Capital Com MENA Securities Trading LLC is regulated by the Capital Market Authority.
Open platformOpen platform

Canada's Spin Master Q3 revenue slightly misses

By Reuters News


Overview

  • Canada children's entertainment firm's Q3 revenue was stable, slightly missing analyst expectations

  • Adjusted EBITDA and adjusted operating income declined modestly from a year earlier

  • Company repurchased $8.8 mln in shares and acquired Hapiko Inc. in the quarter


Outlook

  • Spin Master expects 2026 revenue to grow stable to low single digits vs 2025

  • Company sees 2026 adjusted EBITDA growing mid to high single digits vs 2025

  • Company says it will continue to invest in innovation and new categories in 2026


Result Drivers

  • PAW PATROL MOVIE - Co said launch of PAW Patrol: The Dino Movie drove increased viewership and a 25% rise in related toy sales

  • MELISSA & DOUG GROWTH - Co attributed growth in Melissa & Doug to expanded shelf space, global expansion and new products

  • TOCA BOCA WORLD - Co said bridging digital engagement with retail and partnerships led to more players and double-digit revenue growth for Toca Boca World


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Slight Miss*

$732.7 mln

$738.60 mln (7 Analysts)

Q3 Adjusted EBITDA

$194.70 mln

Q3 Adjusted EBITDA Margin

26.60%

Q3 Adjusted Operating Income

$148.40 mln

Q3 Free Cash Flow

$64.90 mln

Q3 Operating Income

$112.50 mln

*Applies to a deviation of less than 1%; not applicable for per-share numbers.


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the toys & children's products peer group is "buy"

  • Wall Street's median 12-month price target for Spin Master Corp. is C$26.00, about 24% above its October 28 closing price of C$20.96

  • The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 9 three months ago


Reuters Recommended Reads

  • Oct 26 - Canada's Celestica Q3 revenue jumps 83% on higher customer demand, operating leverage; raises 2026 outlook

  • Oct 28 - Canada Packers Q3 revenue falls 13%, slightly misses estimates

  • Oct 28 - Canada's GFL Environmental Q3 revenue jumps 27% on acquisitions, lifts 2026 outlook


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.