Nine months into the year, US President Donald Trump’s tariffs have caused major disruptions for all of the toy industry’s major players, including Spin Master. The Toronto-based company laid out its Q3 financial results this morning, sharing that retailer purchasing behavior has shifted in this uncertain macroeconomic environment. Here are some key takeaways from the report:

Q3 revenue: US$734.7 million

Year-over-year change: Down 17% from US$885.7 million in Q3 2024

Toy segment performance: Global gross product sales totaled US$742.7 million, which is 19.5% less than last year’s Q3 tally of US$922.7 million. Spin Master attributed this decline to tariffs and the effect that rising inflation is having on consumer spending power. 

Category breakdown: 

• wheels & action – up 10%
• preschool and plush – down 23.2%
• games & puzzles – down 28.4%
• outdoor items – down 47.4%

Supply chain hurdles: Since the start of the year, retailers have shifted from ordering products directly from Spin’s factories in China, India and Vietnam to ordering from the company’s domestic warehouses in order to reduce costs. However, this adds a step because the products still need to be shipped from the factories in Asia to the warehouses, affecting the timing of new shipments. Spin has also increased its prices on toys to offset hikes in import duties and transportation costs. 

Digital upside: Gaming revenue rose by 36.6% in Q3 to US$51.5 million, a US$13.8-million difference compared with last year’s Q3 results. This is down to continued subscription growth for educational games platform Piknik and an increase in in-game purchases for Toca Boca World. 

Needs improvement: Entertainment revenue declined 11.6% to US$32.8 million, largely due to lower distribution revenue for PAW Patrol: The Mighty Movie and weakening licensing & merchandising revenue across the company’s portfolio. 

CEO’s outlook: “We are well-positioned for the holiday season, with a broad range of our award-winning toys and brands featured on retailers’ top toy lists; a first-ever PAW Patrol Christmas special set to air on broadcast networks, platforms and in theaters globally this November; and a robust lineup of new features, content releases and strategic partnerships across our digital games business,” says CEO Christina Miller.