In 2025, Magic: The Gathering has driven Hasbro profits like never before. The company however is still reporting a loss per share, because the consumer products and entertainment sectors are down.
Full year Hasbro revenue increased 14 per cent driven by record 45 per cent growth in the Wizards of the Coast and Digital Gaming segment. Consumer Products declined 4 per cent and Entertainment was down 4 per cent. Operating profit was $11 million and operating margin was 0.2 per cent. Hasbro says this “reflects the second quarter 2025 non-cash goodwill impairment”. Adjusted operating profit was $1,140 million (+36 per cent vs. previous year) and adjusted operating margin of 24.2 per cent (+3.9 points vs. previous year), driven by a “favorable business mix and benefits from cost transformation efforts”. EBITDA was $197 million and Adjusted EBITDA was $1.36 billion, ahead of guidance. Operating cash flow was $893 million, compared to $847 million in the prior year.
Magic: The Gathering (MTG) finished its strongest year ever, up 59 per cent from the previous year with the very successful Q4 release of the Avatar: The Last Airbender set and ongoing drive in the game’s backlist and the limited mail-oder Secret Lair.
Hasbro however reported a net loss of $2.30 per share and has adjusted the net earnings to $5.54 per diluted share. The company has returned $393 million to shareholders via dividends in 2025. It spent $225 million on debt reduction through the combination of bond repurchases and prefunding maturities, achieving debt targets ahead of schedule.
Some bullet points from the digital gaming and TCG segment:
Hasbro also plans to buy back $1 billion in shares from shareholders in 2026 and further reduce debt.
“I am proud of the results our team delivered in 2025 and the success of our Playing to Win strategy,” said Chris Cocks, Chief Executive Officer of Hasbro. “We returned the company to growth, engaged one billion fans, secured new partnerships, and made progress in our evolution into a digital-first play and IP company. We expect that momentum to carry into 2026.”
“2025 reflected strong operational execution, driven by progress on our transformation and cost savings initiatives. Wizards was a standout, anchored by record MAGIC revenue,” said Gina Goetter, Chief Financial Officer and Chief Operating Officer of Hasbro. “Looking ahead, we will continue to balance investment in the business with shareholder returns, including through a $1.0 billion share repurchase program.”
The full investor report can be found here.
