HAS
CyclicalHasbro
Price Chart
Market Data
Financials
XBRL · SEC EDGAR2008–2025(18yr)| Metric | FY 2008 | FY 2009 | FY 2010 | FY 2011 | FY 2012 | FY 2013 | FY 2014 | FY 2015 | FY 2016 | FY 2017 | FY 2018 | FY 2019 | FY 2020 | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025Latest | YoY |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $4.0B | $4.1B | $4.0B | $4.3B | $4.1B | $1.9B | $2.0B | $2.0B | $2.2B | $5.2B | $4.6B | $4.7B | $5.5B | $6.4B | $5.9B | $5.0B | $4.7B | $5.4B | +13.1% |
| Gross Profit | $2.3B | $2.4B | $2.3B | $2.4B | $2.4B | $200.1M | $324.6M | $294.8M | $289.2M | $3.2B | $2.7B | $2.9B | $3.7B | $4.5B | $3.9B | $3.3B | $3.6B | $4.1B | +14.1% |
| Gross Margin | 57.9% | 58.8% | 57.8% | 57.2% | 59.1% | 10.7% | 16.0% | 15.0% | 13.2% | 61.0% | 59.6% | 61.7% | 68.5% | 70.0% | 67.4% | 65.9% | 75.1% | 75.8% | +0.7pp |
| Operating Income | $494.3M | $588.6M | $587.9M | $594.0M | $551.8M | $467.1M | $635.4M | $691.9M | $788.0M | $810.4M | $331.1M | $652.0M | $501.8M | $763.3M | $407.7M | -$1.5B | $690.0M | $11.1M | -98.4% |
| Operating Margin | 12.3% | 14.5% | 14.7% | 13.9% | 13.5% | 24.9% | 31.4% | 35.1% | 35.9% | 15.6% | 7.2% | 13.8% | 9.2% | 11.9% | 7.0% | -30.8% | 14.5% | 0.2% | -14.3pp |
| Net Income | $306.8M | $374.9M | $397.8M | $385.4M | $336.0M | $286.2M | $415.9M | $451.8M | $551.4M | $396.6M | $220.4M | $520.5M | $222.5M | $428.7M | $203.5M | -$1.5B | $385.6M | -$322.4M | -183.6% |
| Net Margin | 7.6% | 9.2% | 9.9% | 9.0% | 8.2% | 15.3% | 20.6% | 22.9% | 25.1% | 7.6% | 4.8% | 11.0% | 4.1% | 6.7% | 3.5% | -29.8% | 8.1% | -6.0% | -14.1pp |
| Free Cash Flow | $476.0M | $161.5M | $255.4M | $296.7M | $422.7M | $289.1M | $341.0M | $410.4M | $620.0M | $589.5M | $505.6M | $519.4M | $850.6M | $685.2M | $198.7M | $516.3M | $760.2M | $829.9M | +9.2% |
| FCF Margin | 11.8% | 4.0% | 6.4% | 6.9% | 10.3% | 15.4% | 16.9% | 20.8% | 28.2% | 11.3% | 11.0% | 11.0% | 15.6% | 10.7% | 3.4% | 10.3% | 16.0% | 15.5% | -0.6pp |
| EPS (Diluted) | $2.00 | $2.48 | $2.74 | $2.82 | $2.55 | $2.17 | $3.20 | $3.57 | $4.34 | $3.12 | $1.74 | $4.05 | $1.62 | $3.10 | $1.46 | $-10.73 | $2.75 | $-2.30 | -183.6% |
1. THE BIG PICTURE
Hasbro is currently a high-margin intellectual property engine trapped in a low-margin corporate body. While its Wizards of the Coast and Digital Gaming segment is surging—growing 86% in the most recent quarter—Hasbro is still struggling to translate a peer-leading 75.6% gross margin into actual net earnings (8-K, XBRL). The "Playing to Win" strategy represents a total commitment to high-margin digital gaming and licensing to offset the volatility and lower returns of traditional physical toys.
2. WHERE THE RISKS HIT HARDEST
Hasbro’s "franchise-first" strength is directly threatened by its extreme customer concentration, with Amazon and Walmart accounting for 11% and 9% of consolidated net revenues, respectively (10-K Item 1A). If these retailers reduce shelf space to favor competitors, the cash flow required to fund capital-intensive digital game development could evaporate. Furthermore, the push into digital gaming is inherently volatile; any failure in a major release or a decline in Magic: The Gathering engagement could trigger significant asset write-offs that Hasbro’s $3.28 billion debt load leaves little room to absorb (RISKS).
