Hasbro (HAS) risk factors, FY2025 10-K

Hasbro's FY2025 10-K, filed Feb 25, 2026, lists 33 risk factors. Against the prior year's 33: 5 new, 5 dropped, 11 substantially reworded.

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Risk factors listed
330 groups
New this year
5vs 33 last year
Dropped
5since the prior 10-K
Substantially reworded
11of those kept
Section length
10k wordsItem 1A

What the changes say

  • Hasbro updated its risk factors to emphasize executing the Playing to Win strategy across digital gaming and direct-to-consumer operations.
  • The company highlighted ongoing dependencies on major licenses like Marvel, Star Wars, and Magic: The Gathering.
  • Supply chain disruptions, vendor transitions, and cost-saving targets remain key operational hurdles.

What changed since the prior 10-K

New

  • New

    Our business will suffer if we are not successful in executing our business strategy

    The business will suffer if Hasbro fails to successfully execute its overarching business strategy.

  • New

    Our Playing to Win business strategy evolves around our mission to create joy and community through the magic of play and inspiring a lifetime of play. We are focused on extending the reach of our products globally to improve our position in the marketplace, increase revenue and increase operating profit

    Failure to execute the Playing to Win strategy, including growing Magic: The Gathering, Dungeons & Dragons, digital gaming, and right-sizing the toy cost structure, will harm the business.

  • New

    Consumer interests change quickly and acceptance of our product offerings are influenced by technological and outside factors, making it difficult to design and develop innovative products and other offerings which are and will continue to be popular with children, families, fans and audiences

    Rapidly changing consumer preferences, technology usage at younger ages, and social media make it difficult to design popular products and entertainment.

  • New

    If we are unable to expand our direct-to-consumer relationships, our business may be harmed

    Inability to expand direct-to-consumer relationships through ecommerce, social media, and digital games, or failures in order processing technology, could harm the business.

  • New

    Public health crises may disrupt our business

    Public health crises like COVID-19 can cause shipping delays, port capacity issues, transportation shortages, and manufacturing closures that negatively impact revenues.

Dropped

  • Dropped

    Our business strategy has evolved to focus on extending the reach of our toy and game products globally to improve our position in the marketplace, increase revenue and increase operating profit

    Strategy to extend toy and game reach globally.

  • Dropped

    If we are not successful in transforming our supply chain operations, our business may be harmed

  • Dropped

    If we are unable to adapt our business to the continued shift to direct-to-consumer, our business may be harmed

  • Dropped

    Outbreaks of communicable infections, diseases, or public health pandemics in the markets in which we and our employees, consumers, customers, partners, licensees, suppliers and manufacturers operate, could substantially harm our business

  • Dropped

    securities. The failure to receive financing on desirable terms, or at all, could damage our ability to support our future operations or capital needs or engage in other business activities

Reworded

  • 75% rewritten

    We may not realize the full benefit of our licenses from third parties if the licensed material has less market appeal than expected, if revenue from the licensed products is not sufficient to earn out the minimum guaranteed royalties or if licenses are not renewed

    Updated to include specific Wizards and digital gaming brands in licensing examples, adding Final Fantasy, Spider-Man, Avatar, and Lord Of The Rings alongside Marvel and Star Wars.

  • 65% rewritten

    Our success is dependent on the efforts and dedication of our officers and other employees

    Removed the specific mention that moving the corporate headquarters could impact the ability to retain and attract key employees.

  • 43% rewritten

    If we are unable to navigate through global supply chain challenges, our business may be harmed

    Added a hedge noting no assurance that price increases can offset additional supply chain disruption costs.

  • 36% rewritten

    Our business will suffer if we are unable to develop, publish and commercialize digital games

    Clarified that digital gaming challenges include the risk of losing money on product development if sales do not recover high costs.

  • 36% rewritten

    If we were unable to obtain or service our other external financings, or if the restrictions imposed by such financing were too burdensome, our business would be harmed

    Added specific warnings that restrictive credit facility covenants and non-compliance with debt covenants could limit future actions and prevent borrowings.

  • 33% rewritten

    Our reliance on third-party manufacturers presents risks to our business

    Added that the substantial number of third-party manufacturers located in China is decreasing.

    Was: Our reliance on third-party manufacturers to produce our products, particularly in China, the U.S., Vietnam and India, presents risks to our business

  • 26% rewritten

    Failure to achieve our anticipated cost-savings may impact our ability to operate efficiently and profitably

    Removed specific reference to initiating the operational excellence program in mid-2022.

    Was: Failure to achieve of our anticipated cost-savings may impact our ability to operate efficiently and profitably

  • 25% rewritten

    If our vendors or third-party outsourcing partners fail to perform, our business may be harmed

    Removed reference to transformation efforts to reduce costs when discussing reliance on third-party vendors for outsourcing.

