AI interpretation based on checked source excerpts. Issuer assertions and evidence limitations remain explicit.
Policy quality-scores-2: six equally weighted categories. The overall score requires full coverage. Missing inputs are not zero. Qualitative grades are sourced interpretations, not probabilities. 3/6 · 18/10/2026
Moat56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
structural advantage · 3/4 · Brand and intellectual property rights have demonstrated commercial value through repeated MAGIC demand, successful DUNGEONS & DRAGONS products and digital licensing. This supports a strong franchise-level advantage, although low industry entry barriers limit its breadth.
durability · 2/4 · MAGIC performance across 2023–2025, continuing backlist demand and 2026 gaming demand support persistence. Shortened product cycles, partner dependence and uneven portfolio results prevent a strong company-wide durability assessment.
customer dependency · 2/4 · Repeated demand for sets, backlist products and franchise extensions indirectly demonstrates continuing customer engagement. The passages do not establish captive customers, material switching friction or essential-use dependency.
erosion resilience · 2/4 · Core gaming demand has persisted despite broad competition. Consumer Products losses, Entertainment contraction and lower licensing revenues in a particular franchise show that the portfolio does not uniformly resist erosion; generic entry risks are not treated as realized market-share losses.
Pricing power—
Insufficient evidence for every rubric criterion; no category score is inferred.
realized pricing · 2/4 · Implemented price increases provided a disclosed benefit against 2023 cost pressures, establishing some realized pricing ability. Higher allowances, closeouts and historical discounting offset that evidence. No current price-volume decomposition establishes broad premium pricing.
retention · 3/4 · Multi-year MAGIC demand, repeated backlist purchases, successful DUNGEONS & DRAGONS releases and subsequent tabletop and licensed-digital demand provide strong indirect evidence of repeat franchise demand. This is an operating-evidence assessment, not a measured retention rate or proof that customers accepted specific price increases.
margin resilience · 2/4 · Adjusted operating margins improved across 2023–2025 and Wizards margins improved in early 2026. Disclosed drivers were business mix, revenue growth and cost transformation rather than verified pricing strength. Large GAAP adjustments, Consumer Products losses and historical cost pressures make resilience mixed.
contractual freedom · — · Price increases establish some practical ability to change prices, and fixed-consideration and minimum-guarantee arrangements exist. The supplied terms do not establish discretion to reset prices, royalties or renewal conditions. Customer concentration alone does not establish contractual restrictions.
Predictability72
Five consecutive annual periods. Equal weights: nondeclining revenue frequency; revenue-growth volatility (5–40pp); positive FCF frequency; FCF-margin volatility (3–20pp). Stability indicator, not a growth forecast.
- Nondeclining revenue years (%)
- 25.00
- Revenue growth volatility (pp)
- 12.20
- Positive FCF years (%)
- 100.00
- FCF margin volatility (pp)
- 5.50
Financial strength—
Missing required inputs: netDebtEbitGrade. Equal-weight grades: debt/FCF (1–8x), net debt/earnings before interest and tax (0–5x), interest service (1–12x), current ratio (0.75–2x). Earnings use reported operating income, or reported pretax profit plus reported interest expense when operating income is unavailable. Interest service uses earnings/interest expense; if unavailable, it uses reported operating cash flow/cash interest paid, without relabeling cash paid as accrued expense. Nonpositive cash flow/earnings score 0 for their service component; reported zero interest with a positive numerator scores 100. Net cash scores 100 for net leverage. Missing disclosures remain unavailable. General nonfinancial-company rubric, not a credit rating; exceptional and nonoperating gains are not normalized out. IFRS finance-cost and cash-flow classifications retain their reported scope.
- debtFcfGrade
- 58.08
- interestCoverageGrade
- 0.00
- currentRatioGrade
- 50.47
- Debt / FCF (x)
- 3.93
- Interest coverage (x)
- 0.07
- Current ratio (x)
- 1.38
Capital allocation—
Missing required inputs: operatingReturn. Three-year equal-weight indicators: pretax return on average invested capital (0–25%; equity + debt − cash, each year and its prior year), share-count growth (0–5%, lower better), share-based cost/revenue (2–20%, lower better), consolidated FCF/net income (0–1x). Return uses reported operating income or, if unavailable, EBIT calculated from reported pretax profit plus reported interest expense; exceptional/nonoperating gains are not normalized out. Share-based cost uses the reported cash-flow add-back or, if absent, separately reported recognized compensation expense; the latter never becomes an FCF adjustment. Nonpositive net income scores 0 for cash conversion; absent income/FCF stays unavailable. Nonpositive invested capital has no defined return and remains unavailable. Does not establish acquisition quality or buyback timing.
