Mattel Reports Third Quarter 2026 Financial Results
Third Quarter 2026 Highlights Versus Prior Year
- Net Sales of $1,807 million, up 4% as reported, and 3% in constant currency
- Gross Margin of 54.8%, an increase of 480 basis points; Adjusted Gross Margin of 55.0%, an increase of 480 basis points; primarily driven by $88 million of tariff refunds received
- Operating Income of $476 million, an increase of $96 million; Adjusted Operating Income of $502 million, an increase of $106 million
- Net Income of $354 million, an increase of $75 million
- Earnings per Share of $1.23 compared to $0.88 per share; Adjusted Earnings per Share of $1.30 compared to $0.91 per share
Business Highlights
- Hot Wheels continued its strong performance, with Gross Billings up 7% as reported, and 6% in constant currency
- $308 million of shares repurchased in the first nine months of 2026
- Company announced Steve Totzke as President and Chief Operating Officer
El Segundo, CA — Mattel today reported third quarter 2026 financial results.
Roger Lynch, Chairman and CEO of Mattel, said: “My first few weeks leading Mattel have reinforced my belief in the company’s potential. I also see clearly where we must improve. We will focus our resources on our greatest opportunities and translate the strength of Mattel’s portfolio and capabilities into more consistent financial performance. Our priorities are clear: strengthen our brands and win in toys, drive innovation and creativity, and invest with discipline to drive profitable growth.”
Third Quarter Financial Overview
Net Sales
Net Sales were $1,807 million, up 4% as reported, and 3% in constant currency, versus the prior year’s third quarter. The increase in Net Sales as reported was driven by a 4% increase in North America and a 5% increase in International. The increase in Net Sales in constant currency was driven by a 4% increase in North America and a 3% increase in International.
Gross Margin
Reported Gross Margin was 54.8%, versus 50.0% in the prior year’s third quarter, and Adjusted Gross Margin was 55.0%, versus 50.2%. The improvement in Reported and Adjusted Gross Margin was primarily driven by $88 million of tariff refunds received. Inflation and higher royalties more than offset other benefits, including the contribution of Mattel163, cost savings, and favorable foreign exchange.
Operating Income
Reported Operating Income was $476 million, an increase of $96 million, and Adjusted Operating Income was $502 million, an increase of $106 million. The increase in Reported and Adjusted Operating Income was primarily driven by higher Gross Profit, partly offset by higher Advertising expenses.
Earnings Per Share
Reported Earnings per Share was $1.23, as compared to $0.88, and Adjusted Earnings per Share was $1.30, as compared to $0.91. The increase in Reported and Adjusted Earnings per Share was primarily due to the same factors that benefited Adjusted Operating Income.
Cash Flow
For the nine months ended September 30, 2026, Cash Flows Used for Operating Activities were $114 million, as compared to a use of $203 million, primarily due to favorable working capital, partially offset by a decrease in Net Income, excluding the impact of non-cash items.
Cash Flows Used for Investing Activities were $250 million, compared to a use of $98 million. The increase was 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 $338 million, as compared to a use of $395 million. During the first nine months, Mattel used $308 million of cash for share repurchases as compared to $412 million in the prior year.
As of September 30, 2026, roughly $1.2 billion remained available under the Company’s $1.5 billion share repurchase authorization.
Third Quarter Worldwide Gross Billings by Category
Gross Billings for Dolls were $703 million, up 4% as reported and in constant currency, primarily driven by partner brands, including the addition of KPop Demon Hunters, mainly offset by a decline in Barbie.
Gross Billings for Vehicles were $680 million, up 9% as reported, or 7% in constant currency, primarily driven by growth in Hot Wheels.
Gross Billings for Infant, Toddler, and Preschool were $221 million, down 16% as reported, or 17% in constant currency, primarily due to a decline in Fisher-Price.
Gross Billings for Action Figures, Building Sets, Games, and Other were $451 million, up 12% as reported, or 11% in constant currency, primarily driven by growth in Games (including the contribution of Mattel163) and Action Figures.
2026 Guidance
For the full year 2026, the Company now expects:
- Net Sales growth in the range of 1% to 4% in constant currency,
- Adjusted Gross Margin of roughly 48%,
- Adjusted Operating Income in the range of $500 million to $570 million, and
- Adjusted EPS in the range of $1.05 – $1.20.
- Foreign Exchange is expected to have a roughly 1% benefit on full year Net Sales based on current spot rates, and the Adjusted Effective Tax Rate is expected to be roughly 23% for the full year.
Mattel’s revised full-year 2026 guidance excludes the benefits of tariff refunds recognized year-to-date, as well as any additional tariff refunds that may be recognized during the remainder of 2026.
