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TORONTO, April 30, 2026 /PRNewswire/ – Spin Master Corp. (“Spin Master” or the “Company”) (TSX: TOY) (www.spinmaster.com), a leading global children’s entertainment company, today announced its financial results for the three months ended March 31, 2026. The Company’s full Management’s Discussion and Analysis (“MD&A”) for the three months ended March 31, 2026 is available under the Company’s profile on SEDAR+ (www.sedarplus.com) and posted on the Company’s web site at www.spinmaster.com. All financial information is presented in United States dollars (“$”, “dollars” and “US$”) and has been rounded to the nearest hundred thousand, except per share amounts and where otherwise indicated.

“We delivered a solid start to the year, a direct result of our disciplined execution against our core strategic priorities,” said Christina Miller, CEO of Spin Master. “Our focus on product innovation, the expansion of evergreen properties like Monster Jam, and the stabilization of Melissa & Doug is yielding positive results. We are strategically managing our portfolio by investing in our creative capabilities, reimagining how fans engage with our brands in both the physical and digital worlds, and expanding our audiences – laying the groundwork for future growth.”

“We delivered a significant increase in cash generation through disciplined cost and working capital management, which offset an anticipated decline in revenues due to the pull forward of import orders in the U.S. last year ahead of tariffs,” said Jonathan Roiter, CFO. “In the current environment, we balanced our capital allocation to growth investments, dividends and share buybacks, as well as significant debt reduction.”

Consolidated Financial Highlights for Q1 2026 as compared to the same period in 2025

• Revenue was $328.5 million, a decrease of 8.6%. Constant Currency Revenue¹ was $321.7 million, a decrease of 10.5%.
• Operating Loss was $34.3 million, compared to $22.1 million.
• Adjusted Operating Loss¹ was $23.8 million, compared to $5.9 million.
• Net Loss was $32.0 million or $(0.32) per share compared to $24.5 million or $(0.24) per share.
• Adjusted Net Loss¹ was $24.1 million or $(0.24) per share compared to $12.0 million or $(0.12) per share.
• Adjusted EBITDA¹ was $17.2 million, a decrease of $4.4 million.
• Adjusted EBITDA Margin¹ was 5.2% compared to 6.0%.
• Cash provided by operating activities was $102.9 million compared to $24.8 million.
• Free Cash Flow¹ was $71.1 million compared to $(10.8) million.
• Repurchased and cancelled 412,130 subordinate voting shares for $5.7 million (C$7.9 million) in Q1 2026 through the Company’s Normal Course Issuer Bid (the “NCIB”) program. Subsequent to March 31, 2026, the Company repurchased and cancelled 116,560 subordinate voting shares for $1.5 million.
• Subsequent to March 31, 2026, the Company declared a quarterly dividend of C$0.12 per outstanding subordinate voting share and multiple voting share, payable on July 10, 2026.

2026 Outlook

For the full year 2026, the Company continues to expect:

• Revenue: stable to low single digit percentage growth compared to 2025.
• Adjusted EBITDA¹: mid to high single digit percentage growth compared to 2025.

Consolidated Financial Results as compared to the same period in 2025

Segmented Financial Results as compared to the same period in 2025

Toys Segment Results

The following table provides a summary of the Toys segment operating results, for the three months ended March 31, 2026 and 2025:

• Toy Revenue declined by $32.8 million to $240.9 million due to lower Toy Gross Product Sales¹. Constant Currency Toy Gross Product Sales¹ was $268.6 million, a decrease of 14.4%. Constant Current Toy Revenue was $235.8 million, a decrease of 13.8%.
• Toy Gross Product Sales¹ decreased by $38.1 million to $275.6 million. The decrease is primarily due to the timing of customer orders, which were accelerated into the first quarter of the prior year in anticipation of United States tariff announcements.
• Sales Allowances decreased by $3.4 million to $37.0 million. As a percentage of Toy Gross Product Sales¹, Sales Allowances increased to 13.4% from 12.9% primarily driven by a change in geographic and customer mix.
• Toys Operating Loss was $48.7 million compared to $50.6 million. The change was primarily driven by lower administrative, product development, selling and marketing expenses, partially offset by a decrease in Toy Revenue. Toys Operating Margin was (20.2)% compared to (18.5)%.
• Toys Adjusted EBITDA¹ was $(19.0) million compared to $(20.5) million, primarily driven by lower administrative, product development and marketing expenses, partially offset by lower Toy Revenue. Toys Adjusted EBITDA Margin¹ was (7.9)% compared to (7.5)%, primarily driven by a decrease in Toy Revenue resulting in lower operating leverage, partially offset by improved freight rates.

