What changed in this filing

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Item 1. Business

2026-02-25 compared with 2025-02-27 · 129 added, 117 removed, 245 unchanged (50% of the section changed)

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Through our franchise-first approach, we unlock value from both new and legacy IP, including MAGIC:

THE GATHERING, DUNGEONS & DRAGONS, MONOPOLY, HASBRO GAMES, NERF, TRANSFORMERS, PLAY-DOH and PEPPA PIG, as well as premier partner brands.

THE GATHERING, MONOPOLY, HASBRO GAMES, PLAY-DOH, TRANSFORMERS, DUNGEONS & DRAGONS, NERF, and PEPPA PIG, as well as premier partner brands.

Powered by our portfolio of iconic brands and a diversified network of partners and subsidiary studios, we bring fans together wherever they are, from tabletop to screen.

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Recent Developments

Fiscal year 2024 was a year of continued transformation for our business and we began to see tangible results from our initiatives.

Specifically, we focused our efforts on strategic investments in our most valuable and profitable franchises across games, licensing, toys and entertainment.

We also made significant progress in our cost-savings initiatives, and further strengthened our leadership team with industry veterans and turnaround experts.

Fiscal year 2025 was a year of strong results, driven by our continued execution on our Playing to Win strategy and cost-savings initiatives.

2025 Business Results

We finished 2024 with momentum, led by another record year in our Wizards of the Coast and Digital Games segment, continued success in licensing, and operating profit improvement across the Company.

THE GATHERING had a solid year, nearly matching 2023’s record despite fewer set releases.

Modern Horizons 3, Bloomburrow, and Duskmourn led performance in tentpole sets with backlist and Secret Lair demand also exceeding expectations.

• Digital licensing growth was led by Monopoly Go!

from our partners at Scopely, Inc., closing the year with a successful TV campaign and the launch of Tycoon Club.

We also continued to see sales from Baldur's Gate 3 after its successful release in 2023 by our partners at Larian Studios.

• For DUNGEONS & DRAGONS, we celebrated the brand’s 50th Anniversary with the 2024 Players Handbook and Dungeon Master’s Guide, both top selling products in D&D’s history.

• In our Consumer Products segment, we saw solid performance from BEYBLADE and TRANSFORMERS led by innovation and the animated film Transformers One with our partners at Paramount.

• Licensing in our Consumer Products segment grew on the back of MY LITTLE PONY trading cards.

• Our toys business had improved profitability behind supply chain productivity and lean inventory management.

We finished 2025 with strong momentum, led by another record performance in our Wizards of the Coast and Digital Gaming segment, continued growth in licensing, and operating profit improvement across the Company.

THE GATHERING had a record year, supported by the success of its Universes Beyond sets such as Avatar:

The Last Airbender and Final Fantasy , which was the highest selling set of all-time based on net revenues.

Edge of Eternities and Marvel's Spider-Man also contributed to performance as well as high demand for our backlist sets and Secret Lair offerings.

• Digital licensing was once again led by Monopoly Go!, a mobile game from our partners at Scopely, Inc., and remains a meaningful contributor to licensing revenues.

• In our Consumer Products segment, we saw solid performance from BEYBLADE, TRANSFORMERS and Hasbro Gaming, as well as success from recent innovation, such as the announcement of Baby Evie joining PEPPA PIG.

In addition, we saw strong success from partner licensed brands, such as MARVEL.

• Licensing in our Consumer Products segment continues to drive strong operating profit.

Operational Excellence Program

In 2025, we continued to execute on our Operational Excellence program, an ongoing enterprise-wide cost-savings initiative that includes targeted cost-savings, supply chain transformation and certain other restructuring actions designed to drive growth and enhance shareholder value.

Since this program was initiated in 2022, we have delivered approximately $600 million of gross cost savings and $320 million of net cost savings.

Board and Executive Leadership

In March 2024, we brought additional skills and experience to our Board of Directors with the addition of Frank Gibeau, Darin Harris, and Owen Mahoney, each of whom has significant executive and relevant operational leadership expertise.

Three longer-tenured directors, Michael Burns, Tracy Leinbach and Linda Zecher Higgins, retired from the Board in May 2024.

On July 18, 2024, we announced the appointment of John Hight as the new President of Wizards of the Coast and Digital Gaming.

Hight previously served as Senior Vice President and General Manager of the Warcraft Franchise at Blizzard Entertainment, overseeing all development and commercial activities for World of Warcraft, Hearthstone, and Warcraft Rumble.

On July 18, 2024, we also announced the appointment of Holly Barbacovi, a seasoned HR leader, as our new Chief People Officer.

