Spin Master’s third-quarter earnings report shows the toymaker feeling the weight of global market uncertainty and U.S. retail order slowdowns tied to shifting trade policies under the Trump administration.
Q3 revenue was $734.7 million, down 17% from a year ago. Operating income fell to $151 million, a 25.7% drop from the same period in 2024. Net income was $106.8 million, or $1.03 per diluted share, compared with $1.36 a year earlier.
This quarter, our Toys, Entertainment, and Digital Games once again captured the imagination of kids and parents, and we grew our Toy market share within our total addressable market."
Among Spin Master’s three “Creative Centers,” Toys took the biggest hit, with sales falling $160.5 million to $650.4 million. Gross product sales dropped by $180 million, reflecting a pullback in retailer demand ahead of this year’s later-than-ever holiday resets.
Entertainment revenue dipped $4.3 million to $32.8 million, up against tough comps left over from the ongoing distribution of 2023’s PAW Patrol: The Mighty Movie (a streaming hit last year) and related licensing and merchandising efforts.
Digital Games was a bright spot with a $13.8 million revenue spike to $51.5 million, thanks to higher engagement across the company’s mobile platforms, including strong activity in Toca Boca World and more paid subscriptions in Piknik.
Looking ahead, Spin Master shares the optimism of its peers, including Mattel and Hasbro, that this holiday shopping rush will see cash register bells ringing.
“We are well-positioned for the holiday season with a broad range of our award-winning toys and brands featured on retailers’ top toy lists, a first-ever PAW Patrol Christmas special set to air on broadcast networks, platforms, and in theaters globally this November, and a robust lineup of new features, content releases, and strategic partnerships across our Digital Games business,” Miller said.
While Spin Master didn’t share an update on guidance in its Q3 earnings release, the company believes it’s in a solid position heading into next year.
“Our balance sheet and cash conversion are strong, and we’re making important investments in key areas to drive growth and higher returns in future years,” said Jonathan Roiter, Spin Master’s Chief Financial Officer.
Spin Master will hold an earnings call with analysts later this morning.
