Mattel Reports Fourth Quarter and Full Year 2025 Financial Results
Fourth Quarter 2025 Highlights Versus Prior Year
- Net Sales of $1,766 million, up 7% as reported, and 5% in constant currency
- Gross Margin of 45.9%, a decrease of 480 basis points; Adjusted Gross Margin of 46.0%, a decrease of 480 basis points
- Operating Income of $141 million, a decrease of $17 million; Adjusted Operating Income of $160 million, a decrease of $1 million
- Net Income of $106 million, a decrease of $35 million
- Earnings per Share of $0.34 compared to $0.42 per share; Adjusted Earnings per Share of $0.39 compared to $0.35 per share
Full Year 2025 Highlights Versus Prior Year
- Net Sales of $5,348 million, down 1% as reported and in constant currency
- Gross Margin of 48.7%, a decrease of 210 basis points; Adjusted Gross Margin of 48.9%, a decrease of 200 basis points
- Operating Income of $546 million, a decrease of $148 million; Adjusted Operating Income of $620 million, a decrease of $118 million
- Net Income of $398 million, a decrease of $144 million
- Earnings per Share of $1.24 compared to $1.58 per share; Adjusted Earnings per Share of $1.41 compared to $1.62 per share
- Repurchased $600 million of shares, including $188 million of shares in the fourth quarter
Business Highlights
- Signed agreement to acquire full ownership of Mattel163 mobile games studio, subject to customary closing conditions
- Announces $150 million of strategic investments to accelerate organic growth
- Company issues 2026 guidance
- Board authorizes new $1.5 billion share repurchase program, which is expected to be completed by 2028
El Segundo, CA — Mattel reported fourth quarter and full year 2025 financial results.
Ynon Kreiz, Chairman and CEO of Mattel, said: “We achieved strong topline growth in the fourth quarter and consumer demand was positive in every region for both the quarter and full year, but December gross billings in the U.S. ended up growing less than expected. Our international business was positive for the year and we gained market share in key categories globally.”
Mr. Kreiz continued, “2026 will be an important year for Mattel as we implement our new brand-centric strategy to grow our IP-driven play and family entertainment business. We expect growth to be led by innovation in toys, major partnerships with leading IP owners, and an inflection in entertainment, with two movie releases and an expansion of digital games, amplified by the full acquisition of Mattel163 mobile games studio. We are making strategic investments that will impact the bottom line this year but are intended to accelerate growth in top and bottom lines in 2027 and beyond.”
Paul Ruh, CFO of Mattel, added: “We are tracking ahead of our 3-year $200 million savings target and are now projecting approximately $50 million of savings in 2026, bringing the total program target to $225 million. In the fourth quarter, we refinanced $600 million of debt and maintained our investment grade rating. Our balance sheet is strong and we ended the year with over $1.2 billion of cash, after repurchasing $600 million of shares. We have acquired more than $1.2 billion of shares in the last 3 years, representing approximately 18% of shares outstanding and just announced a new program to acquire another $1.5 billion shares, which we expect to complete by the end of 2028.”
Financial Overview
Fourth Quarter 2025
Net Sales
Net Sales were $1,766 million, up 7% as reported, and 5% in constant currency, versus the prior year’s fourth quarter. The increase in Net Sales as reported was driven by a 5% increase in North America and an 11% increase in International. The increase in Net Sales in constant currency was driven by a 5% increase in both North America and International.
Gross Margin
Reported Gross Margin decreased to 45.9%, versus 50.7% in the prior year’s fourth quarter, and Adjusted Gross Margin decreased to 46.0%, versus 50.8%. The decrease in Gross Margin was primarily due to higher discounts, inflation, unfavorable foreign exchange, and the timing lag between mitigating actions and the recognition of tariff costs, partially offset by cost savings.
Operating Income
Reported Operating Income was $141 million, a decrease of $17 million, and Adjusted Operating Income was $160 million, a decrease of $1 million. The decrease in Reported and Adjusted Operating Income was primarily due to lower gross profit, partially offset by lower Adjusted SG&A expenses.
Full Year 2025
Net Sales
Net Sales were $5,348 million, down 1% as reported and in constant currency, versus the prior year. The decrease in Net Sales as reported was due to a 5% decrease in North America, partially offset by a 6% increase in International. The decrease in Net Sales in constant currency was due to a 5% decrease in North America, partially offset by a 4% increase in International.
Gross Margin
Reported Gross Margin decreased to 48.7%, versus 50.8% in the prior year, and Adjusted Gross Margin decreased to 48.9%, versus 50.9%. The decrease in Gross Margin was primarily due to the same factors that impacted fourth quarter Adjusted Gross Margin.
