strong year this year, but a lot of this will layer into 2027? Thanks.
Megan Clapp: Right. Okay. Super helpful. And then maybe just a follow-up on partnerships. Chris, you talked a lot about playing to win and the growing role partnerships are playing in your prepared remarks. We've obviously seen a step up in announcements over the last week, including Harry Potter this morning. So can you just talk a little bit about what's driving the momentum in this expanded partnership slate and specifically how the business's transformation, what you can maybe now offer the partners, has changed the conversations and maybe made you more of a partner of choice? And then for Gina, does this change how you think about the medium-term top-line growth for CP just as we you'll have a strong year this year, but a lot of this will layer into 2027? Thanks.
Speaker #4: business books. I geek out about So I read a lot of them. I bore the management team with them. And Jim Collins is one of my favorites.
Speaker #4: He has this kind of concept called a hedgehog concept, which is what's the thing that your uniquely the best at in the world as a company or could be the best at in the world?
The step up in announcements over the last week, including Harry Potter. This morning cause. So can you just talk a little bit about what's driving the momentum in this expanded partnership sleep and specifically how the business is transformation and what you can maybe now offer the partners has changed the conversations and maybe made you more of a.
Speaker #4: We call it our superpower. And we believe Hasbro's superpower is inspiring a lifetime of play. We are a company that uniquely can engage a consumer as young as two or three, and extend that play relationship well into throughout their entire lives from two to 99 and beyond.
Our partner of choice and then for Gino like does this change how you think about the medium term topline growth for C. P. Just as we you know you'll have a stronger this year, but a lot of this will layer into into 2007.
Speaker #4: And I think the partners that we're working with, they have brands that are multi-generational, that have been around for a long time, that appeal to preschoolers, but also appeal to collectors.
Yes so.
Chris Cocks: Yeah. So I read a lot of business books. I geek out about them. I bore the management team with them. And Jim Collins is one of my favorite. He has this kind of concept called a hedgehog concept, which is what's the thing that you're uniquely the best at in the world as a company or could be the best at in the world? We call it our superpower. And we believe Hasbro's superpower is inspiring a lifetime of play. We are a company that uniquely can engage a consumer as young as two or three and extend that play relationship well into, throughout their entire lives, from 2 to 99 and beyond. And I think the partners that we're working with, they have brands that are multi-generational, that have been around for a long time, that appeal to preschoolers, but also appeal to collectors.
Chris Cocks: Yeah. So I read a lot of business books. I geek out about them. I bore the management team with them. And Jim Collins is one of my favorite. He has this kind of concept called a hedgehog concept, which is what's the thing that you're uniquely the best at in the world as a company or could be the best at in the world? We call it our superpower. And we believe Hasbro's superpower is inspiring a lifetime of play. We are a company that uniquely can engage a consumer as young as two or three and extend that play relationship well into, throughout their entire lives, from 2 to 99 and beyond. And I think the partners that we're working with, they have brands that are multi-generational, that have been around for a long time, that appeal to preschoolers, but also appeal to collectors.
And I read a lot of business books.
Got about them or the management team with him and Jim Collins is one of my favorite he is kind of a concept called the Hedgehog concept, which is what's the thing that you're uniquely the best out in the world as a company or it could be the best at in the World We call it our superpower.
Speaker #4: And I think what a partner chooses Hasbro, they choose us because we can uniquely do that out there. And among most toy and collectible companies so whether it's K-pop Demon Hunters, which is Netflix's biggest film ever and really kind of appealing to kind of that tween and teen crowd, or 52-year-old CEOs like myself, Harry Potter, which is celebrating what it's 30th, 25th anniversary best-selling book series, hundreds of millions of fans, people flocking to theme parks, Voltron, which is like a seminal kind of collector brand from the 1970s and '80s.
And we believe hasbro's superpowers inspiring a lifetime of play we are a company that uniquely can.
Engage a consumer as young as two or three and extend that play a relationship.
Well into throughout their entire lives from 2% to 99 and beyond.
And I think the partners that we're working with they have brands that are multi generational that had been around for a long time that appeal to preschoolers, but also appeal to collectors and I think what a partner chooses hasbro they choose us because we can uniquely do that among <unk>.
Speaker #4: I remember having my breakfast cereal watching Voltron as a kid or iconic video game series like The Street Fighter. It just works hand in glove with what Hasbro is great at.
Chris Cocks: I think when a partner chooses Hasbro, they choose us because we can uniquely do that among most toy and collectible companies out there. And so whether it's KPop Demon Hunters, which is Netflix's biggest film ever and really kind of appealing to kind of that tween and teen crowd, or 52-year-old CEOs like myself, Harry Potter, which is celebrating what, its 30th, 25th anniversary, best-selling book series, hundreds of millions of fans, people flocking to theme parks, Voltron, which is like a seminal kind of collector brand from the 1970s and '80s, I remember having my breakfast cereal watching Voltron as a kid, or iconic video game series like Street Fighter. It just works hand in glove with what Hasbro is great at.
Chris Cocks: I think when a partner chooses Hasbro, they choose us because we can uniquely do that among most toy and collectible companies out there. And so whether it's KPop Demon Hunters, which is Netflix's biggest film ever and really kind of appealing to kind of that tween and teen crowd, or 52-year-old CEOs like myself, Harry Potter, which is celebrating what, its 30th, 25th anniversary, best-selling book series, hundreds of millions of fans, people flocking to theme parks, Voltron, which is like a seminal kind of collector brand from the 1970s and '80s, I remember having my breakfast cereal watching Voltron as a kid, or iconic video game series like Street Fighter. It just works hand in glove with what Hasbro is great at.
Most toy and collectible companies out there.
Speaker #4: And so I think as you see us announce these partnerships, they're really going to lean into gamified product opportunities, entertainment, and event-driven kind of brands that supercharge inside of our distribution system.
And so whether it's K pop theme and hundreds which is Netflix is biggest film ever and really kind of appealing to kind of that tween in teen crowd.
Or 52 year old Ceos like myself, Harry Potter, which is celebrating its 32005th anniversary bestselling book series hundreds of millions of fans people flocking to theme parks Voltaren, which is like a seminal kind of collector brand from like the $19 70, as an <unk> I remember.
Speaker #4: multi-purchase and highly collectible. And They're they're multi-generational. And I think that's true for the toy side of the business as well as the game side of the business.
Speaker #4: So you're seeing us execute this playbook on Magic, you're going to see us execute it on Dungeons and Dragons, and you're seeing us execute it across our toys and
Having my my breakfast cereal watching voltaren as a kid.
Speaker #4: collectibles. Yeah.
Our iconic Vinny.
Speaker #3: Megan, my ad would be first, I want to give a huge shout-out to Tim Kilpin and his team for securing so many valuable partnerships for us on the toy and game side.
Video game series like the Street fighter.
It just works hand in glove with what Hasbro is great at and so I think as you see us announce these partnerships they are really going to lean into.
Chris Cocks: And so I think as you see us announce these partnerships, they're really going to lean into gamified product opportunities, entertainment, and event-driven kind of brands that supercharge inside of our distribution system. They're multi-purchase and highly collectible, and they're multi-generational. And I think that's true for the toy side of the business as well as the game side of the business. So you're seeing us execute this playbook on Magic. You're going to see us execute it on Dungeons & Dragons, and you're seeing us execute it across our toys and collectibles.
Chris Cocks: And so I think as you see us announce these partnerships, they're really going to lean into gamified product opportunities, entertainment, and event-driven kind of brands that supercharge inside of our distribution system. They're multi-purchase and highly collectible, and they're multi-generational. And I think that's true for the toy side of the business as well as the game side of the business. So you're seeing us execute this playbook on Magic. You're going to see us execute it on Dungeons & Dragons, and you're seeing us execute it across our toys and collectibles.
Speaker #3: We've been talking for years of the couple of things that are going to continue to move us up the margin scale on CP. And scale is one of them.
Game of Fide product opportunities entertainment and event driven kind of brands that like supercharge inside of our distribution system Theyre multi purchase and highly collectible and they are multi generational and I think that's true for the toy side of the business as well as the game side of the business, So youre seeing us execute.
Speaker #3: And so these licenses help to build that scale in a very productive way for Hasbro. And so as we think about our midterm outlook and really that top-line number for CP, we see this year as the inflection point.
Speaker #3: We're back to growth. We're guiding to growth for CP. And when we look out into '27 and '28, we see that continuing. So we do think that these licenses serve a really valuable purpose in just bringing our entire kind of fleet of brands and capabilities to life.
This playbook on magic Youre going to see is executed on dungeons and Dragons and youre seeing its executed across our toys and collectibles.
Yes.
Gina Goetter: Yeah. Megan, my ad would be first. I want to give a huge shout-out to Tim Kilpin and his team for securing so many valuable partnerships for us on the toy and game side. We've been talking for years of the couple of things that are going to continue to move us up the margin scale on CP, and scale is one of them. And so these licenses help to build that scale in a very productive way for Hasbro. And so as we think about our midterm outlook and really that top-line number for CP, we see this year as the inflection point. We're back to growth. We're guiding to growth for CP. And when we look out into 2027 and 2028, we see that continuing.
Gina Goetter: Yeah. Megan, my ad would be first. I want to give a huge shout-out to Tim Kilpin and his team for securing so many valuable partnerships for us on the toy and game side. We've been talking for years of the couple of things that are going to continue to move us up the margin scale on CP, and scale is one of them. And so these licenses help to build that scale in a very productive way for Hasbro. And so as we think about our midterm outlook and really that top-line number for CP, we see this year as the inflection point. We're back to growth. We're guiding to growth for CP. And when we look out into 2027 and 2028, we see that continuing.
My add would be first I want to give a huge shout out to 10 kilbane and his team for securing so many valuable partnerships for us on the on the toy and game side. We've been talking for years are the couple of things that are going to continue to move us up the margin scale in CP and scale is one of them and so.
Speaker #5: Great. Thanks so
Speaker #5: much. The next question
Speaker #1: is from the line of James Hardiman with Citigroup. Please proceed with your
Speaker #1: questions. Hey.
Speaker #6: Good morning. Wanted to sort of follow along that path of obviously, Wizards top line was better, certainly, than any of us would have expected, even the most bullish expectations coming into the year.
These licenses helped to build that scale in a very productive way for Hasbro and so as we think about our midterm outlook and really that top line number for CP. We see this year is the inflection point, where we're back to growth, we're guiding to growth for CP and when we look out into 27 and 28.
Speaker #6: But I wanted to unpack the margin a little bit because that also blew away expectations, right? I think you were assuming that margins would contract this year or last year, I guess I should say, given the mix of the business.
We see that continuing so.
Gina Goetter: So we do think that these licenses serve a really valuable purpose in just bringing our entire kind of fleet of brands and capabilities to life.
Gina Goetter: So we do think that these licenses serve a really valuable purpose in just bringing our entire kind of fleet of brands and capabilities to life.
