HAS Q3 Earnings Backed by Solid Wizards of the Coast & Gaming Momentum

Hasbro, Inc. HAS delivered a strong third-quarter 2025 top-line growth fueled mainly by the Wizards of the Coast and Digital Gaming segment. The business once again outshone, reinforcing its role as a central growth engine in Hasbro’s long-term strategy.

Wizards of the Coast posted a robust performance, with revenues climbing 42% to $572 million. Magic: The Gathering was the standout, up 55% year over year, powered by blockbuster “Universes Beyond” collaborations such as Final Fantasy and Spider-Man. Management highlighted that these tie-ins are expanding distribution, attracting new players and deepening engagement. The segment’s operating profit jumped 39% to $252 million, representing an impressive 44% margin, underscoring the scalability of Magic and the benefits of brand partnerships.

The momentum is not limited to trading cards. Dungeons & Dragons, refreshed with new rulebooks in 2024, has seen its strongest start ever, while digital expansion continues to drive traction. D&D Beyond’s new virtual tabletop tool lifted weekly traffic by nearly 50% following its September debut. Meanwhile, Hasbro’s digital licensing titles, including the hit mobile game Monopoly Go! and the new SORRY! World, are performing well at the top of mobile charts. Looking ahead, anticipation is building for Hasbro’s upcoming sci-fi RPG, Exodus, which will be showcased later this year.

Management reaffirmed that Wizards and Digital Gaming are critical to sustaining growth, with guidance for full-year revenues of the former up 36-38% and margins holding near 44%. The strong engagement pipeline, innovative collaborations and a steady stream of content releases point to continued momentum through the holiday season and into 2026.

Hasbro’s third-quarter results underline how its “Playing to Win” strategy, anchored by high-engagement franchises and digital experiences, is paying off. With Magic, D&D, and digital titles leading the charge, the company is well-positioned to extend its leadership in the global play and gaming market.

HAS Raises 2025 Outlook

For 2025, Hasbro now anticipates total revenues to increase in high single digits on a constant currency basis. Earlier, the company expected total revenues to increase in mid-single digits. 

It continues to expect the adjusted operating margin to be between 22% and 23%.

Adjusted EBITDA is now expected to be in the range of $1.24-$1.26 billion, up from the prior expectation of $1.17-$1.2 billion.

HAS’ Zacks Rank

Hasbro currently has a Zacks Rank #3 (Hold).

Stocks to Consider

Some better-ranked stocks from the Consumer Discretionary sector are Norwegian Cruise Line Holdings Ltd. NCLH, Carnival Corporation & plc CCL and Planet Fitness, Inc. PLNT.

Norwegian Cruise Line flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The company delivered a trailing four-quarter earnings surprise of 29.1%, on average. NCLH stock has declined 7.2% year to date. The Zacks Consensus Estimate for NCLH’s 2025 sales and EPS indicates growth of 6% and 14.8%, respectively, from the year-ago period’s levels.

Carnival flaunts a Zacks Rank of 1 at present. The company delivered a trailing four-quarter earnings surprise of 169.8%, on average. Carnival stock has gained 17.3% year to date.

The Zacks Consensus Estimate for Carnival’s 2025 sales and EPS indicates growth of 6.5% and 51.4%, respectively, from the prior-year levels.

Planet Fitness has a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 6.8%, on average. Planet Fitness stock has gained 22.2% in the past year.

The Zacks Consensus Estimate for Planet Fitness’ 2025 sales and EPS indicates growth of 10.2% and 13.1%, respectively, from the prior-year levels.

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This article originally published on Zacks Investment Research (zacks.com).

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