Hasbro 2025 Q2 Earnings Misses Targets as Net Income Falls 717%

Hasbro reported its fiscal 2025 Q2 earnings on July 31st, 2025. The company faced a challenging quarter, missing expectations with a revenue decrease of 1.5% to $980.80 million. Despite the decline in Consumer Products revenue, Hasbro raised its guidance for 2025, anticipating mid-single-digit revenue growth in constant currency, reflecting resilience in its diversified operations. The strategic move to increase production for the successful Final Fantasy set highlights the company's adaptive approach in the face of market volatility.

Revenue
The total revenue of Hasbro decreased by 1.5% to $980.80 million in 2025 Q2, down from $995.30 million in 2024 Q2.

Earnings/Net Income
Hasbro swung to a loss of $6.10 per share in 2025 Q2 from a profit of $0.99 per share in 2024 Q2 (716.2% negative change). Meanwhile, the company reported a net loss of $-854.70 million in 2025 Q2, reflecting a 717.1% deterioration from the net income of $138.50 million achieved in 2024 Q2. The EPS figures indicate significant financial challenges for Hasbro this quarter.

Price Action
The stock price of Hasbro has edged down 0.57% during the latest trading day, has edged up 0.15% during the most recent full trading week, and has edged up 1.82% month-to-date.

Post-Earnings Price Action Review
The strategy of purchasing Hasbro shares when earnings surpass expectations and holding for 30 days has yielded substantial results, with a 115.68% return, greatly outperforming the benchmark return of 85.57%. This strategy's excess return was 30.11%, demonstrating impressive growth potential. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.79, this investment approach showcased excellent risk management, making it appealing for investors seeking growth and stability.

CEO Commentary
Chris Cocks, CEO of Hasbro, expressed optimism regarding the company's performance, particularly highlighting the strong demand for the Final Fantasy set, which significantly exceeded expectations and resulted in increased production runs. He noted that the success of this set, driven by strong IP appeal and strategic management, positions Hasbro for sustained growth in future releases. Cocks emphasized the robust growth of the Magic player base, with a notable increase in organized play participation, and highlighted the strategic importance of expanding distribution in non-traditional channels, particularly in international markets like Japan.

Guidance
Hasbro raised its revenue guidance for 2025, now expecting total revenues to grow mid-single digits in constant currency, compared to previous guidance indicating slight growth. The company anticipates a decline of 5% to 8% in Consumer Products revenue for the year due to ongoing challenges in that segment. Despite these challenges, Cocks reaffirmed confidence in the company’s growth profile, indicating that updated guidance would be provided as the year progresses.

Additional News
Hasbro recently made headlines with its decision to lay off 3% of its workforce as part of a broader restructuring effort aimed at aligning its structure with long-term goals. This move follows a previous initiative from December 2023, where over a thousand jobs were cut. The layoffs are part of a strategic plan to reduce expenditure by around $1 billion over the next few years. Despite these cuts, Hasbro continues to focus on expanding its intellectual properties, with plans for a Magic: The Gathering movie collaboration with Legendary Pictures, alongside new expansions for Monopoly and initiatives within its tentpole franchises.