Spin Master closed the third quarter with revenue essentially flat year over year, but growth across PAW Patrol, Melissa & Doug, and Toca Boca World gave the company plenty to work with heading into the holiday season.
Revenue totaled $732.7 million, down 0.3% from Q3 2025. Adjusted EBITDA came in at $194.7 million, also nearly unchanged, with margin holding at 26.6%.
PAW Patrol was the standout.
Toy sales for the franchise increased 25% in the quarter following the release of PAW Patrol: The Dino Movie. On the earnings call, Spin Master said PAW Patrol helped push the company to the No. 1 spot in Infant, Toddler, and Preschool during Q3. The film also contributed $20 million in Entertainment revenue.
“Our third-quarter results demonstrated steady progress against our 2026 strategic priorities,” said Christina Miller, CEO of Spin Master. “I am proud of the collaboration and flawless execution of PAW Patrol: The Dino Movie across our entire company.”
Melissa & Doug returned to growth, with sales up 10% as Spin Master expanded distribution and shelf space and rolled out new products. The company is also taking the brand into publishing and other licensed categories.
Toca Boca World revenue rose 13%. Partnerships with Olivia Rodrigo, TWICE, MINISO, and Adidas helped drive engagement as Spin Master continued to link the digital property to merchandise and retail programs.
The toy business faced an unusual comparison. Approximately $40 million in gross product sales that would normally have landed in Q3 shifted into Q2. Even with that timing change, U.S. toy POS increased 4% for the quarter.
Net income declined to $79 million from $106.8 million, while operating cash flow increased to $102.2 million from $62.6 million.
Spin Master also completed its $36.2 million acquisition of Hapiko during the quarter. According to Spin Master, Stickerbox product has sold out more than three times since the deal closed, and broader distribution is planned for 2027.
The company maintained its 2026 outlook for stable-to-low-single-digit revenue growth and mid- to high-single-digit adjusted EBITDA growth.
