Spin Master (TSE:TOY – Get Free Report) announced its earnings results on Thursday. The company reported C$0.11 EPS for the quarter, FiscalAI reports. The business had revenue of C$620.03 million for the quarter. Spin Master had a negative return on equity of 12.40% and a negative net margin of 7.69%.
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 Trading Down 10.7%
TSE TOY opened at C$20.87 on Friday. The stock has a 50-day simple moving average of C$20.22 and a 200 day simple moving average of C$19.33. Spin Master has a 12 month low of C$17.13 and a 12 month high of C$24.13. The company has a market capitalization of C$2.10 billion, a PE ratio of -13.55, a P/E/G ratio of 0.57 and a beta of 0.70. The company has a current ratio of 1.10, a quick ratio of 2.06 and a debt-to-equity ratio of 35.23.
Spin Master Announces Dividend
Wall Street Analyst Weigh In
Several equities analysts have issued reports on TOY shares. Jefferies Financial Group lifted 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 raised their target price on Spin Master from C$26.00 to C$27.00 and gave the company a “buy” rating in a research note on Friday, July 3rd. Six analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Spin Master presently has an average rating of “Moderate Buy” and a consensus target price of C$27.20.
Get Our Latest Research Report on TOY
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.
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