Barbacovi previously served as Wizards of the Coast’s Vice President of Human Resources from 2016 to 2020.

She rejoined Hasbro from Bungie, where she most recently served as Chief Operating Officer and prior to that was their Chief People Officer.

Through 2025, we have delivered almost $800 million of gross cost savings and are well on our path to our previous $1.0 billion commitment.

Our Mission and Strategy

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We are Playing to Win.

In 2025, we launched our refreshed strategy "Playing to Win" to refocus the Company on play and partnership.

Through play fueled brand engagement and partner scaled co-investment, we plan to expand our consumer reach as a games, IP, and toy company.

We have set goals and objectives to be one of the most profitable and diverse toy and game companies globally, powered by multi-segment and multi-generational franchises.

In 2025, we launched our refreshed strategy, "Playing to Win," to refocus the Company on inspiring a lifetime of play across more categories, more partners, and more ways to engage.

Through play fueled brand engagement and partner scaled co-investment, including video games, artificial intelligence ("AI") enabled entertainment, and licensing, we plan to expand our consumer reach as a games, IP, and toy company.

We seek to be one of the most profitable and diverse toy and game companies globally, powered by gamified, entertainment-driven, multi-purchase, multi-generational franchises.

To significantly extend our consumer reach and drive for revenue and profit growth, we are focusing on five key strategic building blocks:

• Profitable Franchises:

Focus on improving the fundamentals of profitable, play-focused brands, through innovation, partnership, operational excellence, managed cost-discipline and retail execution.

• Anytime is Playtime :

Focus on winning play occasions and distribution point by making our brands accessible, relevant, and engaging wherever, whenever, and however consumers choose to play.

Expand our consumer base and drive play and collectible experiences for fans of all ages, recognizing that consumers aged 13 and above are gaining purchase share.

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Capitalize on our partners’ investments and scale to enhance our brands through strategic relationships and licensing arrangements.

As part of our Playing to Win strategy, we have realigned our brand portfolios to correspond our refreshed strategy:

• Grow Brands :

Brands representing the highest margin, highest growth opportunities in categories where we see significant share and/or underlying market growth.

• Optimize Brands :

Brands representing opportunities to maintain or grow share while improving operating profit returns.

• Reinvent Brands :

Brands representing opportunities to reinvent or restructure to drive innovation and improved operating profit returns.

Brands periodically are reclassified, based on changes in growth, profitability or other characteristics, and when those changes occur, the respective portfolio historical revenue is included within the new classification.

Our Business:

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As consumers embrace digital, our game portfolio offers new channels to express our brands.

Our capital-lite, partner scale opportunity.

Our capital-light, partner scale opportunity.

Licensing drives our brands across consumer product categories, screens and experiences.

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2) one of the biggest and most diverse licensing businesses in the world and 3) a profitable games business anchored by MAGIC:

THE GATHERING, MONOPOLY, DUNGEONS & DRAGONS, and Hasbro gaming classics.

THE GATHERING, DUNGEONS & DRAGONS, MONOPOLY, and Hasbro gaming classics.

Our competitive advantages reinforce one another.

Our toy and game brands fuel our licensing business.

Our licensing business receives external capital and marketing investments which strengthen our brands and our bottom line.

Our licensing business delivers substantial investment from third-parties which strengthen our brands and our bottom line.

Our games business adds further strength to our balance sheet giving us the investment dollars to upgrade core capabilities like design, supply chain, and marketing and gives us new ways to expand our brands’ reach, particularly in digital.

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Transforming Hasbro.

We are midway through a turnaround.

Over the past two years our transformation initiatives have focused on:

• Divestiture of eOne (as defined below) which returned “play” to the center of our mission and investment priorities, ultimately reducing content spend by over 90%.

• Reducing complexity across the business, including significantly reducing SKU count, reducing owned inventory levels and reducing the cost structure.

• Reinvigorating licensing and expanding into new partnerships across toys, gaming and experiences.

We are midway through a transformation.

Over the past several years our initiatives have focused on:

• Reinvigorating licensing by expanding into new partnerships across toys, gaming and experiences and by strengthening existing partnerships with key partners, including the extension of our agreement with The Walt Disney Company.

• Accelerating digital initiatives and digitally-orientated partnerships.

• Right-sizing our organizational structure.

Now we are continuing to transform the business by upgrading our systems and talent with an emphasis on:

• Reducing complexity across the business, including significantly reducing SKU count, reducing owned inventory levels and reducing the cost structure.

