From a cyberattack to oil prices, unforeseen expenses are adding up for Hasbro

A cybersecurity attack on Hasbro Inc.’s network is expected to cost the company $20 million in legal bills and “remediation” expenses, Gina Goetter, chief financial and operating officer, told investors on a virtual earnings call Wednesday.

The final bill, including another $60 million in delayed income from a temporary operational shutdown, has not been determined. Nor has it hit the toy and gaming company’s balance sheet, though it did delay the timing of its first-quarter earnings release by roughly a month.

“We prioritized getting all of our financial systems stood up so that we could report our earnings and file our quarterly,” Goetter said. “We’re still working through the final phases of the cyber remediation. It made sense for us to hold this quarter out.”

Add Hasbro to the growing list of defendants facing a class-action lawsuit over a data breach

The company posted a $198.4 million profit for the first three months of the year — more than double its first quarter earnings in 2025. Earnings per share also rose to $1.39, up 69 cents year-over-year. 

One-time costs associated with the attack are expected to show up in the second quarter financial report, Goetter said.

Meanwhile, the network breach first identified on March 28 and reported on April 1 has been “contained,” with no future risk expected. Goetter offered little additional detail on the attack, but said the company expects to restore the affected systems, including order management, shipping and invoicing, in June.

Not mentioned during the 35-minute earnings call: the class-action lawsuit alleging the company failed to protect the personal information of “hundreds” of employees and customers. Hasbro has until July 14 to submit a response to the complaint, which was filed in the U.S. District Court in Rhode Island on April 16, according to public documents.

A Hasbro spokesperson did not immediately respond to requests for comment on Wednesday.

State law requires any data breaches that compromise the personal information of more than 500 Rhode Islanders to be reported to the Rhode Island Office of the Attorney General within 45 days. As of Wednesday Hasbro has not reported a breach to the AG’s office.

Oil prices to add $30M

Hasbro’s strong first-quarter performance, driven by the continued success of its digital gaming and roleplaying lines, such as Wizards of the Coast and MAGIC: The Gathering, also does not include price hikes tied to the Iran War. Assuming oil prices stay at present levels, the company expects to pay an extra $30 million in freight, resin and packaging costs associated with its consumer products — a weight not felt until the second half of the year, Goetter said. 

Executives remained bullish that their long-term cost savings strategy, expected to cut $150 million over the course of the year, along with growth in digital gaming, licensing and consumer products, will offset losses tied to the global energy crisis.

“Our consumer products are still projected to grow — that’s how much ammo we’ve put into being able to offset the impact of the oil increase,” Goetter said.

Another boost may come from federal tariff refunds. Hasbro has filed a claim seeking $50 million in reimbursements from the Trump administration’s 2025 tariffs, which were struck down by the U.S. Supreme Court earlier this year. The refund request remains in the reconciliation stage, and has not been incorporated into the company’s financial forecast.

Hasbro reaffirmed its full-year outlook, which calls for earnings before interest, taxes, depreciation, and amortization, of $1.4 billion to $1.45 billion.

Company shares fell 9% in the first three hours following Hasbro’s earnings release Wednesday morning. The $88.68 per share value as of 11 a.m. is the lowest since March 27.

What about the move?

No additional details were available on the company’s move to Boston, expected to be completed by the end of the year. The decision to abandon its century-old roots in Rhode Island, currently in an industrial building along Newport Avenue in Pawtucket, was announced in September 2025. At the time, executives cited the workforce pool and access to public transportation alongside state tax incentives, as reasons to move the 1,000 person workforce across state lines.

Hasbro expects to list its 343,000-square-foot office in Pawtucket for sale after the move is complete, according to federal disclosures. 

The company has 18 jobs posted on its website for the Boston area. The most recent, a May 13 posting for a manager of global brand development and marketing, requires in-person attendance either at the existing headquarters in Pawtucket or a temporary location in Boston. The hired employee will be required to report to its Boston headquarters “effective from the date that Hasbro opens its new Boston location,” the posting states.