Canada's Spin Master Q2 revenue beats estimates on toy segment growth

Overview

• Canada children's entertainment firm's Q2 revenue rose 8.9% yr/yr, beating analyst expectations

• Adjusted EBITDA for Q2 rose to $51.6 mln, up from $28.7 mln a year earlier

• Company repurchased $9.3 mln in shares during Q2 through its normal course issuer bid

Outlook

• Spin Master expects 2026 revenue to grow stable to low single digit percentage over 2025

• Company sees 2026 adjusted EBITDA rising mid to high single digit percentage versus 2025

• Spin Master reiterates full-year 2026 outlook with no changes to prior guidance

Result Drivers

• TOY SEGMENT GROWTH - Higher shipments, especially ahead of PAW Patrol: The Dino Movie release, and strong sales of core brands and new products drove Toy segment revenue

• TARIFF REFUND - Toys Operating Income benefited from a $37.9 mln tariff refund in the current year

• ENTERTAINMENT AND DIGITAL GAMES WEAKNESS - Entertainment revenue declined due to lower ongoing distribution revenue from PAW Patrol: The Mighty Movie, while Digital Games revenue fell on lower in-game purchases in Toca Boca World

Company press release: ID:nPn1QD979a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the toys children's products peer group is "buy"

• Wall Street's median 12-month price target for Spin Master Corp is C$25.00, about 7% above its July 29 closing price of C$23.36

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

Reuters Recommended Reads

• July 28 - UK's Games Workshop core revenue up 11%, operating profit up 16%

• July 28 - Rocky Brands Q2 profit beats on on tariff refunds, strong demand

• July 30 - Sweden's MOBA Network Q2 adjusted revenue falls as smaller user base weighs on ad sales

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)