Operating Income
Reported Operating Income was $546 million, a decrease of $148 million, and Adjusted Operating Income was $620 million, a decrease of $118 million. The decrease in Reported and Adjusted Operating Income was primarily due to lower gross profit and higher Advertising expenses, partially offset by lower Adjusted SG&A expenses.
Cash Flow
For the year ended December 31, 2025, Cash Flows Provided by Operating Activities were $593 million, a decrease of $207 million, primarily due to lower net income net of non-cash adjustments and higher working capital usage.
Cash Flows Used for Investing Activities were $155 million, an improvement of $34 million, primarily driven by lower capital expenditures.
Cash Flows Used for Financing Activities and Other were $583 million, an increase of $98 million, primarily due to higher share repurchases in 2025, partially offset by favorable impact of foreign currency exchange rate changes on cash.
Gross Billings by Category
Fourth Quarter 2025
Worldwide Gross Billings for Dolls were $750 million, up 2% as reported, or flat in constant currency, versus the prior year’s fourth quarter, with Barbie up 2% as reported and flat in constant currency.
Worldwide Gross Billings for Infant, Toddler, and Preschool were $254 million, down 8% as reported, or 10% in constant currency, primarily due to declines in Baby Gear & Power Wheels and Preschool Entertainment.
Worldwide Gross Billings for Vehicles were $652 million, up 20% as reported, or 16% in constant currency, primarily driven by growth in Hot Wheels.
Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $381 million, up 16% as reported, or 14% in constant currency, primarily driven by growth in Action Figures, primarily tied to theatrical releases.
Full Year 2025
Worldwide Gross Billings for Dolls were $2,056 million, down 7% as reported and in constant currency, versus the prior year, primarily due to declines in Barbie.
Worldwide Gross Billings for Infant, Toddler, and Preschool were $786 million, down 17% as reported, or 18% in constant currency, due to declines in Fisher-Price, Baby Gear & Power Wheels, and Preschool Entertainment.
Worldwide Gross Billings for Vehicles were $1,995 million, up 11% as reported, or 10% in constant currency, primarily driven by growth in Hot Wheels.
Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $1,242 million, up 14% as reported, or 13% in constant currency, primarily driven by growth in Action Figures, primarily tied to theatrical releases, partially offset by a decline in Building Sets.
2026 Guidance
Mattel’s full year 2026 guidance is:
| (in millions, except EPS and percentages) |
FY2026 Guidance | FY2025 Actual | |||
| Net Sales | +3% to 6%* |
$5,348 |
|||
| Adjusted Gross Margin | Approx. 50% |
48.9% |
|||
| Adjusted Operating Income | $550 – $600 |
$620 |
|||
| Adjusted Tax Rate | Approx. 24% |
20% |
|||
| Adjusted EPS | $1.18 – $1.30 |
$1.41 |
|||
| * in Constant Currency |
Mattel’s 2026 guidance includes an expected partial year contribution of approximately $150 million in Net Sales from Mattel163.
r 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
MAT-FIN MAT-CORP
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT I |