• Divestiture of the non-core film and TV business of eOne (as defined below) which returned “play” to the center of our mission and investment priorities, ultimately reducing content spend by over 90%.

We are continuing to transform the business by upgrading our systems and talent with an emphasis on:

• Rapid adoption of AI, including launching new enabled services and digital solutions to innovate, improve operational efficiency, and go to market digitally.

• Modernizing how we design and develop products and work with manufacturers to improve the time to market, improve agility and reduce costs.

• Process and systems modernization across IT, accounting, finance and HR.

• Supply chain excellence to continue improving predictability, costs and services across the network.

• Design acceleration to improve the time to market, improve agility and reduce costs.

• Adoption of artificial intelligence (“AI”) and digital solutions to innovate, improve operational efficiency, and go to market digitally.

• Establishing an inspired workforce with a performance culture built on solid fundamentals, strong values and bar-raising feedback.

• Build a real "test and learn" engine to enable ideas to move from concept to market with speed, evidence and consumer co-creation.

Our Brand Portfolio.

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We market and sell toys and games based on our owned and controlled brands globally at retail stores, through ecommerce platforms and through our fan-based direct-to-consumer platforms Hasbro PULSE and SECRET LAIR.

Our key brands are:

Our key brands include:

THE GATHERING

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• TRANSFORMERS

• DUNGEONS & DRAGONS

• DUNGEONS & DRAGONS ("D&D")

Additionally, through license agreements with third parties, we develop and sell products based on popular third-party brands through these channels.

Key partner brands include:

Key brands include:

• MARVEL, including SPIDER-MAN and THE AVENGERS (1)

• LUCASFILMS' STAR WARS (1)

• SECRET LAIR partners such as Final Fantasy, The Lord of the Rings, and Fallout

• Final Fantasy, Avatar:

The Last Airbender , and Fallout, which collaborate with our MAGIC collectibles through SECRET LAIR projects

(1) Owned by The Walt Disney Company (“Disney”).

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Our gaming business continues to transform game play with new and innovative games and play experiences.

To successfully execute our gaming strategy, we focus on brands that capitalize on existing trends while evolving our approach using consumer insights and data analytics, technology advancements and offering game-play experiences addressed to consumer demand for face-to-face, trading card and digital game experiences played as board, off-the-board, digital, card, electronic, trading card and role-playing games.

Our subsidiary, Wizards of the Coast (“Wizards”), is a critical part of our gaming business, driving innovation and growth through its popular role-playing and fantasy card-collecting games.

These games include:

THE GATHERING, one of the original collectible card games, is a strategic trading card game with compelling characters in multiple universes that continue to expand through new card sets, including with well-known third-party properties such as The Lord of the Rings:

Tales of Middle-Earth card set released in 2023.

THE GATHERING became Hasbro’s first billion-dollar brand in 2022.

• DUNGEONS & DRAGONS, one of the world’s most popular tabletop role-playing games, is a cooperative, storytelling game where players take on the roles of different characters within a

There are dice and basic rules involved, and often maps and miniatures or tokens, but the tools that come into play most often are the imaginations of the players.

An update to the fifth edition of the D&D rule set was published in 2024.

THE GATHERING, one of the original collectible card games, is a strategic trading card game with compelling characters in multiple universes that continue to expand through new card sets, including Universes Beyond sets with well-known third-party brands such as Final Fantasy, Avatar:

The Last Airbender , and Marvel's Spider-Man , released in 2025.

Over the past several years, the MAGIC product line has been able to expand its user base with sets developed for existing and new play groups, including competitive players, casual, social players, collectors, digital players, and fans of "adjacent" universes.

• DUNGEONS & DRAGONS, one of the world’s most popular tabletop role-playing games, is a cooperative, storytelling game where players take on the roles of different characters within a story.

There are dice and basic rules involved, along with maps and miniatures or tokens, but the tools that come into play most often are the imaginations of the players.

Our other iconic game brands include long-time favorites such as MONOPOLY, JENGA, CONNECT 4, THE GAME OF LIFE, SCRABBLE, CLUE and TRIVIAL PURSUIT, as well as many other well-known game brands and newer games that are geared toward a mature consumer.

• Digital Gaming .

Key to our success is the continued investment in, growth and development of, our digital gaming business, including development of AAA games, games as a service and licensed games.

Spanning action role-playing games for web-based play, PC and gaming consoles, to Hasbro branded mobile application-based games, our digital gaming business helps to unlock the full value of our brands and achieve our mission of storytelling and bringing our brands to life.

Key to our success is the continued investment in and growth and development of our digital gaming business, including development of AAA and AA games, games as a service and licensed games.

