Spin Master faced the same challenges as its competitors in the Q2 sales period, with product orders drying up as retailers evaluated how to navigate the ongoing tariff uncertainties affecting the marketplace at large. To offset these losses, the Toronto-based toyco focused on improving its digital gaming offering by updating existing titles in its portfolio, including Toca Boca World (pictured) and Piknik, with new features and content. Here’s a look at what’s in the report: 

Q2 revenue: US$400.7 million

Year-over-year change: Down 2.7% from US$412 million

Segment performance: Gross toy sales for the quarter totaled US$371 million, dipping 3.6% from last year because of tariff uncertainties. Entertainment revenue also dropped 11.8% to US$32.1 million. But digital games offset these losses with a 33.4% revenue spike to US$46.3 million, thanks to an increase in transactions for Toca Boca World and Piknik. 

Growing toy categories: Wheels & action sales (up 17.3% to US$75.7 million) and preschool, infant, toddler and plush (up 12.1% to US$185 million).

Declining toy categories: Outdoor product sales (down 39.5% to US$8.9 million) and activities, games, dolls & interactive toys (down 31.7% to US$88.3 million). 

Six-month checkup: At US$760 million, year-to-date sales are up by 4% compared to the same period last year.

People moves: Max Rangel stepped down from his CEO post this quarter, handing the reins over to former WarnerMedia kids and YA president Christina Miller. Spin Master also conducted a round of layoffs to reduce the impact of tariffs. 

CEO’s remarks: “While we experienced revenue pressure due to a shift in retailer ordering patterns driven by global tariffs, strong double-digit growth in our digital games segment helped to offset some of that impact in the quarter,” says Miller. “Looking ahead, we are positioning Spin Master to navigate broader macroeconomic headwinds by remaining sharply focused on the consumer, accelerating innovation, scaling our global franchise brands, and unlocking new opportunities through our creative centres—laying the foundation for long-term, sustainable growth.”