Spin Master (TSE:TOY) Posts Earnings Results

Spin Master (TSE:TOY) announced its earnings results on Thursday. The company reported C$0.11 earnings per share for the quarter, FiscalAI reports. Spin Master had a negative net margin of 7.69% and a negative return on equity of 12.40%. The business had revenue of C$620.03 million during the quarter.

Here are the key takeaways from Spin Master’s conference call:

• Q2 results exceeded expectations, with revenue up 9% and adjusted EBITDA up 80%, driven by strong core toy brands, new product launches, improved gross profit, and lower-timed marketing expenses.
• Spin Master reiterated its 2026 outlook for stable to low-single-digit revenue growth and mid- to high-single-digit adjusted EBITDA growth. Management expects the PAW Patrol: The Dino Movie, new products, and second-half entertainment and digital initiatives to support performance.
• Approximately $40 million of Q3 toy orders were pulled into Q2, so Q3 revenue is expected to be generally stable and less favorable sequentially; more domestic replenishment could shift a larger portion of sales into Q4.
• Early retailer and product reads for the PAW Patrol movie line are positive, with shelf space at or above prior movie launches and inventory positioned to support potential demand. The movie is expected to benefit the toy, entertainment, and digital-games businesses.
• Melissa & Doug revenue declined as expected against a difficult prior-year comparison, while proposed higher tariffs and elevated input costs are expected to add roughly $15 million of second-half costs; the company plans to absorb these costs rather than raise prices.

Spin Master Stock Down 11.0%

Shares of TSE:TOY traded down C$2.57 during trading on Thursday, reaching C$20.79. 294,712 shares of the stock traded hands, compared to its average volume of 183,389. The stock has a 50-day moving average of C$20.18 and a two-hundred day moving average of C$19.33. Spin Master has a 52-week low of C$17.13 and a 52-week high of C$24.13. The company has a debt-to-equity ratio of 35.23, a quick ratio of 2.06 and a current ratio of 1.10. The stock has a market cap of C$2.09 billion, a P/E ratio of -13.50, a price-to-earnings-growth ratio of 0.57 and a beta of 0.70.

Spin Master Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Friday, July 10th. Stockholders of record on Friday, July 10th were paid a $0.12 dividend. This represents a $0.48 annualized dividend and a dividend yield of 2.3%. The ex-dividend date was Friday, June 26th. Spin Master’s dividend payout ratio is currently -22.58%.

Analyst Ratings Changes

TOY has been the subject of a number of analyst reports. Jefferies Financial Group raised their price objective on Spin Master from C$23.00 to C$26.00 and gave the company a “buy” rating in a research report on Friday, May 1st. TD boosted their target price on Spin Master from C$26.00 to C$27.00 and gave the stock a “buy” rating in a report on Friday, July 3rd. Six research analysts have rated the stock with a Buy rating and two have issued a Hold rating to the company. According to MarketBeat.com, Spin Master has an average rating of “Moderate Buy” and an average price target of C$27.20.

About Spin Master

Spin Master Corp. (TSX:TOY) is a leading global children’s entertainment company, creating exceptional play experiences across its three creative centres: Toys, Entertainment and Digital Games. With worldwide toy distribution, Spin Master is best known for award-winning brands including PAW Patrol ®, Melissa & Doug ®, Bakugan ® and Rubik’s ® Cube, and is the global toy licensee for other iconic properties. Through its in-house entertainment studio, the company creates and produces captivating multiplatform content including powerhouse preschool franchise PAW Patrol, along with other original shows, short-form series and feature films.