||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)1 | |||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||||||||||||||||||
| (In millions, except per share and percentage information) |
2025 |
2024 |
% Change as Reported |
% Change in Constant Currency |
2025 |
2024 |
% Change as Reported |
% Change in Constant Currency |
|||||||||||||||||||||||||||||||
| $ Amt | % Net Sales |
$ Amt | % Net Sales |
$ Amt | % Net Sales |
$ Amt | % Net Sales |
||||||||||||||||||||||||||||||||
| Net Sales |
$ |
1,766.5 |
|
$ |
1,646.4 |
|
7 |
% |
5 |
% |
$ |
5,347.6 |
|
$ |
5,379.5 |
|
-1 |
% |
-1 |
% |
|||||||||||||||||||
| Cost of Sales |
|
956.1 |
|
54.1 |
% |
|
810.9 |
|
49.3 |
% |
18 |
% |
|
2,742.0 |
|
51.3 |
% |
|
2,645.5 |
|
49.2 |
% |
4 |
% |
|||||||||||||||
| Gross Profit |
|
810.4 |
|
45.9 |
% |
|
835.5 |
|
50.7 |
% |
-3 |
% |
-4 |
% |
|
2,605.7 |
|
48.7 |
% |
|
2,734.1 |
|
50.8 |
% |
-5 |
% |
-5 |
% |
|||||||||||
| Advertising and Promotion Expenses |
|
254.5 |
|
14.4 |
% |
|
257.2 |
|
15.6 |
% |
-1 |
% |
|
522.0 |
|
9.8 |
% |
|
507.3 |
|
9.4 |
% |
3 |
% |
|||||||||||||||
| Other Selling and Administrative Expenses |
|
414.8 |
|
23.5 |
% |
|
420.0 |
|
25.5 |
% |
-1 |
% |
|
1,537.2 |
|
28.7 |
% |
|
1,532.5 |
|
28.5 |
% |
— |
% |
|||||||||||||||
| Operating Income |
|
141.1 |
|
8.0 |
% |
|
158.3 |
|
9.6 |
% |
-11 |
% |
-4 |
% |
|
546.4 |
|
10.2 |
% |
|
694.3 |
|
12.9 |
% |
-21 |
% |
-20 |
% |
|||||||||||
| Interest Expense |
|
30.7 |
|
1.7 |
% |
|
29.4 |
|
1.8 |
% |
4 |
% |
|
118.7 |
|
2.2 |
% |
|
118.8 |
|
2.2 |
% |
— |
% |
|||||||||||||||
| Interest (Income) |
(7.7 |
) |
-0.4 |
% |
(12.0 |
) |
-0.7 |
% |
-36 |
% |
(45.0 |
) |
-0.8 |
% |
(51.5 |
) |
-1.0 |
% |
-13 |
% |
|||||||||||||||||||
| Other Non-Operating Expense (Income), Net |
|
0.7 |
|
|
(4.3 |
) |
|
13.3 |
|
|
4.5 |
|
|||||||||||||||||||||||||||
| Income Before Income Taxes |
|
117.4 |
|
6.6 |
% |
|
145.2 |
|
8.8 |
% |
-19 |
% |
-17 |
% |
|
459.5 |
|
8.6 |
% |
|
622.5 |
|
11.6 |
% |
-26 |
% |
-27 |
% |
|||||||||||
| Provision from Income Taxes |
|
17.2 |
|
|
10.9 |
|
|
89.8 |
|
|
105.6 |
|
|||||||||||||||||||||||||||
| (Income) from Equity Method Investments |
|
(6.1 |
) |
|
(6.5 |
) |
|
(27.9 |
) |
|
(24.9 |
) |
|||||||||||||||||||||||||||
| Net Income |
$ |
106.2 |
|
6.0 |
% |
$ |
140.9 |
|
8.6 |
% |
-25 |
% |
$ |
397.6 |
|
7.4 |
% |
$ |
541.8 |
|
10.1 |
% |
-27 |
% |
|||||||||||||||
| Net Income Per Common Share – Basic |
$ |
0.35 |
|
$ |
0.42 |
|
$ |
1.25 |
|
$ |
1.59 |
|
|||||||||||||||||||||||||||
| Weighted-Average Number of Common Shares |
|
305.9 |
|
|
333.6 |
|
|
318.2 |
|
|
340.4 |
|
|||||||||||||||||||||||||||
| Net Income Per Common Share – Diluted |
$ |
0.34 |
|
$ |
0.42 |
|
$ |
1.24 |
|
$ |
1.58 |
|
|||||||||||||||||||||||||||
| Weighted-Average Number of Common and Potential Common Shares |
|
309.7 |
|
|
336.4 |
|
|
321.8 |
|
|
343.3 |
|
|||||||||||||||||||||||||||
|
1 Amounts may not sum due to rounding |
|||||||||||||||||||||||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT II | ||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS1 | |||||||||
| December 31, | |||||||||
|
2025 |
2024 |
||||||||
| (In millions) | (Unaudited) | ||||||||
| Assets | |||||||||
| Cash and Equivalents |
$ |
1,242.9 |
|
$ |
1,387.9 |
|
|||
| Accounts Receivable, Net |
|
1,097.6 |
|
|
1,003.2 |
|
|||