MAT-FIN MAT-CORP
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT I |
||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)1 | |||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||||||||||||||
| (In millions, except per share and percentage information) |
2026 |
2025 |
% Change as Reported |
% Change in Constant Currency |
2026 |
2025 |
% Change as Reported |
% Change in Constant Currency |
|||||||||||||||||||||||||||||||
| $ Amt | % Net Sales |
$ Amt | % Net Sales |
$ Amt | % Net Sales |
$ Amt | % Net Sales |
||||||||||||||||||||||||||||||||
| Net Sales |
$ |
1,806.7 |
|
$ |
1,736.0 |
|
4 |
% |
3 |
% |
$ |
3,794.2 |
|
$ |
3,581.2 |
|
6 |
% |
4 |
% |
|||||||||||||||||||
| Cost of Sales |
|
817.1 |
|
45.2 |
% |
|
867.7 |
|
50.0 |
% |
-6 |
% |
|
1,875.7 |
|
49.4 |
% |
|
1,785.9 |
|
49.9 |
% |
5 |
% |
|||||||||||||||
| Gross Profit |
|
989.6 |
|
54.8 |
% |
|
868.3 |
|
50.0 |
% |
14 |
% |
12 |
% |
|
1,918.5 |
|
50.6 |
% |
|
1,795.3 |
|
50.1 |
% |
7 |
% |
6 |
% |
|||||||||||
| Advertising and Promotion Expenses |
|
143.3 |
|
7.9 |
% |
|
118.1 |
|
6.8 |
% |
21 |
% |
|
360.5 |
|
9.5 |
% |
|
267.5 |
|
7.5 |
% |
35 |
% |
|||||||||||||||
| Other Selling and Administrative Expenses |
|
370.0 |
|
20.5 |
% |
|
370.3 |
|
21.3 |
% |
— |
% |
|
1,173.5 |
|
30.9 |
% |
|
1,122.5 |
|
31.3 |
% |
5 |
% |
|||||||||||||||
| Operating Income |
|
476.3 |
|
26.4 |
% |
|
379.8 |
|
21.9 |
% |
25 |
% |
21 |
% |
|
384.5 |
|
10.1 |
% |
|
405.4 |
|
11.3 |
% |
-5 |
% |
-8 |
% |
|||||||||||
| Interest Expense |
|
31.9 |
|
1.8 |
% |
|
29.4 |
|
1.7 |
% |
8 |
% |
|
94.7 |
|
2.5 |
% |
|
88.0 |
|
2.5 |
% |
8 |
% |
|||||||||||||||
| Interest (Income) |
|
(8.9 |
) |
-0.5 |
% |
|
(9.0 |
) |
-0.5 |
% |
-1 |
% |
|
(26.6 |
) |
-0.7 |
% |
|
(37.3 |
) |
-1.0 |
% |
-29 |
% |
|||||||||||||||
| Other Non-Operating Expense (Income), Net |
|
2.9 |
|
|
1.0 |
|
|
(141.1 |
) |
|
12.6 |
|
|||||||||||||||||||||||||||
| Income Before Income Taxes |
|
450.4 |
|
24.9 |
% |
|
358.5 |
|
20.7 |
% |
26 |
% |
20 |
% |
|
457.4 |
|
12.1 |
% |
|
342.1 |
|
9.6 |
% |
34 |
% |
33 |
% |
|||||||||||
| Provision for Income Taxes |
|
96.8 |
|
|
86.9 |
|
|
64.6 |
|
|
72.5 |
|
|||||||||||||||||||||||||||
| (Income) from Equity Method Investments |
|
— |
|
|
(6.7 |
) |
|
(3.6 |
) |
|
(21.8 |
) |
|||||||||||||||||||||||||||
| Net Income |
$ |
353.6 |
|
19.6 |
% |
$ |
278.4 |
|
16.0 |
% |
27 |
% |
$ |
396.4 |
|
10.4 |
% |
$ |
291.4 |
|
8.1 |
% |
36 |
% |
|||||||||||||||
| Net Income Per Common Share – Basic |
$ |
1.24 |
|
$ |
0.88 |
|
$ |
1.36 |
|
$ |
0.90 |
|
|||||||||||||||||||||||||||
| Weighted-Average Number of Common Shares |
|
286.1 |
|
|
315.8 |
|
|
290.8 |
|
|
322.3 |
|
|||||||||||||||||||||||||||
| Net Income Per Common Share – Diluted |
$ |
1.23 |
|
$ |
0.88 |
|
$ |
1.35 |
|
$ |
0.90 |
|
|||||||||||||||||||||||||||
| Weighted-Average Number of Common and Potential Common Shares |
|
286.8 |
|
|
318.1 |
|
|
292.8 |
|
|
325.1 |
|
|||||||||||||||||||||||||||
| 1 Amounts may not sum due to rounding. | |||||||||||||||||||||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT II |
||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS1 | |||||||||||
| September 30, | December 31, | ||||||||||
|
|
|
2026 |
|
|
|
2025 |
|
|
|
2025 |
|
| (In millions) | (Unaudited) | ||||||||||
| Assets | |||||||||||
| Cash and Equivalents |
$ |
541.4 |
$ |
691.9 |
$ |
1,242.9 |
|||||
| Accounts Receivable, Net |
|
1,400.1 |
|
|
1,390.3 |
|
|
1,097.6 |
|
||
| Inventories |
|
828.0 |
|
|
826.6 |
|
|
563.1 |
|
||
| Prepaid Expenses and Other Current Assets |
|
218.6 |
|
|
246.9 |
|
|
227.1 |
|
||
| Total Current Assets |
|
2,988.1 |
|
|
3,155.7 |
|
|
3,130.8 |
|
||
| Property, Plant, and Equipment, Net |
|
662.6 |
|
|
542.4 |
|
|
590.0 |
|
||
| Right-of-Use Assets, Net |
|
367.4 |
|
|
305.4 |
|
|
319.5 |
|
||
| Goodwill |
|
1,582.2 |
|
|
1,389.9 |
|
|
