MATTEL INC /DE/ (MAT) Company Report

Mattel's fourth-quarter adjusted EPS was $0.39, falling short of analyst estimates of $0.54, and quarterly sales were $1.77 billion, below expectations of $1.84 billion.
The company's adjusted gross margin dropped 480 basis points to 46%, and full-year adjusted operating profit declined 16% to $620 million.
Management cited cautious retailer ordering and US tariffs as contributors to the shortfall, with analysts also pointing to softer US consumer spending and higher living costs.
Mattel forecasts modest net sales growth and lower EPS for 2026, which led to a 30% plunge in shares.
The company announced $110 million of strategic investments for 2026 and acquired the remaining 50% of mobile studio Mattel163 for $159 million.

Feb 10, 2026, 10:40 PM

WSJ

Mattel announces Q4 and FY 2025 results and 2026 guidance

MAT

Earnings

Guidance Update

Share Buyback

Mattel reported Q4 2025 Gross Billings growth of 6% and Net Sales up 7% as reported, with Adjusted EPS increasing 11% to $0.39. However, FY 2025 Net Sales declined 1%, Adjusted Operating Income decreased 16% to $620 million, and Adjusted EPS fell 13% to $1.41.
For FY 2026, the company provided guidance expecting Net Sales growth of +3% to 6%, Adjusted Operating Income between $550 million and $600 million, and Adjusted EPS between $1.18 and $1.30.
The company authorized a new $1.5 billion share repurchase program to be completed by the end of 2028, with $400 million targeted for 2026. Mattel repurchased $600 million of shares in 2025, totaling >$1.2 billion over the last 3 years.
Mattel plans $150 million in strategic investments in 2026 to accelerate growth, which are expected to impact the bottom line in 2026 but drive top and bottom-line growth in 2027 and beyond, with mid-to-high single-digit revenue growth and double-digit Adjusted Operating Income growth projected for 2027.

Feb 10, 2026, 10:00 PM

Presentation

Mattel Reports Q4 and Full Year 2025 Results, Announces Mattel163 Acquisition and 2026 Guidance

MAT

Earnings

M&A

Guidance Update

Mattel reported Q4 2025 net sales of $1.77 billion, an increase of 7% as reported, and full-year 2025 net sales of $5.35 billion, a decrease of 1%. The adjusted gross margin for Q4 2025 was 46%.
The company announced an agreement to acquire full ownership of Mattel163, a mobile games studio, for $159 million for NetEase's 50% interest, valuing the studio at $380 million. This transaction is expected to be immediately accretive and close by the end of Q1 2026.
Mattel's board authorized a new share repurchase program of $1.5 billion to be completed by the end of 2028, with $400 million planned for 2026.
For 2026, Mattel expects net sales growth of 3%-6% in constant currency, adjusted operating income between $550 million and $600 million, and adjusted EPS in the range of $1.18-$1.30. The adjusted gross margin is projected to be approximately 50%.
The company anticipates mid- to high-single digit revenue growth and double-digit adjusted operating income growth in 2027, with strategic investments made in 2026 expected to become self-funding and high-ROI from 2027 onwards.

Feb 10, 2026, 10:00 PM

Transcript

Mattel Reports Q4 and Full Year 2025 Results, Announces Mattel163 Acquisition and New Share Repurchase Program

MAT

Earnings

M&A

Share Buyback

Mattel's full year 2025 net sales were $5.35 billion, down 1%, and adjusted EPS decreased from $1.62 to $1.41, finishing below expectations due to U.S. trade dynamics and less-than-anticipated December growth.
The company announced an agreement to acquire full ownership of mobile games studio Mattel163 for $159 million (for NetEase's 50% interest), valuing the JV at $380 million. This acquisition is expected to be immediately accretive, contribute approximately $150 million in sales in 2026, and is set to close by the end of Q1 2026.
A new $1.5 billion share repurchase program was authorized, expected to be completed by the end of 2028, following $600 million in repurchases in 2025.
For Q1 2026, revenue is expected to decline by low single digits, while the adjusted gross margin is projected to return to approximately 50% for the full year 2026. Mattel plans strategic investments of about $150 million in 2026, which will impact the bottom line in the current year but are designed to accelerate growth and profitability from 2027 onwards.

Feb 10, 2026, 10:00 PM

Transcript

Mattel Reports Q4 2025 Results, Announces Mattel163 Acquisition and 2026 Guidance

MAT

Earnings

Guidance Update

M&A

Mattel reported Q4 2025 gross billings growth of 6% and net sales of $1.77 billion, up 7% as reported, while full-year 2025 net sales were down 1% to $5.35 billion.
The company announced the acquisition of full ownership of mobile games studio Mattel163 for $159 million (for NetEase's 50% interest), valuing the studio at $380 million, with the transaction expected to be immediately accretive upon closing by Q1 2026.
A new $1.5 billion share repurchase program was authorized through 2028, including $400 million in 2026, following $1.2 billion in repurchases over the last three years.
For 2026, Mattel provided guidance including net sales growth of 3%-6% in constant currency, adjusted operating income of $550 million to $600 million, and adjusted EPS of $1.18-$1.30. This guidance incorporates approximately $150 million in strategic investments expected to impact 2026 bottom line but drive accelerated growth in 2027 and beyond.

