Hasbro reported revenue of $980.8 million for Q2, down 1% from last year, but digital gaming showed high growth to offset struggles in its traditional toy business.
The company reported a net loss of $855.8 million, attributed to a $1 billion goodwill impairment related to its consumer products segment and tariffs.
Despite this, earnings per share exceeded expectations, at $1.30 adjusted, compared to a predicted $0.78.
“While tariffs represent a headwind for the business,” Hasbro’s CEO, Chris Cocks, said on the company’s earnings call. “We are compensating for these costs through a combination of cost reductions, rebalancing our marketing spend, diversifying our supplier mix and implementing some targeted pricing actions.”
The company’s consumer products segment saw revenue fall 16% to $442.4 million, pressured by “anticipated softness in Toys driven by retailer order timing and geographic volatility,” Hasbro said in the Q2 earnings release.
Magic Stronger Than Ever
Driven by strong demand for Magic: The Gathering and Monopoly Go!, Wizards of the Coast and digital gaming contributed $522.4 million in sales, up 16% year over year.
Magic: The Gathering revenue grew 23% driven by the release of Final Fantasy, which set the record as being the biggest set release in Wizards of the Coast’s history.
“This isn’t just a one-off moment. It’s a clear indication of the power of Magic’s community,” Cocks said. “Magic is stronger than ever, and we’re just getting started.”
The company also indicated plans to continue expanding the world of Baldur’s Gate, with speculation continuing about possible collaborations.
Wizards Business Raises Expectations
Hasbro Chief Financial Officer and Chief Operating Officer Gina Goetter believes the growth of the digital segment will continue and the company is raising its guidance as a result.
Goetter commented, “We are raising our full-year revenue and adjusted EBITDA guidance, fueled by performance in our Wizards business. Despite a dynamic macro environment, the strength of our diversified business and cost productivity initiatives support our updated outlook.”
The digital gaming sector of the business is also expanding in slots. Monopoly has often ranked as one of the leading online casino slots, and Hasbro will expand its offerings in a deal with live casino developer Evolution.
Evolution will launch a series of licensed real‑money Monopoly-themed games next year, including slots and live formats like Monopoly Filthy Rich and Monopoly Roulette.
Hasbro also made a deal with Aristocrat Gaming to develop Monopoly-branded slot machines to feature at land-based casinos globally.
Hasbro director of gaming relationships Claire Hunter Gregson commented, “We can’t wait for Monopoly fans to experience all new premium gaming content on casino floors.”
