Hasbro’s Q2 Packs a Punch With Magic Surge Amid Toy Slump

Second quarter earnings season is officially underway.

Hasbro reported Q2 2025 earnings that reflect strength in Wizards of the Coast and Digital Gaming as softness in Consumer Products weighed on results.

Revenue dipped 1% year-over-year to $981 million, as a 23% surge in Magic: The Gathering — led by the record-breaking Final Fantasy set — helped offset declines in traditional toy sales. Monopoly Go! contributed $44 million in revenue as part of a 16% segment gain for Wizards and Digital Gaming.

Consumer Products revenue fell 16%, driven by order timing and geographic volatility. Despite the decline, Hasbro saw gains across key brands including Beyblade, Transformers, and Monopoly. Licensing also remained a bright spot. Adjusted operating profit in the segment was $1.2 million.

Entertainment revenue fell 15% due to deal timing, with adjusted operating profit slipping to $10 million.

Hasbro posted an operating loss of $798 million, primarily driven by a $1 billion non-cash goodwill impairment. However, adjusted operating profit held steady at $247 million. The company reported a net loss of $6.10 per share, with adjusted earnings of $1.30 per diluted share — an $0.08 improvement from a year ago.

Year to date, Hasbro’s revenue is up 7% to $1.87 billion on the strength of a 28% increase in Wizards and Digital Gaming, offsetting a 10% dip in Consumer Product sales. The company returned $98 million to shareholders during the quarter and reduced outstanding debt by $12 million.

“We are raising our full-year revenue and adjusted EBITDA guidance, fueled by performance in our Wizards business. Despite a dynamic macro environment, the strength of our diversified business and cost productivity initiatives supports our updated outlook,” says Gina Goetter, Hasbro Chief Financial Officer and Chief Operating Officer.

On the trade war front, Hasbro restarted production and shipments from China to the U.S. in May as the tariff rate moved back to 30% from the temporary 145% rate. The company says that its Q2 owned inventory spiked 17% year over year, driven by a combination of planned inventory builds and higher cost of inventory related to foreign exchange and tariffs. Meanwhile, aged inventory is at an all-time low.

The company says that tariffs have not yet affected margins, but it “expects to see costs ramp in Q3, timed with retail holiday inventory builds.”

At The Toy Insider’s Sweet Suite event in New York City last week, Hasbro showed off a robust lineup of hot products that should spark consumer interest in the months ahead. [Note: The Toy Insider is a sister publication to The Toy Book, both published by Adventure Media & Events]

Hasbro will host an earnings call for analysts at 8:30 am ET this morning.