We do think that these licenses are really valuable purpose than just bringing our entire fleet of brands and capabilities life.
Speaker #6: And I think it expanded 420 basis points, right? And so as we think about 2026, clearly, part of the reason we're, again, expecting contraction is the video games and their dilution to margins.
Great. Thanks, so much.
Megan Clapp: Great. Thanks so much.
Megan Clapp: Great. Thanks so much.
The next questions are from the line of James Hardiman with Citigroup. Please proceed with your questions.
Operator: The next questions are from the line of James Hardiman with Citigroup. Let's just see what their questions are.
Operator: The next questions are from the line of James Hardiman with Citigroup. Let's just see what their questions are.
Hey, good morning.
James Hardiman: Hey. Good morning. Wanted to sort of follow along that path of obviously, Wizards top-line was better, certainly, than any of us would have expected, even the most bullish expectations coming into the year. But I wanted to unpack the margin a little bit because that also blew away expectations, right? I think you were assuming that margins would contract this year or last year, I guess I should say, given the mix of the business. And I think it expanded 420 basis points, right? And so as we think about 2026, clearly, part of the reason we're, again, expecting contraction is the video games and their dilution to margins.
James Hardiman: Hey. Good morning. Wanted to sort of follow along that path of obviously, Wizards top-line was better, certainly, than any of us would have expected, even the most bullish expectations coming into the year. But I wanted to unpack the margin a little bit because that also blew away expectations, right? I think you were assuming that margins would contract this year or last year, I guess I should say, given the mix of the business. And I think it expanded 420 basis points, right? And so as we think about 2026, clearly, part of the reason we're, again, expecting contraction is the video games and their dilution to margins.
Wanted to sort of follow along that path.
Speaker #6: But maybe help us unpack sort of the structural margins of Wizards versus sort of or at least the tabletop business versus some of these other offsets that may, for a period of time, compress that a little bit because it feels like this isn't just sort of a temporary things got better in '25 and then they'll contract back to where we thought they would be.
Obviously wizard.
Top line was better certainly than any of us would have expected even the most bullish expectations coming into the year, but I wanted to unpack the margin a little bit because of that also blew away expectations right. I think you were you were assuming.
Margins would contract this year or last year, I guess I should say given the mix of the business and I think it expanded 420 basis points right.
Speaker #6: It seems like this is maybe more of a permanent
Speaker #6: It seems like this is maybe more of a permanent benefit. Yeah.
And so as we think about 2026.
Speaker #3: Morning, James. Good question. We've always said that the Wizards segment margins are going to kind of play and dance within that high 30s, low 40s.
Clearly part of the reason we are again expecting contraction.
Speaker #3: To your point, we ended the year '25 quite a bit more favorable than that, really driven by mix and leverage that kind of flew through the P&L.
The video games and their dilution.
Margins, but maybe help us unpack sort of the structural margins of Wizards versus.
James Hardiman: But maybe help us unpack sort of the structural margins of Wizards versus sort of the, or at least, the tabletop business versus some of these other offsets that may, for a period of time, compress that a little bit, because it feels like this isn't just sort of a temporary thing; things got better in 2025 and then they'll contract back to where we thought they would be. It seems like this is maybe more of a permanent benefit.
James Hardiman: But maybe help us unpack sort of the structural margins of Wizards versus sort of the, or at least, the tabletop business versus some of these other offsets that may, for a period of time, compress that a little bit, because it feels like this isn't just sort of a temporary thing; things got better in 2025 and then they'll contract back to where we thought they would be. It seems like this is maybe more of a permanent benefit.
Speaker #3: As well as we had some nice pickups in cost productivity through the fourth quarter within the supply chain that benefited us. As we look into 2026 and the overall margin profile, we do expect to give back a little bit of that, namely because royalty expense is going to continue to increase.
Or at least the tabletop business versus some of these other offsets that made for a period of time.
Compressed that a little bit because it feels like.
This isn't just sort of a temporary things got better than 25 at Danville contract back to where we thought they would be it seems like this is maybe more of a permanent benefit.
Speaker #3: Plus, as we move through the back half of the year, we will be stepping into some additional expenses related to the launch of the two games in 2027.
Hmm.
Yeah. Good morning, James Good question.
Gina Goetter: Yeah. Morning, James. Good question. We've always said that the Wizards segment margins are going to kind of play and dance within that high 30s, low 40s. To your point, we ended the year 2025 quite a bit more favorable than that, really driven by mix and leverage that kind of flew through the P&L, as well as we had some nice pickups in cost productivity through the Q4 within the supply chain that benefited us. As we look into 2026 and the overall margin profile, we do expect to give back a little bit of that, namely because royalty expense is going to continue to increase. Plus, as we move through the back half of the year, we will be stepping into some additional expenses related to the launch of the two games in 2027. So to your point, the overall margin foundation is quite solid.
Gina Goetter: Yeah. Morning, James. Good question. We've always said that the Wizards segment margins are going to kind of play and dance within that high 30s, low 40s. To your point, we ended the year 2025 quite a bit more favorable than that, really driven by mix and leverage that kind of flew through the P&L, as well as we had some nice pickups in cost productivity through the Q4 within the supply chain that benefited us. As we look into 2026 and the overall margin profile, we do expect to give back a little bit of that, namely because royalty expense is going to continue to increase. Plus, as we move through the back half of the year, we will be stepping into some additional expenses related to the launch of the two games in 2027. So to your point, the overall margin foundation is quite solid.
Speaker #3: So to your point, the overall margin foundation is quite solid. Being in that high 30s, low 40s is the right range for us. Now, video games, when we get to that point in '27, that will be, as we've talked about in the last call, it will take a bit away from margin in that sense.
Always said that the Wizard segment margins are gonna it kind of play and dance within that high <unk> low <unk>.
To your point, we ended the year.
25, quite a bit more favorable than that really driven by by mix and leverage that kind of flew through the P&L. As also we had some nice pickups in cost productivity through the fourth quarter within the supply chain that that benefited us.
Speaker #3: But we're going to still be within that high 30s, low 40s business.
Speaker #6: Got it. That makes sense. And then maybe switching to CP guidance, low single-digit revenues, operating profit 6 to 8 percent, maybe help us unpack that.
As we look into 2026 and the overarching profile, we do expect to give back a little bit of that.
Namely because royalty expense is going to continue continue to increase plus as we move through the back half of the year, we will be stepping into some additional expenses related to the launch of the two games in 2027.
Speaker #6: I mean, what are you assuming from a point-of-sale perspective? And are there any sort of tailwinds as we think about whether it's inventories being a little depleted heading into the year or I think you made the comment that retail ordering patterns were ultimately negative to the top line for '25 just based on the tariffs and the DI to DOM shift.
So to your point that the overall margin foundation is quite solid.
Gina Goetter: Being in that high 30s, low 40s is the right range for us. Now, video games, when we get to that point in 2027, that will be, as we've talked about in the last call, it will take a bit away from margin in that sense. But we're going to still be within that high 30s, low 40s business.
Gina Goetter: Being in that high 30s, low 40s is the right range for us. Now, video games, when we get to that point in 2027, that will be, as we've talked about in the last call, it will take a bit away from margin in that sense. But we're going to still be within that high 30s, low 40s business.
Being in that high <unk> low <unk> is the right range for US now video games, when we get to that point in 2007 that will be as we've talked about in the last call. It will take a bit away from margin in that in that sense, but we're going to still be within that high <unk> low fourteens business.
Speaker #6: Does that become a tailwind at all to 2026? Or is CP revenues being up low single digits pretty consistent with how you're thinking about
Got it that makes sense and then maybe switching to GP guidance.
James Hardiman: Got it. That makes sense. Then maybe switching to CP guidance, low single-digit revenues, operating profit 6% to 8%. Maybe help us unpack that. I mean, what are you assuming from a point-of-sale perspective? And are there any sort of tailwinds as we think about whether it's inventories being a little depleted heading into the year? Or I think you made the comment that retail ordering patterns were ultimately negative to the top-line for 2025 just based on the tariffs and the DI to DOM shift. Does that become a tailwind at all to 2026, or is CP revenues being up low single digits pretty consistent with how you're thinking about retail? Thanks.
James Hardiman: Got it. That makes sense. Then maybe switching to CP guidance, low single-digit revenues, operating profit 6% to 8%. Maybe help us unpack that. I mean, what are you assuming from a point-of-sale perspective? And are there any sort of tailwinds as we think about whether it's inventories being a little depleted heading into the year? Or I think you made the comment that retail ordering patterns were ultimately negative to the top-line for 2025 just based on the tariffs and the DI to DOM shift. Does that become a tailwind at all to 2026, or is CP revenues being up low single digits pretty consistent with how you're thinking about retail? Thanks.
Speaker #6: retail? Thanks. Got
Low single digit revenue operating profit, 6% to 8% maybe help us unpack that.
Speaker #3: it. Okay. So let's start with where we landed on the year on inventory. So coming out of the third quarter, if you go back to our comments there, our retail inventory was, call it down, mid-teens.
What are you assuming from a from our point of sale.
Perspective, and are there any sort of tailwind as we think about whether it's inventories being a little depleted heading into the year or I think you made the comment that that.
Speaker #3: We ended the year probably down high single digits at retail inventory. So we probably filled a little bit of pipeline in through the fourth quarter.
Speaker #3: And I would call that the right resting spot for retail inventory, just given the macro environment and what is still happening with into 2026, any sort of retail inventory as being a big positive or negative for the year.
Retail ordering patterns, where we're ultimately negative to the top line for 25.
Just based on the tariffs.
Sure.
Does that become a tailwind at all.
26.
CPE revenues being up low single digits pretty consistent with how youre thinking about retail.
Speaker #3: It's just kind of hold serve as we move throughout the year. The big tailwinds that I see for us in '26 really come on the back of a stronger entertainment slate.
Got it.
Gina Goetter: Got it. Okay. So let's start with where we landed on the year on inventory. So coming out of Q3, if you go back to our comments there, our retail inventory was, call it down, mid-teens. We ended the year probably down high single digits at retail inventory. So we probably filled a little bit of pipeline in through Q4. And I would call that the right resting spot for retail inventory just given the macro environment and what is still happening with tariffs. So I don't expect, as we move into 2026, any sort of retail inventory as being a big positive or negative for the year. It's going to kind of hold serve as we move throughout the year. The big tailwinds that I see for us in 2026 really come on the back of a stronger entertainment slate.
Gina Goetter: Got it. Okay. So let's start with where we landed on the year on inventory. So coming out of Q3, if you go back to our comments there, our retail inventory was, call it down, mid-teens. We ended the year probably down high single digits at retail inventory. So we probably filled a little bit of pipeline in through Q4. And I would call that the right resting spot for retail inventory just given the macro environment and what is still happening with tariffs. So I don't expect, as we move into 2026, any sort of retail inventory as being a big positive or negative for the year. It's going to kind of hold serve as we move throughout the year. The big tailwinds that I see for us in 2026 really come on the back of a stronger entertainment slate.