| Inventories |
|
563.1 |
|
|
501.7 |
|
|||
| Prepaid Expenses and Other Current Assets |
|
227.1 |
|
|
234.1 |
|
|||
| Total Current Assets |
|
3,130.8 |
|
|
3,126.9 |
|
|||
| Property, Plant, and Equipment, Net |
|
590.0 |
|
|
516.0 |
|
|||
| Right-of-Use Assets, Net |
|
319.5 |
|
|
326.4 |
|
|||
| Goodwill |
|
1,390.2 |
|
|
1,381.7 |
|
|||
| Other Noncurrent Assets |
|
1,209.9 |
|
|
1,193.0 |
|
|||
| Total Assets |
$ |
6,640.4 |
|
$ |
6,544.1 |
|
|||
| Liabilities and Stockholders’ Equity | |||||||||
| Accounts Payable and Accrued Liabilities |
$ |
1,428.3 |
|
$ |
1,277.7 |
|
|||
| Income Taxes Payable |
|
29.9 |
|
|
38.0 |
|
|||
| Total Current Liabilities |
|
1,458.2 |
|
|
1,315.7 |
|
|||
| Long-Term Debt |
|
2,331.7 |
|
|
2,334.4 |
|
|||
| Noncurrent Lease Liabilities |
|
268.4 |
|
|
278.2 |
|
|||
| Other Noncurrent Liabilities |
|
349.1 |
|
|
351.7 |
|
|||
| Stockholders’ Equity |
|
2,233.0 |
|
|
2,264.1 |
|
|||
| Total Liabilities and Stockholders’ Equity |
$ |
6,640.4 |
|
$ |
6,544.1 |
|
|||
| 1Amounts may not sum due to rounding. | |||||||||
| MATTEL, INC. AND SUBSIDIARIES | EXHIBIT II | ||||||||
| SUPPLEMENTAL BALANCE SHEET AND CASH FLOW DATA (Unaudited)1 | |||||||||
| December 31, | |||||||||
|
2025 |
2024 |
||||||||
| Key Balance Sheet Data: | |||||||||
| Accounts Receivable, Net Days of Sales Outstanding (DSO) |
|
56 |
|
|
55 |
|
|||
| For the Year Ended December 31, | |||||||||
| (In millions) |
2025 |
2024 |
|||||||
| Condensed Cash Flow Data: | |||||||||
| Cash Flows Provided by Operating Activities |
$ |
593.3 |
|
$ |
800.6 |
|
|||
| Cash Flows (Used for) Investing Activities |
|
(154.9 |
) |
|
(189.0 |
) |
|||
| Cash Flows (Used for) Financing Activities and Other |
|
(583.3 |
) |
|
(485.0 |
) |
|||
| (Decrease) Increase in Cash and Equivalents |
$ |
(145.0 |
) |
$ |
126.5 |
|
|||
| 1Amounts 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 December 31, |
|
For the Year Ended December 31, |
|||||||||||||||||
| (In millions, except percentage information) |
|
2025 |
|
|
|
2024 |
|
|
Change |
|
|
2025 |
|
|
|
2024 |
|
|
Change |
| Gross Profit | |||||||||||||||||||
| Gross Profit, As Reported |
$ |
810.4 |
|
$ |
835.5 |
|
$ |
2,605.7 |
|
$ |
2,734.1 |
|
|||||||
| Gross Margin |
|
45.9 |
% |
|
50.7 |
% |
-480 bps |
|
48.7 |
% |
|
50.8 |
% |
-210 bps | |||||
| Adjustments: | |||||||||||||||||||
| Severance and Restructuring Expenses |
|
1.7 |
|
|
1.3 |
|
|
7.8 |
|
|
4.3 |
|
|||||||
| Gross Profit, As Adjusted |
$ |
812.0 |
|
$ |
836.7 |
|
$ |
2,613.5 |
|
$ |
2,738.3 |
|
|||||||
| Adjusted Gross Margin |
|
46.0 |
% |
|
50.8 |
% |
-480 bps |
|
48.9 |
% |
|
50.9 |
% |
-200 bps | |||||
| Other Selling and Administrative Expenses | |||||||||||||||||||
| Other Selling and Administrative Expenses, As Reported |
$ |
414.8 |
|
$ |
420.0 |
|
-1% |
$ |
1,537.2 |
|
$ |
1,532.5 |
|
—% |
|||||
| % of Net Sales |
|
23.5 |
% |
|
25.5 |
% |
-200 bps |
|
28.7 |
% |
|
28.5 |
% |
20 bps | |||||
| Adjustments: | |||||||||||||||||||
| Severance and Restructuring Expenses |
|
(15.2 |
) |
|
— |
|
|
(39.1 |
) |
|
(43.8 |
) |
|||||||
| Inclined Sleeper Product Recalls |
|
(2.5 |
) |
|
(1.7 |
) |
|
(26.7 |
) |
|
4.1 |
|
|||||||
| Other Selling and Administrative Expenses, As Adjusted |
$ |
397.1 |
|
$ |
418.3 |
|
-5% |
$ |
