Games Workshop is the better current operating business; Hasbro is the more diversified but higher-risk recovery. Games Workshop’s 52 weeks ended 31 May 2026 produced record revenue of £659.7 million, operating profit of £275.0 million and earnings per share of 624.0p, with the core Warhammer business doing most of the work. Hasbro generated much larger absolute sales, but its 2025 reported operating profit fell to $11 million after a $1,021.9 million non-cash goodwill impairment in Consumer Products. Its Wizards of the Coast and Digital Gaming segment was highly profitable and Magic: The Gathering grew strongly, so the group could recover if toys, tariffs and debt improve.
That is a business-quality verdict, not a complete buy signal. Games Workshop can be an expensive share when investors pay too much for its consistency, while Hasbro can be attractive only when its recovery potential is adequately discounted. A same-date comparison of share price, market capitalisation, net debt, free-cash-flow yield, price/earnings and enterprise-value-to-operating-profit multiples is still required before committing money; those live valuation figures are not established here.
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
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Games Workshop - Warhammer 40,000: Introductory Set | $68.85 | Buy on Amazon |
| 2 |
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Kill Team: Starter Set: Warhammer 40,000 | $96.80 | Buy on Amazon |
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What is actually being compared?
These companies make money from different kinds of intellectual property. Games Workshop is concentrated on the Warhammer hobby: tabletop miniatures, paints, books, branded stores, online sales and licensing. Customers typically buy repeatedly because the hobby combines collecting, modelling, painting and playing. Hasbro owns a wider portfolio spanning Wizards of the Coast, digital and licensed games, traditional toys, games and entertainment properties. Magic: The Gathering gives Hasbro a collectible trading-card business, while the rest of the portfolio exposes it to mass retail cycles, film and television partnerships, freight costs and changing toy trends.
The reporting periods and currencies also differ. Games Workshop’s figures are for the 52 weeks ended 31 May 2026 and are in pounds sterling. Hasbro’s figures are for calendar 2025, filed in 2026, and are in US dollars. A raw comparison of revenue or dividend size therefore does not tell you which share is cheaper or which shareholder receives the higher return.
#1 Best Overall
- Games Workshop - Warhammer 40,000: Introductory Set (10 Edition - 2023)
- A great way to begin your journey into the Warhammer 40,000 hobby
- Includes basic rules for the game, plus dice, a gaming mat, reference sheets, and a range ruler
- 16 push-fit models make up two balanced starter forces - Space Marines and Tyranids, plus hobby supplies to build and paint them
Financial snapshot
| Measure | Games Workshop (52 weeks ended 31 May 2026) | Hasbro (2025) |
|---|---|---|
| Group revenue | £659.7 million | $4,701.3 million |
| Core or principal growth segment | Warhammer core revenue: £626.8 million | Wizards of the Coast and Digital Gaming revenue: $2,186.9 million |
| Operating profit | £275.0 million | $11 million reported, after the Consumer Products impairment |
| Profit before tax | £275.7 million | Not stated on a directly comparable basis |
| Earnings per share | 624.0p | Not stated in the available figures |
| Dividends or distributions | 485p per share declared and paid | $393 million of dividends paid in 2025 |
| Operating cash flow | Not stated in the highlighted figures | $893 million |
| Adjusted operating profit | Not stated | $1.14 billion |
The table shows why consolidated operating profit needs context. Games Workshop’s profit is generated by one focused ecosystem. Hasbro’s $11 million reported operating profit is depressed by an exceptional-looking impairment, while Wizards alone produced $1,006.8 million of operating profit. Neither figure by itself is a forecast.
Why Games Workshop currently has the cleaner operating story
Record results from the core hobby
Games Workshop reported record Group revenue and profit before tax for the 52 weeks ended 31 May 2026. Revenue reached £659.7 million, including £626.8 million from the core business. Operating profit was £275.0 million and profit before tax was £275.7 million. At that revenue level, the reported operating margin is approximately 41.7%, calculated from the company’s own figures. Earnings per share were 624.0p, and 485p per share was declared and paid in dividends for the year.
Chief executive Kevin Rountree described the company and the Warhammer hobby as being “in great shape” and said Group revenue and profit before tax reached record levels because of another good performance from the core business. The important point for investors is not the quotation itself but the pattern behind it: the result was led by recurring activity in miniatures, paints, books, stores and related services rather than by a single one-off asset sale.
