economy
February 21, 2026
Under mounting toy pressures, Hasbro has a secret sauce that Mattel hasn't matched
Hasbro's secret weapon has been its Wizards of the Coast division, which includes Dungeons & Dragons, Magic: The Gathering and the company's digital games.
TL;DR
- Hasbro reported a 14% revenue gain to $4.7 billion for fiscal year 2025, while Mattel's net sales decreased by 1% to $5.3 billion.
- Hasbro's stock is up 46% in the last 12 months, while Mattel's shares are down over 20%.
- Hasbro's Wizards of the Coast division, including Magic: The Gathering and Dungeons & Dragons, grew revenue by 45% to $2.1 billion in 2025, accounting for 88% of adjusted profits.
- Magic: The Gathering's success is attributed to expanding beyond its core lore into third-party IPs like 'Avatar' and 'Lord of the Rings', with a 'Final Fantasy' set generating $200 million in one day.
- Hasbro's digital gaming revenue jumped 6% in 2025, boosted by 'Monopoly Go!'.
- Mattel is taking full ownership of its Mattel163 joint venture to focus on digital games based on its brands.
- Mattel's flagship brands 'Barbie' and Fisher-Price are experiencing declines, while Hot Wheels saw an 11% increase in gross billings.
- Overall US toy sales were up 6% in 2025, with unit sales increasing by 3%, indicating resilience in consumer purchasing.
- Both companies expect boosts from upcoming theatrical releases tied to their brands, such as Mattel's 'Masters of the Universe' and Hasbro's 'The Mandalorian and Grogu'.
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