Hasbro (HAS) investor relations material

Executive summary

• Net revenues rose 12.7% year-over-year to $1,000.2 million, driven by strong growth in Wizards of the Coast and Digital Gaming, partially offset by declines in Entertainment and Consumer Products segments.

• Operating profit increased 58.3% to $270.3 million, reflecting higher revenues and benefits from cost-saving initiatives.

• Strategic partnerships were announced, including a multi-year licensing deal with Warner Bros. Discovery for Harry Potter and collaborations with Amazon MGM Studios and Legendary Entertainment.

• The company responded to a late March 2026 cybersecurity incident, which was contained with minimal first-quarter financial impact, though some second-quarter operational delays are anticipated.

Financial highlights

• Net earnings attributable to shareholders more than doubled to $198.4 million from $98.6 million year-over-year.

• Basic EPS increased to $1.41 from $0.71; diluted EPS rose to $1.39 from $0.70.

• Cash and cash equivalents at quarter-end were $857.1 million, with short-term investments of $498.2 million.

• Net cash provided by operating activities was $337.7 million, up from $138.1 million in the prior year.

• Gross margin improved as cost of sales rose less than revenue, despite $8.3 million in incremental tariff costs.

Outlook and guidance

• Management expects most delayed shipments from the cybersecurity incident to be recovered in the second half of 2026.

• Ongoing evaluation of potential tariff refunds following a Supreme Court ruling may impact future results.

• Continued focus on the "Playing to Win" strategy, emphasizing innovation, partnerships, and cost discipline.