Hasbro Q2 2026 Earnings: Net Income $161.3 Million

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

__________________

FORM 10-Q

__________________

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 28, 2026

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 1-6682

__________________

HASBRO, INC.

(Exact name of registrant as specified in its charter)

Rhode Island

05-0155090

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

1027 Newport Avenue

Pawtucket,

Rhode Island

02861

(Address of Principal Executive Offices)

(Zip Code)

(401) 431-8697

Registrant's telephone number, including area code

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered

Common Stock, $0.50 par value per share HAS The NASDAQ Global Select Market

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes [x] No [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No [x]

The number of shares of Common Stock, par value $.50 per share, outstanding as of July 20, 2026 was 141,044,467.

Hasbro, Inc.

Form 10-Q

For the Quarter Ended June 28, 2026

Part I Financial Information

5

Item 1. Financial Statements

5

Consolidated Balance Sheets

5

Consolidated Statements of Operations

6

Consolidated Statements of Comprehensive Earnings (Loss)

7

Consolidated Statements of Cash Flows

8

Consolidated Statements of Shareholders' Equity

9

Condensed Notes to Consolidated Financial Statements

10

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

29

Item 3. Quantitative and Qualitative Disclosures About Market Risk

43

Item 4. Controls and Procedures

44

Part II Other Information

45

Item 1. Legal Proceedings

45

Item 1A. Risk Factors

45

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

46

Item 3. Defaults Upon Senior Securities

46

Item 4. Mine Safety Disclosures

46

Item 5. Other Information

46

Item 6. Exhibits

47

Signatures

48

2

Special Note Regarding Forward-Looking Statements

Certain statements in this Quarterly Report on Form 10-Q (“Quarterly Report”) contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements, which may be identified by the use of forward-looking words or phrases, include statements relating to: our business strategies and plans; products, gaming and entertainment; anticipated cost savings; expected debt repayments and share repurchases; expected impact of tariffs or refunds thereof; anticipated impact of moving our Rhode Island operations to Boston, Massachusetts; expectations relating to the impact of unauthorized access to the Company’s network, including on our financial condition and results of operations, findings from our investigation into the unauthorized access, the effectiveness of our containment and remediation efforts, costs and expenses and any insurance recoveries; expected impact of newly issued accounting pronouncements and tax legislation; financial targets; and expectations for our future performance. Our actual actions or results may differ materially from those expected or anticipated in the forward-looking statements due to both known and unknown risks and uncertainties.

Factors that might cause such a difference include, but are not limited to:

•our ability to successfully implement and execute on our Playing to Win business strategy;

•our ability to successfully compete in the play industry and further develop our digital gaming, licensing and consumer products businesses and partnerships;

•our ability to continually introduce new and innovative products that are accepted by consumers, particularly for brands such as Magic: The Gathering in which we have seen an increasing concentration of our sales and profits;

•risks associated with the imposition, threat, or uncertainty of tariffs, including any possible refunds of tariffs, in markets in which we operate; imposition of tariffs could increase our product costs and other costs of doing business, result in higher prices of our products, impact consumer spending, lower our revenues, result in delays or reductions in purchases from our customers, result in goodwill impairments, reduce earnings and otherwise have an adverse impact on our business;

•risks associated with international operations, such as: conflict in territories in which we operate or which affect areas in which we operate such as the recent conflict with Iran, which could impact, among other things, shipping timing, oil prices and other product and raw material costs and consumer spending; currency conversion; currency fluctuations; quotas; shipping delays or difficulties; border adjustment taxes, tariffs or other protectionist measures; and other factors impacting the territories in which we operate;

•risk or disruption to our business our inability to protect our assets and intellectual property, including as a result of infringement, theft, misappropriation, cyber-attacks or other acts compromising the integrity of our assets or intellectual property or systems;

•risks associated with unauthorized access to our network we recently experienced, including the duration and magnitude of operational disruption; the effectiveness of our response; the impact of such unauthorized access on our business, operations, financial results, and financial reporting; and any further business disruptions from such unauthorized access and increased costs relating to such unauthorized access, including from any legal proceedings;