- 3-year average dilution (%)
- 0.36
- 3-year average SBC / revenue (%)
- 1.46
- cashConversionGrade
- 0.00
Management56
Equal-weight average of four evidence-backed rubric grades (0–4), scaled to 100.
capital discipline · 2/4 · Operating cash generation, actual capital spending and debt repayments support financial discipline, alongside dividends and resumed repurchases. Repeated goodwill impairments and the 2026 software write-off demonstrate unsuccessful investments. First-half 2026 borrowings exceeded repayments, so selective debt repurchases do not establish overall deleveraging.
incentive alignment · 3/4 · Actual compensation arrangements include performance shares comprising half of long-term incentives, three-year TSR modifiers, ownership guidelines and a Board-approved clawback policy. These provide strong structural alignment. The approved 200% annual payout does not establish exceptional alignment, and full ownership compliance and realized long-term vesting outcomes are not demonstrated.
execution · 2/4 · Repeated gaming demand, improved cash generation and reported delivered savings demonstrate progress. Persistent Consumer Products losses, canceled digital titles and network-access costs show material weaknesses. Restoration of operations is disclosed by the issuer. Execution is assessed partly from indirect operating outcomes, without attributing all demand changes to management.
governance · 2/4 · Independent required committees, majority voting with a resignation policy and an adopted clawback policy support substantive governance safeguards. The network incident and associated costs temper confidence in oversight effectiveness, while reported restoration provides counterbalancing evidence. Governance structures alone do not demonstrate exceptional outcomes.
Evidence
Our subsidiary, Wizards of the Coast (“Wizards”), is a critical part of our gaming business, driving innovation and growth through its popular role-playing and fantasy card-collecting games such as MAGIC: THE GATHERING, Hasbro's first billion-dollar brand which benefited from multiple tentpole set releases exceeding $100.0 million per set during 2023, and DUNGEONS & DRAGONS.
Business / Wizards franchise performance in 2023 · Filed 28/02/2024
•MAGIC: THE GATHERING had a solid year, nearly matching 2023’s record despite fewer set releases.
Business / 2024 MAGIC performance · Filed 27/02/2025
Modern Horizons 3, Bloomburrow, and Duskmourn led performance in tentpole sets with backlist and Secret Lair demand also exceeding expectations.
Business / 2024 backlist and Secret Lair demand · Filed 27/02/2025
•For DUNGEONS & DRAGONS, we celebrated the brand’s 50th Anniversary with the 2024 Players Handbook and Dungeon Master’s Guide, both top selling products in D&D’s history.
Business / 2024 DUNGEONS & DRAGONS product performance · Filed 27/02/2025
•MAGIC: THE GATHERING had a record year, supported by the success of its Universes Beyond sets such as Avatar: The Last Airbender and Final Fantasy, which was the highest selling set of all-time based on net revenues.
Business / 2025 MAGIC performance · Filed 25/02/2026
Edge of Eternities and Marvel's Spider-Man also contributed to performance as well as high demand for our backlist sets and Secret Lair offerings.
Business / 2025 backlist and Secret Lair demand · Filed 25/02/2026
•Digital licensing was once again led by Monopoly Go!, a mobile game from our partners at Scopely, Inc., and remains a meaningful contributor to licensing revenues.
Business / digital licensing contribution · Filed 25/02/2026
The Consumer Products business also promotes the Company's brands through the out-licensing of our trademarks, characters and other brand and intellectual property rights to third parties, through the sale of branded consumer products such as toys and apparel.
Segment disclosures / out-licensing brand and intellectual property rights · Filed 25/02/2026
The increase in revenue is driven primarily by growth in our Wizards of the Coast and Digital Gaming segment, inclusive of increased demand for both tabletop and licensed digital gaming.
MD&A / first-quarter 2026 gaming demand · Filed 13/05/2026
In addition to existing competitors, the barriers to entry for new participants in the play industry are low.
Risk Factors / low barriers to entry · Filed 25/02/2026
We also contend with the expanding variety of digital gaming and digital entertainment offerings available for children, while product life cycles of traditional toys and games have shortened.
