Adjusted earnings before interest, taxes, depreciation and amortization reached $194.7 million, outperforming the $181 million mean forecast from FactSet analysts. The company’s toy and digital games segments faced headwinds during the quarter, though the entertainment division posted gains. Chief Executive Christina Miller attributed some of the resilience to a 25% surge in PAW Patrol toy sales, bolstered by rising viewership for the brand's content.

Management expects mid to high single-digit percentage growth in adjusted Ebitda for the full year, alongside stable to low single-digit revenue growth. Efforts to stabilize the Melissa & Doug franchise are also showing results, with expanded shelf space and new product lines driving momentum. Looking further ahead, the company confirmed a fourth PAW Patrol feature film is currently in development, with a 2029 theatrical release planned in partnership with Paramount Pictures.