First Quarter 2026 Highlights Versus Prior Year

• Net Sales of $862 million, up 4% as reported, and 1% in constant currency
• Gross Margin of 44.9%, a decrease of 450 basis points; Adjusted Gross Margin1 of 45.1%, a decrease of 450 basis points
• Operating Loss of $103 million, as compared to a loss of $53 million; Adjusted Operating Loss1 of $70 million, as compared to a loss of $8 million
• Net Income of $61 million, as compared to a loss of $40 million
• Earnings per Share of $0.20 compared to a loss of $0.12 per share; Adjusted Loss per Share1 of $0.20 compared to an Adjusted Loss of $0.02 per share

Business Highlights

• Growth in Net Sales and positive consumer demand for our products in the first quarter
• Completed acquisition of full ownership of Mattel163 mobile games studio in early March
• Making strong progress on our digital strategy
• Repurchased $200 million of shares; maintaining $400 million target for 2026
• 2026 guidance unchanged, with the exception of recasting certain non-GAAP financial measures to exclude the impact of amortization of acquired intangible assets1

El Segundo, CA — Mattel, Inc.  reported first quarter 2026 financial results.

Ynon Kreiz, Chairman and CEO of Mattel, said: “We are off to a good start to the year, with Net Sales growth and positive consumer demand for our products in the first quarter. We continued to make progress on our strategy to grow our IP driven play and family entertainment business and are seeing top-line acceleration in the second quarter to date. Our digital strategy is progressing, including the integration of Mattel163 mobile games studio and the upcoming launch of two self-published mobile games, and we look forward to the global theatrical release of the Masters of the Universe movie on June 5th.”

Paul Ruh, CFO of Mattel, added: “Top-line grew ahead of expectations, and we are seeing momentum in the business. We continued to execute on our capital allocation priorities, including making strategic investments to accelerate growth and profitability, as well as repurchasing $200 million of shares while maintaining a strong balance sheet. We expect to achieve our full year 2026 guidance.”

First Quarter Financial Overview

Net Sales

Net Sales were $862 million, up 4% as reported, and 1% in constant currency, versus the prior year’s first quarter. The increase in Net Sales as reported was driven by a 15% increase in International, partially offset by a 3% decrease in North America. The increase in Net Sales in constant currency was driven by an 8% increase in International, partially offset by a 3% decrease in North America.

Gross Margin

Reported Gross Margin was 44.9%, versus 49.4% in the prior year’s first quarter, and Adjusted Gross Margin was 45.1%, versus 49.6%. The decrease in Gross Margin was primarily due to the gross incremental cost of tariffs, unfavorable foreign exchange, inflation, and other factors, partially offset by tariff mitigation actions and cost savings.

Operating Loss

Reported Operating Loss was $103 million, as compared to a loss of $53 million, and Adjusted Operating Loss was $70 million, as compared to a loss of $8 million. The decrease in Reported and Adjusted Operating Loss was due to higher Advertising, lower Gross Profit, and higher SG&A expenses.

Earnings Per Share

Reported Earnings per Share was $0.20, as compared to a loss of $0.12, and Adjusted Earnings per Share was a loss of $0.20, as compared to a loss of $0.02. The increase in Reported Earnings per Share was primarily due to a gain of $148 million on remeasurement of Mattel’s previously held equity interest in Mattel163. The decrease in Adjusted Earnings per Share was primarily due to higher Adjusted Operating Loss.

The company’s ending share count as of March 31, 2026 was 290.6 million.

Cash Flow

For the three months ended March 31, 2026, Cash Flows Used for Operating Activities were $23 million, as compared to an inflow of $25 million, primarily due to a decrease in Net Income, excluding the impact of non-cash items, partially offset by favorable working capital.

Cash Flows Used for Investing Activities were $144 million, compared to a use of $31 million, primarily due to cash paid in connection with the acquisition of Mattel163 net of cash acquired, and higher capital expenditures.

Cash Flows Used for Financing Activities and Other were $210 million, as compared to a use of $138 million, primarily due to an increase in share repurchases and the impact of foreign currency exchange rate changes on cash.

First Quarter Gross Billings by Category

Worldwide Gross Billings for Dolls were $272 million, down 8% as reported, or 11% in constant currency, versus the prior year’s first quarter, primarily due to a decline in Barbie.

Worldwide Gross Billings for Vehicles were $361 million, up 17% as reported, or 13% in constant currency, primarily driven by growth in Hot Wheels.

Worldwide Gross Billings for Infant, Toddler, and Preschool were $106 million, down 16% as reported, or 18% in constant currency, primarily due to a decline in Fisher-Price.

Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $233 million, up 21% as reported, or 17% in constant currency, primarily driven by growth in Games (including the partial quarter contribution of Mattel163), Action Figures, and Other.

2026 Guidance

2026 guidance is unchanged with the exception of recasting Adjusted Operating Income and Adjusted EPS to exclude the impact of amortization of acquired intangible assets to facilitate period-over-period comparisons of underlying business performance. Net Sales, Adjusted Gross Margin, and Adjusted Tax Rate guidance remain unchanged.

For additional information, please see Presentation Information / Non-GAAP Financial Measures.

Adjusted Operating Income and Adjusted EPS have been recast as follows:

Adjusted Earnings Per Share

Adjusted Earnings Per Share represents Mattel’s reported Diluted Earnings Per Common Share, adjusted to exclude amortization of acquired intangible assets, severance and restructuring expenses, the impact of the inclined sleeper product recalls, acquisition-related expenses, net, including professional fees and integration expenses, and gain on previously held equity interest in Mattel163, which are not part of Mattel’s core business. The aggregate tax effect of the adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments and dividing by the reported weighted-average number of common shares. Adjusted Earnings Per Share is presented to provide additional perspective on underlying trends in Mattel’s core business. Mattel believes it is useful supplemental information for investors to gauge and compare Mattel’s current earnings results from one period to another. Adjusted Earnings Per Share is a performance measure and should not be used as a measure of liquidity.

