Hasbro’s Magic the Gathering widens gap with rival Mattel

The success of Hasbro’s Magic the Gathering collectable cards brand is widening the gap with its closest rival Mattel. Both companies released their full-year earnings last week, and Hasbro’s results showed a 14% increase in revenue year over year, while Mattel’s net sales declined 1%.

In Q4, Magic showed its strength as a standout seller for the toymaker. While overall revenue grew 30% in the quarter and consumer products grew 7%, the Magic brand alone saw an 86% spike in sales growth, topping off 60% sales growth for the year.

CEO Chris Cocks told shareholders the momentum is carrying over into 2026, with a mix of original intellectual property releases and series based on popular franchises such as Avatar: The Last Airbender, Teenage Mutant Ninja Turtles, and Marvel Super Heroes. The latter comes out of the company’s “longest-standing” brand partnership with the Walt Disney Company.

“This balance of tentpole releases, premium offerings, and evergreen play reflects how the Magic system is designed to perform,” Cocks said.

One downside of bringing more outside IP into the Magic brand are royalty expenses. CFO and COO Gina Goetter said in the earnings call that the stronger revenue growth expected in the first half of 2026 will have a negative impact on margin due to higher royalty costs.

Still, Wizards of the Coast—the segment under which Magic cards are sold—is on track to deliver mid-single-digit revenue growth, with operating margins in the low 40% range. This is down from 46% in 2026, which again reflects higher royalty expenses.

The upside, however, is that Magic is bringing new customers to Hasbro. The number of players participating in organized play increased 22% to more than 1 million. These players gathered at Wizards Play Network stores, which expanded 20% in 2025.

“What we’re seeing going on with Magic is a virtuous cycle of there’s more places to buy,” Cocks said. “There’s more people playing. They’re engaging longer and sticking around.”