Spanning action role-playing games for web-based play, PC and gaming consoles, and Hasbro branded mobile application-based games, our digital gaming business helps to unlock the full value of our brands to achieve our mission of storytelling and bringing our brands to life.

Recent examples include:

• the popular MONOPOLY GO!

free-to-play mobile game, released by Scopely, Inc.

during 2023 and based on the classic board game, MONOPOLY;

free-to-play mobile game, released in 2023 by Scopely, Inc., based on the classic board game, MONOPOLY;

• the 2023 release of Baldur's Gate 3, the DUNGEONS & DRAGONS-based role-playing video game from our partners at Larian Studios which won several awards, including Game of the Year at the 10th annual Game Awards;

◦ our 2022 acquisition of D&D Beyond, the premier digital content platform for DUNGEONS & DRAGONS.

We continue to develop and enhance other digital games internally and through third parties.

For example, we have developed and launched the digital version of the MAGIC:

• the internal development of a variety of digital games, including EXODUS, a sci-fi role-playing game, and WARLOCK:

DUNGEONS & DRAGONS, an original third person single-player action-adventure game, both of which currently in development for PC, PlayStation 5 and Xbox, and are expected to be released in 2027.

• the developed and launched digital version of the MAGIC:

THE GATHERING card game , Magic:

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• Consumer Products Licensing :

We license our intellectual property for a variety of consumer products, including apparel, publishing, home goods and electronics, or in certain situations, toy products where the out-licensing of brands is more effective and profitable than developing and marketing the products ourselves.

A recent example of this includes the return of our LITTLEST PET SHOP brand through our partnership with Basic Fun!, a global marketer of toys and consumer products.

Together we relaunched LITTLEST PET SHOP through a Roblox experience in December 2023, a refreshed LITTLEST PET SHOP product lineup in the first half of 2024 featuring new characters, collectables, and playsets.

Another recent example, in 2024, we saw a resurgence from MY LITTLE PONY through licensing across merchandising categories, music, and trading card products.

We license our intellectual property for a variety of consumer promotional events and products, including apparel, publishing, home goods and electronics, or in certain situations, toy products where the out-licensing of brands is more effective and profitable than developing and marketing the products ourselves.

A recent example of this includes a return of MONOPOLY at McDonald's for the first time in a decade, which featured a new digital-first format, and a resurgence from MY LITTLE PONY through licensing across merchandising categories, music, and trading card products.

• Digital Games Licensing :

We out-license certain of our brands to other third-party digital game developers who transform Hasbro brand-based characters and other intellectual properties into digital gaming experiences such as MONOPOLY GO!

and Baldur's Gate 3 discussed above.

and Baldur's Gate 3.

In addition, a new slate of multi-year licensing partnerships was announced in 2025 that expand Hasbro's presence on the casino floor.

These partnerships provide access to new entertainment experiences that reimagine our brands in bold, exciting ways for a growing base of adult fans and gamers.

• Location-Based Entertainment :

Location-based entertainment (“LBE”) includes licensing our brands to theme parks, water parks, hotels and resorts, family entertainment centers, retail, dining and entertainment, shows, exhibits and exhibitions such as Hasbro City, the recently-opened Hasbro-themed family entertainment center located in Paseo Interlomas, Mexico featuring thrilling theme park rides and experiences, live shows, food and beverage options and the region's first Hasbro-themed retail location.

These experiences bring our brands to life and further immerse our consumers in our storytelling in a capital efficient manner.

Location-based entertainment focuses on licensing our brands across multiple verticals, including, but not limited to, theme parks, water parks, hotels and resorts, family entertainment centers, retail, dining and entertainment, shows, exhibits and exhibitions such as TRANSFORMERS at multiple Universal Studios theme parks, seven Peppa Pig Theme Parks and several Peppa Pig World of Play experiences with Merlin Entertainment, and Hasbro City, a Hasbro-themed family entertainment center located in Paseo Interlomas, Mexico featuring thrilling theme park rides and experiences, live shows, food and beverage options and the region's first Hasbro-themed retail location.

These experiences bring our brands to life and further immerse our consumers in our storytelling in a capital efficient manner as the third-parties operating these experiences are making the investment in these initiatives.

• Entertainment .

Reinforcing storylines associated with our owned and controlled brands through entertainment mediums, including television, film, digital content and other programming is our primary entertainment strategy.

With our cross-platform capabilities, our entertainment business leverages film and television production and sales, digital content and children's programming to create compelling

entertainment and drive creativity and overall awareness across brands with merchandising and licensing tie-ins.