EBITDA and Adjusted EBITDA

EBITDA represents Mattel’s Net Income/Loss, adjusted to exclude the impact of interest expense, taxes, depreciation, and amortization. Adjusted EBITDA represents EBITDA adjusted to exclude share-based compensation, severance and restructuring expenses, the impact of the inclined sleeper product recalls, acquisition-related expenses, net, including professional fees and integration expenses, and gain on previously held equity interest in Mattel163, which are not part of Mattel’s core business. Mattel believes EBITDA and Adjusted EBITDA are useful supplemental information for investors to gauge and compare Mattel’s business performance to other companies in its industry with similar capital structures. The presentation of Adjusted EBITDA differs from how Mattel calculates EBITDA for purposes of covenant compliance under the indentures governing its high yield senior notes and the revolving credit agreement governing its revolving credit facility. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to invest in the growth of Mattel’s business. As a result, Mattel relies primarily on its GAAP results and uses EBITDA and Adjusted EBITDA only supplementally.

Free Cash Flow and Free Cash Flow Conversion

Free Cash Flow represents Mattel’s net cash flows from operating activities less capital expenditures. Free Cash Flow Conversion represents Mattel’s free cash flow divided by Adjusted EBITDA. Mattel believes Free Cash Flow and Free Cash Flow Conversion are useful supplemental information for investors to gauge Mattel’s liquidity and performance and to compare Mattel’s business performance to other companies in our industry. Free Cash Flow does not represent cash available to Mattel for discretionary expenditures.

Leverage Ratio (Total Debt / Adjusted EBITDA)

The leverage ratio is calculated by dividing Total Debt by Adjusted EBITDA. Total Debt represents the aggregate of Mattel’s current portion of long-term debt, short-term borrowings, and long-term debt, excluding the impact of debt issuance costs and debt discount. Mattel believes the leverage ratio is useful supplemental information for investors to gauge trends in Mattel’s business and to compare Mattel’s business performance to other companies in its industry.

Net Debt

Net Debt represents the aggregate of Mattel’s current portion of long-term debt, short-term borrowings, and long-term debt, less cash and equivalents. Mattel believes Net Debt is useful supplemental information for investors to monitor Mattel’s liquidity and evaluate its balance sheet.

Adjusted Tax Rate

The Adjusted Tax Rate is calculated by dividing Adjusted Provision for Income Taxes by Adjusted Income Before Income Taxes. Adjusted Income Before Income Taxes represents reported Income Before Income Taxes, adjusted to exclude amortization of acquired intangible assets, severance and restructuring expenses, the impact of inclined sleeper product recalls, acquisition-related expenses, net, and gain on previously held equity interest in Mattel163. The Adjusted Provision for Income Taxes represents reported Provision for Income Taxes, adjusted to exclude the aggregate tax effect of adjustments. Mattel believes the adjusted tax rate provides useful supplemental information for investors to gauge and compare the impact of tax expense on Mattel’s earnings results from one period to another.

Constant Currency

Percentage changes in results expressed in constant currency are presented excluding the impact from changes in currency exchange rates. To present this information, Mattel calculates constant currency information by translating current period and prior period results for entities reporting in currencies other than the US dollar using consistent exchange rates. The constant currency exchange rates are determined by Mattel at the beginning of each year and are applied consistently during the year. They are generally different from the actual exchange rates in effect during the current or prior period due to volatility in actual foreign exchange rates. Mattel considers whether any changes to the constant currency rates are appropriate at the beginning of each year. The exchange rates used for these constant currency calculations are generally based on prior year actual exchange rates. The difference between the current period and prior period results using the consistent exchange rates reflects the changes in the underlying performance results, excluding the impact from changes in currency exchange rates. Mattel analyzes constant currency results to provide additional perspective on changes in underlying trends in Mattel’s operating performance. Mattel believes that the disclosure of the percentage change in constant currency is useful supplemental information for investors to be able to gauge Mattel’s current business performance and the longer-term strength of its overall business since foreign currency changes could potentially mask underlying sales trends. The disclosure of the percentage change in constant currency enhances investor’s ability to compare financial results from one period to another.

Key Performance Indicator

Gross Billings

Gross Billings represent amounts invoiced to customers. It does not include the impact of sales adjustments, such as trade discounts and other allowances. Mattel presents changes in gross billings as a metric for comparing its aggregate, categorical, brand, and geographic results to highlight significant trends in Mattel’s business. Changes in Gross Billings are discussed because, while Mattel records the details of sales adjustments in its financial accounting systems at the time of sale, such sales adjustments are generally not associated with categories, brands, and individual products.

About Mattel

Mattel is a leading global play and family entertainment company and owner of one of the most iconic brand portfolios in the world. We engage consumers and fans through our franchise brands, including Barbie®, Hot Wheels®, Fisher-Price®, American Girl®, Thomas & Friends™, UNO®, Masters of the Universe®, Matchbox®, Monster High®, Polly Pocket®, as well as other popular properties that we own or license in partnership with global entertainment companies. Our offerings include toys, content, consumer products, digital and live experiences. Our products are sold in collaboration with the world’s leading retail and ecommerce companies. Since its founding in 1945, Mattel is proud to be a trusted partner in empowering generations to explore the wonder of childhood and reach their full potential. Visit us at mattel.com.

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