3. WHAT THE NUMBERS SAY TOGETHER
The financial data reveals a stark divergence between top-line momentum and bottom-line reality. Hasbro’s 13.1% revenue growth outperforms most peers, yet it sits at the bottom of its group for operating and net margins (XBRL). This gap is a product of the transition: while digital revenue is exploding, the legacy entertainment business is shrinking (down 5% in Q4), and Hasbro is carrying a $2.1 billion net debt burden. The 31% revenue spike in Q4 2025—far exceeding the TTMTTMTrailing Twelve Months — the most recent full year of financial data, updated on a rolling basis each quarter growth of 13.1%—was almost entirely driven by the Wizards of the Coast segment's 86% surge, suggesting Hasbro’s growth is becoming increasingly concentrated in a single business unit (8-K). Short interest at 3.4% of the float indicates that while sentiment is not overwhelmingly bearish, a measurable segment of the market is betting against the successful execution of this turnaround.
4. IS IT WORTH IT AT THIS PRICE?
At a forward P/EP/EPrice-to-Earnings ratio — share price divided by annual earnings per share; how much investors pay per dollar of profit. Higher P/E = higher growth expectations of 15.2x, the market is pricing in approximately 0.8% long-term growth (CAPM analysis). This represents a modest discount to the peer median of 20.7x, which is justified by Hasbro’s negative net margin of -6.0% compared to the double-digit profitability of peers like Ralph Lauren or Williams-Sonoma (XBRL). For this valuation to be "right," Hasbro must prove it can hit its 2026 guidance of 24-25% adjusted operating margins (8-K). If Hasbro achieves that level of efficiency, the current 15.2x multiple would appear attractively valued; however, the $3.28 billion in long-term debt remains the primary factor preventing the stock from trading at a premium despite its superior revenue growth.
5. WHAT WOULD CHANGE THIS VIEW?
- Constructive if the 2026 adjusted operating margin reaches the 24% target, proving that the high gross margins of digital gaming can finally be captured as net profit.
- Cautious if revenue from Amazon or Walmart drops below 10% each without a corresponding rise in direct-to-consumer "Hasbro PULSE" sales, signaling a loss of retail market power.
- Cautious if debt reduction slows significantly from the $225 million pace seen in 2025, increasing Hasbro's sensitivity to interest rate fluctuations.
6. BOTTOM LINE
Structural Advantage: A high-margin, proprietary gaming ecosystem anchored by Magic: The Gathering and Dungeons & Dragons that scales digitally with minimal incremental costs.
Bottom Line: Hasbro is a high-growth digital business currently obscured by a debt-heavy legacy toy operation; it is a compelling turnaround play only if management can hit its aggressive 2026 margin targets.
1. Top 5 Material Risks
- Strategic Execution: Failure to successfully innovate, commercialize, and grow key brands—or to deliver on digital gaming and licensing initiatives—could disproportionately impact results of operations, particularly given the strategy's emphasis on higher-margin games.
- Digital Gaming Volatility: The digital gaming industry is highly competitive and capital-intensive; Hasbro faces the risk of significant write-offs if games fail to gain consumer acceptance or if development is discontinued prior to commercialization.
- Customer Concentration: Hasbro depends on a small customer base, with Amazon and Walmart accounting for 11% and 9% of consolidated net revenues in 2025, respectively; any reduction in their purchases or shelf space could harm revenues and profitability.
- Licensing Obligations: Hasbro enters into agreements requiring substantial minimum royalty guarantees, which may exceed actual sales, potentially leading to write-offs and reduced operating profit if licensed properties underperform.
- Supply Chain and Manufacturing: Reliance on third-party manufacturers, particularly in China and Vietnam, exposes Hasbro to risks including labor shortages, port congestion, and tariff-related cost increases that can reduce margins and delay product availability.
2. Company-Specific Risks
- Headquarters Relocation: The move of primary operations from Rhode Island to Boston, Massachusetts, requires substantial investment and risks the loss of experienced personnel and potential disruption to operations.
- Franchise Fatigue: Frequent product releases and cross-brand collaborations, while intended to drive growth, may contribute to franchise fatigue or oversaturation, reducing long-term consumer engagement.
- Original Design Manufacturer (ODM) Reliance: Increased use of ODMs to support cost efficiency reduces Hasbro’s direct control over design, quality, and manufacturing, potentially harming brand reputation and margins if specifications are not met.
- Digital Gaming Talent Competition: The digital gaming business competes intensely for talent, and the loss of key creative or technical personnel could disrupt development pipelines for critical brands like Magic: The Gathering and Dungeons & Dragons.
3. Regulatory/Legal Risks
- Data Privacy and Online Safety: Hasbro is subject to the Children’s Online Privacy Protection Act (COPPA), the EU’s General Data Protection Regulation (GDPR), and other global privacy laws; failure to comply with these or evolving regulations regarding in-game purchases and player data could result in fines, sanctions, or restricted monetization.