1,390.2 |
|
||
| Other Noncurrent Assets |
|
1,297.0 |
|
|
1,200.1 |
|
|
1,209.9 |
|
||
| Total Assets |
$ |
6,897.3 |
|
$ |
6,593.4 |
|
$ |
6,640.4 |
|
||
| Liabilities and Stockholders’ Equity | |||||||||||
| Current Portion of Long-Term Debt |
$ |
— |
|
$ |
599.2 |
|
$ |
— |
|
||
| Accounts Payable and Accrued Liabilities |
|
1,454.7 |
|
|
1,322.6 |
|
|
1,428.3 |
|
||
| Income Taxes Payable |
|
54.5 |
|
|
52.8 |
|
|
29.9 |
|
||
| Total Current Liabilities |
|
1,509.2 |
|
|
1,974.6 |
|
|
1,458.2 |
|
||
| Long-Term Debt |
|
2,335.0 |
|
|
1,738.4 |
|
|
2,331.7 |
|
||
| Noncurrent Lease Liabilities |
|
325.4 |
|
|
254.7 |
|
|
268.4 |
|
||
| Other Noncurrent Liabilities |
|
387.1 |
|
|
364.5 |
|
|
349.1 |
|
||
| Stockholders’ Equity |
|
2,340.6 |
|
|
2,261.2 |
|
|
2,233.0 |
|
||
| Total Liabilities and Stockholders’ Equity |
$ |
6,897.3 |
|
$ |
6,593.4 |
|
$ |
6,640.4 |
|
||
| 1 Amounts may not sum due to rounding. | |||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT II |
||||||||
| SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited)1 | |||||||||
| September 30, | |||||||||
|
|
|
|
|
2026 |
|
|
|
2025 |
|
| Key Balance Sheet Data: | |||||||||
| Accounts Receivable, Net Days of Sales Outstanding (DSO) |
|
70 |
|
|
72 |
|
|||
| For the Nine Months Ended September 30, | |||||||||
| (In millions) |
|
2026 |
|
|
2025 |
|
|||
| Condensed Cash Flow Data: | |||||||||
| Cash Flows (Used for) Operating Activities |
$ |
(113.5 |
) |
$ |
(203.3 |
) |
|||
| Cash Flows (Used for) Investing Activities |
|
(249.9 |
) |
|
(97.5 |
) |
|||
| Cash Flows (Used for) Financing Activities and Other |
|
(338.1 |
) |
|
(395.2 |
) |
|||
| Decrease in Cash and Equivalents |
$ |
(701.5 |
) |
$ |
(696.0 |
) |
|||
| 1 Amounts may not sum due to rounding. | |||||||||
| MATTEL, INC. AND SUBSIDIARIES |
|
EXHIBIT III |
|||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||
| (In millions, except percentage information) |
|
2026 |
|
|
2025 |
|
Change |
|
2026 |
|
|
2025 |
|
Change | |||||
| Gross Profit | |||||||||||||||||||
| Gross Profit, As Reported |
$ |
989.6 |
|
$ |
868.3 |
|
$ |
1,918.5 |
|
$ |
1,795.3 |
|
|||||||
| Gross Margin |
|
54.8 |
% |
|
50.0 |
% |
480 bps |
|
50.6 |
% |
|
50.1 |
% |
50 bps | |||||
| Adjustments: | |||||||||||||||||||
| Amortization of Acquired Intangible Assets2 |
|
3.9 |
|
|
— |
|
|
9.2 |
|
|
— |
|
|||||||
| Severance and Restructuring Expenses |
|
0.2 |
|
|
2.4 |
|
|
1.0 |
|
|
6.1 |
|
|||||||
| Acquisition-Related Expenses3 |
|
0.4 |
|
|
— |
|
|
0.9 |
|
|
— |
|
|||||||
| Gross Profit, As Adjusted |
$ |
994.1 |
|
$ |
870.7 |
|
$ |
1,929.6 |
|
$ |
1,801.4 |
|
|||||||
| Adjusted Gross Margin |
|
55.0 |
% |
|
50.2 |
% |
480 bps |
|
50.9 |
% |
|
50.3 |
% |
60 bps | |||||
| Other Selling and Administrative Expenses | |||||||||||||||||||
| Other Selling and Administrative Expenses, As Reported |
$ |
370.0 |
|
$ |
370.3 |
|
—% |
$ |
1,173.5 |
|
$ |
1,122.5 |
|
5% |
|||||
| % of Net Sales |
|
20.5 |
% |
|
21.3 |
% |
-80 bps |
|
30.9 |
% |
|
31.3 |
% |
-40 bps | |||||
| Adjustments: | |||||||||||||||||||
| Amortization of Acquired Intangible Assets2 |
|
(10.9 |
) |
|
(7.9 |
) |
|
(30.8 |
) |
|
(23.6 |
) |
|||||||
| Severance and Restructuring Expenses |
|
(3.0 |
) |
|
(0.4 |
) |
|
(22.2 |
) |
|
(23.9 |
) |
|||||||
| Inclined Sleeper Product Recalls |
|
(3.8 |
) |
|
(4.6 |
) |
|
(5.7 |
) |
|
(24.2 |
) |
|||||||
| Acquisition-Related Expenses3 |
|
(3.1 |
) |
|
— |
|
|
(15.8 |
) |
|
— |
|
|||||||
| Other Selling and Administrative Expenses, As Adjusted |
$ |
349.2 |
|
$ |
357.3 |
|
-2% |
$ |
1,099.1 |
|
$ |
1,050.8 |
|
5% |
|||||
| % of Net Sales |
|
19.3 |
% |
|
20.6 |
% |
-130 bps |
|
29.0 |
% |
|
29.3 |
% |
-30 bps | |||||
| Operating Income | |||||||||||||||||||
| Operating Income, As Reported |
$ |
476.3 |
|
$ |
379.8 |
|
25% |
$ |
384.5 |
|
$ |
405.4 |
|
-5% |
|||||
