Hasbro Q2 Gaming Revenue Jumps 16%, MAGIC: THE GATHERING Sets Record

Hasbro's Q2 2025 earnings exceeded analyst estimates, with non-GAAP EPS at $1.30 and GAAP revenue at $980.8 million. Wizards & Digital Gaming revenue rose 16%, driven by record MAGIC: THE GATHERING sales, while traditional Consumer Products revenue fell 16% YoY. The company recorded a $1.02 billion non-cash goodwill impairment in the Consumer Products segment due to tariffs.

Hasbro Inc (NASDAQ: HAS) reported strong second-quarter (Q2) 2025 earnings, beating analyst expectations with non-GAAP EPS of $1.30 per share and GAAP revenue of $980.8 million. The company's Wizards & Digital Gaming segment saw a 16% increase in revenue, driven by record sales of Magic: The Gathering, while traditional Consumer Products revenue fell 16% year-over-year (YoY). The quarter was marked by a significant $1.02 billion non-cash goodwill impairment in the Consumer Products segment due to tariffs. Despite these challenges, Hasbro raised its full-year revenue and adjusted EBITDA guidance, indicating confidence in its diversified business model and cost productivity initiatives [1].

The standout performer was Magic: The Gathering, which saw revenue surge 23% due to the successful launch of the Final Fantasy set, the largest set release in Wizards history. The Wizards of the Coast and Digital Gaming segment overall saw a 16% increase in revenue, contributing significantly to Hasbro's overall performance. The Consumer Products segment, however, faced headwinds, with revenue declining 16% due to a combination of retailer order timing and geographic volatility, as well as the impact of tariffs [2].

Chris Cocks, CEO of Hasbro, noted that the company's return to growth in the first half of 2025 is a validation of its Playing to Win strategy. Gina Goetter, CFO and COO, highlighted the strength of the company's diversified business and cost productivity initiatives, which support the updated full-year outlook [3].

Hasbro's full-year revenue growth forecast has been raised to mid-single digits in constant currency, up from its previous guidance of "up slightly." The company also increased its adjusted operating margin forecast to 22%-23% from 21%-22% previously, and raised its adjusted EBITDA guidance to $1.17-$1.20 billion from $1.1-$1.15 billion. During the quarter, Hasbro returned $98 million to shareholders through dividends and reduced its outstanding debt by $12 million [4].

References:
[1] https://finance.yahoo.com/news/hasbro-shares-jump-q2-earnings-111520885.html
[2] https://ih.advfn.com/market-news/article/13285/hasbro-shares-surge-as-q2-earnings-beat-estimates-and-guidance-is-raised
[3] https://finance.yahoo.com/news/hasbro-lifts-annual-revenue-forecast-104605847.html
[4] https://www.gurufocus.com/news/2996408/hasbro-inc-q2-2025-earnings-eps-of-130-beats-estimate-revenue-surges-to-9808-million?mobile=true