Business / digital alternatives and shortened toy product cycles · Filed 25/02/2026
Consumer Products segment operating loss for the first six months of 2026 was $62.0 million, or 7.2% of segment net revenues, compared to a segment operating loss of $1,073.5 million, or 127.7% of segment net revenues, for the first six months of 2025.
MD&A / first-half 2026 Consumer Products operating loss · Filed 30/07/2026
Entertainment Segment The following table presents Entertainment segment net revenues by category: Six Months Ended June 28, 2026 June 29, 2025 % Change Family Brands $ 30.4 $ 36.9 (17.6) % Film and TV 2.7 5.8 (53.4) % Net revenues $ 33.1 $ 42.7 (22.5) % Entertainment segment net revenues decreased 22.5% to $33.1 million for the first six months of 2026, compared to $42.7 million for the first six months of 2025.
MD&A / first-half 2026 Entertainment revenue decline · Filed 30/07/2026
The increase in toy and game revenues was partially offset by a decrease in licensing revenues, primarily attributable to the lapping of licensing revenue related to My Little Pony, which decreased $10.8 million.
MD&A / first-half 2026 My Little Pony licensing decline · Filed 30/07/2026
The cost of sales increase as a percent of net revenues was the result of higher product input costs including higher material costs and higher inventory obsolescence, sales allowances and closeout charges to address excess inventory, most notably within Europe and the U.S., partially offset by the benefit of implemented price increases and lower freight costs.
MD&A / 2023 cost-of-sales pressures and realized pricing benefit · Filed 28/02/2024
We have also increased prices in some cases to help offset increased costs.
Risk Factors / implemented price increases · Filed 27/02/2025
Inventory levels in excess of demand have in the past resulted in, and may in the future result in inventory write-downs or write-offs, and the sale of excess inventory at discounted prices or through less preferred distribution channels, which could harm our profit margins.
Risk Factors / historical inventory write-downs and discounted sales · Filed 25/02/2026
2024), driven by favorable business mix and benefits from cost transformation efforts.
Compensation Discussion and Analysis / drivers of adjusted margin improvement · Filed 17/04/2026
Reconciliation of Operating Profit Results Year Ended December 28, 2025 Year Ended December 29, 2024 As Reported Non-GAAP Adjustments Adjusted As Reported Non-GAAP Adjustments Adjusted Adjusted Company Results External Net Revenues $ 4,701.3 — $ 4,701.3 $ 4,135.5 — $ 4,135.5 Operating Profit (Loss) 11.1 1,128.9 1,140.0 690.0 148.8 838.8 Operating Margin 0.2% 24.0% 24.2% 16.7% 3.6% 20.3% Year Ended December 31, 2023 As Reported Non-GAAP Adjustments Adjusted Adjusted Company Results External Net Revenues $ 5,003.3 — $ 5,003.3 Operating Profit (Loss) (1,538.8 ) 2,015.3 476.5 Operating Margin -30.8% 40.3% 9.5% A-2 Table of Contents Reconciliation of Net Earnings and Earnings Per Share(1) (Unaudited) (Millions of Dollars) Year Ended (all adjustments reported after-tax) December 28, 2025 Diluted Per Share Amount December 29, 2024 Diluted Per Share Amount December 31, 2023 Diluted Per Share Amount Net Earnings Attributable to Hasbro, Inc.
Appendix A / reported and adjusted operating results for 2023–2025 · Filed 17/04/2026
Operating margin also increased during the first quarter of 2026, primarily driven by increased net revenues and product mix in 2026 as compared to 2025.
MD&A / first-quarter 2026 Wizards margin drivers · Filed 13/05/2026
These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less or (ii) licenses of intellectual property that are solely based on the sales of the licensee.
Revenue Recognition / fixed consideration and minimum-guarantee arrangements · Filed 30/07/2026
•Our customer base remains highly concentrated, making us susceptible to the success of their businesses.