With our cross-platform capabilities, our entertainment business leverages film and television production and sales, digital content and children's programming to create compelling entertainment and drive creativity and overall awareness across brands with merchandising and licensing tie-ins.

Principal brands include PEPPA PIG and MY LITTLE PONY whose content entertains children worldwide and generates revenues through licensing and merchandising programs across multiple retail categories.

Another recent example is Transformers One , an animated film featuring the untold origin story of Optimus Prime and Megatron released in September 2024 in partnership with Paramount Pictures.

New in 2025 was the arrival of baby Evie, who joined Peppa and George as the newest member of the PEPPA PIG family during a cinematic event that featured the reveal of ten new episodes and six new songs.

• Hasbro Direct .

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The Gathering Arena – the free-to-play online adaptation of the MAGIC:

THE GATHERING card game where players can explore the fantasy worlds of Magic:

The Gathering Arena , play a variety of game formats to collect cards and test skills against friends and other players around the world, or enter in-game tournaments.

THE GATHERING card game where players can explore the fantasy worlds, play a variety of game formats to collect cards and test skills against friends and other players around the world, or participate in in-game tournaments.

This game continues to be enhanced and has helped expand the user base of MAGIC players.

• SECRET LAIR – our internet-based storefront where MAGIC:

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• D&D Beyond – the premier digital content platform for DUNGEONS & DRAGONS where fans can access online versions of official rule books, character sheets and catalogs, adventures, and other digital tools such as character builders and official D&D content available for purchase.

◦ Hasbro PULSE - Hasbro's ultimate fan ecommerce destination.

• Hasbro PULSE – Hasbro's ultimate fan ecommerce destination and sales platform, where fans get exclusive access to behind-the-scenes content, limited run and special edition collectibles and action figures, and other crowd-funded projects that bring dream products into premium reality.

With these platforms, we are expanding and enhancing our capabilities beyond traditional ecommerce to serve our consumers and activate brands.

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Our success is dependent on continuous innovation in our play offerings and requires ongoing development of new brands and products alongside the redesign of existing products to drive consumer interest and market acceptance.

Our products are developed by a global development function, which is responsible for the development, design and engineering of new products and their packaging and the innovation, improvement or modification of ongoing products.

Our products are developed by a global development function, which is responsible for the development, design and engineering of new products and their packaging along with the innovation, improvement or modification of ongoing products.

Much of this work is performed by our internal staff of designers, artists, model makers and engineers.

The pace of change in innovation and complexity of our product offerings is expected to continue to evolve as we adopt artificial intelligence in the development new brands and products.

The pace of change in innovation and complexity of our product offerings is expected to continue to evolve as we adopt artificial intelligence in the development of new brands and products.

In addition to the design and development work performed by our own staff, we work with a number of independent toy and game designers and compete for their designs and ideas with other toy and game manufacturers.

Rights to such designs and ideas, when acquired or licensed by us, are usually exclusive for particular categories and the agreements require us to pay the designer a royalty on our net sales of the item.

These designer royalty agreements may also provide for advance royalties and minimum guarantees.

Rights to such designs and ideas, when acquired or licensed by us, are usually exclusive for particular categories and the agreements generally require us to pay the designer a royalty on our net sales of the item.

These designer licensing agreements may also provide for advance royalties and minimum guarantees.

Finally, our continued investment in digital gaming is considered a key growth engine to expand our reach in the world of play.

As of December 28, 2025, we have four internally owned and operated gaming studios working on a mixture of titles that will both introduce fans to new worlds and franchises, as well as further connect and immerse fans with existing IP.

We have also entered into key partnerships with external studios, in an effort to leverage their expertise to bring our brands to life in new, unique ways.

Royalties and Participations

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Licenses for the use of characters may be exclusive for specific products or product lines in specified territories, or may be non-exclusive, in which case our product offerings may be competing with the product offerings of other licensees.

In many instances, advance royalties and minimum

guarantees are required by these license agreements.

In many instances, advance royalties and minimum guarantees are required by these license agreements.

Our royalty expense in any given year may vary depending upon product mix and the timing of movie releases and other entertainment media.

We are increasingly promoting our brands through the out-licensing of our intellectual properties to third parties for a wide range of digital games, consumer products and location-based experiences.

Under these agreements, licensees either pay us a sales-based or usage-based royalty, or a combination of both, for use of our brands, and, in some cases, the license arrangements are subject to minimum guaranteed amounts or fixed fees, over the term of the license.

Our entertainment offerings also require us to pay royalties and participations to those involved in the creation of the content, such as producers, writers, directors and actors.