•risks related to political, economic and public health conditions or regulatory changes in the markets in which we and our customers, partners, licensees, suppliers and manufacturers operate, such as inflation, fluctuating interest rates, tariffs, higher commodity prices, labor strikes, labor costs or transportation costs, or outbreaks of illness or disease, the occurrence of which could create work slowdowns, delays or shortages in production or shipment of products, increases in costs, reduced purchasing power or less discretionary income, or losses and delays in revenue and earnings;

•uncertain and unpredictable global and regional economic conditions impacting one or more of the markets in which we sell products, which can result in higher prices for our products or consumer necessities and can otherwise negatively impact our customers and consumers, result in lower employment levels, consumer discretionary income, retailer inventories and spending, including lower spending on purchases of our products;

•our ability to transform our business and capabilities to address the changing global consumer landscape, including evolving demographics for our products and advancements in emerging technologies, such as the integration of artificial intelligence into our product development, marketing strategies, and consumer engagement, and the associated risks such as evolving regulatory standards, implementation challenges, and third-party dependencies on such technologies;

3

•our ability to design, develop, manufacture, and ship products on a timely, cost-effective and profitable basis;

•the concentration of our customers, potentially increasing the negative impact to our business of difficulties experienced by any of our customers or changes in their purchasing or selling patterns;

•our dependence on third-party relationships, including with third-party partners, manufacturers, distributors, studios, content producers, licensors, licensees, and outsourcers, which creates reliance on others and loss of control;

•risks relating to the concentration of manufacturing for many of our products in the People’s Republic of China, which include the risks associated with increased tariffs imposed on trade between China and the U.S., and our ability to successfully diversify sourcing of our products to reduce reliance on sources of supply in China;

•the success of our key partner brands, including the ability to secure, maintain and extend agreements with our key partners or the risk of delays, increased costs or difficulties associated with any of our or our partners’ planned digital applications or media initiatives;

•our ability to attract and retain talented and diverse employees;

•our business could be adversely affected by challenges and disruptions arising from the loss of skills, knowledge or expertise, and from uncertainty regarding the continued employment of key personnel, particularly as a result of recent workforce reductions and the planned relocation of our Rhode Island operations to Boston, Massachusetts;

•our ability to realize the benefits of cost-savings and efficiency and/or revenue and operating profit enhancing initiatives;

•risks relating to the impairment and/or write-offs related to businesses, products and/or content we acquire, develop and/or produce;

•the risk that acquisitions, dispositions and other investments we complete may not provide us with the benefits we expect, or the realization of such benefits may be significantly delayed or reduced;

•fluctuations in our business due to seasonality;

•the risk of product recalls or product liability suits and costs associated with product safety regulations;

•the impact of litigation or arbitration decisions or settlement actions;

•the bankruptcy or other lack of success of one or more of our significant retailers, licensees and other partners; and

•other risks and uncertainties as may be detailed in our public announcements and U.S. Securities and Exchange Commission (“SEC”) filings.

For a detailed discussion of these and other risks, uncertainties and factors, see Part I, Item 1A “Risk Factors” of our Annual Report on Form 10-K for the fiscal year ended December 28, 2025 (the “2025 Annual Report”), as well as Part II, Item 1A "Risk Factors" of this report.

The statements contained herein are based on our current beliefs and expectations. We undertake no obligation to make any revisions to the forward-looking statements contained in this Form 10-Q or to update them to reflect events or circumstances occurring after the date of this Form 10-Q.