Entertainment Segment Results

The following table provides a summary of Entertainment segment operating results, for the three months ended March 31, 2026 and 2025:

• Entertainment Revenue increased by $3.0 million to $40.8 million, driven by an increase in distribution revenue from the delivery of a new chapter of Unicorn Academy in the current year, partially offset by a decrease in ongoing distribution revenue primarily from the PAW Patrol series and PAW Patrol: The Mighty Movie.
• Entertainment Operating Income declined by $12.7 million to $13.2 million, primarily due to lower ongoing distribution revenue, the delivery of a new chapter of Unicorn Academy in the current year (distribution revenue less amortization of production costs) and an increase in marketing expense in support of the upcoming PAW Patrol: The Dino Movie. Entertainment Operating Margin decreased from 68.5% to 32.4%.
• Entertainment Adjusted Operating Income¹ declined by $11.8 million to $14.3 million. Entertainment Adjusted Operating Margin¹ decreased from 69.0% to 35.0%, primarily due to lower ongoing distribution revenue and the dilutive effect of the delivery of a new chapter of Unicorn Academy in the current year.

Digital Games Segment Results

The following table provides a summary of Digital Games segment operating results, for the three months ended March 31, 2026 and 2025:

• Digital Games Revenue declined by $1.0 million to $46.8 million, driven by lower in-game purchases in Toca Boca World, partially offset by revenue generated from strategic distribution partnerships.
• Digital Games Operating Income declined by $3.3 million, primarily driven by increases in amortization expense related to Toca Boca World and Piknik and administrative expenses, partially offset by a decrease in marketing expenses. Digital Games Operating Margin decreased from 17.2% to 10.5%.
• Digital Games Adjusted Operating Income¹ declined by $3.0 million to $6.5 million, primarily driven by increases in amortization expense related to Toca Boca World and Piknik and administrative expenses, partially offset by a decrease in marketing expenses. Digital Games Adjusted Operating Margin¹ decreased from 19.9% to 13.9%.

Liquidity

The Company has an unsecured revolving credit facility (the “Facility”) with a borrowing capacity of $510.0 million and contains certain financial covenants, maturing on June 27, 2030.

The Company has a non-revolving credit facility (the “Acquisition Facility”) related to the acquisition of Melissa & Doug, with a borrowing capacity of $225.0 million and contains certain financial covenants, maturing on June 27, 2027.

As at March 31, 2026, there was no amount outstanding (December 31, 2025 – $42.0 million) under the Facility and $225.0 million outstanding (December 31, 2025 – $225.0 million) under the Acquisition Facility. During the three months ended March 31, 2026, the Company repaid $92.0 million (2025 – $30.0 million) and drew $50.0 million (2025 – $nil) against the Facility. For the three months ended March 31, 2026, the weighted average interest rates on the Facility and Acquisition Facility were 5.6% and 5.2%, respectively (2025 – 5.6% and 5.6%).

As at March 31, 2026, the Company had available liquidity of $615.4 million, comprised of $110.9 million in cash and $504.5 million under the Company’s committed credit facilities.

Cash Flows for Q1 2026 as compared to the same period in 2025

Cash flows provided by operating activities were $102.9 million compared to $24.8 million driven by changes in non-cash working capital and higher income taxes received, partially offset by change in non-cash provisions and other assets. Changes in non-cash working capital increased by $114.9 million as compared to an increase of $24.8 million.

Cash used in investing activities was $32.4 million for the three months ended March 31, 2026 compared to $36.6 million primarily as a result of lower capital expenditures related to investments in Entertainment content and moulds, dies and tools, partially offset by higher capital expenditures related to computer software.