Okay. So let's start with where we landed on the year on inventory so coming out of the third quarter. If you go back to our comments there are retail inventory was call. It down mid teens, we ended the year, probably down high single digits at retail inventory, so we probably filled a little bit of pipeline into the fourth quarter.
Speaker #3: So, I mean, four movie releases from our partners at Disney usually lead to nice top-line growth for us. And we have, when you look at kind of front-half, back-half for CP, pretty balanced.
Speaker #3: So we're expecting kind of low single-digit growth throughout the balance of the year. The one point that we call out when we think about the second quarter, just keep in mind that was where we had all of the tariff-related noise in 2025.
<unk> and I would call that rate resting spot for retail inventory just given the macro macro environment and what is still happening with with tariffs. So I don't expect as we move into 2026, and he sort of retail inventory as being a big positive or negative for the year, it's kind of.
Speaker #3: So our second quarter is going to be pretty big. The cadence for CP will be the first quarter will be down. And that's largely driven by some one-time comps that we have within licensing.
Kind of hold serve as we move throughout the year, the big tailwind that I see for us in 2006 really come on the back of a stronger entertainment slate. So four four movie releases from our partners at Disney usually lead to nice top line growth for us and we have when you look at kind of front half back half for CP.
Speaker #3: Q2 will be up pretty strong, just given this comp that we have from the tariff event in '25. And then the back half of the year, I believe we've got Q3 is up and Q4 is up slightly.
Gina Goetter: So I mean, 4 movie releases from our partners at Disney usually lead to nice top-line growth for us. And when you look at kind of front half, back half for CP, pretty balanced. So we're expecting kind of low single-digit growth throughout the balance of the year. The one point that we call out when we think about Q2, just keep in mind that was where we had all of the tariff-related noise in 2025. So our Q2 is going to be pretty big. The cadence for CP will be Q1 will be down, and that's largely driven by some one-time comps that we have within licensing. Q2 will be up pretty strong just given this comp that we have from the tariff event in 2025.
Gina Goetter: So I mean, 4 movie releases from our partners at Disney usually lead to nice top-line growth for us. And when you look at kind of front half, back half for CP, pretty balanced. So we're expecting kind of low single-digit growth throughout the balance of the year. The one point that we call out when we think about Q2, just keep in mind that was where we had all of the tariff-related noise in 2025. So our Q2 is going to be pretty big. The cadence for CP will be Q1 will be down, and that's largely driven by some one-time comps that we have within licensing. Q2 will be up pretty strong just given this comp that we have from the tariff event in 2025.
Speaker #3: So it's a really balanced delivery for the business over the course of the year.
Pretty balanced so we're expecting kind of low single digit growth throughout the balance of the year.
Speaker #6: That's a great color. Thanks, Gina.
Speaker #3: Thank you.
Speaker #1: Our next question is from the line of Garrick Johnson with Seaport Research. Let's see if there are
The one point that we call out when we think about the second quarter just keep in mind that was where we had all of the tariff related noise in 2025, So our second quarter is going to be pretty big.
Speaker #6: Great. Thank you. Good morning, everybody. Hey, Chris.
Speaker #3: Good morning. Good to hear your voice, Garrick. Good to hear your voice. Welcome back.
Speaker #6: Great to be back. Thank you. So I want to ask on Magic. What do you think the ratio or the proportion of tabletop sales go to players or go to games being played?
The cadence for CP will be the first quarter will be will be down and that's largely driven by some onetime comps that we have within licensing Q2 will be up pretty strong just given this this comp that we have from the from the tariff event in 'twenty five and then the back half of the year I believe we've got Q3 is up in Q4 is up slightly.
Speaker #6: And what proportion go to collectors and
Gina Goetter: Then the back half of the year, I believe we've got Q3 is up, and Q4 is up slightly. So it's a really balanced delivery for the business over the course of the year.
Gina Goetter: Then the back half of the year, I believe we've got Q3 is up, and Q4 is up slightly. So it's a really balanced delivery for the business over the course of the year.
Speaker #5: Oh, gosh. Well, hey, Garrick, first off, welcome back. It's great to have you back on the call. I would say Magic is overwhelmingly player-based or player-collector.
Lately, so it's a really balanced delivery for the business over the course of the year.
That's great color. Thanks Gina.
James Hardiman: That's great color. Thanks, Gina.
James Hardiman: That's great color. Thanks, Gina.
Thank you.
Speaker #5: And that's unique among a lot of trading card games. I think some of our competitors are much more heavily collector-based. So what's good about that is it gives us kind of this stable base of play and community that I think can last if there's any kind of wobbles in kind of collector sentiment or overall kind of value pool available to collectors.
Gina Goetter: Thank you.
Gina Goetter: Thank you.
Our next question is from the line of Gerrick Johnson with Seaport Research. Please proceed with your questions.
Operator: Our next question is from the line of Gerrick Johnson with Seaport Research. Let's see what their questions are.
Operator: Our next question is from the line of Gerrick Johnson with Seaport Research. Let's see what their questions are.
Great. Thank you and good morning, everybody.
Gerrick Johnson: Great. Thank you. Good morning, everybody. Hey, Chris.
Gerrick Johnson: Great. Thank you. Good morning, everybody. Hey, Chris.
Good morning, Matt Good to hear your voice, Eric good to hear.
Gina Goetter: Good morning. Good to hear your voice, Gerrick. Good to hear your voice. Welcome back.
Gina Goetter: Good morning. Good to hear your voice, Gerrick. Good to hear your voice. Welcome back.
Welcome back.
Great to be back thank you.
Gerrick Johnson: Great to be back. Thank you. So I wanted to ask on Magic, what do you think the ratio or the proportion of tabletop sales go to players or go to games being played, and what proportion go to collectors and collections?
Gerrick Johnson: Great to be back. Thank you. So I wanted to ask on Magic, what do you think the ratio or the proportion of tabletop sales go to players or go to games being played, and what proportion go to collectors and collections?
So all of that's gone on magic.
Do you think the ratio or the proportion of tabletop sales.
Go to.
Speaker #5: If you ask me to kind of pin me down to a number, I think we're probably 80 to 90 percent players or player-collectors and relatively small portion of collector-only.
Players go to games being played and what proportion go to collectors and collections.
Oh, gosh, well, Hey, Gary first off welcome back it's great to have you back on the calls.
Chris Cocks: Oh, gosh. Well, hey, Gerrick, first off, welcome back. It's great to have you back on the calls. I would say Magic is overwhelmingly player-based or player-collector. That's unique among a lot of trading card games. I think some of our competitors are much more heavily collector-based. What's good about that is it gives us kind of this stable base of play and community that I think can last if there's any kind of wobbles in kind of collector sentiment or overall kind of value pool available to collectors. If you ask me to kind of pin me down to a number, I think we're probably 80% to 90% players or player-collectors and a relatively small portion of collector-only.
Chris Cocks: Oh, gosh. Well, hey, Gerrick, first off, welcome back. It's great to have you back on the calls. I would say Magic is overwhelmingly player-based or player-collector. That's unique among a lot of trading card games. I think some of our competitors are much more heavily collector-based. What's good about that is it gives us kind of this stable base of play and community that I think can last if there's any kind of wobbles in kind of collector sentiment or overall kind of value pool available to collectors. If you ask me to kind of pin me down to a number, I think we're probably 80% to 90% players or player-collectors and a relatively small portion of collector-only.
Speaker #6: Okay. Fantastic. Thank you. And it's always your licensing revenue is down. And I thought that was a major plank in the strategy. So has that outlicensing program stalled, or what's going on there, and why did that not
I would say magic is overwhelmingly player based or player collector.
Thats unique among a lot of trading card games I think some of our competitors are much more heavily collector base.
Speaker #6: grow? Yeah.
Speaker #3: Good question. That is so no, it has not excuse me. It has not stalled. That is really my little pony trading cards comp that we had coming out of '24.
So what's good about that is it gives us kind of the stable base of play and community.
I think Ken last.
Speaker #3: So there's that one our partner, Caillou, had a huge year in '24. And I think it was the first part of 2025. But then we started comping that as we move through the year.
If there is any kind of wobbles and kind of collector sentiment.
Our overall kind of like valuable available to collectors.
You asked me to kind of pin me down to a number I think we're probably 80% to 90% players or player collectors.
Speaker #3: But all of the other kind of underpinnings of the business are quite healthy.
Speaker #5: Yeah. Our point-of-sale for outlicensed toys was up mid-teens. Location-based entertainment was up probably 20 or 30 locations year over year off of a base of around It's now around 225.
And relatively small portion of collector only.
Okay fantastic. Thank you.
Gerrick Johnson: Okay. Fantastic. Thank you. And in toys, your licensing revenue was down, and I thought that was a major plank in the strategy. So has that out-licensing program stalled, or what's going on there, and why did that not grow?
Gerrick Johnson: Okay. Fantastic. Thank you. And in toys, your licensing revenue was down, and I thought that was a major plank in the strategy. So has that out-licensing program stalled, or what's going on there, and why did that not grow?
The Tories Youre licensing revenue was down and I thought that was the major plank in our strategy.
So has that out licensing program stall there what's going on there and why did that macro.
Speaker #5: Music and entertainment were both pretty solid. A little bit of that is also you have some MGs, and you have some revenue recognition, which smooths out over time.
Yes. Good question that is no. It has not excuse me. It has not stalled that is really our my little pony trading cards comp that we had coming out of 24, So there's that line.
Gina Goetter: Yeah. Good question. So no, it has not. Excuse me. It has not stalled. That is really My Little Pony trading cards comp that we had coming out of 2024. So there's that one. Our partner, Kayou, had a huge year in 2024, and I think it was the first part of 2025, but then we started comping that as we moved through the year. But all of the other kind of underpinnings of the business are quite healthy.
Gina Goetter: Yeah. Good question. So no, it has not. Excuse me. It has not stalled. That is really My Little Pony trading cards comp that we had coming out of 2024. So there's that one. Our partner, Kayou, had a huge year in 2024, and I think it was the first part of 2025, but then we started comping that as we moved through the year. But all of the other kind of underpinnings of the business are quite healthy.
Speaker #5: But really, the wobble last year was my little pony trading cards specifically in China.
Our partner <unk> had a huge year in 'twenty four and I think it was the first part of 2025, but then we started comping that as we move through the year, but all of the other it kind of underpinnings of the business are quite healthy.
Speaker #6: Okay. Great. Thanks for the detail. Appreciate
Speaker #6: it. Thank
Speaker #3: you.
Speaker #1: Our next question is from the line of Stephen Lacik with Goldman Sachs. Please proceed with
Chris Cocks: Yeah. Our point of sale for out-licensed toys was up mid-teens. Location-based entertainment was up probably 20 or 30 locations year-over-year off of a base of around 200. It's now around 225. Music and entertainment were both pretty solid. A little bit of that is also you have some MGs, and you have some revenue recognition, which smooths out over time. But really, the wobble last year was My Little Pony trading card specifically in China.
