How LEGO Makes Money

LEGO makes money mainly by designing, manufacturing, and selling boxed building sets. Most revenue comes from wholesale sales to retailers such as Walmart, Target, and Amazon, with a growing share from LEGO-owned brand stores and LEGO.com. The portfolio mixes owned themes (City, Technic, Icons, Friends, Ninjago, Duplo, Botanicals) with licensed themes from partners such as Lucasfilm, Warner Bros., Nintendo, Formula 1, and The Pokémon Company, for which LEGO pays royalties. Because every brick is compatible with every other brick, each new set adds to a customer's existing collection, which supports repeat purchases across children and adult fans. LEGO also earns smaller amounts from LEGO Education, video game and media licensing, and, since February 2026, the 29 LEGO and LEGOLAND Discovery Centres it bought from Merlin Entertainments.

LEGO's growth plan rests on three things. First, a broad portfolio: over 860 products in 2025, about half new, with recent hits such as Formula 1, Pokémon, World Cup, and KPop Demon Hunters sets. Second, more direct contact with fans: over 1,100 LEGO Stores worldwide and the 2026 purchase of 29 Discovery Centres. Third, production close to its biggest markets: the Vietnam factory, the Virginia factory opening in 2027, and the expanded Mexico site. In digital play, LEGO works with Epic Games on LEGO Fortnite (launched December 2023). The equity investment in Epic in 2022 was made by owner KIRKBI alongside Sony, not by the LEGO Group.