The company’s first quarter weakened due to a pre-tariff pull forward in imports in 2025, but forecasts stable growth in FY26
Spin Master reported a decline in revenue for Q1, impacted by a pull forward in imports last year as the company scrambled to get ahead of the US administration’s ensuing tariffs.
Revenue for the three months ended 31 March 2026 was $328.5 million, a decrease of 8.6 per cent, with operating losses widening to $34.3 million, up from $22.1 millionin 2025.
But the company said its free cash position was significantly strengthen thanks to “disciplined cost and working capital management”.
“We delivered a significant increase in cash generation through disciplined cost and working capital management, which offset an anticipated decline in revenues due to the pull forward of import orders in the U.S. last year ahead of tariffs,” said Jonathan Roiter, CFO. “In the current environment, we balanced our capital allocation to growth investments, dividends and share buybacks, as well as significant debt reduction.”
Overall toy revenue dropped to $240.9 million, as sales across key categories including Preschool, Infant and Toddler, and Plush; Wheels and Action; and Outdoor all saw double-digit declines.
Christina Miller, CEO, Spin Master is sanguine about the year ahead. The company forecasts stable to low single-digit revenue growth for full-year 2026.
“We delivered a solid start to the year, a direct result of our disciplined execution against our core strategic priorities,” said Christina. “Our focus on product innovation, the expansion of evergreen properties like Monster Jam, and the stabilisation of Melissa & Doug is yielding positive results. We are strategically managing our portfolio by investing in our creative capabilities, reimagining how fans engage with our brands in both the physical and digital worlds, and expanding our audiences – laying the groundwork for future growth.”