How the Warhammer model compounds
A Warhammer customer can enter through a starter set, then buy additional armies, paints, scenery, rulebooks and novels. New releases can stimulate existing collectors without requiring the company to replace the entire audience. Stores and community events also make the hobby harder to substitute than a one-time toy purchase. Manufacturing control, a large owned library of characters and settings, and licensing agreements can support pricing and gross profit when execution is good.
That repeat-purchase model does not remove risk. It depends on a reliable release cadence, attractive rules and miniatures, enough production capacity, and continued customer retention. A poorly received edition, production bottleneck or loss of community momentum could affect several product categories at once because they all depend on the same Warhammer ecosystem.
Licensing is useful but not the main engine
Games Workshop’s licensing revenue fell to £32.9 million in 2026 from £52.5 million in 2025, even while core revenue increased. Licensing can create high-margin income and introduce Warhammer to new audiences through games, media or merchandise, but the decline demonstrates why investors should not value the company solely on a hoped-for entertainment breakout. The core hobby was strong enough to carry the year; licensing remains an additional, less predictable stream.
Hasbro’s economics are split between Wizards and Consumer Products
Wizards of the Coast and Digital Gaming
Hasbro’s Wizards of the Coast and Digital Gaming segment produced $2,186.9 million of 2025 revenue and $1,006.8 million of operating profit. Magic: The Gathering revenue rose 59% according to Hasbro’s full-year results release. The segment also includes digital gaming and licensing, giving Hasbro exposure to software-like distribution, downloadable content and partnerships as well as physical cards.
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1Clear out junk files and repair common Windows errors2Fix the driver behind crashes, sound loss and screen glitches3Repair Windows errors before they cause bigger problemsHasbro reported tabletop-gaming revenue of $1,686.6 million in 2025. Magic is described by Hasbro as a collectible trading-card game, so the category benefits from repeat purchases, new set releases, secondary-market attention and organized play. Those characteristics resemble the recurring engagement of a hobby business, but the release schedule and reception of individual sets can make quarterly comparisons volatile.
Consumer Products and the impairment
Consumer Products generated $2,437.6 million of 2025 revenue but recorded a $942.6 million operating loss. The loss included a $1,021.9 million non-cash goodwill impairment. Hasbro also recorded approximately $44.9 million of tariff costs in Consumer Products. After these effects, consolidated reported operating profit was only $11 million.
A goodwill impairment does not, by itself, mean that the same amount of cash left the company in 2025. It means the accounting value assigned to acquired businesses was reduced because expected future economics deteriorated. The charge is still important: it signals that management’s earlier assumptions about parts of the portfolio were too optimistic and raises the question of whether further restructuring or write-downs could follow.
Cash generation and management’s recovery case
Hasbro generated $893 million of operating cash flow in 2025 and reported $1.14 billion of adjusted operating profit. Management said it returned the company to growth, engaged one billion fans, secured new partnerships and continued its evolution toward a digital-first play and intellectual-property company. For 2026, its outlook called for 3% to 5% constant-currency revenue growth and a 24% to 25% adjusted operating margin. Guidance is a target, not a guarantee; investors should test it against actual Magic demand, toy volumes, tariffs, licensing income and debt reduction.
Operating quality: focused compounder versus mixed portfolio
| Question | Games Workshop | Hasbro |
|---|---|---|
| What drives profit? | Primarily Warhammer miniatures, paints, books, stores and associated licensing. | Wizards, Magic, digital and licensed gaming, plus a large traditional Consumer Products division. |
| 2026/2025 reported operating result | £275.0 million operating profit on £659.7 million revenue. | $11 million operating profit after impairment; Wizards contributed $1,006.8 million. |
| Business concentration | High: one linked hobby ecosystem. | Lower at group level, but weaker divisions can dilute strong Wizards results. |
| Exceptional-item pressure in highlighted year | No comparable impairment charge cited in the 2026 results. | $1,021.9 million non-cash goodwill impairment and about $44.9 million of tariffs in Consumer Products. |
| Main execution test | Maintain release cadence, capacity, retention and licensing discipline. | Convert Wizards growth into group recovery while stabilising toys and managing tariffs and debt. |
Games Workshop’s advantage is transparency: most of the group rises or falls with a business investors can follow directly. Hasbro’s advantage is optionality: a strong Wizards cycle, digital licensing or a toy recovery can improve a much larger revenue base. The trade-off is that an investor must analyse several businesses and decide whether Wizards’ profits can offset Consumer Products weakness.