  • 24% rewritten

    If we are unable to compete effectively with existing or new competitors, our revenues, market share and profitability could decline

    Was: The industries in which we compete are highly competitive. If we are unable to compete effectively with existing or new competitors, our revenues, market share and profitability could decline

  • 23% rewritten

    Changes in foreign currency exchange rates can significantly impact our reported financial performance

  • 22% rewritten

    The concentration of our customer base means that economic difficulties or changes in the purchasing or promotional policies or patterns of our major customers could have a significant impact on us

All 33 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Our business will suffer if we are not successful in executing our business strategyNew
  2. 02Our Playing to Win business strategy evolves around our mission to create joy and community through the magic of play and inspiring a lifetime of play. We are focused on extending the reach of our products globally to improve our position in the marketplace, increase revenue and increase operating profitNew
  3. 03Our business will suffer if we are unable to develop, publish and commercialize digital games36% rewritten
  4. 04We may not realize the full benefit of our licenses from third parties if the licensed material has less market appeal than expected, if revenue from the licensed products is not sufficient to earn out the minimum guaranteed royalties or if licenses are not renewed75% rewritten
  5. 05Third party licensees and partners of our brands may fail to honor their obligations to us or their actions may put us at risk
  6. 06Consumer interests change quickly and acceptance of our product offerings are influenced by technological and outside factors, making it difficult to design and develop innovative products and other offerings which are and will continue to be popular with children, families, fans and audiencesNew
  7. 07Failure to achieve our anticipated cost-savings may impact our ability to operate efficiently and profitably26% rewritten
  8. 08If we are unable to compete effectively with existing or new competitors, our revenues, market share and profitability could decline24% rewritten
  9. 09We may not realize the anticipated benefits of acquisitions, dispositions or investments in joint ventures, or those benefits may be delayed or reduced in their realization
  10. 10Our business may be harmed by the imposition or threat of tariffs, including reciprocal or retaliatory tariffs, in markets in which we operate which could increase our product costs and other costs of doing business, reduce or delay purchases, impact consumer spending, or lower our revenues and earnings
  11. 11An inability to develop, introduce and ship planned products, product lines and new brands in a timely and cost-effective manner could result in excess inventory, a shortage of products or otherwise damage our business
  12. 12If we are unable to navigate through global supply chain challenges, our business may be harmed43% rewritten
  13. 13If we are unable to expand our direct-to-consumer relationships, our business may be harmedNew
  14. 14The concentration of our customer base means that economic difficulties or changes in the purchasing or promotional policies or patterns of our major customers could have a significant impact on us22% rewritten
  15. 15Our substantial business, sales and manufacturing operations outside the U.S. subject us to risks associated with international operations
  16. 16Our reliance on third-party manufacturers presents risks to our business33% rewritten
  17. 17Our dependence on third-party relationships with studios, content producers and distribution channels to develop and distribute digital games and entertainment content is critical to our business
  18. 18If our vendors or third-party outsourcing partners fail to perform, our business may be harmed25% rewritten
  19. 19Our success is dependent on the efforts and dedication of our officers and other employees65% rewritten
  20. 20Our business may be harmed if we are unable to protect our critical intellectual property rights
  21. 21Failure to successfully operate our information systems and implement new technology effectively could disrupt our business or reduce our sales or profitability
  22. 22If our electronic data is compromised our business could be significantly harmed
  23. 23Economic conditions could impact discretionary consumer spending and harm our business and financial performance
  24. 24Inflation and other adverse economic conditions in the markets in which we and our consumers, customers, employees, suppliers and manufacturers operate could negatively impact our ability to produce and ship our products, and lower our revenues, margins and profitability
  25. 25Public health crises may disrupt our businessNew
  26. 26Our quarterly and annual operating results may fluctuate due to seasonality in our business
  27. 27We have had and may in the future have significant impairment charges that adversely affect our net earnings
  28. 28Changes in foreign currency exchange rates can significantly impact our reported financial performance23% rewritten
  29. 29Our indebtedness may limit our availability of cash, cause us to divert cash to fund debt service payments or make it more difficult to take certain other actions
  30. 30If we were unable to obtain or service our other external financings, or if the restrictions imposed by such financing were too burdensome, our business would be harmed36% rewritten
  31. 31Changes in, or differing interpretations of, income tax laws and rules, and changes in our geographic operating results, may impact our effective tax rate
  32. 32We are subject to various government regulations, violation of which could subject us to sanctions or otherwise harm our business. In addition, we could be the subject of future product liability suits or product recalls, which could harm our business
  33. 33We are involved in litigation, arbitration or regulatory matters where the outcome is uncertain and which could entail significant expense

Other Hasbro 10-Ks

  • FY2024 10-K risk factors
    33 risks

    Hasbro's risk profile is dominated by global supply chain dependencies, reliance on key customers like Wal-Mart and Amazon, and execution risks in digital gaming and cost-savings initiatives.

    Filed Feb 27, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.