HAS

Hasbro is mid-turnaround. After two years of shrinking revenue ($6.42B in FY2021 to $4.14B in FY2024), the top line rebounded 13.7% to $4.70B in FY2025, helped by its high-margin licensing and gaming IP (Wizards of the Coast / Magic: The Gathering and Monopoly). The cash engine is intact: operating cash flow grew 5.4% to $893M against just $63.3M of capex, comfortably covering the $393M dividend (up 0.7%), and management used the cash to cut long-term debt 18.1% to $2.77B.

The problem is the income statement and balance sheet. Reported FY2025 net income was -$322M (EPS -$2.30), and operating income collapsed 98.4% to a barely-positive $11.1M — implying the bottom-line loss is driven by below-the-operating-line charges (likely impairments and restructuring), but the near-zero operating margin shows the core profitability is thin even before those. ROE is -57.0%, net margin -6.9%, and equity has been halved to just $566M, leaving an extreme 8.82x liabilities/equity. R&D rose 31.1% to $386M as the company invests in its IP/digital-gaming pivot, and current liabilities jumped 33.5%, including a $497M current portion of debt.