Risk Factors / customer concentration · Filed 25/02/2026
AND SUBSIDIARIES Consolidated Statements of Cash Flows Fiscal Years Ended in December (Millions of Dollars) 2025 2024 2023 Cash flows from operating activities: Net (loss) earnings $ (318.2) $ 394.4 $ (1,487.8) Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation of property, plant and equipment 69.5 94.7 127.7 Loss on disposal of business 25.0 37.4 539.0 Impairment of goodwill 1,021.9 — 1,191.2 Impairment of intangibles and production assets — — 116.0 Loss on Discovery Family Channel investment — 78.2 — Inventory obsolescence 49.3 22.4 91.2 Amortization of intangible assets 66.0 68.3 83.0 Program cost amortization 35.8 49.3 448.9 Deferred income taxes 158.3 (20.6) (243.5) Share-based compensation 80.4 50.8 72.4 Other non-cash items 25.5 13.0 (6.1) Changes in operating assets and liabilities, net of acquired and disposed balances: Net change in accounts receivable (150.2) 77.3 15.5 Net change in inventories (25.4) 22.1 257.1 Net change in prepaid expenses and other current assets (40.7) 58.9 34.7 Program production costs (10.2) (25.3) (408.0) Net change in accounts payable and accrued liabilities (35.1) (78.8) (109.7) Change in net deemed repatriation tax (57.4) (45.9) (34.4) Other (1.3) 51.2 38.4 Net cash provided by operating activities 893.2 847.4 725.6 Cash flows from investing activities: Additions to property, plant and equipment (63.3) (87.2) (135.5) Additions to software development (135.0) (110.3) (73.8) Net (settlement) proceeds from sale of business, net of cash transferred — (12.0) 329.6 Purchase of investments (105.4) (571.0) — Maturity of investments — 583.0 — Other 19.3 (6.2) (2.7) Net cash (utilized) provided by investing activities (284.4) (203.7) 117.6 Cash flows from financing activities: Proceeds from borrowings — 498.6 2.6 Repayments of borrowings (118.2) (581.3) (359.6) Net repayments of other short-term borrowings — — (41.6) Share-based compensation transactions 9.6 7.6 — Dividends paid (392.5) (389.9) (388.0) Payments related to tax withholding for share-based compensation (23.7) (14.4) (16.8) Payment of financing costs — (5.3) — Other (6.5) (12.8) (14.7) Net cash utilized by financing activities (531.3) (497.5) (818.1) Effect of exchange rate changes on cash 4.1 3.4 7.2 Net increase in cash, cash equivalents and restricted cash 81.6 149.6 32.3 Cash, cash equivalents and restricted cash, beginning of year 695.0 545.4 513.1 Cash, cash equivalents and restricted cash, end of year $ 776.6 $ 695.0 $ 545.4 Supplemental information Interest paid $ 158.4 $ 162.2 $ 179.0 Income taxes paid, net $ 196.8 $ 92.7 $ 119.8 See accompanying notes to consolidated financial statements.
Consolidated Statements of Cash Flows / 2023–2025 spending, financing and cash generation · Filed 25/02/2026
AND SUBSIDIARIES Consolidated Statements of Cash Flows (Millions of Dollars) (Unaudited) Six months ended June 28, 2026 June 29, 2025 Cash flows from operating activities: Net earnings (loss) $ 360.8 (755.2) Adjustments to reconcile net earnings (loss) to net cash provided by operating activities: Depreciation of property, plant and equipment 28.7 32.1 Loss on disposal of business — 25.0 Impairment of goodwill — 1,021.9 Impairment of capitalized software 56.4 — Inventory obsolescence 13.0 12.0 Amortization of intangible assets 29.2 34.2 Program cost amortization 7.1 13.6 Deferred income taxes 13.9 (8.6) Share-based compensation 46.4 31.3 Other non-cash items 11.5 (8.3) Change in operating assets and liabilities: Net change in accounts receivable 306.6 221.7 Net change in inventories (107.8) (141.1) Net change in prepaid expenses and other current assets (1.7) (23.9) Program production costs (7.1) (6.5) Net change in accounts payable and accrued liabilities (163.0) (177.8) Change in net deemed repatriation tax — (57.4) Other 10.4 (3.6) Net cash provided by operating activities 604.4 209.4 Cash flows from investing activities: Additions to property, plant and equipment (41.2) (29.9) Additions to software development (54.0) (61.8) Purchases of investments (423.0) (10.0) Other (6.4) 12.5 Net cash utilized by investing activities (524.6) (89.2) Cash flows from financing activities: Proceeds from borrowings 399.4 — Repayments of borrowings (123.3) (60.5) Payments of financing costs (4.8) — Share-based compensation transactions 38.7 4.9 Payments related to tax withholding for share-based compensation (44.7) (19.9) Dividends paid (197.6) (196.0) Repurchases of common stock (41.5) — Other (2.7) (3.1) Net cash provided (utilized) by financing activities 23.5 (274.6) Effect of exchange rate changes on cash 0.6 6.3 Net increase (decrease) in cash, cash equivalents and restricted cash 103.9 (148.1) Cash, cash equivalents and restricted cash at beginning of year 776.6 695.0 Cash, cash equivalents and restricted cash at end of period $ 880.5 $ 546.9 Supplemental information Interest paid $ 78.3 $ 79.2 Income taxes paid, net $ 55.2 $ 158.4 See accompanying condensed notes to consolidated financial statements.