Cash flows used in financing activities were $64.5 million compared to $70.3 million, driven by repayment of $92.0 million towards the Facility (2025 – $30.0 million), partially offset by $50.0 million drawn from the Facility (2025 – $nil), shares repurchased under the Company’s NCIB for $5.7 million (2025 – $21.4 million) and lease payments of $8.0 million (2025 – $9.8 million).

Free Cash Flow¹ was $71.1 million compared to $(10.8) million, primarily due to changes in non-cash working capital.

Dividends

The Company’s Board of Directors declared a dividend of C$0.12 per outstanding subordinate voting share and multiple voting share, payable on July 10, 2026 to shareholders of record at the close of business on June 26, 2026. The dividend is designated to be an eligible dividend for purposes of section 89(1) of the Income Tax Act (Canada).

Forward-Looking Statements

Certain statements, other than statements of historical fact, contained in this Press Release constitute “forward-looking information” within the meaning of certain securities laws, including the Securities Act (Ontario), and are based on expectations, estimates and projections as of the date on which the statements are made in this Press Release. The words “plans”, “expects”, “projected”, “estimated”, “forecasts”, “anticipates”, “indicative”, “intend”, “guidance”, “outlook”, “potential”, “prospects”, “seek”, “strategy”, “targets” or “believes”, or variations of such words and phrases or statements that certain future conditions, actions, events or results “will”, “may”, “could”, “would”, “should”, “might” or “can”, or negative versions thereof, “be taken”, “occur”, “continue” or “be achieved”, and other similar expressions, identify statements containing forward-looking information. Statements of forward-looking information in this Press Release include, without limitation, statements with respect to: future financial performance and growth expectations, as well as the drivers and trends in respect thereof; the Company’s priorities, plans and strategies; content, digital game and product pipeline and launches, as well as their impacts; deployment of cash; dividend policy and future dividends; financial position, cash flows, liquidity and financial performance; the creation of long term shareholder value; and the Company’s intention to commence the NCIB, the benefits of the NCIB, the timing, quantity of any purchases of subordinate voting shares under the NCIB, and the expected facilities through which any such purchases may be made.

Forward-looking statements are necessarily based upon management’s perceptions of historical trends, current conditions and expected future developments, as well as a number of specific factors and assumptions that, while considered reasonable by management as of the date on which the statements are made in this Press Release, are inherently subject to significant business, economic and competitive uncertainties and contingencies which could result in the forward-looking statements ultimately being incorrect. In addition to any factors and assumptions set forth above in this Press Release, the material factors and assumptions used to develop the forward-looking information include, but are not limited to: the Company will not have any unusual adjustments resulting from unexpected disruptions including regulatory actions impacting global trade, other macro-economic risks and uncertainties, and/or unforeseeable legal matters or non-recurring items, the Company will be able to successfully integrate acquisitions; the Company will be able to successfully expand its portfolio across new channels and formats, and internationally; the Company’s ability to achieve other expected benefits through acquisitions; management’s estimates and expectations in relation to future economic and business conditions and other factors in relation to the Company’s financial performance in addition to the proposed transaction and resulting impact on growth in various financial metrics; the absence of significant undisclosed costs or liabilities associated with the transactions; Melissa & Doug’s business will perform in line with the industry; there are no material changes to Melissa & Doug’s core customer base; the Company’s dividend payments being subject to the discretion of the Board of Directors and dependent on a variety of factors and conditions existing from time to time; the availability of funds for repurchases of outstanding subordinate voting shares under the NCIB; alternate uses for the Company’s cash resources; seasonality; ability of factories to manufacture products, including labour size and allocation, tooling, raw material and component availability, ability to shift between product mix, and customer acceptance of delayed delivery dates; the steps taken will create long term shareholder value; the expanded use of advanced technology, robotics and innovation the Company applies to its products will have a level of success consistent with its past experiences; the Company will continue to successfully secure, maintain and renew broader licenses from third parties for premiere children’s properties consistent with past practices, and the success of the licenses; the expansion of sales and marketing offices in new markets will increase the sales of products in that territory; the Company will be able to successfully identify and integrate strategic acquisition and minority investment opportunities; the Company will be able to maintain its distribution capabilities; the Company will be able to leverage its global platform to grow sales from acquired brands; the Company will be able to recognize and capitalize on opportunities earlier than its competitors; the Company will be able to continue to build and maintain strong, collaborative relationships; the Company will maintain its status as a preferred collaborator; the culture and business structure of the Company will support its growth; the current business strategies of the Company will continue to be desirable on an international platform; the Company will be able to expand its portfolio of owned branded IP and successfully license it to third parties; use of advanced technology and robotics in the Company’s products will expand; the Company will be able to continue to develop and distribute entertainment content in the form of movies, TV shows and short form content; the Company will be able to continue to design, develop and launch mobile digital games to be distributed globally via app stores; access of entertainment content on mobile platforms will expand; fragmentation of the market will continue to create acquisition opportunities; the Company will be able to maintain its relationships with its employees, suppliers, retailers and license partners; the Company will continue to attract qualified personnel to support its development requirements; the Company’s key personnel will continue to be involved in the Company products, mobile digital games and entertainment properties will be launched as scheduled; and the availability of cash for dividends and that the risk factors noted in this Press Release, collectively, do not have a material impact on the Company.

