Oct 20, 2026 earnings call — Outlook raised after Magic-driven profit surge
Hasbro raised full-year adjusted EBITDA to $1.575 billion to $1.625 billion.
Revenue $1.6B (est $1.5B) · EPS $2.90 (est $1.86)
Key quotes
"Magic revenue topped 600 million for the first time. growing 34% versus last year and beating the record we set last quarter."
"Hasbro is a top 5 global licensor with more than $17 billion in annual retail sales."
"Adjusted operating profit doubled to $178 million, inclusive of approximately $48 million of tariff refunds with an adjusted operating margin of 21.5% compared to 11.2% last year."
Analyst Q&A 8
Why Magic grew strongly in Q3
Q (Stephen Laszczyk · Goldman Sachs): Analyst asked what specifically drove Magic's strong third-quarter performance and what supports continued growth from new sets next year.
A: Management said several things drove strength: a top-performing set (Reality Fracture), strong Hobbit demand despite fewer SKUs, record player engagement, broader distribution, and healthy category tailwinds. They said the momentum should continue into 2027, though Q4 will be modestly down because of timing shifts between quarters.
"Reality fracture is 1 of the best performing premier sets we have ever done." — Christian Cocks (CEO)
Q4 timing versus true demand
Q (James Hardiman · Citi): Analyst wanted to confirm if timing shifts between quarters explain the weaker Q4 and if that means demand is still strong. He also asked about core Wizards margins for 2027.
A: Management said the weaker Q4 is mostly timing, not a demand problem, and they will pace releases for fans and partners rather than quarterly results. They said Wizards will still grow but margin pressure next year mainly comes from amortization related to video game launches, with most of that cost hitting early in the year.
"It will be a Q2 event where we will see most of or I would say 65% of that cost come through." — Gina Goetter (CFO)
Are new players staying and spending more?
Q (Xian Siew · BNP Paribas): Analyst asked whether new players stick with Magic and increase spending, and about Magic's growth outlook for 2027.
A: Management said backlist sales are growing faster than front list, showing new players buy more after entering via crossover sets. They said new players often become long-term Magic fans who play for multiple years, and Christian clarified the mid to high single digit growth comment referred specifically to Magic.
"They become magic fans, and they stick around like a magic fan and behave like a magic fan." — Christian Cocks (CEO)
Distribution growth and Q4 consumer products
Q (Arpine Kocharyan · UBS): Analyst asked what drove the rise in Wizards Play Network stores and whether WPN will keep expanding; he also asked about consumer products Q4 expectations and the implied revenue guide.
A: Management said hobby and player growth are driving new stores: WPN grew by about 38% through third quarter of 26 and Magic is now in close to 40 thousand mass doors. For consumer products, they expect the back half to be up low single digits and Q4 to be flattish to slightly positive, with some comp noise from last year.
"Through third quarter of 26, we have seen about a 38% growth rate." — Christian Cocks (CEO)
Frontline vs backlist vs Secret Lair split
Q (Eric Handler · Roth Capital): Analyst asked what share of Magic revenue comes from front list, backlist, and Secret Lair and how that changed over 2–3 years. He also asked if consumer demand looks fragile.
A: Management said they do not provide detailed splits, but most revenue still comes from the front list while backlist and Secret Lair are growing strongly. They also said the consumer looks resilient heading into the holidays given their shift to GEM Squared categories.
"it is suffice it to say, just given kinda how our front list is stacked, the majority of our revenue comes from the front list." — Gina Goetter (CFO)
Marvel Darkhold, set quality, Exodus signals
Q (Anthony Bonadio · Wells Fargo): Analyst asked about Marvel Darkhold's fit and the overall quality of announced 2027 sets, and what to watch for Exodus now that it has an April 7 date.
A: Management said Darkhold Destiny is an original storyline that should fit well and that next year's six major sets will all be full product suites, which materially boosts per-set sales. For Exodus, wish list and preorders are key; wish list activity is approaching a million, which benchmarks well versus recent releases, and major news is planned in December.
"it is approaching a million wish lists, which based on what we are benchmarking from, you know, other releases over the last couple years, that is benchmarking pretty favorably." — Christian Cocks (CEO)
Retail POS and distribution process
Q (Gerrick Johnson · Seaport): Analyst asked for point-of-sale results for the quarter for Magic and consumer products, and asked how distribution vs direct sales work and the timing between revenue recognition and retail sales.
A: Management said overall POS was up low single digits and trading cards were up high single digits to low double digits. They said the vast majority of sales flow through distributors, margins are comparable, hobby shops typically get orders within 24 to 48 hours, and distributors can take product 2 to 6 weeks before a major release.
"For us in the quarter was, call it, up low single digits overall." — Gina Goetter (CFO)
CP medium-term growth and CapEx use
Q (Alexander Perry · BofA): Analyst asked if consumer products can grow faster than low single digits and how to think about CapEx and freed cash use over 18–24 months.
A: Management said new 2027 licenses and movie lineups set up a healthy 2027 for consumer products and they aim to get CP margins into the double digits in the midterm. They said digital development CapEx should be down 20% to 25% by 2028, and as that cash flow frees up it gives flexibility to reinvest, do share repurchases, or buy back debt.
"And in short, yes, as that cash flow frees up, it gives us flexibility to either reinvest back into the business to fund more towards share repurchases or to continue to buy back debt." — Gina Goetter (CFO)