Consolidated Statements of Cash Flows / first-half 2026 spending, financing and cash generation · Filed 30/07/2026
During the three and six months ended June 28, 2026, the Company recorded a $56.4 million non-cash impairment charge related to the Company's decision to refocus the Digital Games portfolio, which included the cancellation of certain titles scheduled for releases in 2028 and beyond.
Accounting policies / digital-game cancellations and software impairment · Filed 30/07/2026
Through 2025, we have delivered almost $800 million of gross cost savings and are well on our path to our previous $1.0 billion commitment.
Business / reported cumulative gross cost savings · Filed 25/02/2026
The Committee continues to believe that Diluted Earnings Per Share (EPS) is the appropriate performance metric upon which to base the performance share unit (PSU) awards, which represented 50% of total long-term incentive (LTI) for our CEO and other NEOs.
Compensation Discussion and Analysis / performance-share weighting and EPS metric · Filed 17/04/2026
The number of shares vesting can be modified by relative and absolute Total Shareholder Return (TSR) modifiers at the end of the three-year performance period.
Compensation Discussion and Analysis / three-year TSR modifiers · Filed 17/04/2026
The Total Hasbro payout factor for awards under the 2025 annual incentive plan, as approved by the Committee, was 200% of target.
Compensation Discussion and Analysis / approved 2025 annual incentive payout · Filed 17/04/2026
All equity and non-equity incentive plan compensation is subject to the Board-approved Clawback Policy.
Compensation Discussion and Analysis / Board-approved clawback policy · Filed 17/04/2026
All NEOs were either in compliance with the stock ownership guidelines or were within the five years they had to achieve the requisite ownership level, as of the fiscal year ended December 28, 2025.
Executive compensation / ownership-guideline compliance or permitted accumulation period · Filed 17/04/2026
FORMER PUBLIC COMPANY BOARDS HELD IN THE PAST FIVE YEARS • None 8 Table of Contents Board Committees Our Board of Directors has four standing committees: • Audit • Compensation and Talent • Finance and Capital Allocation • Nominating, Governance and Social Responsibility The members of each of our required committees, namely Audit, Compensation and Talent, and Nominating, Governance and Social Responsibility, are all independent directors, as defined by the rules of The NASDAQ Stock Market (“Nasdaq”) and our Standards for Director Independence (“Independence Standards”).
Governance / standing committees and required-committee independence · Filed 17/04/2026
The Company has a majority vote standard for the election of directors in uncontested director elections, coupled with a director resignation policy for those directors who do not receive a majority vote.
Governance / majority voting and director resignation policy · Filed 17/04/2026
The increase in Selling, distribution and administration expenses during the second quarter of 2026 is primarily the result of a one-time $56.4 million non-cash impairment charge related to the Company's decision to refocus the Digital Games portfolio, which included the cancellation of certain titles scheduled for release in 2028 and beyond, as well as $10.8 million of incremental costs incurred as a result of the unauthorized network access, partially offset by benefits from cost savings initiatives that have occurred over the last 12 months.
MD&A / software impairment, network-access costs and cost savings · Filed 30/07/2026
As of June 28, 2026, the Company's standard business operations and internal control over financial reporting have resumed and are operating consistent with our pre-incident internal control over financial reporting.
Controls and Procedures / reported restoration of operations and financial-reporting controls · Filed 30/07/2026
Over the past several years our initiatives have focused on: • Reinvigorating licensing by expanding into new partnerships across toys, gaming and experiences and by strengthening existing partnerships with key partners, including the extension of our agreement with The Walt Disney Company.
Operational Excellence / disclosed extension of partner agreement · Filed 17/04/2026
