Hasbro Q4 Earnings and Revenues Beat Estimates, Stock Up

Hasbro, Inc. HAS reported fourth-quarter fiscal 2025 results, with earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased year over year. Following the news, the company’s shares gained 2% in the pre-market trading session today.

Hasbro’s management highlighted a strong 2025, with it returning to growth on the back of disciplined execution and the “Playing to Win” strategy. Leadership emphasized broader fan engagement, new partnerships and meaningful progress toward becoming a more digital and IP-focused business, setting a confident tone for 2026.

From a financial perspective, cost-saving and transformation efforts supported improved performance, with Wizards of the Coast emerging as the key driver, led by record Magic revenues. Management also reaffirmed its commitment to shareholder returns, pointing to a planned $1 billion share repurchase while continuing to invest in the business.

HAS’ Q4 Earnings & Revenues

In fourth-quarter fiscal 2025, HAS reported adjusted earnings per share (EPS) of $1.51, which beat the Zacks Consensus Estimate of 99 cents. In the year-ago quarter, it reported an adjusted EPS of 46 cents.

Net revenues of $1,445.9 million beat the consensus mark of $1,288 million. Moreover, the top line rose 31.3% from $1,101.6 million reported in the prior-year period.

HAS’ Segmental Revenues

Hasbro has three reportable operating segments, Consumer Products, Wizards of the Coast and Digital Gaming, and Entertainment.

In the fiscal fourth quarter, net revenues from the Consumer Products segment rose 7.2% year over year to $800 million. Our model predicted the segment’s revenues to be $716.2 million. Adjusted operating margin declined 10.1% year over year.

The Wizards of the Coast and Digital Gaming segment’s revenues totaled $630.4 million, up 86% from $339 million reported in the year-ago quarter. Our model predicted the segment’s revenues to be $520.2 million. Adjusted operating margin was 45% compared with 23.9% reported in the year-ago quarter.

The Entertainment segment’s revenues declined 5% year over year to $15.5 million. Our model predicted the segment’s revenues to be $17 million. Adjusted operating margin was 4.5% compared with 1.2% reported in the year-ago quarter.

Operating Highlights of HAS

In the fiscal fourth quarter, Hasbro’s cost of sales (as a percentage of net revenues) was 31.3% compared with 32.6% in the year-earlier quarter.

Selling, distribution and administration expenses were $334.2 million compared with $360.6 million reported in the prior-year quarter.

The company reported adjusted EBITDA of $372.2 million compared with $164.8 million a year ago. Our estimate for the metric was $264.5 million.

Hasbro’s Balance Sheet

As of Dec. 28, 2025, cash and cash equivalents were $776.6 million compared with $695 million as of Dec. 29, 2024. At the end of the reported quarter, inventories totaled $259.8 million compared with $274.2 million a year ago.

As of Dec. 28, 2025, long-term debt was $2.8 billion, down from $3.4 billion as of Dec. 29, 2024.

HAS 2026 Outlook

For 2025, Hasbro anticipates total revenues to increase 3-5% on a constant currency basis. It continues to expect the adjusted operating margin to be between 24% and 25%.

Adjusted EBITDA is now expected to be in the range of $1.40-$1.45 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 Callaway Golf Company CALY, Monarch Casino & Resort, Inc. MCRI and Rush Street Interactive, Inc. RSI.

Callaway 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 292.2%, on average. CALY stock has surged 96.6% in the past year. The Zacks Consensus Estimate for Callaway’s 2026 sales indicates a 47% decline, while EPS implies a 258.8% rise from the year-ago period’s levels.

Monarch Casino currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 3.5%, on average. MCRI stock has gained 15.3% in the past year.

The Zacks Consensus Estimate for Monarch Casino’s fiscal 2026 sales and EPS indicates growth of 2.4% and 10.5%, respectively, from the prior-year levels.

Rush Street has a Zacks Rank of 2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 19%, on average. RSI stock has climbed 19% in the past year.

The Zacks Consensus Estimate for Rush Street’s 2026 sales and EPS indicates growth of 14.1% and 20.7%, respectively, from the prior-year levels.

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

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