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.)

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