Hasbro Sheds Debt as Wizards of the Coast Hits $2.2B Digital Milestone

US-based games, IP, and toy company Hasbro (NASDAQ: HAS) has priced a $400m public offering of 4.65% senior unsecured notes due 2031, with net proceeds of ~$397m. Closing is expected on or about Mar 12, 2026. Proceeds will primarily redeem Hasbro’s 3.55% notes due Nov’26 ($497m outstanding), reducing net principal by ~$97m and extending the nearest maturity wall by five years. S&P Global Ratings assigned a ‘BBB’ investment-grade rating with a stable outlook on Mar 5, 2026. BofA Securities, J.P. Morgan, Citi, and Scotia Capital served as joint book-runners. The refinancing strengthens Hasbro’s balance sheet alongside record FY’25 revenue of ~$2.2B from the Wizards of the Coast and Digital Gaming segment (WotC), up 44.7% YoY.

The debt originates from Hasbro’s acquisition of Entertainment One (eOne) in Dec’19 for ~$4B, which proved value-destructive and was partly resolved when Hasbro sold the eOne Film & TV arm to Lionsgate in Aug’23 for ~$500m. The Mar’26 refinancing closes the final chapter on that legacy overhang. Hasbro shares surged from $96.76 to $104.00 on Feb 10, 2026 (FY’25 earnings release), then closed at $95.37 on the notes pricing day (Mar 5, 2026).

At the group level, Hasbro reported FY’25 revenue of ~$4.7B (+13.7%), adjusted EBITDA of ~$1.36B, and operating cash flow of $893m. The Wizards of the Coast and Digital Gaming division has become Hasbro’s primary powerhouse, accounting for 46.5% of total group revenue and maintaining a lean 46% operating margin in 2025. WotC’s expansion more than offset a 4.2% contraction in revenue for the Consumer Products and Entertainment segments (from ~$2.6B to ~$2.5B), driven mostly by heavy tariff expenses in Q3’25.

• WotC segment revenue reached $2.2B (+44.7%), lifting its share of group revenue from 37% to 47%; within the segment, Tabletop Gaming represented 77% of revenue in FY’25 (up from ~69% in FY’24) and Digital & Licensed Gaming 23% (up +6% YoY to $500m).
• Adjusted operating profit rose to $1B from $632m (+59%); WotC contributed 88% of the group’s ~$1.14B adjusted operating profit in FY’25, versus 92% of $690m in FY’24.
• The segment’s dominance was fueled by a 62% surge in Tabletop Gaming revenue ($1.69B), which effectively counteracted a 4.2% revenue decline in the “Other Group” categories ($2.51B) and underscores WotC’s superior 46% operating margin compared to the ~5% margin seen across the rest of the portfolio.

The Wizards of the Coast and Digital Gaming segment has structurally repositioned Hasbro. The company now operates as a high-margin digital IP licensor. This shift is built on three quantified revenue pillars. Magic: The Gathering generated $1.7B in FY’25 (+59%), spanning physical card sales and the game’s digital adaptation MTG Arena, and is the segment’s dominant revenue engine. This performance was driven by the “Universes Beyond” sub-brand, headlined by the record-breaking Final Fantasy set and Avatar: The Last Airbender, which were the first- and third-best-selling releases in the franchise’s history, respectively. Dungeons & Dragons (~$299m) covers D&D Beyond subscriptions, physical rulebooks, and lead licensing royalties from Baldur’s Gate 3, the second anchor IP. Monopoly Go! royalties ($168m) represent the highest-margin third-party licensing stream in the portfolio.

The segment’s growth reflects a deliberate post-2018 digital build. The launch of MTG Arena in 2018 proved Hasbro’s tabletop IP could scale digitally at high margins; by 2021, a dedicated division was formalized, crossing $1B in annual revenue. In May’22, Hasbro acquired D&D Beyond for $146.3m, a toolset that has since surpassed the 19 million user milestone. The next inflection came in 2023: Larian Studios released Baldur’s Gate 3 under a D&D licence, winning Game of the Year; and Scopely launched Monopoly Go! in Apr ’23. We have detailed the revenue and download trends for the latest title on our website. The next major phase was the Feb’25 announcement of the “Playing to Win” strategy. This roadmap was realized through a massive reinvestment of earnings into a $1B AAA pipeline distributed across four primary internal studios. Beyond internal development, the strategy accelerates growth through strategic external partnerships, most evident in the record-breaking 2025 MTG results.

By pivoting away from broad entertainment acquisitions toward disciplined reinvestment into its internal studio ecosystem, WotC has emerged as Hasbсro’s primary earnings engine. This model leverages recurring IP revenue, providing a growth trajectory that appears durable well beyond the current refinancing cycle. The next owned-development phase advances through two 2027 titles: Exodus, a sci-fi AAA RPG from Archetype Entertainment, and Warlock: Dungeons & Dragons, a dark-fantasy open-world action game from Invoke Studios — both WotC-owned studios. However, this internal pipeline has seen recent optimization, evidenced by the Feb 26, 2026, closure of Atomic Arcade, the studio previously developing a AAA G.I. Joe title. We will continue to monitor how Hasbro’s cleared balance sheet shapes capital allocation within the division.