AI Takeaway
Hasbro delivered a strong Q1 2026, with revenue up 10.6% to $1.11B, net income more than doubling to $198.4M, and operating cash flow surging 144.5% to $337.7M, reflecting significant margin expansion and operational improvement.
Revenue
$1.11B
++10.64% YoY
EPS (Basic)
$1.41
++98.59% YoY
Operating Income
$270.3M
++58.35% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue increased 10.6% year-over-year to $1.11B in Q1 2026 from $1.01B in Q1 2025, suggesting meaningful top-line momentum across Hasbro's business segments.
Source: Source: 10-Q Income Statement
Operating margin expanded approximately 7.3 percentage points to 24.3% from 17.0% in the prior year period, driven by revenue growth outpacing cost increases and a 3.9% reduction in SG&A expenses to $259.1M.
Source: Source: 10-Q Income Statement & Key Ratios
Net income surged 101.2% year-over-year to $198.4M from $98.6M, with diluted EPS rising 98.6% to $1.39 from $0.70, reflecting strong operating leverage and cost discipline.
Source: Source: 10-Q Income Statement
2 more insights available
Upgrade to unlockHasbro carries $3.09B in long-term debt as of Q1 2026, representing a significant financial obligation. While long-term debt declined 7.1% year-over-year, total liabilities increased 8.5% to $5.26B, meaning liabilities represent approximately 88.6% of total assets, leaving limited financial flexibility.
Source: Source: 10-Q Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $1.47 versus the $1.15 analyst consensus — a +28.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.11B | $1.01B | +10.64% |
Cost of Revenue | $236.1M | $204.5M | +15.45% |
Operating Income | $270.3M | $170.7M | +58.35% |
Net Income | $198.4M | $98.6M | +101.22% |
EPS (Basic) | $1.41 | $0.71 | +98.59% |
EPS (Diluted) | $1.39 | $0.70 | +98.57% |
R&D Expense | $78M | $80.5M | -3.11% |
SG&A Expense | $259.1M | $269.6M | -3.89% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $5.93B | $6.04B | -1.82% |
Current Assets | $2.77B | $1.91B | +44.55% |
Total Liabilities | $5.26B | $4.84B | +8.54% |
Current Liabilities | $1.67B | $1.16B | +44.58% |
Long-Term Debt | $3.09B | $3.33B | -7.10% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $337.7M | $138.1M | +144.53% |
Investing Cash Flow | $-472.1M | $-52.4M | -800.95% |
Financing Cash Flow | $215.1M | $-162.4M | +232.45% |
Dividends Paid | $98.5M | $97.9M | +0.61% |
Share Buybacks | $7.7M | $0 | — |
D&A | $25.9M | $34.2M | -24.27% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 24.3% | 17.0% | +7.32% |
Net Margin | 17.8% | — | — |
ROA | 3.3% | — | — |
Current Ratio | $1.654 | — | — |
Hasbro had a strong Q1 2026, with revenue rising 10.6% to $1.11B and net income more than doubling to $198.4M. Diluted EPS came in at $1.39, up 98.6% from $0.70 in Q1 2025, driven by significant margin expansion and cost discipline.
The key takeaways from Hasbro's Q1 2026 report are: operating margin expanded sharply to 24.3% from 17.0%, operating cash flow surged 144.5% to $337.7M, and net income doubled year-over-year. However, investing cash outflows jumped dramatically to -$472.1M, suggesting significant capital deployment that investors should monitor.
Based on the financial data, key risks include Hasbro's high leverage with $3.09B in long-term debt and total liabilities of $5.26B representing ~88.6% of total assets. Additionally, cost of revenue grew faster than revenue (15.5% vs. 10.6%), and a dramatic surge in investing outflows to -$472.1M raises questions about the nature and return profile of recent capital deployment.
Hasbro generated $337.7M in operating cash flow in Q1 2026, a 144.5% increase from $138.1M in Q1 2025. The company also paid $98.5M in dividends and repurchased $7.7M in shares during the quarter.
Hasbro's short-term liquidity appears adequate with a current ratio of 1.65 and current assets of $2.77B versus current liabilities of $1.67B. However, the balance sheet carries significant leverage with $3.09B in long-term debt and total liabilities of $5.26B, leaving a relatively thin equity cushion of approximately $674M against total assets of $5.93B.