Spin Master (TOY) Q2 2026 earnings summary

Executive summary

• Achieved strong Q2 2026 results with consolidated revenues up 8.9% year-over-year to $436.4M, driven by 12% growth in toys, robust sales in core brands, and successful execution of strategic priorities.

• Operating income for Q2 was $45.7M, reversing a $52.4M loss last year; net income reached $29.7M compared to a $46.5M loss.

• Adjusted EBITDA for Q2 increased 80% to $51.6M, with margin improving to 11.8%.

• Significant free cash flow enabled capital returns to shareholders and debt reduction.

• Progress made on 2026 priorities: leveraging PAW Patrol movie, returning Melissa & Doug to growth, and expanding Toca Boca engagement.

Financial highlights

• Q2 gross profit was $269.0M, up from $210.0M in Q2 2025; gross margin improved to 61.5%, aided by a $37.9M tariff refund.

• Q2 free cash flow was $19.2M, up from negative $15.2M; operating cash flows increased by $32M to $58M in Q2.

• SG&A expenses decreased 6.6% year-over-year in Q2 to $206.5M.

• CapEx for the first half was $70.4M, focused on IT and integration investments.

• Cash balance at $48.5M, down from $128.0M a year ago.

Outlook and guidance

• 2026 guidance reiterated: stable to low single-digit revenue growth and mid to upper single-digit Adjusted EBITDA growth.

• Q3 expected to be stable due to Q2 order pull-forward; Q4 to comprise a larger share of full-year revenue.

• Guidance reflects both growth drivers and downside risks from economic and geopolitical uncertainty.

• Tariff refunds to offset increased costs, avoiding price hikes.