Chris Cocks: Yeah. Our point of sale for out-licensed toys was up mid-teens. Location-based entertainment was up probably 20 or 30 locations year-over-year off of a base of around 200. It's now around 225. Music and entertainment were both pretty solid. A little bit of that is also you have some MGs, and you have some revenue recognition, which smooths out over time. But really, the wobble last year was My Little Pony trading card specifically in China.
Our point of sale for out license toys was up mid teens.
Speaker #7: Hey. Good morning. And thanks for taking the questions. Chris, on the theme of AI, I would be curious to get your latest views on how AI impacts the video game industry, whether that's on the cost curve, barriers to entry into the industry itself, or the type of gameplay that consumers will come to expect.
Location based entertainment.
Was that.
Probably 20 or 30 locations year over year off of a base of around 200, it's now like around $2 25 music and entertainment were both pretty solid.
Speaker #7: And then within that, would be curious if you could just detail how Hasbro is positioning itself against maybe AI as an emerging factor industry.
A little bit of that is also you have some mgs and you have some revenue recognition, which smoothes out over time, but really the wobble last year was with my little Pony trading card specifically in China.
Speaker #7: here as a relative newcomer to the video game
Speaker #5: Well, I'll break it down short-term, mid-term, long-term. Short-term, I think AI is just a productivity boom. And that'll affect every industry. Whether it's finance, operations, how you think about inventory management, forecast planning, it's just a significant time saver.
Okay, great. Thanks for the detail appreciate it.
Gerrick Johnson: Okay. Great. Thanks for the detail. Appreciate it.
Gerrick Johnson: Okay. Great. Thanks for the detail. Appreciate it.
Thank you.
Gina Goetter: Thank you.
Gina Goetter: Thank you.
Our next question is from the line of Stephen <unk> with Goldman Sachs. Please proceed with your.
Operator: Our next question is from the line of Stephen Laszczyk with Goldman Sachs. Please just share with your questions.
Operator: Our next question is from the line of Stephen Laszczyk with Goldman Sachs. Please just share with your questions.
Questions.
Hey, good morning, and thanks for taking the questions Chris on the theme of AI I was just curious to get your latest views on how AI impacts the videogame industry, whether that's on the cost curve barriers to entry into the industry itself or type of game play that consumers will come to expect.
Stephen Laszczyk: Hey. Good morning. Thanks for taking the questions. Chris, on the theme of AI, I would be curious to get your latest views on how AI impacts the video game industry, whether that's on the cost curve, barriers to entry into the industry itself, or the type of gameplay that consumers will come to expect. And then within that, would be curious if you could just detail how Hasbro is positioning itself against maybe AI as an emerging factor here as a relative newcomer to the video game industry.
Stephen Laszczyk: Hey. Good morning. Thanks for taking the questions. Chris, on the theme of AI, I would be curious to get your latest views on how AI impacts the video game industry, whether that's on the cost curve, barriers to entry into the industry itself, or the type of gameplay that consumers will come to expect. And then within that, would be curious if you could just detail how Hasbro is positioning itself against maybe AI as an emerging factor here as a relative newcomer to the video game industry.
Speaker #5: We conservatively think it's going to save us about a million people-hours' worth of work this year. A lot of which we already outsource and can kind of harvest that into savings and reinvest into the business.
And then within that.
I guess, if you could.
Speaker #5: So instead of having to manage touch a bunch of orders, we can spend that time and innovate or deliver for our customers or our partners.
Just detail how Hasbro is positioning itself against maybe AI as an emerging factor here as a relative newcomer to the video game industry.
Speaker #5: And I think that'll be true inside of video games as well. Mid-term, I obviously think AI kind of transforms how you think about concepting, how you think about idea generation, even how you think about asset creation.
Well ill break it down short term mid term long term.
Chris Cocks: Well, I'll break it down short-term, midterm, long-term. Short-term, I think AI is just a productivity boom, and that'll affect every industry, whether it's finance, operations, how you think about inventory management, forecast planning. It's just a significant time saver. We conservatively think it's going to save us about 1 million people-hours' worth of work this year, a lot of which we already outsource and can kind of harvest that into savings and reinvest into the business. So instead of having to manage, touch a bunch of orders, we can spend that time and innovate or deliver for our customers or our partners. And I think that'll be true inside of video games as well. Midterm, I obviously think AI kind of transforms how you think about concepting, how you think about idea generation, even how you think about asset creation.
Chris Cocks: Well, I'll break it down short-term, midterm, long-term. Short-term, I think AI is just a productivity boom, and that'll affect every industry, whether it's finance, operations, how you think about inventory management, forecast planning. It's just a significant time saver. We conservatively think it's going to save us about 1 million people-hours' worth of work this year, a lot of which we already outsource and can kind of harvest that into savings and reinvest into the business. So instead of having to manage, touch a bunch of orders, we can spend that time and innovate or deliver for our customers or our partners. And I think that'll be true inside of video games as well. Midterm, I obviously think AI kind of transforms how you think about concepting, how you think about idea generation, even how you think about asset creation.
Short term I think AI is just a productivity boom and.
That will affect every industry.
Whether it's finance operations, how you think about inventory management forecast planning.
Speaker #5: I think, though, that that's going to be executed on a game-by-game and brand-by-brand basis based on what the consumer wants and what your partners want you to do.
It's just a significant time saver.
We conservatively think it's going to save us about 1 million people hours worth of work. This year, a lot of which we already outsourced and can kind of harvest that into savings and reinvest into the business.
Speaker #5: And I think that's going to take a couple of years to kind of play out. But you're already seeing AI embedded in creative workloads like the Adobe Creative Suite.
Speaker #5: It's just going to be something that will make things faster. We're seeing tangible benefits from that, particularly in toys, where our ability to concept and make an early kind of prototype real has 10Xed in terms of speed.
So instead of having to like you know manage touch.
Touch a bunch of orders, we can spend that time and innovate or deliver for our customers our partners.
And I think that'll be true inside a video games as well mid term I, obviously think AI kind of transforms how you think about concept in how you think about idea generation.
Speaker #5: And so we're, instead of saving and just doing one toy concept, we do 10 toy concepts in the same amount of time at the same amount of cost.
How you think about asset creation, I think that that's going to be executed on a game by game and brand by brand basis based on what the consumer wants and what your partners want you to do.
Speaker #5: And it just allows us to be able to bring an idea to life better and choose a higher hit rate. And then long-term, I really can I make a current game cheaper or think you have to not think about, "Hey, how a current toy cheaper or better?" I think it's going to open up all new opportunities that we can barely imagine all new categories of play.
Chris Cocks: I think, though, that that's going to be executed on a game-by-game and brand-by-brand basis based on what the consumer wants and what your partners want you to do. I think that's going to take a couple of years to kind of play out. But you're already seeing AI embedded in creative workflows like the Adobe Creative Suite. It's just going to be something that will make things faster. We're seeing tangible benefits from that, particularly in toys, where our ability to concept and make an early kind of prototype real has 10x in terms of speed. So instead of saving and just doing one toy concept, we do 10 toy concepts in the same amount of time at the same amount of cost. And it just allows us to be able to bring an idea to life better and choose a higher hit rate.
Chris Cocks: I think, though, that that's going to be executed on a game-by-game and brand-by-brand basis based on what the consumer wants and what your partners want you to do. I think that's going to take a couple of years to kind of play out. But you're already seeing AI embedded in creative workflows like the Adobe Creative Suite. It's just going to be something that will make things faster. We're seeing tangible benefits from that, particularly in toys, where our ability to concept and make an early kind of prototype real has 10x in terms of speed. So instead of saving and just doing one toy concept, we do 10 toy concepts in the same amount of time at the same amount of cost. And it just allows us to be able to bring an idea to life better and choose a higher hit rate.
And I think that's going to take a couple of years to kind of play out, but you're already seeing AI embedded in creative workflow workflows like the Adobe creative suite.
Speaker #5: And today. I think you're going to see some of those products from Hasbro. I think they're going to be physical as well as digital.
It's just going to be something that will make things faster, we're seeing tangible benefits from that particularly in toys, where our ability to concept and make a early kind of prototype real has tenex in terms of speed and so were instead of like instead of saving and just do you.
Speaker #5: And I think our focus is going to be on the collector market and adults initially. But I think over time that that's going to spread as the technology matures and as consumers kind of become more comfortable with it.
One toy concept, we do tend to weigh concepts in the same amount of time at the same amount of cost and it just allows us to be able to bring an idea to life better and she has a higher hit rate.
Speaker #5: And it's going to open up all new engagement opportunities and all new revenue
Speaker #5: opportunities. Great.
Speaker #1: Thanks for that. And then maybe secondly, on monopoly Go, it's held in much better than most of us had been expecting coming into the year.
And then long term I really think.
Chris Cocks: And then long-term, I really think you have to not think about, "Hey, how can I make a current game cheaper or a current toy cheaper or better?" I think it's going to open up all new categories of play and all new opportunities that we can barely imagine today. I think you're going to see some of those products from Hasbro. I think they're going to be physical as well as digital. And I think our focus is going to be on the collector market and adults initially. But I think over time that that's going to spread as the technology matures and as consumers kind of become more comfortable with it. And it's going to open up all new engagement opportunities and all new revenue opportunities.
Chris Cocks: And then long-term, I really think you have to not think about, "Hey, how can I make a current game cheaper or a current toy cheaper or better?" I think it's going to open up all new categories of play and all new opportunities that we can barely imagine today. I think you're going to see some of those products from Hasbro. I think they're going to be physical as well as digital. And I think our focus is going to be on the collector market and adults initially. But I think over time that that's going to spread as the technology matures and as consumers kind of become more comfortable with it. And it's going to open up all new engagement opportunities and all new revenue opportunities.
You have to not think about hey, how can I make a current game cheaper or current toy cheaper or better I think it is going to open up all new categories of play and all new opportunities that we can barely imagine today.
Speaker #1: Just be curious if you could unpack some of the key drivers there as we went into year-end and then your expectations as the game could be this year.
I think youre going to see some of those products from Hasbro.
Speaker #1: Thank we look ahead into 2026 on what the top-line contributions from
Speaker #1: you. Yeah.
They're going to be physical as well as digital.
Speaker #3: Yeah. Good morning. Really looking into '26, we see it staying pretty stable. So call it that 12 to 14 million dollar run rate per month is what we're planning for.
And I think our focus is going to be on the collector market and adults initially, but I think over time that that's going to spread as the as the technology matures and as consumers become more comfortable with it and it's going to open up all new engagement opportunities and all new revenue opportunities.
Speaker #3: We're seeing the decay rates in line with expectations. And where we've been able to pick up is just the UA expense itself. Has gone down.