1,471.5 |
|
$ |
1,492.7 |
|
-1% |
|||||
| % of Net Sales |
|
22.5 |
% |
|
25.4 |
% |
-290 bps |
|
27.5 |
% |
|
27.7 |
% |
-20 bps | |||||
| Operating Income | |||||||||||||||||||
| Operating Income, As Reported |
$ |
141.1 |
|
$ |
158.3 |
|
-11% |
$ |
546.4 |
|
$ |
694.3 |
|
-21% |
|||||
| Operating Income Margin |
|
8.0 |
% |
|
9.6 |
% |
-160 bps |
|
10.2 |
% |
|
12.9 |
% |
-270 bps | |||||
| Adjustments: | |||||||||||||||||||
| Severance and Restructuring Expenses |
|
16.9 |
|
|
1.3 |
|
|
46.9 |
|
|
48.1 |
|
|||||||
| Inclined Sleeper Product Recalls |
|
2.5 |
|
|
1.7 |
|
|
26.7 |
|
|
(4.1 |
) |
|||||||
| Operating Income, As Adjusted |
$ |
160.4 |
|
$ |
161.3 |
|
-1% |
$ |
620.0 |
|
$ |
738.3 |
|
-16% |
|||||
| Adjusted Operating Income Margin |
|
9.1 |
% |
|
9.8 |
% |
-70 bps |
|
11.6 |
% |
|
13.7 |
% |
-210 bps | |||||
| 1Amounts 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 December 31, |
|
For the Year Ended December 31, |
|||||||||||||||||
| (In millions, except per share and percentage information) |
|
2025 |
|
|
|
2024 |
|
|
Change |
|
|
2025 |
|
|
|
2024 |
|
|
Change |
| Earnings Per Share | |||||||||||||||||||
| Net Income Per Common Share, As Reported |
$ |
0.34 |
|
$ |
0.42 |
|
-19% |
$ |
1.24 |
|
$ |
1.58 |
|
-22% |
|||||
| Adjustments: | |||||||||||||||||||
| Severance and Restructuring Expenses |
|
0.05 |
|
|
— |
|
|
0.15 |
|
|
0.14 |
|
|||||||
| Inclined Sleeper Product Recalls |
|
0.01 |
|
|
0.01 |
|
|
0.08 |
|
|
(0.01 |
) |
|||||||
| Changes to Deferred Tax Assets |
|
— |
|
|
(0.07 |
) |
|
— |
|
|
(0.06 |
) |
|||||||
| Tax Effect of Adjustments2 |
|
(0.01 |
) |
|
— |
|
|
(0.05 |
) |
|
(0.03 |
) |
|||||||
| Net Income Per Common Share, As Adjusted |
$ |
0.39 |
|
$ |
0.35 |
|
11% |
$ |
1.41 |
|
$ |
1.62 |
|
-13% |
|||||
| EBITDA and Adjusted EBITDA | |||||||||||||||||||
| Net Income, As Reported |
$ |
106.2 |
|
$ |
140.9 |
|
-25% |
$ |
397.6 |
|
$ |
541.8 |
|
-27% |
|||||
| Adjustments: | |||||||||||||||||||
| Interest Expense |
|
30.7 |
|
|
29.4 |
|
|
118.7 |
|
|
118.8 |
|
|||||||
| Provision from Income Taxes |
|
17.2 |
|
|
10.9 |
|
|
89.8 |
|
|
105.6 |
|
|||||||
| Depreciation |
|
34.1 |
|
|
35.0 |
|
|
136.5 |
|
|
136.6 |
|
|||||||
| Amortization |
|
8.0 |
|
|
7.8 |
|
|
31.5 |
|
|
31.3 |
|
|||||||
| EBITDA |
|
196.1 |
|
|
223.9 |
|
|
774.0 |
|
|
934.2 |
|
|||||||
| Adjustments: | |||||||||||||||||||
| Share-Based Compensation |
|
18.8 |
|
|
22.0 |
|
|
79.7 |
|
|
79.4 |
|
|||||||
| Severance and Restructuring Expenses |
|
16.9 |
|
|
1.3 |
|
|
46.9 |
|
|
48.1 |
|
|||||||
| Inclined Sleeper Product Recalls |
|
2.5 |
|
|
1.7 |
|
|
26.7 |
|
|
(4.1 |
) |
|||||||
| Adjusted EBITDA |
$ |
234.2 |
|
$ |
248.9 |
|
-6% |
$ |
927.3 |
|
$ |
1,057.6 |
|
-12% |
|||||
| Free Cash Flow | |||||||||||||||||||
| Net Cash Flows Provided by Operating Activities |
$ |
593.3 |
|
$ |
800.6 |
|
|||||||||||||
| Capital Expenditures |
|
(182.0 |
) |
|
(202.6 |
) |
|||||||||||||
| Free Cash Flow |
$ |
411.3 |
|
$ |
597.9 |
|
|||||||||||||
| 1Amounts may not sum due to rounding. | |||||||||||||||||||
| 2The 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. | |||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT III |
||||||||||||||||||
| SUPPLEMENTAL FINANCIAL INFORMATION (Unaudited)1 | |||||||||||||||||||