4

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

HASBRO, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Millions of Dollars Except Share Data)

(Unaudited)

June 28,

2026 June 29,

2025 December 28,

2025

ASSETS

Current assets:

Cash and cash equivalents $ 880.5 $ 546.9 $ 776.6

Short-term investments 497.7 — 105.4

Accounts receivable, net 751.7 717.8 1,059.8

Inventories 353.2 417.1 259.8

Prepaid expenses and other current assets 366.5 359.4 382.1

Total current assets 2,849.6 2,041.2 2,583.7

Property, plant and equipment, net of accumulated depreciation of $1,079.6, $1,055.4 and $1,060.0

453.9 251.8 247.8

Goodwill 1,256.2 1,256.8 1,256.7

Other intangible assets, net of accumulated amortization of $439.9, $460.3 and $412.2

426.4 489.4 456.7

Other assets 1,051.1 1,135.2 1,007.1

Total assets $ 6,037.2 $ 5,174.4 $ 5,552.0

LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY

Current liabilities:

Current portion of long-term debt $ 497.0 $ — $ 497.0

Accounts payable 374.9 339.6 335.4

Accrued liabilities 843.4 888.2 1,038.7

Total current liabilities 1,715.3 1,227.8 1,871.1

Long-term debt 3,041.2 3,320.9 2,767.9

Other liabilities 550.4 356.0 347.5

Total liabilities 5,306.9 4,904.7 4,986.5

Commitments and contingencies (Note 16)

Shareholders' equity:

Preference stock of $2.50 par value. Authorized 5,000,000 shares; none issued

— — —

Common stock of $0.50 par value. Authorized 600,000,000 shares; 220,286,736 shares issued

110.1 110.1 110.1

Additional paid-in capital 2,733.6 2,644.2 2,695.4

Retained earnings 1,712.9 1,319.3 1,554.1

Accumulated other comprehensive loss (211.9) (226.6) (217.5)

Treasury stock, at cost; 79,017,960 shares; 80,075,685 shares; and 79,901,615 shares, respectively

(3,639.5) (3,605.9) (3,603.6)

Noncontrolling interests 25.1 28.6 27.0

Total shareholders' equity 730.3 269.7 565.5

Total liabilities, noncontrolling interests and shareholders' equity $ 6,037.2 $ 5,174.4 $ 5,552.0

See accompanying condensed notes to consolidated financial statements.

5

HASBRO, INC. AND SUBSIDIARIES

Consolidated Statements of Operations

(Millions of Dollars Except Per Share Data)

(Unaudited)

Three Months Ended Six Months Ended

June 28,

2026 June 29,

2025 June 28,

2026 June 29,

2025

Net revenues $ 1,139.6 $ 980.8 2,139.8 1,867.9

Costs and expenses:

Cost of sales 272.4 225.3 508.5 429.8

Program cost amortization 3.1 6.2 7.1 13.6

Royalties 89.9 84.5 167.6 141.5

Product development 93.6 77.5 171.6 158.0

Advertising 74.8 63.6 135.2 119.0

Amortization of intangible assets 14.6 17.2 29.2 34.2

Impairment of goodwill (Note 7) — 1,021.9 — 1,021.9

Loss on disposal of business — — — 25.0

Selling, distribution and administration 338.7 282.8 597.8 552.4

Total costs and expenses 887.1 1,779.0 1,617.0 2,495.4

Operating profit (loss) 252.5 (798.2) 522.8 (627.5)

Non-operating expense:

Interest expense 46.5 40.6 88.3 82.2

Interest income (12.9) (5.4) (23.0) (14.3)

Other expense (income), net 10.2 (18.7) 4.7 (17.3)

Total non-operating expense, net 43.8 16.5 70.0 50.6

Earnings (loss) before income taxes 208.7 (814.7) 452.8 (678.1)

Income tax expense 47.4 40.0 92.0 77.1

Net earnings (loss) 161.3 (854.7) 360.8 (755.2)

Net earnings attributable to noncontrolling interests 0.4 1.1 1.5 2.0

Net earnings (loss) attributable to Hasbro, Inc. $ 160.9 $ (855.8) $ 359.3 $ (757.2)

Net earnings (loss) per common share:

Basic $ 1.14 $ (6.10) 2.54 (5.41)

Diluted $ 1.12 $ (6.10) 2.51 (5.41)

Cash dividends declared $ 0.70 $ 0.70 $ 1.40 1.40

See accompanying condensed notes to consolidated financial statements.

