Hasbro Reports Q2 2025 Revenue Decline Amid Goodwill Impairment

Hasbro, Inc. reported a decline in net revenues for the second quarter of 2025, totaling $980.8 million, a decrease of 1% from $995.3 million in the same period last year. The company's financial performance was significantly impacted by a $1,021.9 million non-cash goodwill impairment charge in its Consumer Products segment, which contributed to an operating loss of $798.2 million, compared to an operating profit of $212.1 million in the prior year. For the first half of 2025, Hasbro's revenues increased to $1.867 billion, up 7% from $1.753 billion in the first half of 2024, driven primarily by growth in the Wizards of the Coast and Digital Gaming segment.

The Consumer Products segment experienced a notable revenue decline of 16%, falling to $442.4 million from $524.5 million year-over-year, attributed to lower sales of key brands such as NERF and PLAY-DOH. In contrast, the Wizards of the Coast and Digital Gaming segment saw a 16% increase in revenues, reaching $522.4 million, bolstered by strong demand for tabletop gaming products like MAGIC: THE GATHERING. The Entertainment segment also faced challenges, with revenues decreasing by 15% to $16 million, primarily due to timing issues with streaming renewals.

In terms of strategic developments, Hasbro has been implementing its "Playing to Win" strategy, which focuses on enhancing brand engagement and expanding consumer reach through partnerships and digital initiatives. The company has also made significant progress in cost-saving measures and has strengthened its leadership team. Additionally, Hasbro completed the sale of its Entertainment One film and television business to Lionsgate for $375 million, which has allowed the company to streamline its operations.

Operationally, Hasbro's total assets decreased to $5.174 billion as of June 29, 2025, down from $6.864 billion a year earlier, largely due to the goodwill impairment. The company reported a cash balance of $546.9 million, a decrease from $626.8 million in the previous year. The workforce has also been impacted by restructuring efforts, with ongoing initiatives aimed at improving efficiency and reducing costs.

Looking ahead, Hasbro anticipates that the evolving trade policies and potential tariff impacts could affect its financial results. The company is actively monitoring these developments and may adjust its pricing strategies and supply chain operations accordingly. Despite the challenges, Hasbro remains focused on its strategic initiatives to enhance profitability and market share in the competitive toy and game industry.