| Operating Income Margin |
|
26.4 |
% |
|
21.9 |
% |
450 bps |
|
10.1 |
% |
|
11.3 |
% |
-120 bps | |||||
| Adjustments: | |||||||||||||||||||
| Amortization of Acquired Intangible Assets2 |
|
14.8 |
|
|
7.9 |
|
|
39.9 |
|
|
23.6 |
|
|||||||
| Severance and Restructuring Expenses |
|
3.2 |
|
|
2.8 |
|
|
23.2 |
|
|
30.0 |
|
|||||||
| Inclined Sleeper Product Recalls |
|
3.8 |
|
|
4.6 |
|
|
5.7 |
|
|
24.2 |
|
|||||||
| Acquisition-Related Expenses3 |
|
3.5 |
|
|
— |
|
|
16.7 |
|
|
— |
|
|||||||
| Operating Income, As Adjusted |
$ |
501.6 |
|
$ |
395.2 |
|
27% |
$ |
470.0 |
|
$ |
483.2 |
|
-3% |
|||||
| Adjusted Operating Income Margin |
|
27.8 |
% |
|
22.8 |
% |
500 bps |
|
12.4 |
% |
|
13.5 |
% |
-110 bps | |||||
| 1 Amounts may not sum due to rounding. | |||||||||||||||||||
| 2 In fiscal 2026, Mattel began excluding the impact of amortization of acquired intangible assets from non-GAAP financial measures to facilitate period-over-period comparisons of underlying business performance. Accordingly, Mattel has recast these non-GAAP financial measures for prior periods. Net sales generated from these acquired intangible assets during the periods presented, if applicable, are included in the adjusted financial measures. | |||||||||||||||||||
| 3 Acquisition-related expenses for the three months ended September 30, 2026 include $3.5 million of professional fees and integration expenses related to the acquisition of Mattel163. Acquisition-related expenses for the nine months ended September 30, 2026 include a $7.0 million charge associated with the effective settlement of a pre-existing relationship between Mattel and Mattel163 in connection with the acquisition, as well as $9.7 million of professional fees and integration expenses related to the acquisition. | |||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT III |
||||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||
| (In millions, except per share and percentage information) |
|
2026 |
|
|
2025 |
|
Change |
|
2026 |
|
|
2025 |
|
Change | |||||||
| Earnings Per Share | |||||||||||||||||||||
| Net Income Per Common Share, As Reported |
$ |
1.23 |
|
$ |
0.88 |
|
40 |
% |
$ |
1.35 |
|
$ |
0.90 |
|
50 |
% |
|||||
| Adjustments: | |||||||||||||||||||||
| Amortization of Acquired Intangible Assets2 |
|
0.05 |
|
|
0.02 |
|
|
0.14 |
|
|
0.07 |
|
|||||||||
| Severance and Restructuring Expenses |
|
0.01 |
|
|
0.01 |
|
|
0.08 |
|
|
0.09 |
|
|||||||||
| Inclined Sleeper Product Recalls |
|
0.01 |
|
|
0.01 |
|
|
0.02 |
|
|
0.07 |
|
|||||||||
| Acquisition-Related Expenses, Net3 |
|
0.01 |
|
|
— |
|
|
0.05 |
|
|
— |
|
|||||||||
| (Gain) on Previously Held Equity Interest4 |
|
— |
|
|
— |
|
|
(0.51 |
) |
|
— |
|
|||||||||
| Tax Effect of Adjustments5 |
|
(0.02 |
) |
|
(0.01 |
) |
|
(0.05 |
) |
|
(0.05 |
) |
|||||||||
| Net Income Per Common Share, As Adjusted |
$ |
1.30 |
|
$ |
0.91 |
|
43 |
% |
$ |
1.08 |
|
$ |
1.08 |
|
— |
% |
|||||
| EBITDA and Adjusted EBITDA | |||||||||||||||||||||
| Net Income, As Reported |
$ |
353.6 |
|
$ |
278.4 |
|
27 |
% |
$ |
396.4 |
|
$ |
291.4 |
|
36 |
% |
|||||
| Adjustments: | |||||||||||||||||||||
| Interest Expense |
|
31.9 |
|
|
29.4 |
|
|
94.7 |
|
|
88.0 |
|
|||||||||
| Provision for Income Taxes |
|
96.8 |
|
|
86.9 |
|
|
64.6 |
|
|
72.5 |
|
|||||||||
| Depreciation |
|
35.8 |
|
|
33.7 |
|
|
103.3 |
|
|
102.4 |
|
|||||||||
| Amortization of Acquired Intangible Assets |
|
14.8 |
|
|
7.9 |
|
|
39.9 |
|
|
23.6 |
|
|||||||||
| EBITDA |
|
532.9 |
|
|
436.2 |
|
|
699.0 |
|
|
577.9 |
|
|||||||||
| Adjustments: | |||||||||||||||||||||
| Share-Based Compensation6 |
|
(0.9 |
) |
|
22.3 |
|
|
32.0 |
|
|
61.0 |
|
|||||||||
| Severance and Restructuring Expenses |
|
3.2 |
|
|
2.8 |
|
|
23.2 |
|
|
30.0 |
|
|||||||||
| Inclined Sleeper Product Recalls |
|
3.8 |
|
|
4.6 |
|
|
5.7 |
|
|
24.2 |
|
|||||||||