6

HASBRO, INC. AND SUBSIDIARIES

Consolidated Statements of Comprehensive Earnings (Loss)

(Millions of Dollars)

(Unaudited)

Three Months Ended Six Months Ended

June 28,

2026 June 29,

2025 June 28,

2026 June 29,

2025

Net earnings (loss) $ 161.3 $ (854.7) 360.8 (755.2)

Other comprehensive earnings (loss):

Foreign currency translation adjustments 2.4 24.1 (2.8) 34.3

Unrealized holding gains on available-for-sale securities, net of tax 0.1 — 0.1 —

Changes in unrecognized pension amounts, net of tax (0.2) — (0.2) —

Net gains (losses) on hedging activities, net of tax — (10.4) 4.2 (13.1)

Reclassifications to earnings, net of tax:

Net losses (gains) on hedging activities 3.2 (0.7) 4.3 (1.4)

Other comprehensive earnings, net of tax 5.5 13.0 5.6 19.8

Total comprehensive earnings (loss), net of tax 166.8 (841.7) 366.4 (735.4)

Total comprehensive earnings attributable to noncontrolling interests 0.4 1.1 1.5 2.0

Total comprehensive earnings (loss) attributable to Hasbro, Inc. $ 166.4 $ (842.8) 364.9 (737.4)

See accompanying condensed notes to consolidated financial statements.

7

HASBRO, INC. 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.

8

HASBRO, INC. AND SUBSIDIARIES

Consolidated Statements of Shareholders' Equity

(Millions of Dollars)

(Unaudited)

Common

Stock Additional

Paid-in Capital Retained

Earnings Accumulated Other Comprehensive Loss Treasury

Stock Non-controlling Interests Total

Shareholders'

Equity

Balance, December 28, 2025 $ 110.1 $ 2,695.4 $ 1,554.1 $ (217.5) $ (3,603.6) $ 27.0 $ 565.5

Net earnings — — 198.4 — — 1.1 199.5

Other comprehensive earnings, net of tax — — — 0.1 — — 0.1

Share-based compensation transactions — (9.3) — — 5.7 — (3.6)

Share-based compensation expense — 21.1 — — — — 21.1

Repurchases of common stock — — — — (7.7) — (7.7)

Dividends declared — 1.5 (100.0) — — — (98.5)

Distributions paid to noncontrolling owners and other foreign exchange — — — — — (2.2) (2.2)

Balance, March 29, 2026 $ 110.1 $ 2,708.7 $ 1,652.5 $ (217.4) $ (3,605.6) $ 25.9 $ 674.2

Net earnings — — 160.9 — — 0.4 161.3

Other comprehensive earnings, net of tax — — — 5.5 — — 5.5

Share-based compensation transactions — (1.4) — — (0.5) — (1.9)

Share-based compensation expense — 24.9 — — 0.4 — 25.3

Repurchases of common stock — — — — (33.8) — (33.8)

Dividends declared — 1.4 (100.5) — — — (99.1)

Distributions paid to noncontrolling owners and other foreign exchange — — — — — (1.2) (1.2)

Balance, June 28, 2026 $ 110.1 $ 2,733.6 $ 1,712.9 $ (211.9) $ (3,639.5) $ 25.1 $ 730.3

Common

Stock Additional

Paid-in Capital Retained

Earnings Accumulated Other

Comprehensive Loss Treasury

Stock Non-controlling Interests Total

Shareholders'

Equity

Balance, December 29, 2024 $ 110.1 $ 2,632.2 $ 2,274.2 $ (246.4) $ (3,612.5) $ 27.4 $ 1,185.0

Net earnings — — 98.6 — — 0.9 99.5

Other comprehensive earnings, net of tax — — — 6.8 — — 6.8

Share-based compensation transactions — (19.3) — — 5.6 — (13.7)