Mattel Inc

Latest Results (14.05.2026):

This summarizes Mattel Inc's fourth quarter 2025 results. In Q4 2025 Mattel reported net sales of $1,766 million (up 7% as reported, 5% in constant currency) but faced margin pressure and lower net income, while providing full‑year 2025 results and 2026 guidance alongside strategic investments and an acquisition agreement for Mattel163.

Sales

Q4 2025 net sales were $1,766.5M, +7% reported / +5% constant currency (driven by +5% North America and +11% International). Full‑year 2025 net sales were $5,348M, down 1% versus 2024 (North America −5%, International +6%).

Margins

Reported gross margin in Q4 fell to 45.9% (a 480 bps decline year‑over‑year); adjusted gross margin was 46.0% (−480 bps). For the full year reported gross margin was 48.7% (−210 bps); adjusted gross margin 48.9% (−200 bps). Management cited higher discounts, inflation, unfavorable FX and tariff timing as primary drivers.

Profitability

Q4 reported operating income was $141M (down $17M year‑over‑year); adjusted operating income was $160M (down $1M). Full‑year operating income was $546M (down $148M) with adjusted operating income $620M (down $118M).

Earnings Per Share

Q4 reported diluted EPS was $0.34 vs. $0.42 a year earlier; adjusted EPS was $0.39 (up from $0.35). Full‑year diluted EPS was $1.24 vs. $1.58 in 2024; adjusted EPS was $1.41 vs. $1.62.

Cash Flow, Cash Balance & Leverage

Operating cash flow for 2025 was $593.3M (down $207M), free cash flow $411.3M (down 31%). Mattel ended 2025 with over $1.24B in cash and equivalents. Total long‑term debt was ~$2.33B; net debt was $1,088.7M and leverage (Total Debt/Adjusted EBITDA) was 2.5x.

Share Repurchases

Mattel repurchased $600M of shares in 2025 (including $188M in Q4). The board authorized a new $1.5B share repurchase program expected to be completed by 2028; the company has repurchased ~18% of shares outstanding over the last three years.

Product & Brand Performance (Gross Billings)

Q4 worldwide gross billings totaled $2,037.6M (+8% reported / +6% constant currency). Vehicles (led by Hot Wheels) grew strongly (+20% Q4, +11% full year). Action figures/building sets/games also grew (Q4 +16%). Dolls (including Barbie) were flat in Q4 but declined year‑over‑year (Barbie gross billings −11% for full year).

Strategic Initiatives & 2026 Guidance

Mattel signed an agreement to acquire full ownership of Mattel163 (mobile games) and announced ~$150M of strategic investments (digital games, first‑party data, DTC, innovation, AI/infrastructure and ~$40M performance marketing). 2026 guidance: Net sales +3% to +6% (constant currency), adjusted gross margin ~50%, adjusted operating income $550–$600M, and adjusted EPS $1.18–$1.30; guidance includes ~partial‑year ~$150M net sales from Mattel163 and ~ $110M of targeted capability investments in 2026.