Feb 10, 2026, 10:00 PM

Transcript

Mattel Reports Fourth Quarter and Full Year 2025 Financial Results

MAT

Earnings

Guidance Update

Share Buyback

Net Sales for Q4 2025 increased by 7% to $1,766 million, while full-year 2025 Net Sales decreased by 1% to $5,348 million.
Adjusted Earnings per Share for Q4 2025 was $0.39, an increase from $0.35 in the prior year, but full-year 2025 Adjusted EPS decreased to $1.41 from $1.62.
Mattel announced a new $1.5 billion share repurchase program expected to be completed by 2028, and the company repurchased $600 million of shares in 2025.
For full-year 2026, the company expects Net Sales growth of +3% to 6% (in constant currency), Adjusted Operating Income between $550 million and $600 million, and Adjusted EPS between $1.18 and $1.30.
Strategic initiatives include an agreement to acquire full ownership of Mattel163 mobile games studio and $150 million of strategic investments to accelerate organic growth.

Feb 10, 2026, 9:14 PM

8-K

Mattel to Acquire Full Ownership of Mattel163 Mobile Games Studio

MAT

M&A

New Projects/Investments

Mattel, Inc. (Nasdaq: MAT) announced an agreement to acquire full ownership of Mattel163 mobile games studio from its joint venture partner, NetEase.
The transaction values Mattel163 at $318 million, with a purchase price of $159 million for NetEase’s 50% interest, and is expected to be immediately accretive for Mattel.
The acquisition, expected to be completed by the end of Q1, strengthens Mattel's digital games business and enhances its self-publishing capabilities, leveraging Mattel163's approximately 20 million monthly active users and over 550 million downloads worldwide.

Feb 10, 2026, 9:10 PM

Press Release

Mattel Reports Fourth Quarter and Full Year 2025 Financial Results

MAT

Earnings

Guidance Update

Share Buyback

Mattel reported Net Sales of $1,766 million for Q4 2025, an increase of 7% as reported, and $5,348 million for Full Year 2025, a decrease of 1% as reported.
Adjusted Earnings per Share was $0.39 for Q4 2025 and $1.41 for Full Year 2025.
The company issued 2026 guidance, projecting Net Sales growth of +3% to 6% in constant currency and Adjusted EPS between $1.18 and $1.30.
Mattel repurchased $600 million of shares in 2025 and authorized a new $1.5 billion share repurchase program expected to be completed by 2028.
Strategic highlights include signing an agreement to acquire full ownership of Mattel163 mobile games studio and announcing $150 million of strategic investments to accelerate organic growth.

Feb 10, 2026, 9:10 PM

Press Release

Mattel Discusses IP Strategy, 2025 Performance, and 2026 Outlook at Morgan Stanley Conference

MAT

Guidance Update

New Projects/Investments

Share Buyback

Mattel is transforming into an IP company managing brands, extending beyond toys into entertainment, with 2026 shaping up as a pivotal year for its entertainment strategy.
The company reported positive Black Friday results and positive year-to-date and quarter-to-date Point of Sale (POS), reiterating its unchanged full-year guidance for 2025.
Hot Wheels is on track for its eighth consecutive record high, while Barbie and Fisher-Price are expected to show improving trends in Q4 2025 and beyond. The adult collector segment, representing about 25% of the toy industry, is a significant growth driver for Mattel.
Mattel plans to release two major movies in 2026 (Masters of the Universe and Matchbox) and launch two self-published mobile games with low investment and significant upside potential, aiming for at least two new games annually thereafter.
The company anticipates continued gross margin enhancement in 2026, mitigating tariff impacts (estimated at $100 million for 2025) through efficiencies, favorable mix from accretive entertainment businesses, and scale. Mattel has bought back $1.2 billion in shares, representing about 20% of shares outstanding.

Dec 3, 2025, 2:30 PM

Transcript

Mattel Discusses 2025 Performance, 2026 Outlook, and Strategic Transformation

MAT

Guidance Update

New Projects/Investments

Share Buyback

Mattel's full-year guidance remains unchanged for 2025, with positive Point of Sale (POS) year-to-date and quarter-to-date.
The company is transforming into an IP-driven brand management company, expanding into entertainment, digital gaming, and film/TV, with 2026 shaping up to be a pivotal year for its entertainment strategy.
Key growth drivers include the continued strength of Hot Wheels, improving trends for Barbie and Fisher-Price, and a fast-growing adult collector segment.
Mattel plans to release two movies (Masters of the Universe, Matchbox) and two self-published mobile games in 2026, with mobile games requiring a low investment of $5 million to $10 million per game for potentially significant upside.
Gross margins in Q3 2025 were impacted by Forex, inflation, tariffs, and sales adjustments, but the company is driving efficiencies through its "optimizing for profitable growth" program, targeting $200 million by 2026.