May 20th, 2026

The call was largely positive: Hasbro reported a strong Q1 with double-digit revenue growth overall, outsized contributions from Wizards of the Coast, meaningful margin expansion, substantial EPS upside and healthy cash generation. Management maintained full‑year guidance, signaled continued cost-transformation progress and highlighted several product and franchise momentum indicators (record Magic set performance, sold-out events, digital partnerships and upcoming tentpole releases). Key risks discussed were a recent cyber incident (causing one-time remediation costs and temporary revenue/cash-timing shifts), input cost pressure from oil/resin/freight (~$30M estimated) and Consumer Products near-term headwinds (flat Q1 revenue, licensing declines and an adjusted operating loss). Management outlined mitigation actions and maintained guidance, leaving the tone constructive but cautious about back-half moderation and timing impacts.

Company Guidance

Hasbro reiterated full‑year guidance calling for consolidated revenue growth of 3–5% (constant currency), adjusted operating margins of 24–25% and adjusted EBITDA of $1.4–$1.45 billion; by segment, Wizards is expected to deliver mid‑single‑digit revenue growth with operating margins in the low‑40% range, Consumer Products low‑single‑digit revenue growth with adjusted operating margins of 6–8%, and Entertainment slightly positive revenue with ~50% operating margins. Management noted Q1 results that underpin the outlook: net revenue $1.0B (+13%), adjusted operating profit $287M (28.7% margin, +29%), adjusted EPS $1.47 (+41%), adjusted EBITDA $339M (+24%); segment Q1s included Wizards revenue $582M (+26%) and operating profit $298M (51.2% margin) and Consumer Products revenue $398M with an adjusted operating loss of $41M. The company expects to deliver $150M in full‑year cost transformation savings (Q1: $37M) and flagged embedded impacts from the March cyber incident — ~$20M of one‑time remediation expense (excluded from adjusted EBITDA), $40–60M of CP revenue shifted from Q2 into the back half, and some receivables moving into Q3 — as well as macro offsets: an estimated ~$30M oil‑related cost headwind (at $100/barrel), roughly $15M of tariff favorability, a ~$50M tariff claim not yet reflected in guidance, continued investment behind 2027 digital game launches, and capital actions (Q1 operating cash flow $338M, $50M strategic investments, $99M returned to shareholders via dividend, share repurchases started, and $400M of notes issued).