| Acquisition-Related Expenses, Net3 |
|
3.5 |
|
|
— |
|
|
14.3 |
|
|
— |
|
|||||||||
| (Gain) on Previously Held Equity Interest4 |
|
— |
|
|
— |
|
|
(147.9 |
) |
|
— |
|
|||||||||
| Adjusted EBITDA |
$ |
542.5 |
|
$ |
466.1 |
|
16 |
% |
$ |
626.3 |
|
$ |
693.1 |
|
-10 |
% |
|||||
| Free Cash Flow | |||||||||||||||||||||
| Net Cash Flows (Used for) Operating Activities |
$ |
(113.5 |
) |
$ |
(203.3 |
) |
|||||||||||||||
| Capital Expenditures |
|
(186.3 |
) |
|
(124.9 |
) |
|||||||||||||||
| Free Cash Flow |
$ |
(299.8 |
) |
$ |
(328.2 |
) |
|||||||||||||||
| 1 Amounts may not sum due to rounding. | |||||||||||||||||||||
| 2 In fiscal 2026, Mattel began excluding the impact of amortization of acquired intangible assets from non-GAAP financial measures to facilitate period-over-period comparisons of underlying business performance. Accordingly, Mattel has recast these non-GAAP financial measures for prior periods. Net sales generated from these acquired intangible assets during the periods presented, if applicable, are included in the adjusted financial measures. | |||||||||||||||||||||
| 3 Acquisition-related expenses, net for the three months ended September 30, 2026 include $3.5 million of professional fees and integration expenses related to the acquisition of Mattel163. Acquisition-related expenses, net for the nine months ended September 30, 2026 include a $7.0 million charge associated with the effective settlement of a pre-existing relationship between Mattel and Mattel163 in connection with the acquisition, as well as $9.7 million of professional fees and integration expenses, and ($2.5) million of other acquisition-related payments. | |||||||||||||||||||||
| 4 Prior to the acquisition of the remaining 50% equity interest in Mattel163, Mattel accounted for its investment under the equity method. Upon obtaining control, Mattel remeasured its previously held 50% equity interest to its estimated fair value as of the acquisition date, resulting in a gain of $147.9 million recognized in other non-operating income, net. | |||||||||||||||||||||
| 5 The aggregate tax effect of 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 and potential common shares. | |||||||||||||||||||||
| 6 Share-based compensation for the three and nine months ended September 30, 2026 includes the reversal of previously recognized compensation expense resulting from the expected forfeiture of unvested share-based awards in connection with the departure of Mattel’s former Chief Executive Officer. | |||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT III |
||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||
| For the Three Months Ended September 30, | |||||||||||||||
| (In millions, except percentage and pts information) |
|
2026 |
|
|
2025 |
|
Change | ||||||||
| Tax Rate | |||||||||||||||
| Income Before Income Taxes, As Reported |
$ |
450.4 |
|
$ |
358.5 |
|
|||||||||
| Adjustments: | |||||||||||||||
| Amortization of Acquired Intangible Assets2 |
|
14.8 |
|
|
7.9 |
|
|||||||||
| Severance and Restructuring Expenses |
|
3.2 |
|
|
2.8 |
|
|||||||||
| Inclined Sleeper Product Recalls |
|
3.8 |
|
|
4.6 |
|
|||||||||
| Acquisition-Related Expenses3 |
|
3.5 |
|
|
— |
|
|||||||||
| Income Before Income Taxes, As Adjusted |
$ |
475.8 |
|
$ |
373.8 |
|
|||||||||
| Provision for Income Taxes, As Reported |
$ |
96.8 |
|
$ |
86.9 |
|
|||||||||
| Adjustments: | |||||||||||||||
| Tax Effect of Adjustments4 |
|
5.6 |
|
|
3.4 |
|
|||||||||
| Provision for Income Taxes, As Adjusted |
$ |
102.4 |
|
$ |
90.3 |
|
|||||||||
| Tax Rate, As Reported |
|
21 |
% |
|
24 |
% |
-3 pts | ||||||||
| Tax Rate, As Adjusted |
|
22 |
% |
|
24 |
% |
-2 pts | ||||||||
| September 30, | |||||||||||||||
|
|
2026 |
|
|
2025 |
|
||||||||||
| Net Debt | |||||||||||||||
| Long-Term Debt |
$ |
2,335.0 |
|
$ |
1,738.4 |
|
|||||||||
