Hasbro, Inc.

Good morning. Welcome to Hasbro's third quarter 2025 earnings conference call. At this time, all parties will be in a listen-only mode. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Today's conference is being recorded. If you have any objections, you may disconnect at this time. At this time, I would like to turn the call over to Fred Reitman, Vice President, Investor Relations. Please go ahead.

Thank you and good morning, everyone. Joining me today are Chris Cox, Hasbro's Chief Executive Officer, and Gina Getter, Hasbro's Chief Financial Officer and Chief Operating Officer. Today, we will begin with Chris and Gina providing commentary on the company's performance, and then we'll take your questions. Our earnings release and presentation slides for today's call are posted on our investor website. The press release and presentation include information regarding non-GAAP adjustments and non-GAAP financial measures. Our call today will discuss certain adjusted measures which exclude these non-GAAP adjustments. A reconciliation of GAAP to non-GAAP measures is included in the press release and presentation. Please note that whenever we discuss earnings per share or EPS, we are referring to earnings per diluted share. Before we begin, I would like to remind you that during this call and the question and answer session that follows, members of Hasbro management may make forward-looking statements concerning management's expectations, goals, objectives, and similar matters. There are many factors that could cause actual results or events to differ materially from the anticipated results or other expectations expressed in these forward-looking statements. These factors include those set forth in our annual report on Form 10-K, our most recent 10-Q, in today's press release, and in our other public disclosures. We undertake no obligation to update any forward-looking statements made today to reflect events or circumstances occurring after the date of this call. I'd now like to introduce Chris Cox. Chris?

Thanks, Fred, and good morning. Hasbro delivered another strong quarter in Q3, extending our growth trajectory in 2025. Net revenue and operating profit both showed robust year-over-year gains, underscoring the power of our playing-to-win strategy, which positions Hasbro as a diversified, digitally forward play company uniquely resilient in today's tariff-sensitive market. Key drivers were Magic, Marvel, Monopoly, Peppa Pig, Beyblade, and G.I. Joe, brands exemplifying durable, diversified growth that differentiate Hasbro from traditional competitors. Year-to-date, revenue is up 7%, and adjusted operating profit has increased 14%. We anticipate full-year revenue growth in the high single digits, and adjusted operating profit growth exceeding 20%. Magic continues to outperform expectations, posting 40% growth year-to-date. This success is fueled by unprecedented new player acquisition and standout collaborations with brands like Spider-Man and Final Fantasy. Our Universes Beyond strategy, leveraging Magic's depth with beloved IPs, is generating extraordinary engagement. Looking ahead, we'll build on this momentum in 2026 with original Magic IP sets and blockbuster collaborations, including Teenage Mutant Ninja Turtles, The Hobbit, Star Trek, and Marvel Super Heroes. Interest indicators like event attendance, search metrics, MagicCon participation, sales and new channels like mass and convenience, and player growth are all at record levels. We expect momentum to continue into the fourth quarter, fueled by upcoming Magic releases, including The Last Airbender and Final Fantasy's Holiday Set, alongside sustained momentum in Secret Lair and Backlist offerings. Wizards of the Coast is more than magic. The refreshed 2024 editions of D&D's Monster Manual, Player's Handbook, and DM Guide are off to the strongest-ever start for D&D books. D&D Beyond's new, accessible virtual tabletop has driven weekly traffic up nearly 50% since the September launch. Meanwhile, our digital licensing business, highlighted by Monopoly Go and our recent launch of Sorry World with Gameberry Labs, continues to outperform, with both games topping mobile player charts. In digital gaming, the Game Awards this December will showcase some new announcements from Hasbro, including updates on our upcoming sci-fi RPG Exodus, further cementing our commitment to innovative digital play experiences. Consumer products met our Q3 expectations, although retailer shifts pushed some revenue into Q4. We anticipate a solid bounce back in the fourth quarter, driven by innovation, entertainment tie-ins, and strategic partnerships. Key highlights include momentum from Peppa Pig and Marvel's blockbuster content lineup, steady growth from Beyblade, GI Joe's rebound post-supplier transition, and solid traction for new products like Nanimals, DJ Furby, Baby Eevee, Star Wars Kyber Forge lightsabers, Priorities, and Play-Doh Barbie. Retail shelf resets since late August have led to a mid-single-digit POS increase entering the holiday season and share gains for Hasbro across our focus categories. We expect consumer products to finish the year down mid single digits, primarily impacted by tariffs. However, because of our proactive supply chain diversification initiatives, we expect that by year end 2026, no single country outside the US will represent more than a third of the Hasbro supply chain. Additionally, new vendor and manufacturing partnerships will unlock attractive pricing opportunities globally, from bodegas in Santiago to dollar stores in Peoria. expanding our retail footprint and total addressable market significantly after a long turnaround effort we expect q4 to be the start of a long-term growth period for our toys business driven by innovation a killer entertainment slate and new partnerships just this week we announced an exciting collaboration tied to netflix hit film k-pop demon hunters product is expected to hit shelves in 2026 but for fans who can't wait Pre-orders are already live for our Monopoly Deal card game inspired by the film. In summary, Q3 reinforces that Hasbro's playing to win strategy is delivering results. We're confident in our ability to sustain long-term growth through diversified digital initiatives, strategic partnerships, and resilience against external pressures. Before I close, I want to thank our incredible employees and partners around the world. Hasbro's return to growth is a direct result of your creativity, focus, and belief in inspiring a lifetime of play. Now, over to Gina.