Spin Master Reports Q4 2025 Financial Results

Executive Summary

• Spin Master reported a Q4 2025 net loss of $184.3 M ($1.85 per share), down from a net profit of $21.1 M a year earlier, driven primarily by a $229.1 M non‑cash goodwill and intangible asset impairment related to Melissa & Doug.
• Revenue fell 4.8% YoY to $618.2 M; operating loss widened to $163.7 M versus an operating profit of $47.1 M in Q4 2024.
• The company generated $194.3 M of cash from operations, repurchased 441,195 shares for $6.7 M, and declared a quarterly dividend of C$0.12 per share payable April 10 2026.

Key Details

• Revenue: $618.2 M (‑4.8% YoY); constant‑currency revenue $607.4 M (‑6.4%).
• Operating Loss: $(163.7) M, includes $229.1 M goodwill & intangible impairment.
• Adjusted Operating Income: $66.4 M (‑18.3% YoY).
• Net Loss: $(184.3) M or $(1.85) per share; adjusted net income $42.3 M ($0.41 per share).
• Adjusted EBITDA: $111.3 M (‑2.3% YoY); margin 18.0%.
• Segment Performance:
• Toys: Revenue $522.3 M (‑7.0% YoY), operating loss $(171.0) M, adjusted EBITDA $61.6 M.
• Entertainment: Revenue $42.5 M (+2.9% YoY), operating income $14.3 M, adjusted EBITDA $33.5 M.
• Digital Games: Revenue $53.4 M (+15.8% YoY), operating income $3.0 M (vs. loss last year), adjusted EBITDA $18.8 M.
• Cash Flow: Operating cash provided $194.3 M; free cash flow $128.0 M (‑27% YoY).
• Liquidity: Cash & equivalents $104.6 M; total available liquidity $566.9 M (including credit facilities).
• Financing Activity: Repayment of loans $178.0 M, drawdown $55.0 M; net cash used in financing $137.9 M.
• Share Repurchases: 441,195 subordinate voting shares repurchased for $6.7 M in Q4 2025; additional 313,833 shares repurchased post‑year end for $4.4 M. TSX approved a new Normal Course Issuer Bid commencing March 7 2026 (up to ~2.63 M shares).
• Dividend: Board declared C$0.12 per share dividend payable April 10 2026.
• Outlook 2026: Expect stable‑to‑low single‑digit revenue growth and mid‑to‑high single‑digit adjusted EBITDA growth versus 2025.

Notable Quotes

“We navigated a challenging fourth quarter for U.S. toy sales… entering 2026 we are setting the stage to return to sustainable growth by investing in innovation…” – Christina Miller, CEO
“The power of our financial model remained evident in 2025 as we generated more than $300 M in operating cash flows…” – Jonathan Roiter, CFO