Earnings Per Common ShareThe Company computes earnings per share ("EPS") in accordance with ASC Topic 260, Earnings per Share. Basic net earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding for the year as well as awards that have not been issued but all contingencies have been met.
Diluted net earnings per share is similar except that the weighted average number of shares outstanding is increased by dilutive securities, and net earnings are adjusted, if necessary, for certain amounts related to dilutive securities. Dilutive securities include shares issuable upon exercise of stock options for which the market price exceeds the exercise price, less shares which could have been purchased by the Company with the related proceeds. Dilutive securities also include shares issuable under restricted stock unit award agreements. Options and restricted stock unit awards totaling 4.2 million, 1.6 million and 2.5 million for 2025, 2024, and 2023, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive. Of the fiscal 2025 and 2023 amounts, 3.6 million and 1.6 million shares would have been included in the calculation of diluted shares had the Company not had a net loss for the years ended December 28, 2025 and December 31, 2023, respectively. Assuming that these awards and options were included, under the treasury stock method, they would have resulted in an additional 1.5 million and 0.2 million shares being included in the diluted earnings per share calculation for the years ended December 28, 2025 and December 31, 2023, respectively.
The following table sets forth the reconciliation of basic and diluted earnings per share:
| | | | | | | | | | | | | | | | | |
| (In millions, except per share data) | 2025 | 2024 | 2023 |
Net (loss) earnings attributable to Hasbro, Inc. | $ | (322.4) | | | $ | 385.6 | | | $ | (1,489.3) | |
| | | | | |
| Average shares outstanding | 140.2 | | | 139.4 | | | 138.8 | |
Effect of dilutive securities - Options and other share-based awards | — | | | 0.9 | | | — | |
| Equivalent shares | 140.2 | | | 140.3 | | | 138.8 | |
| | | | | |
Net (loss) earnings attributable to Hasbro, Inc. per common share | | | | | |
| Basic | $ | (2.30) | | | $ | 2.77 | | | $ | (10.73) | |
| Diluted | $ | (2.30) | | | $ | 2.75 | | | $ | (10.73) | |
About Earnings Per Share Disclosures
The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.
Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.