Hasbro, Inc.

Good morning, and welcome to the Hasbro fourth quarter and full year 2025 earnings conference call. At this time, all participants are in listening mode. If anyone should require operator assistance during the conference, please press star zero from your telephone keypad. Today's conference is being recorded. If you see any objections, you may disconnect at this time. At this time, I'd like to turn the call over to Fred Whiteman, Vice President, Hasbro 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. We will begin today's call with Chris and Gina providing commentary on the company's performance before taking your questions. Our earnings release and the 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're 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 like to turn the call over to Chris Cox. Chris?

Thanks, Fred, and good morning. Last year, we introduced Playing to Win, our strategic roadmap to guide Hasbro from turnaround into a new era of growth and profitability. At its core are two pillars, play and partnership. Those pillars define Hasbro. Our brands have been delighting fans since 1860, when Milton Bradley introduced his first board game. Partnership has been equally foundational. We have worked with Premier Partners for more than 70 years, beginning with the Walt Disney Company in 1954. Today, we work with over 1,000 partners across more than 5,000 collaborations. Play and partnership anchor everything we do. They power our mission to bring joy and community to fans of all ages through the magic of play. And our KPI for that mission is simple, delight. So how many kids, families, and fans did we delight over the past year? When we announced Playing to Win, we used objective measures like YouTube views, Sarkana point of sale, box office receipts, and sensor tower data to estimate our annual reach. Our initial estimate was 585 million people. It turns out that was conservative. Since then, we have continued to refine our understanding of brand reach. In late 2025, we conducted a large-scale survey across eight major markets reaching tens of thousands of consumers and combined those results with third-party data to better understand the reach of our brands. The result was clear. Hasbro now reaches more than 1 billion people every year. From Transformers movies to families visiting Peppa Pig theme parks, to magic played in hobby shops around the world, Hasbro positively impacted nearly one in eight consumers globally. I'm incredibly proud of that. It puts into perspective why we do what we do and why we're pushing so hard to position this company for its next century. Our brands and partnerships create joy for an enormous audience through the simple, powerful magic of play. That delight is not abstract. It is showing up directly in our results. Inspiring a lifetime of play is what animates our teams. And in 2025, they translated that passion into outstanding performance. In the fourth quarter, Hasbro grew revenues by more than 30%. Adjusted operating profit grew nearly 180%. Our consumer products business returned to growth, up over 7%. with Monopoly, Peppa Pig, and Marvel all growing. Wizards of the Coast capped off a remarkable year with 86% sales growth in the quarter, driven by the combined strength of Magic and Digital. For the full year, Hasbro grew revenue 14%. Adjusted operating profit margin reached a record level above 24%. Adjusted operating profit exceeded $1.1 billion, also a record. That momentum is being reinforced by partnerships across the company. In toys, we added K-pop Demon Hunters, the global phenomenon and Netflix's most popular film, as a co-master toy licensee. That partnership is already underway with a Monopoly deal crossover and many more exciting new role-play, interactive plush, and games coming over the next few months. This morning we also announced the primary toy license for the world of Harry Potter and the upcoming HBO original Harry Potter series with Warner Brothers Discovery. Joining new recently announced partnerships for Voltron with Amazon MGM Studios and Street Fighter with Legendary Pictures. These collaborations will begin in the back half of 2026 and build into 2027. These are iconic franchises with global reach, and we are honored to partner with such world-class IP owners. Shifting to Wizards of the Coast, Magic delivered a record fourth quarter and grew sales nearly 60% for the full year. We have a powerful lineup in 2026. It includes original IP like Laurel and Eclipsed and Secrets of Strixhaven, alongside a blockbuster slate of Universes Beyond collaborations, including Teenage Mutant Ninja Turtles, Marvel Super Heroes, The Hobbit, and Star Trek. Avatar The Last Airbender, which launched in late November, is now the third highest-selling set in Magic's history, trailing only Lord of the Rings and Final Fantasy. At the same time, Secret Lair delivered its largest quarter ever, and backlist sales once again set a record. This balance of tentpole releases, premium offerings, and evergreen play reflects how the magic system is designed to perform. That momentum is carried into the new year. Eclipsed has already become the fastest selling magic IP premier set ever, surpassing Tarkir. Player growth continues to underpin these results. Through the end of 2025, more than 1 million unique players participated in organized play, representing a 22% increase year over year. That growth is supported by a global play network, We now