Great. Thanks for that and then maybe secondly on monopoly go it's held in much better than most of us had been expecting coming into the year.
Speaker #3: So we see that our overall revenue pool is staying pretty
Stephen Laszczyk: Great. Thanks for that. And then maybe secondly, on Monopoly Go!, it held in much better than most of us had been expecting coming into the year. Just be curious if you could unpack some of the key drivers there as we went into year-end, and then your expectations as we look ahead into 2026 on what the top-line contributions from the game could be this year. Thank you.
Stephen Laszczyk: Great. Thanks for that. And then maybe secondly, on Monopoly Go!, it held in much better than most of us had been expecting coming into the year. Just be curious if you could unpack some of the key drivers there as we went into year-end, and then your expectations as we look ahead into 2026 on what the top-line contributions from the game could be this year. Thank you.
Speaker #3: consistent. I'd
Speaker #5: say scopely has been pretty adept at value capture as well in terms of the ways in which people can buy dice or buy product inside of the experience.
Just be curious if you could unpack some of the key drivers there as we went into year end and then your expectations. As we look ahead into 2026 on the top line contributions from the game could be this year.
Speaker #5: That's also helped.
Yes good.
Speaker #1: Great. Thank you both. The next questions are from the line of Arpine Kocharyan with UBS. Please proceed with your
Gina Goetter: Yeah. Yeah. Good morning. Really looking into 2026, we see it's staying pretty stable. So call it that $12 to $14 million run rate per month is what we're planning for. We're seeing the decay rates in line with expectations. And where we've been able to pick up is just the UA expense itself has gone down. So we see that our overall revenue pool is staying pretty consistent.
Gina Goetter: Yeah. Yeah. Good morning. Really looking into 2026, we see it's staying pretty stable. So call it that $12 to $14 million run rate per month is what we're planning for. We're seeing the decay rates in line with expectations. And where we've been able to pick up is just the UA expense itself has gone down. So we see that our overall revenue pool is staying pretty consistent.
Good morning.
Really looking into 'twenty six we see it staying pretty stable so call it that $12 million to $14 million run rate per month is what we're planning for.
Speaker #1: questions. Hi.
Speaker #8: Good morning. Thanks for taking my questions. Great quarter. Congratulations. All the detail you provided for segment outlook was very helpful. I was wondering, when I look at your overall revenue guidance of 3 to 5 percent, I was about overall top-line wondering if you could talk a little bit growth percent takes and specifically what will result in the lower end of that range and what needs to happen for upper end of that range or better.
We're seeing the decay rates in line with expectations, and where we have been able to pick up is just that the UA expense itself.
<unk> has gone down so we see that our overall revenue pool is saying is staying pretty consistent.
And <unk> been pretty adept at value capture as well in terms of like the <unk>.
Chris Cocks: I'd say Scopely has been pretty adept at value capture as well in terms of the ways in which people can buy dice or buy product inside of the experience. That's also helped.
Chris Cocks: I'd say Scopely has been pretty adept at value capture as well in terms of the ways in which people can buy dice or buy product inside of the experience. That's also helped.
Ways in which people can byproduct by dice or byproduct inside of the experienced that's also helped.
Speaker #8: I'm mostly trying to understand whether the lower end of that range is more driven by consumer product business. And then just really for my second question, you had talked about two digital game releases a year.
Great. Thank you both.
Stephen Laszczyk: Great. Thank you both.
Stephen Laszczyk: Great. Thank you both.
The next questions are from the line of <unk> Kocharyan with UBS. Please proceed with your question.
Operator: The next questions are from the line of Arpine Kocharyan with UBS. Please just share with your questions.
Operator: The next questions are from the line of Arpine Kocharyan with UBS. Please just share with your questions.
Speaker #8: It seems like monopoly Go is still going pretty strong, which is incredible. But could you maybe talk about the pipeline of IP that you are looking at that you think sort of lends itself well into digital gaming and what those opportunities could mean for Hasbro for 2026 and 2027?
Hi, good morning, Thanks for taking my questions.
Arpine Kocharyan: Hi. Good morning. Thanks for taking my questions. Great quarter. Congratulations. All the detail you provided for segment ops was very helpful. I was wondering, when I look at your overall revenue guidance of 3% to 5%, I was wondering if you could talk a little bit about overall top-line growth, puts and takes, and specifically what will result in the lower end of that range and what needs to happen for upper end of that range or better. I'm mostly trying to understand whether the lower end of that range is more driven by Consumer Products business. And then just really for my second question, you had talked about two digital game releases a year. It seems like Monopoly Go! is still going pretty strong, which is incredible.
Arpine Kocharyan: Hi. Good morning. Thanks for taking my questions. Great quarter. Congratulations. All the detail you provided for segment ops was very helpful. I was wondering, when I look at your overall revenue guidance of 3% to 5%, I was wondering if you could talk a little bit about overall top-line growth, puts and takes, and specifically what will result in the lower end of that range and what needs to happen for upper end of that range or better. I'm mostly trying to understand whether the lower end of that range is more driven by Consumer Products business. And then just really for my second question, you had talked about two digital game releases a year. It seems like Monopoly Go! is still going pretty strong, which is incredible.
Great quarter congratulations.
All the details you provided for segment outlook is very helpful. I was wondering when I look at your overall revenue guidance of 3% to 5% I was wondering if you could talk a little bit about.
Speaker #8: Thank
Speaker #4: Hey, Arpine. Good morning. A couple of things on the range. And what dictates it? I think there are probably three factors that probably play into it the most.
Overall topline growth puts and takes in the city.
It will be what will result in the lower end of that range and what needs to happen, perhaps upper end of that range or better I'm, mostly trying to understand whether the lower end of that range.
Speaker #4: The first is our ability to provide supply and chase product. Actually magic was rate-constrained last year based on our ability to just produce and drive reprints.
It's more driven by consumer products business.
Then just really for my second question you had talked about digital game releases a year. It seems like monopoly can always still going pretty strong which is incredible but could you maybe talk about the pipeline of IP that you are looking at that you think sort of lend itself well into digital gaming and what those opportunities could mean for <unk>.
Speaker #4: And you typically have a little bit of wobble inside of your supply chain in terms of availability and timing. And so I think that'll play in both in magic as well as toys.
Arpine Kocharyan: Could you maybe talk about the pipeline of IP that you are looking at that you think sort of lends itself well into digital gaming and what those opportunities could mean for Hasbro for 2026 and 2027? Thank you.
Arpine Kocharyan: Could you maybe talk about the pipeline of IP that you are looking at that you think sort of lends itself well into digital gaming and what those opportunities could mean for Hasbro for 2026 and 2027? Thank you.
Speaker #4: I think we have a heck of an entertainment slate. On tap for this year, from Disney and from from Amazon, from legendary pictures, and depending on how those go, that could be quite a big over/under for us.
<unk> for 2026 and 2027, thank you.
<unk> good morning.
Chris Cocks: Hey, Arpine. Good morning. A couple of things on the range and what dictates it. I think there are probably three factors that probably play into it the most. The first is our ability to provide supply and chase product. Actually, Magic was rate-constrained last year based on our ability to just produce and drive reprints. You typically have a little bit of wobble inside of your supply chain in terms of availability and timing. So I think that'll play in both in Magic as well as toys. I think we have a heck of an entertainment slate on tap for this year from Disney, from Amazon, from Legendary Pictures. Depending on how those go, that could be quite a big over/under for us. Then I think the last thing, which is always kind of omnipresent, is just what's the strength of the consumer?
Chris Cocks: Hey, Arpine. Good morning. A couple of things on the range and what dictates it. I think there are probably three factors that probably play into it the most. The first is our ability to provide supply and chase product. Actually, Magic was rate-constrained last year based on our ability to just produce and drive reprints. You typically have a little bit of wobble inside of your supply chain in terms of availability and timing. So I think that'll play in both in Magic as well as toys. I think we have a heck of an entertainment slate on tap for this year from Disney, from Amazon, from Legendary Pictures. Depending on how those go, that could be quite a big over/under for us. Then I think the last thing, which is always kind of omnipresent, is just what's the strength of the consumer?
Couple of things on the range and what dictates it.
Speaker #4: And then I think the last thing, which is always kind of omnipresent, is just what's the strength of the consumer? Right now, we continue to see kind of a tale of two cities.
I think there are probably three factors.
Probably planned to at the most the first is our ability to provide supply and chase product.
Speaker #4: The top 20% of households in terms of wealth are really driving a lot of demand and are staying pretty resilient. The lower quintiles of kind of wealth and income, their pennies are pinched.
Actually magic was right constrained last year based on our ability to just produce and drive reprints.
And you typically have a little bit of a wobble inside of your supply chain in terms of availability and timing and so I think that will plan both in magic as well as toys.
Speaker #4: And so we're trying to appeal to both. If the economy proves better, if some of the tax refunds that are on tap in the US market proves to be kind of shared out versus going into the bank account, that could be a boon for us as
I think we have a heck of an entertainment slate slate on on.
On tap for this year from Disney from Amazon from legendary pictures and depending on how those go that could be quite a big over under for US and then I think the last thing, which is always kind of omnipresent is just what's the strength of the consumer.
Speaker #8: That's super helpful.
Speaker #8: Thank you. My well.
Speaker #3: only add, Arpine would be by the middle of the year, we will have a better sense for how some of these things are shaking out.
Chris Cocks: Right now, we continue to see kind of a tale of two cities. The top 20% of households in terms of wealth are really driving a lot of demand and are staying pretty resilient. The lower quintiles of kind of wealth and income, their pennies are pinched. And so we're trying to appeal to both. If the economy proves better, if some of the tax refunds that are on tap in the US market proves to be kind of shared out versus going into the bank account, that could be a boon for us as well.
Chris Cocks: Right now, we continue to see kind of a tale of two cities. The top 20% of households in terms of wealth are really driving a lot of demand and are staying pretty resilient. The lower quintiles of kind of wealth and income, their pennies are pinched. And so we're trying to appeal to both. If the economy proves better, if some of the tax refunds that are on tap in the US market proves to be kind of shared out versus going into the bank account, that could be a boon for us as well.
Now we continue to see kind of a tale of two cities the top 20% of our.
Speaker #3: And how strong the movie releases are, how strong kind of the UB sets are, but we feel good about the guidance range that we went out with.
Households in terms of well are really driving a lot of demand and are staying pretty resilient.
Speaker #5: So I'm sorry. You had a part two, Arpine. I want to
The the lower quintiles of kind of wealth and income.
Speaker #5: make sure we hit it. Yeah.
Speaker #8: Yeah. About digital gaming and the pipeline. What that looks like.
Denny's are pinched and so we're trying to appeal to both if the economy proves better if like some of the tax refunds that are untapped and like the U S market proves to be kind of shared out versus like going into the into the bank account that could be a boon for us as well.