| RECONCILIATION OF GAAP AND NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
|
For the Year Ended December 31, |
|||||||||||||||||||
| (In millions, except percentage and pts information) |
|
2025 |
|
|
|
2024 |
|
|
Change |
||||||||||
| Tax Rate | |||||||||||||||||||
| Income Before Income Taxes, As Reported |
$ |
459.5 |
|
$ |
622.5 |
|
|||||||||||||
| Adjustments: | |||||||||||||||||||
| Severance and Restructuring Expenses |
|
46.9 |
|
|
48.1 |
|
|||||||||||||
| Inclined Sleeper Product Recalls |
|
26.7 |
|
|
(4.1 |
) |
|||||||||||||
| Income Before Income Taxes, As Adjusted |
$ |
533.1 |
|
$ |
666.5 |
|
|||||||||||||
| Provision for Income Taxes, As Reported |
$ |
89.8 |
|
$ |
105.6 |
|
|||||||||||||
| Adjustments: | |||||||||||||||||||
| Changes to Deferred Tax Assets |
|
— |
|
|
21.1 |
|
|||||||||||||
| Tax Effect of Adjustments2 |
|
16.2 |
|
|
10.2 |
|
|||||||||||||
| Provision for Income Taxes, As Adjusted |
$ |
106.0 |
|
$ |
136.9 |
|
|||||||||||||
| Tax Rate, As Reported |
|
20 |
% |
|
17 |
% |
3 pts | ||||||||||||
| Tax Rate, As Adjusted |
|
20 |
% |
|
21 |
% |
-1 pt | ||||||||||||
|
December 31, |
|||||||||||||||||||
|
|
2025 |
|
|
|
2024 |
|
|||||||||||||
| Net Debt | |||||||||||||||||||
| Long-Term Debt |
$ |
2,331.7 |
|
$ |
2,334.4 |
|
|||||||||||||
| Adjustments: | |||||||||||||||||||
| Cash and Equivalents |
|
(1,242.9 |
) |
|
(1,387.9 |
) |
|||||||||||||
| Net Debt |
$ |
1,088.7 |
|
$ |
946.4 |
|
|||||||||||||
| 1Amounts may not sum due to rounding. | |||||||||||||||||||
| 2 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 Year Ended December 31, |
|||||||||||||||||||
| (In millions, except percentage and pts information) |
|
2025 |
|
|
|
2024 |
|
|
Change |
||||||||||
| Leverage Ratio (Total Debt/Adjusted EBITDA) | |||||||||||||||||||
| Total Debt | |||||||||||||||||||
| Long-Term Debt |
$ |
2,331.7 |
|
$ |
2,334.4 |
|
|||||||||||||
| Adjustments: | |||||||||||||||||||
| Debt Issuance Costs and Debt Discount |
|
18.3 |
|
|
15.6 |
|
|||||||||||||
| Total Debt |
$ |
2,350.0 |
|
$ |
2,350.0 |
|
|||||||||||||
| EBITDA and Adjusted EBITDA | |||||||||||||||||||
| Net Income, As Reported |
$ |
397.6 |
|
$ |
541.8 |
|
-27% |
||||||||||||
| Adjustments: | |||||||||||||||||||
| Interest Expense |
|
118.7 |
|
|
118.8 |
|
|||||||||||||
| Provision for Income Taxes |
|
89.8 |
|
|
105.6 |
|
|||||||||||||
| Depreciation |
|
136.5 |
|
|
136.6 |
|
|||||||||||||
| Amortization |
|
31.5 |
|
|
31.3 |
|
|||||||||||||
| EBITDA |
|
774.0 |
|
|
934.2 |
|
|||||||||||||
| Adjustments: | |||||||||||||||||||
| Share-Based Compensation |
|
79.7 |
|
|
79.4 |
|
|||||||||||||
| Severance and Restructuring Expenses |
|
46.9 |
|
|
48.1 |
|
|||||||||||||
| Inclined Sleeper Product Recalls |
|
26.7 |
|
|
(4.1 |
) |
|||||||||||||
| Adjusted EBITDA |
$ |
927.3 |
|
$ |
1,057.6 |
|
-12% |
||||||||||||
| Total Debt / Net Income | 5.9x | 4.3x | |||||||||||||||||
| Leverage Ratio (Total Debt / Adjusted EBITDA) | 2.5x | 2.2x | |||||||||||||||||
| Free Cash Flow | |||||||||||||||||||
| Net Cash Flows Provided by Operating Activities |
$ |
593.3 |
|
$ |
800.6 |
|
-26% |
||||||||||||
| Capital Expenditures |
|
(182.0 |
) |
|
(202.6 |
) |
|||||||||||||
| Free Cash Flow |
$ |
411.3 |
|
$ |
597.9 |
|
-31% |
||||||||||||