| Current Portion of Long-Term Debt |
|
— |
|
|
599.2 |
|
|||||||||
| Adjustments: | |||||||||||||||
| Cash and Equivalents |
|
(541.4 |
) |
|
(691.9 |
) |
|||||||||
| Net Debt |
$ |
1,793.6 |
|
$ |
1,645.7 |
|
|||||||||
| 1 Amounts may not sum due to rounding. | |||||||||||||||
| 2 In fiscal 2026, Mattel began excluding the impact of amortization of acquired intangible assets from non-GAAP financial measures to facilitate period-over-period comparisons of underlying business performance. Accordingly, Mattel has recast these non-GAAP financial measures for prior periods. Net sales generated from these acquired intangible assets during the periods presented, if applicable, are included in the adjusted financial measures. | |||||||||||||||
| 3 Acquisition-related expenses for the three months ended September 30, 2026 include $3.5 million of professional fees and integration expenses related to the acquisition of Mattel163. | |||||||||||||||
| 4 Tax effect of adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments. | |||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT III |
|||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | ||||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | ||||||||||||||||
| For the Trailing Twelve Months Ended September 30, | ||||||||||||||||
| (In millions, except percentage and pts information) |
|
2026 |
|
|
2025 |
|
Change | |||||||||
| Leverage Ratio (Total Debt/Adjusted EBITDA) | ||||||||||||||||
| Total Debt | ||||||||||||||||
| Long-Term Debt |
$ |
2,335.0 |
|
$ |
1,738.4 |
|
||||||||||
| Current Portion of Long-Term Debt |
|
— |
|
|
599.2 |
|
||||||||||
| Adjustments: | ||||||||||||||||
| Debt Issuance Costs and Debt Discount |
|
15.0 |
|
|
12.4 |
|
||||||||||
| Total Debt |
$ |
2,350.0 |
|
$ |
2,350.0 |
|
||||||||||
| EBITDA and Adjusted EBITDA | ||||||||||||||||
| Net Income, As Reported |
$ |
502.6 |
|
$ |
432.3 |
|
-16 |
% |
||||||||
| Adjustments: | ||||||||||||||||
| Interest Expense |
|
125.4 |
|
|
117.4 |
|
||||||||||
| Provision for Income Taxes |
|
81.8 |
|
|
83.4 |
|
||||||||||
| Depreciation |
|
137.4 |
|
|
137.4 |
|
||||||||||
| Amortization of Acquired Intangible Assets |
|
47.9 |
|
|
31.4 |
|
||||||||||
| EBITDA |
|
895.2 |
|
|
801.7 |
|
||||||||||
| Adjustments: | ||||||||||||||||
| Share-Based Compensation |
|
50.8 |
|
|
82.9 |
|
||||||||||
| Severance and Restructuring Expenses |
|
40.1 |
|
|
31.3 |
|
||||||||||
| Inclined Sleeper Product Recalls |
|
8.1 |
|
|
26.0 |
|
||||||||||
| Acquisition-Related Expenses, Net2 |
|
14.3 |
|
|
— |
|
||||||||||
| (Gain) on Previously Held Equity Interest3 |
|
(147.9 |
) |
|
— |
|
||||||||||
| Adjusted EBITDA |
$ |
860.5 |
|
$ |
941.9 |
|
-9 |
% |
||||||||
| Total Debt / Net Income | 4.7x | 5.4x | ||||||||||||||
| Leverage Ratio (Total Debt / Adjusted EBITDA) | 2.7x | 2.5x | ||||||||||||||
| Free Cash Flow | ||||||||||||||||
| Net Cash Flows Provided by Operating Activities |
$ |
683.0 |
|
$ |
658.9 |
|
4 |
% |
||||||||
| Capital Expenditures |
|
(243.4 |
) |
|
(170.5 |
) |
||||||||||
| Free Cash Flow |
$ |
439.6 |
|
$ |
488.3 |
|
-10 |
% |
||||||||
| Net Cash Flows Provided by Operating Activities / Net Income |
|
136 |
% |
|
152 |
% |
-16 pts | |||||||||
| Free Cash Flow Conversion (Free Cash Flow/Adjusted EBITDA) |
|
51 |
% |
|
52 |
% |
-1 pts | |||||||||
| 1 Amounts may not sum due to rounding. | ||||||||||||||||
| 2 Acquisition-related expenses, net for the trailing twelve months ended September 30, 2026 include a $7.0 million charge associated with the effective settlement of a pre-existing relationship between Mattel and Mattel163 in connection with the acquisition, as well as $9.7 million of professional fees and integration expenses and ($2.5) million of other acquisition-related payments. | ||||||||||||||||