Speaker #5: Yeah. So we have continued to have a really strong digital licensing business, which continues to grow. Last year, we had Sorry World from GameBerry Labs that did pretty well.
Speaker #5: We have Monopoly Go, which continues to do really well. It's probably one of the most successful mobile game launches in history. And partners. From our self-published side, we feel pretty good about the early Scopely have been fantastic demand indicators and interest indicators for both Exodus and Warlock.
That's super helpful.
Arpine Kocharyan: That's super helpful. Thank you.
Arpine Kocharyan: That's super helpful. Thank you.
Well my only add our opinion would be by the middle of the year, we will have a better sense for how some of these things are shaking out and and how strong. The movie releases are how strong kind of day the sets are.
Gina Goetter: My only add, Arpine, would be by the middle of the year, we will have a better sense for how some of these things are shaking out, and how strong the movie releases are, how strong kind of the UB sets are. But we feel good about the guidance range that we went out with.
Gina Goetter: My only add, Arpine, would be by the middle of the year, we will have a better sense for how some of these things are shaking out, and how strong the movie releases are, how strong kind of the UB sets are. But we feel good about the guidance range that we went out with.
But there's we feel good about the guidance range that we that we went out with.
Speaker #5: Those will be two pretty big tests for us next year. And we continue to invest in digital games. As we're thinking about the portfolio moving forward, I think the good thing about digital games is we're getting past kind of the startup phase.
Chris Cocks: So I'm sorry. You had a part two, Arpine. I want to make sure we hit it.
Chris Cocks: So I'm sorry. You had a part two, Arpine. I want to make sure we hit it.
I'm, sorry, you had a part to our P&L I want to make sure we got it.
Arpine Kocharyan: Yeah. Yeah. About digital gaming and the pipeline of what that looks like.
Arpine Kocharyan: Yeah. Yeah. About digital gaming and the pipeline of what that looks like.
About digital gaming in the pipeline.
What that looks like.
Yes, so we have we can.
Chris Cocks: Yeah. So we continue to have a really strong digital licensing business, which continues to grow. Last year, we had Sorry! World from Gameberry Labs. That did pretty well. We have Monopoly Go!, which continues to do really well. It's probably one of the most successful mobile game launches in history. Scopely have been fantastic partners. From our self-published side, we feel pretty good about the early demand indicators and interest indicators for both Exodus and Warlock. Those will be two pretty big tests for us next year. We continue to invest in digital games. As we're thinking about the portfolio moving forward, I think the good thing about digital games is we're getting past kind of the startup phase. You typically have a lot of costs associated with starting studios and building up publishing capacity. I think that will help with profitability as we get past 2027.
Chris Cocks: Yeah. So we continue to have a really strong digital licensing business, which continues to grow. Last year, we had Sorry! World from Gameberry Labs. That did pretty well. We have Monopoly Go!, which continues to do really well. It's probably one of the most successful mobile game launches in history. Scopely have been fantastic partners. From our self-published side, we feel pretty good about the early demand indicators and interest indicators for both Exodus and Warlock. Those will be two pretty big tests for us next year. We continue to invest in digital games. As we're thinking about the portfolio moving forward, I think the good thing about digital games is we're getting past kind of the startup phase. You typically have a lot of costs associated with starting studios and building up publishing capacity. I think that will help with profitability as we get past 2027.
To have a really strong digital licensing business, which continues to grow.
Speaker #5: You typically have a lot of costs associated with starting studios and building up publishing capacity. I think that will help with profitability as we get past 2027.
Last year, we had sorry world from game very labs that did pretty well.
We have monopoly go which continues to do really well, it's probably one of the most successful mobile game launches in the history.
Speaker #5: We're also doing a lot of new partnerships. Last year, we announced a joint venture with Saber on a game. We're going to have several more that we're going to announce, and that will help with risk deframing.
Scope, we have been fantastic partners from our self published side, we feel pretty good about the early demand indicators and interest indicators for both exodus and Warlock.
Speaker #5: And then we're investing more heavily in new talent markets for games. So Montreal is about half the cost of what the West Coast or Texas is in the US.
Those will be two pretty big tests for us next year.
And we continue to invest in digital games.
Speaker #5: We're leaning in there. And likewise, we're leaning into a lot of Eastern European and offshore-based talent. Which, again, I think could even be half the cost of what even Canada is.
As we're thinking about the portfolio moving forward I think the good thing about digital games as we're getting past kind of like the startup phase you typically have a lot of costs associated with starting to <unk> Studios and building up publishing capacity.
Speaker #5: And so that'll allow us to make better games. That'll allow us to be able to put more manures into the games and have more content.
That will help with profitability as we get past 2027, we're also doing a lot of new partnerships last year, we announced.
Speaker #5: And hopefully, also allow them to be even more profitable over time as we scale the franchises.
Chris Cocks: We're also doing a lot of new partnerships. Last year, we announced a joint venture with Saber on a game. We're going to have several more that we're going to announce, and that will help with risk de-risking. Then we're investing more heavily in new talent markets for games. So Montreal is about half the cost of what the West Coast or Texas is in the US. We're leaning in there. And likewise, we're leaning into a lot of Eastern European and offshore-based talent, which, again, I think could even be half the cost of what even Canada is. And so that'll allow us to make better games. That'll allow us to be able to put more man hours into the games and have more content and hopefully also allow them to be even more profitable over time as we scale the franchises.
Chris Cocks: We're also doing a lot of new partnerships. Last year, we announced a joint venture with Saber on a game. We're going to have several more that we're going to announce, and that will help with risk de-risking. Then we're investing more heavily in new talent markets for games. So Montreal is about half the cost of what the West Coast or Texas is in the US. We're leaning in there. And likewise, we're leaning into a lot of Eastern European and offshore-based talent, which, again, I think could even be half the cost of what even Canada is. And so that'll allow us to make better games. That'll allow us to be able to put more man hours into the games and have more content and hopefully also allow them to be even more profitable over time as we scale the franchises.
The joint venture with Sabre on a on.
On a game.
Speaker #8: Very helpful. Thank you,
We're going to have several more that we're going to announce in that will help with the risk. The framing and then we're investing more heavily in new talent markets for game. So Montreal, it's about half the cost of what like the West coast or Texas is in the U S. We're leaning in there and likewise, we're leaning into.
Speaker #8: Chris. The next question is from the line
Speaker #1: of Eric Handler with OSMcam. Please proceed with your questions.
Speaker #6: Thank you very much. Good morning. I wonder if you could just discuss your thoughts on toy industry POS outlook for 2026.
Lot of eastern European.
Speaker #5: Sure. I might have a bit of a cheeky response to this. So hey, Eric. I'll start, and Gina can slide out.
And offshore based talent, which again I think could even be half the cost of what even Canada is and.
Speaker #6: No, it's so funny.
So that will allow us to make better games that will allow us to be able to put more man years into the games and have more content and hopefully also allow them to be even more profitable over time as we scale the franchises.
Speaker #5: No, no, no, no, no. For us, I almost think it's the wrong question. We segment the market in our own unique way. We call it Gem Squared.
Very helpful. Thank you Chris.
Arpine Kocharyan: Very helpful. Thank you, Chris.
Arpine Kocharyan: Very helpful. Thank you, Chris.
Speaker #5: It's an acronym which stands for Gamified Entertainment-Driven Multi-Purchase and Multi-Generational. Those categories 70 to 80 percent of Hasbro's existing point of sale is focused on those categories.
The next question is from the line of Eric Handler with <unk>. Please proceed with your questions.
Operator: The next question is from the line of Eric Handler with Roth MKM. Please just share with your questions.
Operator: The next question is from the line of Eric Handler with Roth MKM. Please just share with your questions.
Thank you very much good morning.
Eric Handler: Thank you very much. Good morning. I wonder if you could just discuss your thoughts on toy industry POS outlook for 2026?
Eric Handler: Thank you very much. Good morning. I wonder if you could just discuss your thoughts on toy industry POS outlook for 2026?
I Wonder if you could just discuss your thoughts on toy industry Pos outlook for 2026.
Speaker #5: And probably 90 to 95 percent of our investments is going to those categories for the have a mid to high single-digit kegger and they are just structurally advantaged.
Sure.
Chris Cocks: Sure. I might have a bit of a cheeky response to this. So hey, Eric. I'll start, and Gina can invite us.
Chris Cocks: Sure. I might have a bit of a cheeky response to this. So hey, Eric. I'll start, and Gina can invite us.
I might have a bit of a cheeky response to that so.
Sure.
I'll start and <unk> can.
That's funny.
Eric Handler: No, it's so funny.
Eric Handler: No, it's so funny.
Speaker #5: Peers who operate in those categories they typically have a forward multiple of a 20X, maybe a 25X. Those are companies like a Pop Mart or a Lego or a Bandai Namco, and we would put Hasbro squarely inside of those, that peer set.
Chris Cocks: No, no, no, no, no. For us, I almost think it's the wrong question. We segment the market in our own unique way. We call it GEM2. It's an acronym which stands for gamified, entertainment-driven, multi-purchase, and multi-generational. Those categories, 70% to 80% of Hasbro's existing point of sale is focused on those categories, and probably 90% to 95% of our investment is going to those categories for the future. We think those categories have a mid- to high-single-digit CAGR, and they are just structurally advantaged. Peers who operate in those categories typically have a forward multiple of 20x, maybe 25x. Those are companies like Pop Mart, Lego, or Bandai Namco. We would put Hasbro squarely inside of that peer set.
Chris Cocks: No, no, no, no, no. For us, I almost think it's the wrong question. We segment the market in our own unique way. We call it GEM2. It's an acronym which stands for gamified, entertainment-driven, multi-purchase, and multi-generational. Those categories, 70% to 80% of Hasbro's existing point of sale is focused on those categories, and probably 90% to 95% of our investment is going to those categories for the future. We think those categories have a mid- to high-single-digit CAGR, and they are just structurally advantaged. Peers who operate in those categories typically have a forward multiple of 20x, maybe 25x. Those are companies like Pop Mart, Lego, or Bandai Namco. We would put Hasbro squarely inside of that peer set.
No no no no no.
Right.
For us I almost think it's the wrong question.
We segment the market and our own unique way we call it Jim squared.
It's an acronym which stands for Gamify entertainment driven.
Speaker #5: The other side of the toy market, the more traditional kind of kids-oriented one-off purchase toy market, I think there's opportunities to grow there. There's certainly a lot of innovation there.
Multi purchase and multi generational those categories.
70%, 80% of Hasbro's existing point of sale is focused on those categories, and probably 90% to 95% of our.
Speaker #5: that's in a But I think structural set of decline. And it's probably going to continue to decline over the next several years and has been.
Our investment is going to those categories for the future. We think those categories have a mid to high single digit.
Speaker #5: And the reality there is there's just less babies being born, and there's more substitution happening at earlier ages. So if you ask me kind of what the overall toy industry is going to do, I'd probably give you an I don't know.