Growth engines: Warhammer versus Magic and digital
What could keep Games Workshop growing?
- More customers entering the hobby through starter products and stores.
- Higher spending by existing collectors as new armies, miniatures and paints are released.
- Additional manufacturing capacity that reduces stock-outs and supports international sales.
- Selective licensing that expands awareness without distracting from the core business.
- Price increases that are accepted because the hobby offers continuing play and collection value.
Investors should distinguish organic hobby demand from temporary release spikes. A strong year does not prove that every future edition will perform equally well. Monitor unit volumes where disclosed, customer engagement, product availability and the mix between core sales and licensing.
What could keep Hasbro growing?
- Magic set demand, especially whether the 59% revenue increase can be repeated without excessive promotional support.
- Digital gaming and licensing agreements that add recurring or scalable revenue.
- Improved toy distribution, fewer tariff costs and a return to healthier Consumer Products volumes.
- Portfolio simplification that directs capital toward franchises with stronger returns.
- Debt reduction and disciplined buybacks that increase value per remaining share.
Hasbro’s growth case is more sensitive to mix. Wizards can post excellent results while the group remains weak if Consumer Products loses money or requires large write-downs. Conversely, a modest Wizards slowdown may be manageable if toys and licensing recover at the same time.
Rank #2
- starter set
- Miniatures
- Kill Team
Diversification and concentration risk
Games Workshop’s concentration is both its moat and its vulnerability. Warhammer’s characters, rules, community and product pipeline reinforce one another, but they also expose shareholders to a single brand family. A major change in customer tastes, a controversial rules decision, manufacturing disruption or a decline in hobby participation would affect a large share of revenue simultaneously. Foreign-exchange movements matter because the company sells internationally while reporting in pounds.
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Outbyte Driver Updater FREEFix the driver behind crashes, sound loss and screen glitchesFind Drivers →Outbyte PC Repair FREEClear out junk files and repair common Windows errorsFree Scan →Hasbro spreads risk across collectible cards, digital games, toys, board games, licensing and entertainment. That breadth can protect the group when one category weakens. It also creates complexity: low-return or declining activities can consume management attention and offset a high-margin Wizards quarter. Diversification is therefore not automatically superior; its value depends on whether capital is reallocated toward the strongest businesses.
Dividends, buybacks and what shareholders actually receive
Games Workshop’s distribution
Games Workshop declared and paid 485p per share in dividends for the 2026 period. The figure is a per-share distribution for that year, not a guaranteed annual rate. Because the company’s share price and future earnings are not supplied here, this cannot be converted into a current dividend yield. Investors should also check the timing of special versus ordinary distributions in the company’s policy before assuming that 485p will recur.
Hasbro’s dividends and repurchases
Hasbro returned $393 million through dividends in 2025 and authorised a share-repurchase programme of up to $1 billion. A buyback can increase each remaining shareholder’s percentage ownership and earnings per share when shares are repurchased below intrinsic value. It can destroy value when a company buys aggressively during an overvaluation or while its balance sheet needs debt reduction. Authorisation is not the same as completion, so filings should be checked for the actual amount and price of shares repurchased.
The two policies suit different profiles. Games Workshop’s cash return is tied closely to a focused, profitable business. Hasbro offers a larger menu of dividends and buybacks, but those returns must be judged alongside restructuring, tariff and debt requirements.
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Exceptional items, balance-sheet risk and cash quality
The $1,021.9 million Hasbro goodwill impairment is non-cash in the period recorded, yet it is economically meaningful because it lowers the carrying value of assets and documents weaker expected returns. The approximately $44.9 million of Consumer Products tariff costs are cash-related operating pressure and could change with trade policy, sourcing and pricing. When reviewing Hasbro, separate reported profit from adjusted profit, then reconcile both to operating cash flow and free cash flow.
Games Workshop’s highlighted 2026 release shows strong cash generation and no comparable impairment charge in the cited results. That does not prove that future periods will be free of exceptional costs. Check inventory, receivables, capital expenditure, lease commitments and any acquisition or licensing payments before treating accounting profit as distributable cash.
