v3.26.1
Revenue Recognition
 6 Months Ended
Jun. 28, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
Revenue is recognized when control of the promised goods, functional intellectual property or production is transferred to the customers or licensees, in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. The majority of the Company’s revenues are derived from sales of finished products to customers. Refer to Note 1, Summary of Significant Accounting Policies, of the Company's 2025 Form 10-K for the Company's revenue recognition accounting policy.
Contract Assets and Liabilities
In the ordinary course of business, the Company enters into arrangements that result in the recognition of contract assets and contract liabilities. The Company records the current portion of contract assets and contract liabilities in Prepaid expenses and other current assets and Accrued liabilities, respectively, and the long-term portion within Other assets and Other liabilities, respectively, in the Company's Consolidated Balance Sheets.
The opening and closing balances of contract assets and contract liabilities are as follows:
June 28,
2026		June 29,
2025
Contract Assets:
Balance, beginning of period$282.9 $241.4 
Balance, end of period$252.7 $270.1 
Contract Liabilities:
Balance, beginning of period$190.5 $236.8 
Balance, end of period$166.0 $202.8 
For the six months ended June 28, 2026, the Company recognized revenue of $84.7 million that was included in the December 28, 2025 contract liability balance. For the six months ended June 29, 2025, the Company recognized revenue of $150.8 million that was included in the December 29, 2024 contract liability balance.
Unsatisfied Performance Obligations
As of June 28, 2026, revenue for unsatisfied performance obligations expected to be recognized in the future is $951.6 million, primarily for intellectual property to be made available in the future under existing agreements with merchandise and co-branding licensees and television station affiliates. Of this amount, we expect to recognize approximately $124.4 million in the remainder of 2026, $199.5 million in 2027, $155.3 million in 2028, and $472.4 million thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less or (ii) licenses of intellectual property that are solely based on the sales of the licensee.
Accounts Receivable and Allowance for Credit Losses
The Company’s balance for accounts receivable on the Consolidated Balance Sheets as of June 28, 2026 and June 29, 2025 primarily represents billed amounts relating to contracts with customers. Unbilled amounts, typically relating to the minimum guarantees recognized in advance of contractual billing schedules, are recorded as contract assets within the Consolidated Balance Sheets. A summary of the related allowance for credit losses activity for accounts receivable and contract assets is as follows:
Allowance for Credit Losses
Accounts ReceivableContract Assets
June 28,
2026		June 29,
2025		June 28,
2026		June 29,
2025
Balance, beginning of period$61.3 $25.8 $11.7 $7.4 
Provisions/charges to income2.4 16.0 9.9 6.0 
Amounts charged off and other(5.8)(2.3)(4.3)(3.9)
Foreign currency impact— 0.7 — — 
Balance, end of period$57.9 $40.2 $17.3 $9.5 
Disaggregation of Revenues
The Company disaggregates its revenues from contracts with customers by reportable segment: Wizards of the Coast and Digital Gaming, Consumer Products, and Entertainment. The Company further disaggregates revenues within its Wizards of the Coast and Digital Gaming segment by category: Tabletop Gaming and Digital and Licensed Gaming; within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; and within its Entertainment segment by category: Family Brands and Film and TV. Finally, the Company disaggregates its revenues into three brand categories: Grow Brands, Optimize Brands, and Reinvent Brands. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category:
Three Months EndedSix Months Ended
June 28,
2026		June 29,
2025		June 28,
2026		June 29,
2025
Tabletop Gaming$528.3 $406.3 $989.0 $750.1 
Digital and Licensed Gaming135.5 116.1 256.8 234.4 
Net revenues$663.8 $522.4 $1,245.8 $984.5 
The following table represents consolidated Consumer Products segment net revenues by major geographic region:
Three Months EndedSix Months Ended
June 28,
2026		June 29,
2025		June 28,
2026		June 29,
2025
North America$277.0 $236.0 $492.4 $467.4 
Europe92.9 95.7 192.5 180.7 
Asia Pacific53.2 63.6 107.0 117.4 
Latin America39.9 47.1 69.0 75.2 
Net revenues$463.0 $442.4 $860.9 $840.7 
The following table represents consolidated Entertainment segment net revenues by category:
Three Months EndedSix Months Ended
June 28,
2026		June 29,
2025		June 28,
2026		June 29,
2025
Family Brands$11.8 $14.5 $30.4 $36.9 
Film and TV1.0 1.5 2.7 5.8 
Net revenues$12.8 $16.0 $33.1 $42.7 
The following table represents consolidated net revenues by brand portfolio:
Three Months EndedSix Months Ended
June 28
2026
June 29, 2025(1)
June 28
2026
June 29, 2025(1)
Grow Brands $904.9 $740.6 $1,692.4 $1,401.4 
Optimize Brands151.7 159.9 278.6 290.7 
Reinvent Brands 83.0 80.3 168.8 175.8 
Net revenues$1,139.6 $980.8 $2,139.8 $1,867.9 
(1) During the first quarter of 2026, the classification of brands within these categories was reviewed and certain brands were reclassified based on changes in growth, profitability or other characteristics. As such, the respective historical revenues associated within these brands has been reclassified into the brands' new brand category.