Canada's Spin Master Q3 revenue slightly misses

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

*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.)