Under these agreements, licensees generally pay us a sales-based royalty, usage-based royalty, or a combination of both for use of our brands and, in some cases, the license arrangements are subject to minimum guaranteed amounts or fixed fees, over the term of the license.

Our entertainment offerings also require us to pay royalties and participations to those involved in the creation of our content, such as producers, writers, directors and actors.

Marketing and Sales, Customer Concentration and Advertising

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Our global marketing function establishes brand direction and messaging and assists the selling entities in establishing local marketing programs.

The global marketing group works with the global development function to deliver unified, brand-specific consumer experiences.

Our global marketing group works with the global development function to deliver unified, brand-specific consumer experiences.

In addition to the global marketing function, our local selling entities employ sales and marketing functions responsible for local market activities and execution.

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Customer Concentration

During 2024, net revenues from our top five customers accounted for approximately 36% of our consolidated global net revenues, including our largest customers, Wal-Mart, Inc.

and Amazon.com, Inc.

who together represented 23% of consolidated global net revenues, with each accounting for 12% and 11%, respectively.

Please see Part I, Item 1A.

In 2025, net revenues from our top five customers accounted for approximately 35% of our consolidated global net revenues.

Our largest customers, Amazon.com, Inc.

and Wal-Mart, Inc.

together represented 20% of consolidated global net revenues, with each accounting for 11% and 9%, respectively.

Refer to Part I, Item 1A.

Risk Factors, of this Form 10-K for a further discussion of risks relating to customer concentration.

We advertise many of our products and brands through digital marketing, social media and on television.

We advertise many of our products and brands through digital marketing, social media and television.

Products are strategically cross-promoted by spotlighting specific products alongside related offerings in a manner that promotes the sale of not only the selected item, but also those complementary products.

Part of our strategy includes focusing on reinforcing storylines associated with our brands through several mediums, including digital and tabletop gaming, consumer products, television, film and live action experiences.

Our brands obtain marketing and advertising support through entertainment appearing on major networks globally, theatrical releases as well as on various other digital platforms.

Many of our new products are introduced to major customers within one to two years leading up to their year of retail introduction.

Our brands obtain marketing and advertising support through entertainment appearing on major networks globally and theatrical releases, as well as on various other digital platforms, including the use of influencers and social media.

Many of our new products are introduced to major customers within one to two years prior to their year of retail introduction.

Our advertising expenditures are impacted by our product mix in any given year.

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Supply Chain and Manufacturing

Beginning in late 2022, we launched a multi-year initiative aimed at transforming our global supply chain into a best-in-class network that delivers competitive advantages through performance efficiency, operating model integration and organizational accountability.

We are continuing to refine our integrated supply chain from planning and designing to sourcing and delivering, with our multi-year plan to deliver improved capabilities and provide a productivity pipeline to fuel growth at Hasbro.

The majority of our toy and game products are manufactured in third-party facilities principally in the U.S.

and the Far East, primarily China, Vietnam, India and Japan.

We continually look to diversify our manufacturing footprint.

Most of our toys and games are manufactured from basic raw materials such as plastic, paper and cardboard, although certain products also use electronic components.

All of these materials are readily available but may be subject to significant fluctuations in price.

There are certain chemicals (including phthalates and BPA) that national, state and local governments have restricted or are seeking to restrict or limit the use of;

however, we do not believe these restrictions have or will materially impact our business.

We generally enter into agreements with suppliers at the beginning of a fiscal year that establish prices for that year.

However, significant volatility in the prices of any of these materials may require renegotiation with our suppliers during the year.

We are committed to transforming our supply chain into an industry-leading organization that delivers competitive advantages from design to shelf through superior service, responsiveness, and operational excellence.

Our multi-year plan is focused on strengthening capabilities and maintaining a robust productivity pipeline to fuel Hasbro’s growth.

Key areas of focus include optimizing our manufacturing and logistics network, advancing integrated planning, and embedding design to value, and design for manufacture principles.

Through these strategic pillars, our supply chain continues to create value and reduce costs across transportation, warehousing, and ex-factory expenses, while sustaining progress to continue to lower inventory levels and improving operating cash flow.

As part of the transformation, we continue to pursue a resilient sourcing strategy by diversifying our manufacturing footprint.

The majority of our products are manufactured by third-party manufacturers located in China, Vietnam, India, Japan, Belgium, the United States, Mexico, and Indonesia.

Most manufacturing utilizes basic raw materials such as plastic, paper and cardboard, though certain products also incorporate electronic components.

