Mattel Reports Third Quarter 2025 Financial Results
Third Quarter 2025 Highlights Versus Prior Year
- Net Sales of $1,736 million, down 6% as reported, and 7% in constant currency
- Gross Margin of 50.0%, a decrease of 310 basis points; Adjusted Gross Margin of 50.2%, a decrease of 290 basis points
- Operating Income of $380 million, a decrease of $108 million; Adjusted Operating Income of $387 million, a decrease of $117 million
- Net Income of $278 million, a decrease of $94 million
- Earnings per Share of $0.88 compared to $1.09 per share; Adjusted Earnings per Share of $0.89 compared to $1.14 per share
- Repurchased $202 million of shares, bringing year-to-date total to $412 million
- Company reiterates 2025 guidance; reaffirms 2025 share repurchase target of $600 million
El Segundo, CA — Mattel, Inc. reported third quarter 2025 financial results.
Ynon Kreiz, Chairman and CEO of Mattel, said: “While our US business was challenged in the third quarter by industry-wide shifts in retailer ordering patterns, the fundamentals of our business are strong, with growth in consumer demand for our products across every region. Since the beginning of the fourth quarter, orders from retailers in the US have accelerated significantly and our POS is growing. Looking into the balance of the year, we expect a good holiday season for Mattel and strong topline growth in the fourth quarter. We are reiterating our full year 2025 guidance and are advancing our strategy to grow our IP-driven toy business and expand our entertainment offering.”
Paul Ruh, CFO of Mattel, added: “We operated with excellence in a dynamic environment and continued to execute on our Optimizing for Profitable Growth cost savings program. We repurchased $202 million of shares in the quarter and are on track to repurchase $600 million this year. Our balance sheet is strong, and both owned and retail inventories are at appropriate levels as we enter the holiday season. We are well positioned to achieve our guidance.”
Third Quarter Financial Overview
Net Sales
Net Sales were $1,736 million, down 6% as reported, and 7% in constant currency, versus the prior year’s third quarter. The decrease in Net Sales as reported was primarily due to a 12% decrease in North America, partly offset by a 3% increase in International. The decrease in Net Sales in constant currency was due to a 12% decrease in North America, with International comparable.
Gross Margin
Reported Gross Margin decreased to 50.0%, versus 53.1% in the prior year’s third quarter, and Adjusted Gross Margin decreased to 50.2%, versus 53.1%. The decrease in Gross Margin was primarily due to the impacts of unfavorable foreign exchange, inflation, tariff costs, and higher sales adjustments, partially offset by cost savings.
Operating Income
Reported Operating Income was $380 million, a decrease of $108 million, and Adjusted Operating Income was $387 million, a decrease of $117 million. The decrease in Reported and Adjusted Operating Income was primarily due to lower Net Sales and lower Gross Margin.
Cash Flow
For the nine months ended September 30, 2025, Cash Flows Used for Operating Activities were $203 million, an increase of $142 million, driven by lower net income net of non-cash adjustments, partially offset by lower working capital usage.
Cash Flows Used for Investing Activities were $98 million, an improvement of $54 million, primarily driven by lower capital expenditures.
Cash Flows Used for Financing Activities and Other were $395 million, an increase of $71 million, primarily due to higher share repurchases in the first nine months of 2025, partially offset by favorable impact of foreign currency exchange rate changes on cash.
Third Quarter Gross Billings by Category
Worldwide Gross Billings for Dolls were $674 million, down 11% as reported, or 12% in constant currency, versus the prior year’s third quarter, primarily due to declines in Barbie.
Worldwide Gross Billings for Infant, Toddler, and Preschool were $262 million, down 25% as reported, or 26% in constant currency, due to declines in Fisher-Price, Preschool Entertainment, and Baby Gear & Power Wheels.
Worldwide Gross Billings for Vehicles were $626 million, up 8% as reported, or 6% in constant currency, primarily driven by growth in Hot Wheels.
Worldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $404 million, up 11% as reported, or 9% in constant currency, primarily driven by growth in Action Figures, partially offset by a decline in Building Sets.
2025 Guidance
Mattel’s full year 2025 guidance remains:
| (in millions, except EPS and percentages) |
FY2025 Guidance |
FY2024 Actual |
||
|
|
||||
| Net Sales | +1% to 3%* |
$5,380 |
||
| Adjusted Gross Margin | Approx. 50% |
50.9% |
||
| Adjusted Operating Income | $700 – $750 |
$738 |
||
| Adjusted Tax Rate | 23% – 24% |
21% |
||
| Adjusted EPS | $1.54 – $1.66 |
$1.62 |
||
| Free Cash Flow | Approx. $500 |
$598 |
||
| * in Constant Currency | ||||
Mattel’s guidance considers what the company is aware of today, but remains subject to market volatility, unexpected disruptions, including further regulatory actions impacting global trade, and other macro-economic risks and uncertainties.
