MATTEL INC /DE/ (MAT) Company Report

Mattel is evolving into an IP-driven play and family entertainment company, with 2026 marked as an inflection year for growth driven by toy innovation and entertainment partnerships.
The company expects 3%-6% growth in 2026 and directionally mid- to high-single-digit revenue growth with strong double-digit operating income growth in 2027.
Mattel is investing approximately $150 million in 2026 in areas like mobile games (including the closed Mattel163 acquisition), Mattel Brick Shop, and trading cards, which are expected to impact 2026 profit but drive growth and ROI in 2027 and beyond.
The company plans to repurchase another $1.5 billion in shares over the next three years, following $1.2 billion in buybacks over the last three years, as part of its capital allocation strategy.

6 hours ago

Transcript

Mattel outlines strategic transformation, 2026 inflection year, and capital allocation plans

MAT

Guidance Update

M&A

Share Buyback

Mattel is strategically transforming into an IP-driven play and family entertainment company, with 2026 anticipated as an inflection year for growth driven by innovation in toys, major entertainment partnerships, and an inflection in entertainment.
The company plans to invest approximately $150 million in 2026 to scale its organic business, primarily in mobile games and digital performance marketing, which is expected to impact 2026 profit but drive ROI and incremental growth in 2027 and beyond.
Mattel has wholly acquired Mattel163, a high-margin mobile gaming business, to integrate it fully and leverage scale, cross-promotion, and increased coordination.
Mattel provided guidance for 3%-6% growth in 2026 and expects mid- to high-single-digit revenue growth and strong double-digit operating income growth in 2027.
The company's capital allocation priorities include investing in organic growth, maintaining a strong capital structure, strategic M&A, and share buybacks, with a target to repurchase another $1.5 billion in shares over the next three years, following $1.2 billion bought back in the last three years.

6 hours ago

Transcript

Mattel outlines 2026-2027 growth strategy and financial outlook

MAT

Guidance Update

New Projects/Investments

Share Buyback

Mattel projects 3%-6% growth in 2026 and anticipates an acceleration to mid- to high-single-digit revenue growth and strong double-digit operating income growth in 2027.
The company is investing approximately $150 million in 2026 in organic growth, primarily in mobile games and digital performance marketing, which will impact 2026 profits but are expected to drive significant returns and growth from 2027.
Mattel has fully acquired Mattel163, a high-margin digital games business generating over $200 million in revenue, which is now fully integrated to enhance its self-publishing strategy and leverage scale.
A robust share repurchase program has seen $1.2 billion bought back over the last three years, with plans to repurchase an additional $1.5 billion over the next three years.
Operational efficiency efforts have resulted in over $1.5 billion in cost savings since the company's turnaround, with an additional $50 million expected in 2026, contributing to gross margin expansion from the 30s% to the 50s%.

6 hours ago

Transcript

Mattel, Inc. Provides 2026 and 2027 Financial Outlook and Share Repurchase Plan

MAT

Guidance Update

Share Buyback

New Projects/Investments

Mattel, Inc. projects 3-6% revenue growth for 2026 and anticipates mid-to-high single-digit revenue growth with strong double-digit operating income growth for 2027.
The company plans to execute $1.5 billion in share repurchases from 2026-2028, including $400 million in 2026.
Strategic investments of $150 million are planned for 2026 to scale organic business, with the largest portion in mobile games, and to enhance digital performance marketing, expecting incremental growth from 2027.
Growth in 2026 is expected to be driven by innovation in toys, an inflection in entertainment, and major IP partnerships.

7 hours ago

Presentation

Mattel Presents 2017-2025 Financial Highlights and Strategy

MAT

Earnings

Revenue Acceleration/Inflection

New Projects/Investments

Mattel's strategy is centered on growing its IP-driven play and family entertainment business, accelerating profitable growth, and achieving operational excellence.
The company reported Net Sales of $5.35 billion in 2025, an increase from $4.88 billion in 2017.
Adjusted Operating Income significantly improved from a loss of $203 million in 2017 to a profit of $620 million in 2025.
Adjusted EBITDA saw substantial growth, rising from $126 million in 2017 to $927 million in 2025.
Mattel's Leverage Ratio (Total Debt/Adjusted EBITDA) decreased from 25.0x in 2017 to 2.5x in 2025, indicating improved financial health.

Feb 27, 2026, 12:00 PM

Presentation

Mattel Reports Weak Q4 2025 Results and Disappointing 2026 Forecast

MAT

Earnings

Guidance Update

Demand Weakening

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.