Tariffs made Hasbro write off $1B of toy goodwill — in a record quarter

Hasbro runs two very different businesses: Consumer Products, the physical toy division, and Wizards of the Coast & Digital Gaming, home to Magic: The Gathering and Monopoly Go. In the second quarter of 2025 the split showed: total revenue was $980.8 million, down 1%, but Wizards grew 16% with Magic revenue up 23%, while Consumer Products fell 16% on soft toy demand and retailer order timing.

The tariff shock turned that divergence into a write-down. Implementation of tariffs triggered an interim impairment test of the Consumer Products segment, and Hasbro recorded a $1,021.9 million non-cash goodwill charge against it — the carrying value of the toy business had rested on imported-goods margins that tariffs erased. The GAAP result swung to an $855.8 million net loss from a $138.5 million profit a year earlier, and shares fell about 4%, even though adjusted earnings rose to $183.9 million.

The company then raised its full-year guidance — revenue up mid-single digits, adjusted EBITDA of $1.17–1.20 billion — on the strength of the business that doesn't ship in containers. The impairment was an admission about one era of the company, booked in the quarter that proved the other.