have more than 10,000 active Wizards Play Network stores worldwide, up over 20% year-over-year, with expanded reach across traditional retail partners. Taken together, this reinforces our confidence in Magic's long-term growth. We are building a system of play with multiple entry points, product types, and engagement paths, and that system is positioned to continue driving growth into 2026 and beyond. In the fourth quarter, we also shared more about our self-published video game strategy, including a new gameplay trailer for our science fiction RPG, Exodus, and the first reveal of our D&D action adventure game, Warlock. Both titles have been in development since 2019 and are led by some of the most experienced creative and development talent in the industry. The response has validated our confidence. Since debuting at the Game Awards, trailers for these titles have been viewed more than 100 million times across social, gaming, and owned channels. We expect both games to launch in 2027, beginning with Exodus in the first part of the year. We will share much more later this year, including extended gameplay walkthroughs that allow fans to fully step into the worlds Archetype Entertainment and Invoke have built. All of this reflects meaningful change, new partnerships, new distribution, new digital capabilities, and it represents only part of what we have in motion. In 2026, we expect our largest year ever with our longest standing partner, the Walt Disney Company. We are launching products tied to four major films, Disney and Pixar's Toy Story 5, Star Wars, The Mandalorian and Grogu, Spider-Man Brand New Day, and Marvel Studios' Avengers Doomsday, alongside an all-new magic collaboration with Marvel superheroes. We also have a strong lineup of collectibles and exclusives, including standout pulse drops later this year. We're introducing creative new ways to experience Play-Doh that age up the brand later this year. Peppa Pig's baby sister Evie will celebrate a year of firsts as she approaches her first birthday, And we recently announced that Peppa's younger brother George is moderately deaf, as we continue to champion stories that reflect real children and families around the world. Transformers will begin celebrating the 40th anniversary of the 1986 animated film with a new product line and surprises throughout the year. D&D has major category expansions coming later this year, alongside continued growth on D&D Beyond. We also announced a partnership with HBO and Craig Mazin, on a Baldur's Gate series. Coming off the success of The Last of Us, Craig demonstrated what is possible when games serve as premium source material. That success reinforces our strategy to unlock long-term value by bringing our worlds to life with top-tier creative partners across more than 60 active entertainment projects. Before I close, I want to address AI and how we're using it at Hasbro. We're taking a human-centric, creator-led approach. AI is a tool that helps our teams move faster and focus on higher value work, but people make the decisions and people own the creative outcomes. Teams also have choice in how they use it, including not to use it at all when it doesn't fit the work or the brand. We're beyond experimentation. We're deploying AI across financial planning, forecasting, order management, supply chain operations, training, and everyday productivity. under enterprise controls and clear guidelines around responsible use and IP protection. Anyone who knows me knows I'm an enthusiastic AI user, and that mindset extends across the enterprise. We're partnering with best-in-class platforms, including Google Gemini, OpenAI, and Eleven Labs, to embed AI into workflows where it adds real value. The impact is tangible. Over the next year, we anticipate these workflows will free up more than 1 million hours of lower-value work, and we're reinvesting that capacity into innovation, creativity, and serving fans. Our portfolio of IP and the creators and talent behind it are the foundation of this strategy. Great IP plus great storytelling is durable as technology evolves, and it positions us to benefit from disruption rather than being displaced by it. In toys, AI-assisted design paired with 3D printing has fundamentally improved our process. We've reduced time from concept to physical prototype by roughly 80%, enabling faster iteration and more experimentation, with human judgment and human craft determining what ultimately gets selected and turned into a final product. We believe the winners in AI will be companies that combine deep IP, creative talent, and disciplined deployment. That's exactly where Hasbro sits. As we enter 2026, we view playing to win, and more importantly, the execution behind it by our Hasbro, Wizards of the Coast, and digital studio teams as a clear success. Despite market volatility and a shifting consumer environment, we returned this company to growth in a meaningful way. We delighted more than 1 billion kids, families, and fans, secured partnerships that further underwrite future growth, advanced our evolution to a digital-first play and IP company, and delivered record profits for our shareholders. In 2026, we expect that momentum to continue. Hasbro is firmly back on a growth trajectory, powered by play, partnership, new digital capabilities, and most importantly, our extraordinary brands. With that, I will turn it over to Gina to walk through the financial details and our outlook for 2026. Gina.