| 3 Prior to the acquisition of the remaining 50% equity interest in Mattel163, Mattel accounted for its investment under the equity method. Upon obtaining control, Mattel remeasured its previously held 50% equity interest to its estimated fair value as of the acquisition date, resulting in a gain of $147.9 million recognized in other non-operating income, net. | ||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT IV |
||||||||||||||||||||||||||
| WORLDWIDE NET SALES AND GROSS BILLINGS1 (Unaudited)2 | |||||||||||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||
|
|
2026 |
|
|
2025 |
|
% Change as Reported |
% Change in Constant Currency |
|
2026 |
|
|
2025 |
|
% Change as Reported |
% Change in Constant Currency |
||||||||||||
| (In millions, except percentage information) | |||||||||||||||||||||||||||
| Worldwide Net Sales: | |||||||||||||||||||||||||||
| Net Sales |
$ |
1,806.7 |
$ |
1,736.0 |
4 |
% |
3 |
% |
$ |
3,794.2 |
$ |
3,581.2 |
6 |
% |
4 |
% |
|||||||||||
| Worldwide Gross Billings by Categories: | |||||||||||||||||||||||||||
| Dolls |
$ |
703.2 |
|
$ |
674.1 |
|
4 |
% |
4 |
% |
$ |
1,292.7 |
|
$ |
1,305.8 |
|
-1 |
% |
-2 |
% |
|||||||
| Vehicles |
|
679.8 |
|
|
626.2 |
|
9 |
|
7 |
|
|
1,504.6 |
|
|
1,342.2 |
|
12 |
|
10 |
|
|||||||
| Infant, Toddler, and Preschool |
|
220.8 |
|
|
262.5 |
|
-16 |
|
-17 |
|
|
454.8 |
|
|
532.3 |
|
-15 |
|
-16 |
|
|||||||
| Action Figures, Building Sets, Games, and Other |
|
450.8 |
|
|
404.0 |
|
12 |
|
11 |
|
|
1,041.3 |
|
|
861.2 |
|
21 |
|
19 |
|
|||||||
| Gross Billings |
$ |
2,054.6 |
|
$ |
1,966.8 |
|
4 |
% |
4 |
% |
$ |
4,293.4 |
|
$ |
4,041.4 |
|
6 |
% |
4 |
% |
|||||||
| Supplemental Gross Billings Disclosure | |||||||||||||||||||||||||||
| Worldwide Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||||||
| Barbie |
$ |
374.6 |
|
$ |
413.9 |
|
-9 |
% |
-10 |
% |
$ |
689.8 |
|
$ |
788.3 |
|
-13 |
% |
-14 |
% |
|||||||
| Hot Wheels |
|
585.5 |
|
|
547.2 |
|
7 |
|
6 |
|
|
1,308.6 |
|
|
1,173.3 |
|
12 |
|
9 |
|
|||||||
| Fisher-Price |
|
186.2 |
|
|
215.4 |
|
-14 |
|
-15 |
|
|
365.6 |
|
|
413.4 |
|
-12 |
|
-13 |
|
|||||||
| Other |
|
908.4 |
|
|
790.2 |
|
15 |
|
14 |
|
|
1,929.4 |
|
|
1,666.3 |
|
16 |
|
14 |
|
|||||||
| Gross Billings |
$ |
2,054.6 |
|
$ |
1,966.8 |
|
4 |
% |
4 |
% |
$ |
4,293.4 |
|
$ |
4,041.4 |
|
6 |
% |
4 |
% |
|||||||
| 1 Gross billings represent amounts invoiced to customers and do 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. | |||||||||||||||||||||||||||
| 2 Amounts may not sum due to rounding. | |||||||||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT V |
||||||||||||||||||||||||||
| NET SALES AND GROSS BILLINGS1 BY SEGMENT (Unaudited)2 | |||||||||||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||
|
|
2026 |
|
|
2025 |
|
% Change as Reported |
% Change in Constant Currency |
|
2026 |
|
|
2025 |
|
% Change as Reported |
% Change in Constant Currency |
||||||||||||
| (In millions, except percentage information) | |||||||||||||||||||||||||||
| North America Net Sales: | |||||||||||||||||||||||||||
| Net Sales |
$ |
1,014.0 |
$ |
978.1 |
4 |
% |
4 |
% |
$ |
2,063.5 |
$ |
1,980.3 |
4 |
% |
4 |
% |
|||||||||||
| North America Gross Billings by Categories: | |||||||||||||||||||||||||||
| Dolls |
$ |
416.1 |
|
$ |
393.8 |
|
6 |
% |
6 |
% |
$ |
744.7 |
|
$ |
734.8 |
|
1 |
% |
1 |
% |
|||||||
| Vehicles |
|
304.8 |
|
|
276.5 |
|
10 |
|
10 |
|
|
651.8 |
|
|
600.8 |
|
8 |
|
8 |
|
|||||||
| Infant, Toddler, and Preschool |
|
124.4 |
|
|
157.1 |
|
-21 |
|
-21 |
|
|
249.1 |
|
|
307.1 |
|
-19 |
|
-19 |
|
|||||||
| Action Figures, Building Sets, Games, and Other |
|
260.3 |
|
|
232.5 |
|
12 |
|
12 |
|
|
581.8 |
|
|
490.7 |
|
19 |
|
19 |
|
|||||||
| Gross Billings |
$ |
1,105.6 |
|
$ |
1,059.9 |
|
4 |
% |
4 |
% |
$ |
2,227.4 |
|
$ |
2,133.4 |
|
4 |
% |
4 |
% |
|||||||
| Supplemental Gross Billings Disclosure | |||||||||||||||||||||||||||