AGR and they're just structurally advantaged.
Peers, who operate in those categories.
Typically have a forward multiple of.
20, ex maybe a 25 X.
Speaker #5: If you asked me what the side of the industry that Hasbro is investing in is going to do, I think it's pretty robust
Speaker #5: If you asked me what the side of the industry that Hasbro is investing in is going to do, I think it's pretty robust growth.
Those are companies like a pop mart or a lego or BANDAI Namco and we would put hasbro's squarely inside of those that peer set.
Speaker #6: Okay. That's helpful. And I know a lot of this stuff goes hand in hand. You're spending a lot of time talking about entertainment-driven properties for your consumer products.
Chris Cocks: The other side of the toy market, the more traditional kind of kids-oriented one-off purchase toy market, I think there's opportunities to grow there. There's certainly a lot of innovation there. But I think that's in a structural set of decline, and it's probably going to continue to decline over the next several years and has been. And the reality there is there's just less babies being born, and there's more substitution happening at earlier ages. So if you ask me kind of what the overall toy industry is going to do, I'd probably give you an I don't know. If you ask me what the side of the industry that Hasbro is investing in is going to do, I think it's pretty robust growth.
Chris Cocks: The other side of the toy market, the more traditional kind of kids-oriented one-off purchase toy market, I think there's opportunities to grow there. There's certainly a lot of innovation there. But I think that's in a structural set of decline, and it's probably going to continue to decline over the next several years and has been. And the reality there is there's just less babies being born, and there's more substitution happening at earlier ages. So if you ask me kind of what the overall toy industry is going to do, I'd probably give you an I don't know. If you ask me what the side of the industry that Hasbro is investing in is going to do, I think it's pretty robust growth.
The other side of the toy market the more traditional kind of kids oriented one off purchase toy market.
I think theres opportunities to grow there there is certainly a lot of innovation there.
Speaker #6: Wondered if you could talk about the outlook in 2026 for sort of your first party types of products.
But.
I think thats in a.
Structural set of decline and it's probably going to continue to decline over the next several years and has been and the reality. There is theres just less babies being born and Theres more substitution happening at earlier ages. So if you asked me kind of what the overall toy industry is going to do I would probably give you an IDE.
Speaker #5: Yeah. Well, certainly, I think Magic is going to do pretty well. I think D&D is going to do pretty well as well. And Peppa Pig has some significant room to grow.
Speaker #5: I think our board games and Play-Doh also look pretty good. Some of our more entertainment-driven properties, like Transformers, are probably going to have a down year.
No.
If you asked me what the size of the industry that hasbro's investing in is going to do I think it's pretty robust growth.
Speaker #5: But that's held up remarkably well. We grew Transformers last year despite not having any entertainment. And so I think for our first party, we see upside.
Okay. That's helpful.
Eric Handler: Okay. That's helpful. And I know a lot of this stuff goes hand in hand. You're spending a lot of time talking about entertainment-driven properties for your consumer products. Wondered if you could talk about the outlook in 2026 for sort of your first-party types of products?
Eric Handler: Okay. That's helpful. And I know a lot of this stuff goes hand in hand. You're spending a lot of time talking about entertainment-driven properties for your consumer products. Wondered if you could talk about the outlook in 2026 for sort of your first-party types of products?
And I know along the stuff goes hand in hand, Youre spending a lot of time talking about entertainment driven.
Speaker #5: We would like to grow that as a percentage of our business while still working with partners and growing them. Because obviously, it's margin to creative.
Properties for your consumer products wondered if you could talk about the outlook in 2026 or sort of like your first party.
Types of products.
Speaker #5: And we feel pretty good about the hand that we
Speaker #5: have. I don't know, Gina, do you have anything to add? I
Yeah, well certainly I think magic is going to do pretty well I think D&A is going to do pretty well as well and Peppa pig has.
Chris Cocks: Yeah. Well, certainly, I think Magic is going to do pretty well. I think D&D is going to do pretty well as well. And Peppa Pig has some significant room to grow. I think our board games and Play-Doh also look pretty good. Some of our more entertainment-driven properties, like Transformers, are probably going to have a down year, but that's held up remarkably well. We grew Transformers last year despite not having any entertainment. And so I think for our first party, we see upside. We would like to grow that as a percentage of our business while still working with partners and growing them because obviously, it's a margin to creative. And we feel pretty good about the hand that we have. I don't know, Gina, do you have anything to add?
Chris Cocks: Yeah. Well, certainly, I think Magic is going to do pretty well. I think D&D is going to do pretty well as well. And Peppa Pig has some significant room to grow. I think our board games and Play-Doh also look pretty good. Some of our more entertainment-driven properties, like Transformers, are probably going to have a down year, but that's held up remarkably well. We grew Transformers last year despite not having any entertainment. And so I think for our first party, we see upside. We would like to grow that as a percentage of our business while still working with partners and growing them because obviously, it's a margin to creative. And we feel pretty good about the hand that we have. I don't know, Gina, do you have anything to add?
Speaker #8: mean, Furby will be a down year. I'm
Speaker #8: just kind of thinking of another one that. Yeah.
Speaker #5: Furby's kind of getting near
Speaker #5: the end of its life cycle. Data Head is going to have
Significant room to grow.
Speaker #9: a good year, just given the Toy Story release, so.
I think our board games and play Doh also look pretty good some of our more entertainment driven properties like Transformers are probably going to have a down year, but that's held up remarkably well.
Speaker #5: For sure.
Speaker #9: Quick and fast.
Speaker #6: Appreciate it. Yeah.
Speaker #6: Thanks. All right.
Speaker #1: The next question is from the line of Chris Thanks. Horvers with JP Morgan. Please proceed with your questions.
We grew transformers last year, despite not having any entertainment.
Speaker #10: Thank you. And thanks for taking my question. So maybe, Gina, if you could simplify the operating margin outlook you have a range of about 30 basis points of expansion at the midpoint versus the 50 to 100 algo.
And so I think for our first party, we see upside we would like to grow that as a percentage of our business, while still working with partners and growing them.
Speaker #10: Could you bucket the headwinds that bring you down from that between royalties, digital gaming costs, and tariffs? Given X's and D&D, digital game doesn't launch until '27.
Because obviously it's margin accretive.
And we feel pretty good about the hand that we have.
I don't know G&A do you have anything to add and furby it probably will be down your them today I think I have another one that everybody is kind of getting near the end of its lifecycle and potato head is going to have a good year just given the toy story really so for sure okay.
Gina Goetter: I mean, Furby will be a down year. I'm just thinking of another one that.
Gina Goetter: I mean, Furby will be a down year. I'm just thinking of another one that.
Speaker #10: We wouldn't have expected that to be a headwind because the amortization comes in '27. Thank
Chris Cocks: Yeah. Furby's kind of getting near the end of its life cycle.
Chris Cocks: Yeah. Furby's kind of getting near the end of its life cycle.
Gina Goetter: Head is going to have a good year just given the Toy Story release, so.
Gina Goetter: Head is going to have a good year just given the Toy Story release, so.
Speaker #10: you. Got
Speaker #9: it. Good morning. The couple of things that are well, I'll start with the good guys first. So obviously, volume and mix and pricing, that is a good positive margin contributor for us in 2026.
Chris Cocks: For sure.
Chris Cocks: For sure.
Gina Goetter: Yeah. Quick information.
Gina Goetter: Yeah. Quick information.
I appreciate it thanks.
Eric Handler: Appreciate it. Thanks.
Eric Handler: Appreciate it. Thanks.
Chris Cocks: All right. Thanks.
Chris Cocks: All right. Thanks.
Alright. Thanks.
The next question is from the line of Chris Whoever's with Jpmorgan. Please proceed with your questions.
Operator: The next question is from the line of Chris Horvers with JPMorgan. Please just share with your questions.
Operator: The next question is from the line of Chris Horvers with JPMorgan. Please just share with your questions.
Thank you and thanks for taking my question. So maybe Jean if you could simplify that the operating margin outlook you have a range of about 30 basis points of expansion at the midpoint versus the 50 to 100 Algo could you bucket the headwinds that bring you down from that between royalties digital gaming costs and tariffs.
Chris Cocks: Thank you. And thanks for taking my question. So maybe, Gina, if you could simplify the operating margin outlook. You have a range of about 30 basis points of expansion at the midpoint versus the 50 to 100 Algo. Could you bucket the headwinds that bring you down from that between royalties, digital gaming costs, and tariffs? Given Exodus and D&D, digital game doesn't launch until 2027, we wouldn't have expected that to be a headwind because the amortization comes in 2027. Thank you.
Chris Horvers: Thank you. And thanks for taking my question. So maybe, Gina, if you could simplify the operating margin outlook. You have a range of about 30 basis points of expansion at the midpoint versus the 50 to 100 Algo. Could you bucket the headwinds that bring you down from that between royalties, digital gaming costs, and tariffs? Given Exodus and D&D, digital game doesn't launch until 2027, we wouldn't have expected that to be a headwind because the amortization comes in 2027. Thank you.
Speaker #9: Royalties is going to be a headwind. So we have increased royalties across both of our businesses now, just again, given the entertainment slate on CP coupled with the universes beyond set.
Speaker #9: So that's call it a point, a point and a half of margin drag that we'll have coming into 2026. The other thing is tariffs.
Speaker #9: So we'll have a full year of tariff cost in '25. We had roughly $40 million of tariff costs hitting the supply chain. Right now, we're modeling that out to be about $60 million of cost.
Given access in DMD digital game doesn't launch until 2007, we wouldn't have expected that to be a headwind because of the amortization comes in 2007. Thank you.
Got it.
Speaker #9: So an incremental 20-ish million dollars. And even though we have cost productivity within the supply chain that's able to offset, typically, our normal model is that that cost productivity is adding to our margin.
Gina Goetter: Got it. Good morning. A couple of things that are all right. Well, I'll start with the good guys first. So obviously, volume, mix, and pricing, that is a good positive margin contributor for us in 2026. Royalties is going to be a headwind. So we have increased royalties across both of our businesses now, just again, given the entertainment slate on CP coupled with the Universes Beyond set. So that's, call it, a point, a point and a half of margin drag that we'll have coming into 2026. The other thing is tariffs. So we'll have a full year of tariff cost. In 2025, we had roughly $40 million of tariff costs hitting the supply chain. Right now, we're modeling that out to be about $60 million of cost, so an incremental $20-ish million.
Gina Goetter: Got it. Good morning. A couple of things that are all right. Well, I'll start with the good guys first. So obviously, volume, mix, and pricing, that is a good positive margin contributor for us in 2026. Royalties is going to be a headwind. So we have increased royalties across both of our businesses now, just again, given the entertainment slate on CP coupled with the Universes Beyond set. So that's, call it, a point, a point and a half of margin drag that we'll have coming into 2026. The other thing is tariffs. So we'll have a full year of tariff cost. In 2025, we had roughly $40 million of tariff costs hitting the supply chain. Right now, we're modeling that out to be about $60 million of cost, so an incremental $20-ish million.
