Disclaimer: I am not a financial expert and this is not intended as any kind of financial analysis. I’m also not concerned with Hasbro as a whole and will only be listing interesting notes about Magic specifically from either the presentation or the earnings call, which I have listened to in full to ensure I have as much context as possible.
Q3 2025 Presentation
In Q4, WotC showed 86% growth, led by Magic and Monopoly Go!. Avatar is specifically called out here as the reason for this growth. The Q4 growth is broken out as follows:
82% Tabletop
1% Digital Licensing
3% FX (This has to do with currency exchange)
Notably, “Wizards Digital” was not given a number here.
For the Full Year, WotC showed a 45% Revenue Increase vs the previous year, broken out as follows:
42% Tabletop
2% Digital Licensing
1% FX (This has to do with currency exchange)
Again, “Wizards Digital” appears on the graph, but was not given a number.
Magic is listed as having its strongest year ever, being driven in Q4 by Avatar, backlist sets, and Secret Lair.
Magic Stats
The average tabletop player is around 35 years old
The average player has played for 5+ years
WPN has over 10k stores
Over 1 million unique players for Organized Play in 2025, which is a growth of over 20% YOY (year over year)
Financial stats
Magic first crossed $1B in annual revenue in 2022.
The Full Year Magic revenue in 2025 was $1.7B
The 10-year Compound Annual Growth Rate (CAGR) is 16%.
There was a slide that lists “Expanding Partnerships” that listed Harry Potter, KPop Demon Hunters, Street Fighter, and Voltron as Partner Announcements.
PLEASE NOTE: This was not presented as Magic-specific, but new partnerships for Hasbro as a whole.
Earnings Call Notes
(These are the notes I personally took while listening to the earnings call, and I’ve tried to use as much of the same language used in the call for each of them, even for things that are not a direct quote. As such, this may read a bit choppy, but I believe it keeps the accuracy to a higher standard.)
As always, I’m only going to be providing notes that are based on WotC in general and Magic specifically.
Presenting will be:
Fred Wightman, Vice President, Investor Relations
Chris Cocks, Hasbro CEO
Gina Goetter, Hasbro CFO + COO
Talking specifically about Toy licences, Cocks says that they added KPop Demon Hunters “…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.”
Cocks says that this morning they 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.”
Stepping outside the call for a moment, the Wizards Community Team has put out the following message in response to the Harry Potter announcement. Notably, as they tend to work 3 to 4 years ahead, this statement is likely to remain true through at least the 2030 release windows.
Cocks then makes a point to switch from Toy licences over to WotC.
Avatar is now the third highest selling set of all time, behind Lord of the Rings and Final Fantasy.
Secret Lair had its largest quarter ever.
Backlist sales also set a record.
Lorwyn Eclipsed has become the fastest-selling in-universe set ever, overtaking Tarkir: Dragonstorm.
There was a 22% increase in unique players for organized play over 2024.
Cocks takes a minute to talk about how AI will be used at Hasbro.
He says that teams have a choice in how they use it, including not to use it at all when it doesn’t fit the work or the brand.
AI is being deployed “…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.”
He anticipates this will free up over one million hours of “…lower value work…” and that they’ll be able to reinvest that capacity into “…innovation, creativity, and serving fans.”
In Toys specifically, the use of AI-assisted design paired with 3D printing has reduced the time it takes to go from concept to having a physical prototype by roughly 80%. Human judgment and human craft still determine what gets selected and turned into a final product.
Goetter takes over here to talk about the financial details and the outlook for 2026.
She expects WOTC to deliver mid-single digit revenue growth, “…supported by a healthy release cadence and continued engagement across the Magic ecosystem.”
Goetter also expects a strong revenue growth in the first half of 2026, due in part to YOY shifts in the cadence of Magic releases. This growth in the first half will have a negative impact on margin, due to the higher royalty expenses in both segments of the year. The 2027 video game releases of Warlock and Exodus are cited as a main factor in these higher royalty expenses.
With that she turns the call over to the Q&A portion.
They’re asked to unpack some of the Magic numbers, including how the “…extra half set…” of the year plays into the growth, as well as what they’re seeing from new players.
Cocks says it comes down to several growth vectors, the first being distribution growth in terms of the WPN growth. He expects to be up double digits in WPN stores again this year. He expects Mass Market and non-WPN growth to also exceed the previous year again in 2026. Player growth has been “robust”. The player growth they’ve been reporting has just been “hardcore” players, or players who just play in stores. Numbers regarding non-hardcore players are more loose, but they believe that growth to be “…well in excess of that 20%”. He goes on to say that, importantly, as they bring on new-to-Magic players and collectors, they’re sticking around, resulting in the backlist growth and organized play growth. “…there’s more places to buy, there’s more people playing, they’re engaging longer, and they’re sticking around.”
Goetter says she expects the first 3 quarters to grow for Magic, and the only question is that 4th quarter because of what they’re comping in that segment of the year.
The question of what proportion of Magic sales go to players vs what portion goes to collectors is asked.
Cocks says that Magic is overwhelmingly Player-based, then corrects himself to amend “Player/Collector” and goes on to say that’s unique among TCGs. Their competitors are much more collector-heavy, which gives Magic an advantage in stability if there’s ever any kind of collector “wobbles”. He estimates they’re probably 80-90% Players or Player/Collectors and a very small portion of Collector only.
This isn’t Magic specific, but the question is asked about how they view AI as it pertains to video games going forward.
Cocks says he’ll break it down into short-term, mid-term, and long-term. Short-term it’s just a productivity boon, and calls out finance, inventory management, forecasting, etc., and calls it a significant time saver. He reiterates that they estimate it’s going to save them around a million people hours over the course of 2026, and says a lot of that is coming from work already being outsourced that they can roll into savings and reinvest into the business.
Mid-term, he thinks AI transforms how they think about concepting, idea generation, and even asset creation. But that’s going to be game-by-game and brand-by-brand, based on what consumers and licencing partners want to do. He says it’s allowed them to 10x their Toy process, due to the increased workflow AI allows for.
Long-term, it’s not about just making toy or game design cheaper, but you have to think about opening up all new kinds of play and opportunities they can barely imagine today. He expects this to be physical as well as digital.
The question is asked about what might cause them to end up on the lower range of expected growth next year, and what would need to happen for them to hit the higher end of it. Additionally, they would like to know what kinds of IPs Cocks sees as playing well into the digital gaming space. (This question is also not specifically about Magic, but it does come up in the answer.)
Cocks says that last year they were “rate-constrained” when it came to Magic, as they were limited by the amount of physical product they could actually produce and drive reprints. He says they’re trying to appeal to both the top 12% of households when it comes to wealth, as well as the bottom 88% of wealth and income. If the economy improves, including tax refunds, providing more money to people’s bank accounts, that could help them reach the higher range as well. Goetter cuts in to say they expect to have a better idea around the mid-point of next year.
The last few questions where about non-Magic aspects of Hasbro.