| North America Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||||||
| Barbie |
$ |
209.0 |
|
$ |
234.2 |
|
-11 |
% |
-11 |
% |
$ |
360.9 |
|
$ |
418.3 |
|
-14 |
% |
-14 |
% |
|||||||
| Hot Wheels |
|
252.2 |
|
|
235.7 |
|
7 |
|
7 |
|
|
546.2 |
|
|
508.7 |
|
7 |
|
7 |
|
|||||||
| Fisher-Price |
|
107.7 |
|
|
129.9 |
|
-17 |
|
-17 |
|
|
206.6 |
|
|
240.3 |
|
-14 |
|
-14 |
|
|||||||
| Other |
|
536.7 |
|
|
460.2 |
|
17 |
|
17 |
|
|
1,113.7 |
|
|
966.1 |
|
15 |
|
15 |
|
|||||||
| Gross Billings |
$ |
1,105.6 |
|
$ |
1,059.9 |
|
4 |
% |
4 |
% |
$ |
2,227.4 |
|
$ |
2,133.4 |
|
4 |
% |
4 |
% |
|||||||
| 1 Gross billings represent amounts invoiced to customers and do 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. | |||||||||||||||||||||||||||
| 2 Amounts may not sum due to rounding. | |||||||||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT VI |
||||||||||||||||||||||||||
| NET SALES AND GROSS BILLINGS1 BY SEGMENT (Unaudited)2 | |||||||||||||||||||||||||||
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||||||||||||||
|
|
2026 |
|
|
2025 |
|
% Change as Reported |
% Change in Constant Currency |
|
2026 |
|
|
2025 |
|
% Change as Reported |
% Change in Constant Currency |
||||||||||||
| (In millions, except percentage information) | |||||||||||||||||||||||||||
| International Net Sales by Geographic Area: | |||||||||||||||||||||||||||
| EMEA |
$ |
431.1 |
$ |
424.0 |
2 |
% |
3 |
% |
$ |
964.1 |
$ |
898.6 |
7 |
% |
6 |
% |
|||||||||||
| Latin America |
|
240.4 |
|
|
230.3 |
|
4 |
|
-3 |
|
|
454.5 |
|
|
423.6 |
|
7 |
|
-1 |
|
|||||||
| Asia Pacific |
|
121.2 |
|
|
103.5 |
|
17 |
|
15 |
|
|
312.1 |
|
|
278.7 |
|
12 |
|
9 |
|
|||||||
| Net Sales |
$ |
792.7 |
|
$ |
757.9 |
|
5 |
% |
3 |
% |
$ |
1,730.7 |
|
$ |
1,600.9 |
|
8 |
% |
5 |
% |
|||||||
| International Gross Billings by Geographic Area: | |||||||||||||||||||||||||||
| EMEA |
$ |
525.1 |
|
$ |
515.0 |
|
2 |
% |
3 |
% |
$ |
1,170.9 |
|
$ |
1,088.0 |
|
8 |
% |
6 |
% |
|||||||
| Latin America |
|
285.8 |
|
|
274.8 |
|
4 |
|
-3 |
|
|
538.5 |
|
|
502.4 |
|
7 |
|
-1 |
|
|||||||
| Asia Pacific |
|
138.1 |
|
|
117.1 |
|
18 |
|
15 |
|
|
356.6 |
|
|
317.6 |
|
12 |
|
9 |
|
|||||||
| Gross Billings |
$ |
949.0 |
|
$ |
906.9 |
|
5 |
% |
3 |
% |
$ |
2,066.0 |
|
$ |
1,908.0 |
|
8 |
% |
5 |
% |
|||||||
| International Gross Billings by Categories: | |||||||||||||||||||||||||||
| Dolls |
$ |
287.1 |
|
$ |
280.2 |
|
2 |
% |
1 |
% |
$ |
548.0 |
|
$ |
571.0 |
|
-4 |
% |
-7 |
% |
|||||||
| Vehicles |
|
375.0 |
|
|
349.8 |
|
7 |
|
5 |
|
|
852.7 |
|
|
741.3 |
|
15 |
|
11 |
|
|||||||
| Infant, Toddler, and Preschool |
|
96.4 |
|
|
105.3 |
|
-9 |
|
-11 |
|
|
205.7 |
|
|
225.2 |
|
-9 |
|
-13 |
|
|||||||
| Action Figures, Building Sets, Games, and Other |
|
190.5 |
|
|
171.6 |
|
11 |
|
10 |
|
|
459.6 |
|
|
370.4 |
|
24 |
|
21 |
|
|||||||
| Gross Billings |
$ |
949.0 |
|
$ |
906.9 |
|
5 |
% |
3 |
% |
$ |
2,066.0 |
|
$ |
1,908.0 |
|
8 |
% |
5 |
% |
|||||||
| Supplemental Gross Billings Disclosure | |||||||||||||||||||||||||||
| International Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||||||
| Barbie |
$ |
165.6 |
|
$ |
179.8 |
|
-8 |
% |
-10 |
% |
$ |
328.9 |
|
$ |
370.0 |
|
-11 |
% |
-14 |
% |
|||||||
| Hot Wheels |
|
333.3 |
|
|
311.6 |
|
7 |
|
5 |
|
|
762.5 |
|
|
664.6 |
|
15 |
|
11 |
|
|||||||
| Fisher-Price |
|
78.4 |
|
|
85.6 |
|
-8 |
|
-11 |
|
|
158.9 |
|
|
173.2 |
|
-8 |
|
-13 |
|
|||||||
| Other |
|
371.7 |
|
|
330.0 |
|
13 |
|
11 |
|
|
815.7 |
|
|
700.3 |
|
16 |
|
13 |
|
|||||||
| Gross Billings |
$ |
949.0 |
|
$ |
906.9 |
|
5 |
% |
3 |
% |
$ |
2,066.0 |
|
$ |
1,908.0 |
|
8 |
% |
5 |
% |
|||||||
| 1 Gross billings represent amounts invoiced to customers and do 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. | |||||||||||||||||||||||||||
| 2 Amounts may not sum due to rounding. | |||||||||||||||||||||||||||