| Net Cash Flows Provided by Operating Activities / Net Income |
|
149 |
% |
|
148 |
% |
1 pt | ||||||||||||
| Free Cash Flow Conversion (Free Cash Flow/Adjusted EBITDA) |
|
44 |
% |
|
57 |
% |
-13 pts | ||||||||||||
| 1Amounts may not sum due to rounding. | |||||||||||||||||||
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT IV |
||||||||||||||||||||||
| WORLDWIDE NET SALES AND GROSS BILLINGS1 (Unaudited)2 | |||||||||||||||||||||||
| For the Three Months Ended December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
|
|
2025 |
|
2024 |
|
% Change |
|
% Change |
|
2025 |
|
2024 |
|
% Change |
|
% Change |
||||||||
| (In millions, except percentage information) | |||||||||||||||||||||||
| Worldwide Net Sales: | |||||||||||||||||||||||
| Net Sales |
$ |
1,766.5 |
$ |
1,646.4 |
7 |
% |
5 |
% |
$ |
5,347.6 |
$ |
5,379.5 |
-1 |
% |
-1 |
% |
|||||||
| Worldwide Gross Billings by Categories: | |||||||||||||||||||||||
| Dolls |
$ |
750.3 |
$ |
734.9 |
2 |
% |
— |
% |
$ |
2,056.1 |
$ |
2,200.5 |
-7 |
% |
-7 |
% |
|||||||
| Infant, Toddler, and Preschool |
|
254.0 |
|
276.2 |
-8 |
|
-10 |
|
|
786.3 |
|
951.3 |
-17 |
|
-18 |
|
|||||||
| Vehicles |
|
652.4 |
|
543.8 |
20 |
|
16 |
|
|
1,994.6 |
|
1,791.2 |
11 |
|
10 |
|
|||||||
| Action Figures, Building Sets, Games, and Other |
|
380.9 |
|
327.1 |
16 |
|
14 |
|
|
1,242.1 |
|
1,090.4 |
14 |
|
13 |
|
|||||||
| Gross Billings |
$ |
2,037.6 |
$ |
1,881.9 |
8 |
% |
6 |
% |
$ |
6,079.1 |
$ |
6,033.3 |
1 |
% |
— |
% |
|||||||
| Supplemental Gross Billings Disclosure | |||||||||||||||||||||||
| Worldwide Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||
| Barbie |
$ |
415.7 |
$ |
406.0 |
2 |
% |
— |
% |
$ |
1,204.1 |
$ |
1,350.1 |
-11 |
% |
-12 |
% |
|||||||
| Hot Wheels |
|
576.4 |
|
481.4 |
20 |
|
16 |
|
|
1,749.7 |
|
1,575.0 |
11 |
|
10 |
|
|||||||
| Fisher-Price |
|
208.9 |
|
206.1 |
1 |
|
-1 |
|
|
622.3 |
|
700.8 |
-11 |
|
-12 |
|
|||||||
| Other |
|
836.6 |
|
788.5 |
6 |
|
4 |
|
|
2,503.0 |
|
2,407.4 |
4 |
|
3 |
|
|||||||
| Gross Billings |
$ |
2,037.6 |
$ |
1,881.9 |
8 |
% |
6 |
% |
$ |
6,079.1 |
$ |
6,033.3 |
1 |
% |
— |
% |
|||||||
| 1Gross 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. | |||||||||||||||||||||||
| 2Amounts 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 December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
|
2025 |
2024 |
% Change as Reported |
% Change in Constant Currency |
2025 |
2024 |
% Change as Reported |
% Change in Constant Currency |
||||||||||||||||
| (In millions, except percentage information) | |||||||||||||||||||||||
| North America Net Sales: | |||||||||||||||||||||||
| Net Sales |
$ |
1,020.8 |
$ |
975.5 |
5 |
% |
5 |
% |
$ |
3,001.1 |
$ |
3,168.1 |
-5 |
% |
-5 |
% |
|||||||
| North America Gross Billings by Categories: | |||||||||||||||||||||||
| Dolls |
$ |
466.7 |
$ |
441.9 |
6 |
% |
6 |
% |
$ |
1,201.4 |
$ |
1,280.1 |
-6 |
% |
-6 |
% |
|||||||
| Infant, Toddler, and Preschool |
|
156.1 |
|
163.2 |
-4 |
|
-4 |
|
|
463.2 |
|
583.3 |
-21 |
|
-21 |
|
|||||||
| Vehicles |
|
293.5 |
|
255.2 |
15 |
|
15 |
|
|
894.4 |
|
860.6 |
4 |
|
4 |
|
|||||||
| Action Figures, Building Sets, Games, and Other |
|
212.5 |
|
196.8 |
8 |
|
8 |
|
|
703.2 |
|
670.6 |
5 |
|
5 |
|
|||||||
| Gross Billings |
$ |
1,128.8 |
$ |
1,057.0 |
7 |
% |
7 |
% |