By its nature, forward-looking information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct, and that objectives, strategic goals and priorities will not be achieved. Known and unknown risk factors, many of which are beyond the control of the Company, could cause actual results to differ materially from the forward-looking information in this Press Release. Such risks and uncertainties include, without limitation, risks outlined in the “Global Tariffs Uncertainty” section of the Annual MD&A; risks associated with using funds to repurchase subordinate voting shares under the NCIB; the risk of a determination not to repurchase subordinate voting shares under the NCIB; concentration of manufacturing and geopolitical risks; uncertainty and adverse changes in general economic conditions and consumer spending habits and the factors discussed in the Company’s disclosure materials, including the Annual MD&A and the Company’s most recent Annual Information Form, filed with the securities regulatory authorities in Canada and available under the Company’s profile on SEDAR+ (www.sedarplus.com). These risk factors are not intended to represent a complete list of the factors that could affect the Company and investors are cautioned to consider these and other factors, uncertainties and potential events carefully and not to put undue reliance on forward-looking statements.

There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are provided for the purpose of providing information about management’s expectations and plans relating to the future. The forward-looking statements contained herein are made as of March 5, 2026 and the Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, or to explain any material difference between subsequent actual events and such forward-looking statements, except to the extent required by applicable law.

Conference call

Christina Miller, Chief Executive Officer and Jonathan Roiter, Chief Financial Officer, will host a conference call to discuss the financial results on Thursday, April 30, 2026 at 8:30 a.m. (ET).

WEBCAST: https://app.webinar.net/Q2OmZGQL6rE

A link to the webcast will also be available on the Events & Presentations page of the Investors section of Spin Master’s website at http://www.spinmaster.com/events.php. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. An archived replay of the webcast will be available for 90 days.

DIAL-IN: To join the conference call without operator assistance, you may register and enter your phone number at https:// emportal.ink/4b6l8iY to receive an instant automated call back. You can also dial direct to be entered to the call by an Operator: 1-416-945-7677 or 1-888-699-1199.

About Spin Master

Spin Master Corp. (TSX:TOY) is a leading global children’s entertainment company, creating exceptional play experiences across its three creative centres: Toys, Entertainment and Digital Games. With worldwide toy distribution, Spin Master is best known for award-winning brands including PAW Patrol^®, Melissa & Doug^®, Bakugan^® and Rubik’s^® Cube, and is the global toy licensee for other iconic properties. Through its in-house entertainment studio, the company creates and produces captivating multiplatform content including powerhouse preschool franchise PAW Patrol, along with other original shows, short-form series and feature films. With an established presence in digital games anchored by Toca Boca^® and Piknik™, Spin Master engages close to 60 million active users monthly in open-ended, creative and safe play. With 29 offices spanning nearly 20 countries, Spin Master employs close to 2,500 team members globally.

Condensed consolidated interim statements of financial position