Valuation: the missing step before a buy decision
Quality and growth do not determine an investment return without the price paid. A high-quality compounder can underperform if its valuation assumes years of flawless execution. A troubled company can produce a strong share return if earnings recover faster than the market expects, even when the business remains less attractive operationally.
Use the same measurement date and currency conversion for both companies. Collect:
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- Closing share price and diluted shares outstanding.
- Market capitalisation and enterprise value, including debt, cash and lease treatment consistently.
- Trailing and forward price/earnings ratios.
- Enterprise value divided by reported and adjusted operating profit.
- Free-cash-flow yield, using a clearly defined maintenance-capital-expenditure measure.
- Dividend yield and the percentage of cash earnings paid out.
- Net debt to adjusted operating profit, with any pension or lease obligations noted.
Do not compare Games Workshop’s 624.0p EPS directly with Hasbro’s dollar results. First determine each company’s per-share earnings in its own currency, then compare valuation ratios rather than nominal amounts. For Hasbro, calculate both a reported case that recognises the impairment and a normalised case that explains why the impairment should not recur. For Games Workshop, model slower growth and lower licensing income rather than extrapolating a record year indefinitely.
Which investor fits each share?
Games Workshop may fit you if:
- You prefer a focused business with a demonstrated record year and high operating profitability.
- You understand that one hobby ecosystem creates concentration risk.
- You can tolerate foreign-exchange movements and an unpredictable licensing contribution.
- You are willing to wait for a valuation that leaves room for execution mistakes.
Hasbro may fit you if:
- You want exposure to Wizards, Magic, digital gaming and a broader intellectual-property portfolio.
- You accept that Consumer Products recovery, tariffs and debt can dominate near-term results.
- You are comfortable analysing adjusted figures alongside impairment-affected reported accounts.
- You believe management can turn cash generation and buybacks into durable per-share growth.
Neither profile is automatically safer. Games Workshop concentrates franchise risk in a currently strong business; Hasbro distributes franchise risk but adds turnaround and capital-allocation risk.
What to monitor after buying
| Company | Indicator | Why it matters |
|---|---|---|
| Games Workshop | Warhammer release cadence and reception | New products stimulate repeat purchases and community engagement. |
| Games Workshop | Manufacturing capacity and stock availability | Demand cannot become revenue if popular kits are unavailable. |
| Games Workshop | Customer retention and store activity | Shows whether the ecosystem is expanding beyond one-off launches. |
| Games Workshop | Licensing revenue | It fell from £52.5 million to £32.9 million, so future deals should be judged realistically. |
| Games Workshop | Foreign-exchange movements | International sales and costs can move reported sterling results. |
| Hasbro | Magic set demand and release mix | Tests whether the 2025 growth rate reflects durable player demand. |
| Hasbro | Wizards digital and licensing income | Shows whether the highest-profit segment is becoming more scalable. |
| Hasbro | Consumer Products volume and margin | Recovery is needed to prevent Wizards from being diluted at group level. |
| Hasbro | Tariff expense and sourcing | The 2025 figure of about $44.9 million demonstrates direct policy sensitivity. |
| Hasbro | Debt reduction and buyback execution | Determines whether cash returns strengthen or weaken the balance sheet. |
| Hasbro | Further impairments | Another charge would challenge assumptions behind the recovery case. |
Bottom-line decision framework
On the evidence available, Games Workshop deserves the higher quality rating: record 2026 sales and profit, a very high reported operating margin, and a core business that is easy to understand. Hasbro deserves a recovery rating rather than a quality rating: Wizards and Magic are valuable and profitable, but Consumer Products produced a large loss, an impairment and tariff pressure in the same year.
The practical choice depends on valuation and risk tolerance. Choose Games Workshop only if the share price does not already capitalise years of near-perfect Warhammer execution. Consider Hasbro only if your valuation work shows that Wizards’ profits, the 2026 growth outlook and potential Consumer Products recovery more than compensate for turnaround uncertainty. Until those same-date multiples and balance-sheet figures are assembled, the defensible conclusion is that Games Workshop is the better current business, while Hasbro is the higher-risk, potentially higher-upside recovery proposition.
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