$ |
3,262.2 |
$ |
3,394.6 |
-4 |
% |
-4 |
% |
|||||||
| Supplemental Gross Billings Disclosure | |||||||||||||||||||||||
| North America Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||
| Barbie |
$ |
232.5 |
$ |
217.4 |
7 |
% |
7 |
% |
$ |
650.8 |
$ |
734.9 |
-11 |
% |
-11 |
% |
|||||||
| Hot Wheels |
|
251.9 |
|
220.3 |
14 |
|
14 |
|
|
760.6 |
|
741.3 |
3 |
|
3 |
|
|||||||
| Fisher-Price |
|
129.6 |
|
120.7 |
7 |
|
7 |
|
|
369.8 |
|
421.3 |
-12 |
|
-12 |
|
|||||||
| Other |
|
514.9 |
|
498.6 |
3 |
|
3 |
|
|
1,481.0 |
|
1,497.0 |
-1 |
|
-1 |
|
|||||||
| Gross Billings |
$ |
1,128.8 |
$ |
1,057.0 |
7 |
% |
7 |
% |
$ |
3,262.2 |
$ |
3,394.6 |
-4 |
% |
-4 |
% |
|||||||
| 1Gross 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. | |||||||||||||||||||||||
| 2Amounts 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 December 31, | For the Year Ended December 31, | ||||||||||||||||||||||
|
2025 |
|
2024 |
|
% Change |
|
% Change |
|
2025 |
|
2024 |
|
% Change |
|
% Change |
|||||||||
| (In millions, except percentage information) | |||||||||||||||||||||||
| International Net Sales by Geographic Area: | |||||||||||||||||||||||
| EMEA |
$ |
443.5 |
$ |
402.6 |
10 |
% |
3 |
% |
$ |
1,342.1 |
$ |
1,240.4 |
8 |
% |
4 |
% |
|||||||
| Latin America |
|
179.0 |
|
153.4 |
17 |
|
8 |
|
|
602.5 |
|
608.2 |
-1 |
|
-1 |
|
|||||||
| Asia Pacific |
|
123.1 |
|
114.9 |
7 |
|
8 |
|
|
401.9 |
|
362.8 |
11 |
|
12 |
|
|||||||
| Net Sales |
$ |
745.6 |
$ |
670.9 |
11 |
% |
5 |
% |
$ |
2,346.6 |
$ |
2,211.5 |
6 |
% |
4 |
% |
|||||||
| International Gross Billings by Geographic Area: | |||||||||||||||||||||||
| EMEA |
$ |
554.3 |
$ |
503.1 |
10 |
% |
3 |
% |
$ |
1,642.3 |
$ |
1,501.4 |
9 |
% |
5 |
% |
|||||||
| Latin America |
|
213.3 |
|
190.7 |
12 |
|
4 |
|
|
715.7 |
|
722.1 |
-1 |
|
-1 |
|
|||||||
| Asia Pacific |
|
141.2 |
|
131.1 |
8 |
|
8 |
|
|
458.8 |
|
415.3 |
10 |
|
11 |
|
|||||||
| Gross Billings |
$ |
908.8 |
$ |
824.9 |
10 |
% |
4 |
% |
$ |
2,816.8 |
$ |
2,638.7 |
7 |
% |
4 |
% |
|||||||
| International Gross Billings by Categories: | |||||||||||||||||||||||
| Dolls |
$ |
283.6 |
$ |
293.0 |
-3 |
% |
-9 |
% |
$ |
854.7 |
$ |
920.4 |
-7 |
% |
-9 |
% |
|||||||
| Infant, Toddler, and Preschool |
|
97.9 |
|
113.0 |
-13 |
|
-18 |
|
|
323.1 |
|
368.0 |
-12 |
|
-14 |
|
|||||||
| Vehicles |
|
358.9 |
|
288.6 |
24 |
|
18 |
|
|
1,100.2 |
|
930.5 |
18 |
|
16 |
|
|||||||
| Action Figures, Building Sets, Games, and Other |
|
168.4 |
|
130.3 |
29 |
|
22 |
|
|
538.8 |
|
419.8 |
28 |
|
25 |
|
|||||||
| Gross Billings |
$ |
908.8 |
$ |
824.9 |
10 |
% |
4 |
% |
$ |
2,816.8 |
$ |
2,638.7 |
7 |
% |
4 |
% |
|||||||
| Supplemental Gross Billings Disclosure | |||||||||||||||||||||||
| International Gross Billings by Top 3 Power Brands: | |||||||||||||||||||||||
| Barbie |
$ |
183.3 |
$ |
188.5 |
-3 |
% |
-8 |
% |
$ |
553.3 |
$ |
615.2 |
-10 |
% |
-12 |
% |
|||||||
| Hot Wheels |
|
324.4 |
|
261.1 |
24 |
|
17 |
|
|
989.0 |
|
833.7 |
19 |
|
16 |
|
|||||||
| Fisher-Price |
|
79.3 |
|
85.4 |
-7 |
|
-13 |
|
|
252.5 |
|
279.5 |
-10 |
|
-11 |
|
|||||||
| Other |
|
321.7 |
|
289.8 |
11 |
|
5 |
|
|
1,022.0 |
|
910.3 |
12 |
|
10 |
|
|||||||
| Gross Billings |
$ |
908.8 |
$ |
824.9 |
10 |
% |
4 |
% |
$ |
2,816.8 |
$ |
2,638.7 |
7 |
% |
4 |
% |
|||||||
