Spin Master had a good start to 2025 with the first quarter showing solid progress on both revenue growth and reducing operating losses compared with Q1 2025. The good figures are particularly impressive against the background of acquiring Melissa & Doug for $950 million in January 2024.
The company has decided to withdraw its 2025 outlook, originally published in February, due to the ongoing uncertainty relating to changes in US tariff policies that make it difficult to provide reliable projections. It is by no means the first listed company to do so – many others already have including, as TnP reported in early April, the Character Group (Character Options) which withdrew its own guidance for the same reason.
Financial Highlights for Q1 2025 as compared to the same period in 2024:
- Q1 2025 Revenue was $359.3 million, an increase of 13.6%.
- Toy revenue was $273.7 million compared to $226.4 million.
- Toy gross product sales were $313.7 million, an increase of $49.6 million or 18.8% from $264.1 million.
- Q1 2025 operating loss was $22.1 million down from $61.8 million. Operating Loss in the prior year included the fair value adjustment for inventories acquired, and transaction and integration costs related to the acquisition of Melissa & Doug.
- Q1 2025 Net Loss was $24.5 million or $(0.24) per share compared to $54.8 million or $(0.53) per share.
Max Rangel, Spin Master’s global president & CEO, said: “We had a solid start to 2025 reflecting the power of our three creative centre approach and global appeal of our toy brands, entertainment content and digital play experiences. We drove an increase in revenue while meeting profitability targets. Digital Games revenue showed renewed strength driven by higher engagement and monetization in Toca Boca World. Given the uncertainty related to the implementation of US tariffs, which affects our Toys creative centre, we are moving quickly and firmly to mitigate the impact to the business from both a sourcing, pricing and cost management perspective. We remain committed to providing kids and their families with access to the joy of play across our Toys, Entertainment and Digital Games creative centres.”
Mark Segal, Spin Master’s chief financial officer, said: “We had a strong first quarter with revenue up just under 14% over last year, driven by a strong Toys and Digital Games Performance. We continued to manage our balance sheet carefully and reduced net debt by over $70 million compared to the same quarter last year. Given the uncertainty created by the implementation of US tariffs on various countries where we produce toys, we are withdrawing our 2025 outlook until the environment stabilises.”