Good morning, a couple of things that are well I'll start with the good guys very so obviously volume and mix and pricing that is.
It is a good positive margin contributor for us in 2026.
Speaker #9: This year, it's just kind of that cost productivity is just helping to offset that tariff impact that's coming at us. And then I would say the last thing that I call it as a headwind is just the investments that we'll have towards the end of the year and I shouldn't say really the end of the year, but marketing will step up as we move through the year, especially in advance of these video game releases.
Royalty is going to be a headwind. So we have increased royalties across both of our businesses now just again, given the entertainment slate on TP, coupled with the university's beyond set so that's call. It at a point to point and a half of margin drag that we'll have coming into 2026.
Other thing is tariffs. So we'll have a full year of tariff cost in 2005, we had roughly $40 million of tariff costs hitting the supply chain right now we're modeling that out to be about $60 million of costs, So an incremental $20 million and even though we have cost productivity within the supply chain that is able to offer.
Speaker #9: As well as just broad increases in product development as we move through 2026.
Speaker #1: That's very helpful. And then just a follow-up on CP margins. We see the presentation, how you lay out the margin change. Your verification could help us in narrate that because you did have strong sales growth and margins were down year over year.
Gina Goetter: And even though we have cost productivity within the supply chain that's able to offset, typically, our normal model is that that cost productivity is adding to our margin. This year, it's just kind of that cost productivity is just helping to offset that tariff impact that's coming at us. And then I would say the last thing that I call it as a headwind is just the investments that we'll have towards the end of the year, and I shouldn't say really the end of the year, but marketing will step up as we move through the year, especially in advance of these video game releases, as well as just broad increases in product development as we move through 2026.
Gina Goetter: And even though we have cost productivity within the supply chain that's able to offset, typically, our normal model is that that cost productivity is adding to our margin. This year, it's just kind of that cost productivity is just helping to offset that tariff impact that's coming at us. And then I would say the last thing that I call it as a headwind is just the investments that we'll have towards the end of the year, and I shouldn't say really the end of the year, but marketing will step up as we move through the year, especially in advance of these video game releases, as well as just broad increases in product development as we move through 2026.
Set typically are our normal model is that that cost productivity is adding to our margin and this year. It's just kind of that cost productivity is just helping to offset that that tariff impact that's coming at us.
Speaker #1: So understand the tariff impact. But if you could just narrate the puts and takes between sales allowances versus cost savings versus tariffs. Thanks so much.
And then I would say the last thing that I call. It as a headwind is just the investments that we'll have towards the end of the year.
Speaker #8: Yeah. So I mean, in the fourth quarter, to your point, we had nice volume growth. And our team did a really nice job working with our retail partners and getting a good mix of business in and not going way beyond on promotional spending.
And I shouldn't say really the end of the year, but marketing will step up as we move through the year, especially in advance of these video game releases as well as just broad increases in product development as we move through and move through 2026.
Speaker #8: A really nice positive kind of volume and mix impact from the fourth quarter. The pieces that came against us were tariffs, largely speaking, fourth quarter was all about tariffs.
That's that's very helpful. And then just a follow up on CP margins, we see the presentation, how you lay out the.
Chris Cocks: That's very helpful. And then just to follow up on CP margins, we see the presentation, how you lay out the margin change year-over-year, but could you help us and narrate that because you did have strong sales growth and margins were down year-over-year? So, understand the tariff impact. But if you could just narrate the puts and takes between sales allowances versus cost savings versus tariffs. Thanks so much.
Chris Horvers: That's very helpful. And then just to follow up on CP margins, we see the presentation, how you lay out the margin change year-over-year, but could you help us and narrate that because you did have strong sales growth and margins were down year-over-year? So, understand the tariff impact. But if you could just narrate the puts and takes between sales allowances versus cost savings versus tariffs. Thanks so much.
Speaker #8: So again, of that $40 million of costs that we had in '25, about 60, 65 percent of it hit in the fourth quarter. So that's what really weighed on the margin profile as we move through the year.
The margin change year over year, but you could help us in narrate that because you did have strong sales growth.
Margins were down year over year, so understand the tariff impact, but if you could just narrate the puts and takes between sales allowances versus cost savings versus tariffs. Thanks. So much yeah. So I mean in the fourth quarter to your point, we had nice volume growth.
Speaker #8: So as we go into 2026, while volume and mix for CP is going to be a positive for us, we're continuing to have the tariff headwind.
Gina Goetter: Yeah. So I mean, in the fourth quarter, to your point, we had nice volume growth. Our team did a really nice job working with our retail partners and getting a good mix of business in and not going way beyond on promotional spending, a really nice positive kind of volume and mix impact from the fourth quarter. The pieces that came against us were tariffs. Largely speaking, fourth quarter was all about tariffs. So again, of that $40 million of cost that we had in 2025, about 60%-65% of it hit in the fourth quarter. So that's what really weighed on the margin profile as we move through the year. So as we go into 2026, while volume and mix for CP is going to be a positive for us, we're continuing to have the tariff headwind.
Gina Goetter: Yeah. So I mean, in the fourth quarter, to your point, we had nice volume growth. Our team did a really nice job working with our retail partners and getting a good mix of business in and not going way beyond on promotional spending, a really nice positive kind of volume and mix impact from the fourth quarter. The pieces that came against us were tariffs. Largely speaking, fourth quarter was all about tariffs. So again, of that $40 million of cost that we had in 2025, about 60%-65% of it hit in the fourth quarter. So that's what really weighed on the margin profile as we move through the year. So as we go into 2026, while volume and mix for CP is going to be a positive for us, we're continuing to have the tariff headwind.
Speaker #8: Plus, we'll have a step up in royalty expense as well. That kind of keeps that in that 6 to 8 percent
Our team did a really nice job working with our retail partners and getting a good mix of business in and not going way beyond on promotional spending a really nice positive kind of volume and mix impact from the fourth quarter. The pieces that came against us where tariffs largely speaking fourth quarter was all about tariffs.
Speaker #8: range. Thanks so Thank
Speaker #1: much. Thank
Speaker #8: you.
Speaker #1: you. Our final question is from the line of Kylie Cohu with Jefferies. Please proceed with your questions.
Speaker #11: Great. Thank you for taking my question and congratulations on a strong quarter. Just kind of a small one from me. How would you describe sell-through or the POS cadence throughout the quarter?
So again of that $40 million of costs that we had in 'twenty five about 60% to 65% of that hit in the fourth quarter. So that's what really weighed on the margin profile as we move through the year. So as we go into into 2026, while volume and mix for CP is going to be a positive for us we're continuing to have the tariff.
Speaker #11: Anything unusual to call out, or was it kind of as
Speaker #11: usual? I would say
Speaker #5: for toys, we felt pretty good. Just given that the SNAP benefits were kind of taken away, just given the government shutdown. Other than that wobble, we felt pretty good about the direction of toy point of sale.
Headwind plus we'll have a step up in royalty expense as well that kind of keeps that in that 6% to 8% range.
Gina Goetter: Plus, we'll have a step up in royalty expense as well, that kind of keeps that in that 6% to 8% range.
Gina Goetter: Plus, we'll have a step up in royalty expense as well, that kind of keeps that in that 6% to 8% range.
Thanks, so much.
Chris Cocks: Thanks so much.
Chris Horvers: Thanks so much.
Speaker #5: I think from September through end of December, we gained share in our key categories in 16, 17, maybe even 18 out of 20 weeks.
Thank you.
Gina Goetter: Thank you.
Gina Goetter: Thank you.
Thank you. Our final question is from the line of Kylie cohort with Jefferies. Please proceed with your question.
Operator: Thank you. Our final question is from the line of Kylie Cohu with Jefferies. Please just share with your questions.
Operator: Thank you. Our final question is from the line of Kylie Cohu with Jefferies. Please just share with your questions.
Great. Thank you for taking my question and congratulations on a strong quarter.
Gina Goetter: Great. Thank you for taking my question, and congratulations on a strong quarter. Just kind of a small one from me. How would you describe sell-through or the POS cadence throughout the quarter? Anything unusual to call out, or was it kind of as usual?
Kylie Cohu: Great. Thank you for taking my question, and congratulations on a strong quarter. Just kind of a small one from me. How would you describe sell-through or the POS cadence throughout the quarter? Anything unusual to call out, or was it kind of as usual?
Speaker #5: And that's pretty good. And we think that momentum continues into this year and augurs well for kind of our outlook for
Just a small one for me how would you describe the sell through or like the P. O S cadence throughout the quarter anything unusual to call out or was it kind of as usual.
Speaker #5: '26. Great.
Speaker #11: That's all I had. Thank you.
Speaker #5: All right. Thanks.
I would say for toys.
Chris Cocks: I would say for toys, we felt pretty good just given that the SNAP benefits were kind of taken away just given the government shutdown. Other than that wobble, we felt pretty good about the direction of toy point of sale. I think from September through end of December, we gained share in our key categories in 16, 17, maybe even 18 out of 20 weeks. And that's pretty good. And we think that momentum continues into this year and augurs well for kind of our outlook for 2026.
Chris Cocks: I would say for toys, we felt pretty good just given that the SNAP benefits were kind of taken away just given the government shutdown. Other than that wobble, we felt pretty good about the direction of toy point of sale. I think from September through end of December, we gained share in our key categories in 16, 17, maybe even 18 out of 20 weeks. And that's pretty good. And we think that momentum continues into this year and augurs well for kind of our outlook for 2026.
Speaker #1: Thank Kylie. you. At this time, this will conclude today's question and answer session. And we'll also conclude today's conference. Thank you for your participation.
We felt pretty good.
Just given that the snap benefits were kind of taken away just given the government shutdown other than that wobble, we felt pretty good about the direction of toy point of sale.
I think from September through ended December we gained share in our key categories. In 16, 17, maybe even 18 out of 20 weeks.
And Thats pretty good and we think that momentum continues into this year and augurs well for kind of our outlook for 2013.
Great. That's all I had thank you.
Gina Goetter: Great. That's all I had. Thank you.
Kylie Cohu: Great. That's all I had. Thank you.
Alright, Thanks Kelly.
Chris Cocks: All right. Thanks.
Chris Cocks: All right. Thanks.
Gina Goetter: Kylie.
Gina Goetter: Kylie.
Thank you at this time this will conclude today's question and answer session and will also conclude today's conference. Thank you for your participation. You may now disconnect your lines and have a wonderful day.
Operator: Thank you. At this time, this will conclude today's question-and-answer session, and we'll also conclude today's conference. Thank you for your participation. You may now disconnect your lines and have a wonderful day.
Operator: Thank you. At this time, this will conclude today's question-and-answer session, and we'll also conclude today's conference. Thank you for your participation. You may now disconnect your lines and have a wonderful day.