Product costs are generally based on annual pricing agreements with manufacturing partners throughout the year, reflect estimated market conditions, and typically remain fixed unless significant market changes occur.

Our logistics network is designed to ensure product availability across diverse retail, digital, and direct-to-consumer channels, while maintaining operational flexibility and cost efficiency.

It includes owned and leased distribution centers as well as third party logistics providers worldwide.

We manage inbound and outbound transportation, order fulfillment, and network optimization to ensure delivery to retail partners and consumers.

Continued enhancements in supply planning and forecasting are designed to improve responsiveness from manufacturing through delivery while reducing working capital requirements.

Initiatives in inventory optimization, process simplification, and end-to-end system integration contribute to greater efficiency and profitability.

In parallel, our design to value and design for manufacture initiatives focus respectively on maximizing customer value and optimizing design for efficient production.

Together, these drive cost efficiency and a continuous productivity pipeline aligned with long-term growth priorities.

We remain vigilant in monitoring regulatory requirements and potential supply chain disruptions, including trade restrictions, tariff impacts, labor constraints, environmental impacts, and geopolitical developments.

Working closely with our partners, we uphold high standards of product quality, safety, and ethical manufacturing, and ensure compliance with applicable trade and labor regulations.

We are a worldwide leader in the development, design, sale and marketing of games and toys, operating in a highly competitive business environment.

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We also contend with the expanding variety of digital gaming and digital entertainment offerings available for children, while product life cycles of traditional toys and games have shortened.

As a result, our products not only compete with those offerings produced by other toy and game manufacturers and companies offering branded family play and entertainment, we also compete, particularly in meeting the demands of older children, with entertainment offerings of many technology companies, such as makers of tablets, mobile devices, video games and other digital gaming products and screens, and social media companies.

As a result, our products not only compete with those offerings produced by other toy and game manufacturers and companies offering branded family play and entertainment, we also compete, particularly in meeting the demands of older children and adults, with entertainment offerings of many technology companies, such as makers of tablets, mobile devices, video games and other digital gaming products and screens, and social media companies.

Our Wizards and entertainment businesses are subject to variations in sales based on the timing of release of card sets, games, and content releases.

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As a result, a disproportionate volume of our net revenues from our consumer products business has historically been earned during the third and fourth quarters leading up to the retail industry’s holiday selling season, including Christmas.

In 2024 and 2023, the second half of the year accounted for approxima tely 58% and 56% of full year revenues, respectively, with the third and fourth quarters accounting for approximately 31% and 27%, respectively, of full year net revenues in 2024 and 30% and 26%, respectively, of full year revenues in each of the third and fourth quarters of 2023.

In 2025 and 2024, the second half of the year accounted for approximately 60% and 58% of full year revenues, respectively, with the third and fourth quarters accounting for approximately 30% and 30%, respectively, of full year net revenues in 2025 and 31% and 27%, respectively, of full year revenues in each of the third and fourth quarters of 2024.

Environmental, Social and Governance

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The Governance Committee analyzes these issues and makes recommendations to the full Board.

addition, the Audit Committee of our Board oversees SEC and public disclosures in specific matters, such as conflict minerals, and enterprise risk.

In addition, the Audit Committee of our Board oversees SEC and public disclosures in specific matters, such as conflict minerals, and enterprise risk.

The full Board receives regular updates regarding our ESG progress.

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We view sustainability challenges as opportunities to innovate and to continuously improve our product design and operational efficiencies.

• The Science-Based Targets Initiative ("SBTi") has validated our greenhouse gas ("GHG") emission reductions targets.

• We continue our industry-first toy recycling program in partnership with TerraCycle, a leader in product recycling outside of municipal recycling.

• We continue to work to integrate the climate risk identification and mitigation into our overall enterprise risk management process and into our preparation work for the EU Corporate Sustainability Reporting Directive (CSRD).

We continue to work to integrate climate risk identification and mitigation into our overall enterprise risk management process and business.

As part of this effort, we published a Climate and Nature Transition Plan and an IFRS S2 disclosure, where we describe how climate change could impact our business and the key actions we are taking that are designed to strengthen our resiliency.

These disclosures contribute to our ongoing preparation work for the European Union's Corporate Sustainability Reporting Directive ("CSRD").

Human Rights and Ethical Sourcing

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Our ESG Committee is responsible for developing and executing our global ESG strategy, including our human rights and ethical sourcing programs for the workers across our supply and value chain.

As of year-end 2024, we employed approximately 4,985 people worldwide, with approximately 54% of our employees in North America (47% in the United States;

In 2025, we employed approximately 4,520 people worldwide, with approximately 58% of our employees in North America (51% in the United States;

7% in Canada), 19% in Europe, 18% in Asia Pacific, and 5% in Latin America (includes Mexico).