- Artificial Intelligence Governance: Emerging laws and regulations governing the use of AI in product and game development may increase compliance costs, delay development, or limit the use of certain technologies.
- Product Safety and Recalls: Hasbro is subject to the Consumer Products Safety Act, the Federal Hazardous Substances Act, and the Flammable Fabrics Act; involuntary or voluntary product recalls could result in significant costs and damage to brand reputation.
- Litigation Exposure: As a multinational corporation, Hasbro faces potential liability from personal injury claims, intellectual property infringement disputes, and employment-related matters, the outcomes of which are inherently difficult to predict and could entail significant expense.
4. Financial Impact Map
Strategic Execution Failure → Operating Profit → Strategy relies on growing higher-margin games and digital businesses; failure to execute directly impacts profitability. Digital Gaming Write-offs → Cost of Sales → Capitalized costs of games that fail to reach commercialization or success are charged to cost of sales as impairments. Customer Concentration → Consolidated Net Revenues → Amazon and Walmart accounted for 20% of total 2025 net revenues; loss of these channels would materially reduce top-line results. Minimum Royalty Guarantees → Operating Profit → Substantial guaranteed payments that exceed recouped sales result in write-offs and reduced operating margins. Long-term Indebtedness → Cash Flow from Operations → $3,281.9 million in debt requires significant cash for service, reducing funds available for working capital, dividends, and strategic investments.
Recent Filings
| Form | Filed | Period |
|---|---|---|
| 10-K | Feb 2026 | Dec 2025 |
| 8-K | Feb 2026 | — |
| 10-Q | Nov 2025 | Sep 2025 |
| 14A | Apr 2025 | — |
AI-extracted key facts from press releases and SEC filings. Significance 1–10.
Hasbro Opens 600,000-Square-Foot Midway Distribution Center, Projects $8M Annual Productivity Savings
- ▸New 600,000-square-foot distribution center opened in Midway, Georgia
- ▸Projected $8 million in annual productivity savings
- ▸Facility consolidates multiple business segments to optimize supply chain efficiency
- ▸Created 60-70 standard jobs, up to 125 during peak seasonal periods
- ▸TMX Transform led lease negotiations with $2.8 million in tenant improvements
Hays CEO Dirk Hahn resigns effective immediately; H2 operating profit forecast cut to £20M
- ▸CEO Dirk Hahn resigned effective February 27, 2026 for personal reasons
- ▸Mark Dearnley appointed interim CEO during permanent successor search
- ▸H2 2025 operating profit expected at £20M, down £5M year-on-year
- ▸H2 2025 net fees declined 9% or £45M
- ▸Interim dividend of 0.15 pence per share declared for period ended Dec 31, 2025
Hasbro opens 600,000-square-foot Georgia distribution center, targets $8M in annual productivity savings
- ▸New 600,000-square-foot distribution center opened in Midway, Georgia
- ▸Facility represents 25% of Hasbro's total U.S. distribution footprint
- ▸Projected $8 million in annual productivity savings
- ▸Creates 60-70 permanent jobs, up to 125 during peak seasons
- ▸Operated in partnership with GXO Logistics
Hasbro completes $400M senior unsecured notes offering due 2031 to bolster balance sheet
- ▸Completed $400M public offering of 4.650% senior unsecured notes due 2031
- ▸Notes priced at 99.85% of face value
- ▸Q4 2025 results exceeded expectations, driven by Wizards of the Coast segment
- ▸Strategic pivot focuses on high-margin digital games, licensing, and franchise content
- ▸Projected 2028 financials include $4.9B revenue and $773.5M earnings
Hasbro Q4 Earnings and Revenue Beat Estimates; Announces $1B Share Repurchase Program
- ▸Q4 earnings and revenue exceeded analyst estimates
- ▸Authorized new $1B share repurchase program
- ▸Growth driven by Wizards of the Coast segment and new licensing deals
- ▸Current share price $93.40 with 1-year total return of 61.81%
- ▸DCF model estimates intrinsic value at $186.72 per share
Hasbro Q4 EPS $1.51 beats $0.99 estimate; revenue $1.45B up 31% YoY
- ▸Q4 adjusted EPS $1.51 vs $0.99 estimate; up from $0.46 YoY
- ▸Net revenue $1.446B, beating $1.288B estimate and up 31.3% YoY
- ▸Wizards of the Coast revenue $630.4M, up 86% YoY
- ▸Consumer Products revenue $800M, up 7.2% YoY
- ▸Management reaffirmed commitment to $1 billion share repurchase program