Hasbro kicked off the first quarter 2025 earnings season with a burst of momentum, reporting a 17% revenue increase in Q1 fueled by a 46% surge in its Wizards of the Coast and Digital Gaming segment — a performance led by Magic: The Gathering, Dungeons & Dragons, and mobile hit Monopoly Go!
The company reported operating profit of $171 million, or a 19.2% margin, while adjusted operating profit jumped $74 million to $222 million with a 25.1% margin — up 5.5 points year-over-year, driven by revenue growth and favorable product mix. Diluted earnings per share came in at $0.70 reported and $1.04 adjusted.
“Hasbro’s Playing to Win strategy is delivering in a challenging environment. We’re outperforming today and building for tomorrow through disciplined execution, standout partnerships like our extended Disney agreement, and future-focused bets that are already paying off,” says Chris Cocks, Hasbro CEO.
Magic continues to be the ace in Hasbro’s hand, with revenue climbing 45% thanks to strength across both tabletop formats and Magic: The Gathering Arena. The segment’s operating profit leapt 87%, with a commanding 49.8% margin — up 11 points — making it the clear MVP of the quarter.
On the Consumer Products side, revenue dipped 4%, but still beat expectations thanks to strong licensing and momentum from core brands like Marvel, Beyblade, Transformers, and Monopoly. While operating margin was -11.0%, adjusted margin improved to -7.8% as cost controls helped offset higher royalties and ad spend.
Entertainment revenue fell 5% due to the timing of content deals, with an operating loss of $11 million. Adjusted profit was steady at $17 million.
Operating cash flow totaled $138 million, down from $178 million a year ago due to accounts receivable timing. Hasbro returned $98 million to shareholders via dividends and reduced debt by $50 million. Tariffs had no material impact on Q1 results.
“We delivered strong revenue growth and a meaningful profit lift in Q1, driven by a strategic shift toward higher-margin businesses. As we progress toward our $1 billion cost savings goal, the strength of Wizards, licensing, and our asset-light model continues to offset tariff pressures and support margins,” adds Gina Goetter, Chief Financial Officer and Chief Operating Officer at Hasbro.
Despite tariff concerns, Hasbro is not updating its 2025 guidance.
Stay tuned for updates following this morning’s earnings call.