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The CPSIA empowers the Consumer Product Safety Commission (the “CPSC”) to take action against hazards presented by consumer products, including the formulation and implementation of regulations and uniform safety standards.

The CPSC has the authority to seek to declare a product “a banned hazardous substance” under the

CPSIA and to ban it from commerce.

The CPSC has the authority to seek to declare a product “a banned hazardous substance” under the CPSIA and to ban it from commerce.

The CPSC can file an action to seize and condemn an “imminently hazardous consumer product” under the CPSIA and may also order equitable remedies such as recall, replacement, repair or refund for the product.

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Legislative changes to COPPA are currently under consideration by the U.S.

Digital games that are accessible to children or families may be subject to additional laws and regulations governing online safety, age-appropriate design, parental controls, advertising practices and user interaction.

In addition to laws restricting the collection of information from children, our business is subject to other regulations, such as the General Data Protection Regulation in the European Union, which restricts the collection, use, and retention of personal information, as well as data protection laws in the United States and other countries.

Failure to comply with any of those restrictions can subject us to severe liabilities.

We continue to monitor the developments of regulation in the area of artificial intelligence as this area continues to evolve and we integrate it into our products.

We continue to monitor the developments of regulation in the area of artificial intelligence as applicable to our business as this area continues to evolve and remains uncertain.

Our digital games are subject to consumer protection and unfair or deceptive practices laws, including regulations governing digital content, in-game purchases and disclosures.

Further, we maintain programs to comply with various United States federal, state, local and international requirements relating to the environment, health, safety and other matters.

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Such executive officers are elected annually.

The position(s) and office(s) listed below are the principal position(s) and office(s) held by such persons with the Company.

The positions and offices listed below are the principal positions and offices held by such persons within the Company.

The persons listed below generally also serve as officers and directors of certain of our various subsidiaries at our request.

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49 Chief Financial Officer and Chief Operating Officer Since 2023

Jason Bunge (3)

51 Chief Marketing Officer Since 2023

Holly Barbacovi (4)

49 Chief People Officer Since 2024

Tim Kilpin (5)

64 President, Toys, Board Games, Licensing and Entertainment Since 2023

65 President, Toys, Board Games, Licensing and Entertainment

John Hight (6)

65 President, Wizards of the Coast and Digital Gaming Since 2024

Holly Barbacovi (5)

48 Executive Vice President and Chief People Officer Since 2024

Tarrant Sibley (7)

56 Executive Vice President and Chief Legal Officer and Corporate Secretary Since 2019

57 Chief Legal Officer and Corporate Secretary

(1) Prior thereto, President and Chief Operating Officer of Wizards of the Coast and Digital Gaming from 2021, and President of Wizards of the Coast from 2016 to 2021.

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from 2020 to 2023.

Prior to her time at Harley Davidson, Ms.

Prior to her time at Harley-Davidson Inc., Ms.

Goetter served in senior leadership roles at Tyson Foods, Inc.

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from 1998 to 2019.

(3) Prior thereto, Mr.

Bunge served as Chief Marketing Officer at Riot Games, where he oversaw global game marketing, product publishing, and channel strategy.

Prior to his time at Riot Games, Mr.

Bunge served as Senior Vice President of Brand Management and Marketing at Electronic Arts (EA).

(4) Prior to joining Hasbro in 2024, Ms.

Barbacovi served as Chief People Officer at Bungie from 2021 to 2024.

Prior to that she served head of human resources for Amazon Games from 2020 to 2021 and as Vice President of Human Resources at Wizards of the Coast from 2016 to 2020, and in different HR and Operations roles during a 16-year career at Microsoft.

(5) Prior to joining Hasbro in 2023, Mr.

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He also taught courses in game development for the Interactive Media Division of the USC School of Cinematics.

(5) Prior to joining Hasbro in 2024, Ms.

Barbacovi served as Chief People Officer at Bungie from 2021 to 2024.

(7) Prior thereto, Senior Vice President, Chief Legal Officer and Secretary from 2018 to 2019 and Senior Vice President and Deputy General Counsel from 2010 to 2018.

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Our internet address is http://www.hasbro.com.

We make our annual report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934, available free of charge on or through the investor section of our website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission.

Investors and others should note that we announce material financial information to our investors using our investor relations website at https://hasbro.gcs-web.com, under “Corporate — Investors”, SEC filings, press releases, public conference calls and webcasts.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business