Hasbro just found another winning hand. The toymaker reported Q2 revenue of $1.14B, up 16% year over year, after Magic: The Gathering generated a record $545M in quarterly revenue, becoming the first Hasbro franchise to top $500M in a single quarter.
The card game is now Hasbro's engine
Magic: The Gathering grew 32% in Q2, fueled by the Marvel Super Heroes and Secrets of Strixhaven sets.
The Wizards of the Coast and Digital Gaming segment, which houses Magic and Dungeons & Dragons, grew 27% to $664M in revenue with a 41% operating margin.
Year-to-date, Magic has generated $1.01B in revenue, up 34% from the same period last year.
"Magic: The Gathering is not a niche hobby business. It is a mega franchise."
Chris Cocks, Hasbro CEO
The consumer products division, which includes Nerf, Play-Doh, and licensed Disney toys, rose 5% despite a cyberattack that hit revenue by roughly $25M and added $11M in direct expenses.
A recently resolved breach disrupted order processing and shipping through much of the quarter. Entertainment revenue fell 20%, which the company attributed to the timing of deals rather than any structural shift.
Digital strategy gets a reset
Hasbro took a $56M non-cash impairment charge this quarter tied to digital games it's canceling for 2028 and beyond. The company is narrowing its digital focus to trading card and role-playing games and now expects total digital spend to fall at least 25% annually by 2028.
Hasbro also launched an AI studio called Sixth Wall, which introduces a licensing model focused on how characters think, speak, and behave in digital environments.
On the toy side, a new adult-focused Play-Doh line called Blooms sold out at major retailers in under 24 hours after launch.
For the full year, Hasbro raised its revenue growth outlook to 5% to 7% in constant currency, up from a prior forecast of 3% to 5%.
Adjusted EBITDA guidance moved to $1.45B to $1.50B, and adjusted operating margin guidance ticked up to 25% to 26%.
The company returned $133M to shareholders in Q2 and paid down $55M in debt, and said it intends to lean further into its $1B share repurchase authorization.
Magic: The Gathering's record quarter is now the clearest proof that Hasbro's franchise-first strategy is working, and that a 30-year-old card game has become the company's most valuable asset.
