• Net Sales of $1,125 million, up 10% as reported, and 9% in constant currency
• Gross Margin of 48.2%, a decrease of 270 basis points; Adjusted Gross Margin of 48.6%, a decrease of 260 basis points
• Operating Income of $11 million, a decrease of $68 million; Adjusted Operating Income of $39 million, a decrease of $57 million
• Net Loss of $18 million, compared to Net Income of $53 million
• Loss per Share of $0.06 compared to Earnings per Share of $0.16; Adjusted Earnings per Share of $0.01 compared to $0.21 per share

Business Highlights 

• Positive consumer demand for our products year-to-date
• Released Masters of the Universe movie globally
• Launched first self-published mobile game establishing publishing and digital customer acquisition capabilities; second game in soft launch
• Integration of Mattel163 mobile games studio progressing well
• Company reiterates 2026 guidance; reaffirms 2026 share repurchase target of $400 million

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

Ynon Kreiz, Chairman and CEO of Mattel, said: “We continued to execute our multi-year strategy to grow our IP-driven play and family entertainment business in the second quarter with strong growth in Net Sales. Growth has continued in the third quarter, and we expect to achieve our full year 2026 guidance. Our world-class brand portfolio and product offering, driven by our brand-centric operating model and global capabilities, position us well for the second half of the year.”

Paul Ruh, CFO of Mattel, added: “Mattel achieved further savings from our three-year Optimizing for Profitable Growth program, which is on track to achieve $225 million of savings by year-end. In line with our capital allocation priorities, we are making strategic investments to accelerate growth and repurchased another $100 million of shares in the quarter, bringing the year-to-date total to $300 million of shares, and we continue to expect repurchases of $400 million in total this year, while maintaining a strong balance sheet.”

Second Quarter Financial Overview

Net Sales

Net Sales were $1,125 million, up 10% as reported, and 9% in constant currency, versus the prior year’s second quarter. The increase in Net Sales as reported was driven by a 12% increase in North America and a 9% increase in International. The increase in Net Sales in constant currency was driven by a 12% increase in North America and a 5% increase in International.

Gross Margin

Reported Gross Margin was 48.2%, versus 50.9% in the prior year’s second quarter, and Adjusted Gross Margin was 48.6%, versus 51.2%. The decrease in Reported and Adjusted Gross Margin was primarily due to the gross incremental cost of tariffs, and inflation, higher royalties, and unfavorable foreign exchange, partially offset by the contribution of Mattel163, and Other, including tariff mitigation actions and cost savings.

Operating Income

Reported Operating Income was $11 million, a decrease of $68 million, and Adjusted Operating Income was $39 million, a decrease of $57 million. The decrease in Reported and Adjusted Operating Income was primarily due to higher Advertising and SG&A expenses, as well as lower gross margin, partly offset by higher Net Sales.

Earnings Per Share

Reported Earnings per Share was a loss of $0.06, as compared to income of $0.16, and Adjusted Earnings per Share was $0.01, as compared to $0.21. The decrease in Reported and Adjusted Earnings per Share was primarily due to the same factors that impacted Operating Income.

As of June 30, 2026, shares outstanding totaled 285.7 million.

Cash Flow

For the six months ended June 30, 2026, Cash Flows Used for Operating Activities were $202 million, as compared to a use of $275 million, primarily due to favorable working capital usage, partially offset by a decrease in Net Income, excluding the impact of non-cash items.

Cash Flows Used for Investing Activities were $195 million, compared to a use of $55 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 $322 million, as compared to a use of $188 million, primarily due to an increase in share repurchases and the impact of foreign currency exchange rate changes on cash.

Second Quarter Gross Billings by Category 

Worldwide Gross Billings for Dolls were $318 million, down 5% as reported, or 7% in constant currency, primarily due to a decline in Barbie.

Worldwide Gross Billings for Vehicles were $463 million, up 14% as reported, or 11% in constant currency, primarily driven by growth in Hot Wheels.

Worldwide Gross Billings for Infant, Toddler, and Preschool were $128 million, down 11% as reported, or 13% in constant currency, primarily due to a decline in Fisher-Price.

Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $358 million, up 35% as reported, or 33% in constant currency, primarily driven by growth in Games (including the contribution of Digital Games, following the full acquisition of Mattel163) and Action Figures, driven by theatrical releases.

2026 Guidance 

Mattel’s full year 2026 guidance remains:

Our guidance remains subject to market volatility, unexpected disruptions, as well as other macro-economic risks and uncertainties, including further developments in the Middle East and regulatory actions impacting global trade.

Guidance does not include any potential impact of tariff refunds.