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, |
||||||||||||||||||||||||||||||||||||||
|
2025 |
|
2024 |
|
% Change |
|
% Change |
|
2025 |
|
2024 |
|
% Change |
|
% Change |
||||||||||||||||||||||||||
| (In millions, except per share and percentage information) |
$ Amt |
|
% Net |
|
$ Amt |
|
% Net |
|
|
|
$ Amt |
|
% Net |
|
$ Amt |
|
% Net |
|
|
|||||||||||||||||||||
| Net Sales |
$ |
1,736.0 |
|
$ |
1,843.9 |
|
-6 |
% |
-7 |
% |
$ |
3,581.2 |
|
$ |
3,733.1 |
|
-4 |
% |
-4 |
% |
||||||||||||||||||||
| Cost of Sales |
|
867.7 |
|
50.0 |
% |
|
864.9 |
|
46.9 |
% |
— |
% |
|
1,785.9 |
|
49.9 |
% |
|
1,834.5 |
|
49.1 |
% |
-3 |
% |
||||||||||||||||
| Gross Profit |
|
868.3 |
|
50.0 |
% |
|
979.0 |
|
53.1 |
% |
-11 |
% |
-10 |
% |
|
1,795.3 |
|
50.1 |
% |
|
1,898.6 |
|
50.9 |
% |
-5 |
% |
-5 |
% |
||||||||||||
| Advertising and Promotion Expenses |
|
118.1 |
|
6.8 |
% |
|
105.0 |
|
5.7 |
% |
13 |
% |
|
267.5 |
|
7.5 |
% |
|
250.1 |
|
6.7 |
% |
7 |
% |
||||||||||||||||
| Other Selling and Administrative Expenses |
|
370.3 |
|
21.3 |
% |
|
385.7 |
|
20.9 |
% |
-4 |
% |
|
1,122.5 |
|
31.3 |
% |
|
1,112.5 |
|
29.8 |
% |
1 |
% |
||||||||||||||||
| Operating Income |
|
379.8 |
|
21.9 |
% |
|
488.3 |
|
26.5 |
% |
-22 |
% |
-20 |
% |
|
405.4 |
|
11.3 |
% |
|
536.0 |
|
14.4 |
% |
-24 |
% |
-25 |
% |
||||||||||||
| Interest Expense |
|
29.4 |
|
1.7 |
% |
|
29.4 |
|
1.6 |
% |
— |
% |
|
88.0 |
|
2.5 |
% |
|
89.4 |
|
2.4 |
% |
-2 |
% |
||||||||||||||||
| Interest (Income) |
|
(9.0 |
) |
-0.5 |
% |
|
(9.8 |
) |
-0.5 |
% |
-8 |
% |
|
(37.3 |
) |
-1.0 |
% |
|
(39.5 |
) |
-1.1 |
% |
-5 |
% |
||||||||||||||||
| Other Non-Operating Expense (Income), Net |
|
1.0 |
|
|
(2.9 |
) |
|
12.6 |
|
|
8.8 |
|
||||||||||||||||||||||||||||
| Income Before Income Taxes |
|
358.5 |
|
20.7 |
% |
|
471.7 |
|
25.6 |
% |
-24 |
% |
-22 |
% |
|
342.1 |
|
9.6 |
% |
|
477.3 |
|
12.8 |
% |
-28 |
% |
-30 |
% |
||||||||||||
| Provision for Income Taxes |
|
86.9 |
|
|
106.4 |
|
|
72.5 |
|
|
94.8 |
|
||||||||||||||||||||||||||||
| (Income) from Equity Method Investments |
|
(6.7 |
) |
|
(7.0 |
) |
|
(21.8 |
) |
|
(18.4 |
) |
||||||||||||||||||||||||||||
| Net Income |
$ |
278.4 |
|
16.0 |
% |
$ |
372.4 |
|
20.2 |
% |
-25 |
% |
$ |
291.4 |
|
8.1 |
% |
$ |
401.0 |
|
10.7 |
% |
-27 |
% |
||||||||||||||||
| Net Income Per Common Share – Basic |
$ |
0.88 |
|
$ |
1.10 |
|
$ |
0.90 |
|
$ |
1.17 |
|
||||||||||||||||||||||||||||
| Weighted-Average Number of Common Shares |
|
315.8 |
|
|
339.1 |
|
|
322.3 |
|
|
342.7 |
|
||||||||||||||||||||||||||||
| Net Income Per Common Share – Diluted |
$ |
0.88 |
|
$ |
1.09 |
|
$ |
0.90 |
|
$ |
1.16 |
|
||||||||||||||||||||||||||||
| Weighted-Average Number of Common and Potential Common Shares |
|
318.1 |
|
|
341.2 |
|
|
325.1 |
|
|
345.4 |
|
||||||||||||||||||||||||||||
|
1 |
Amounts may not sum due to rounding. |
| MATTEL, INC. AND SUBSIDIARIES |
EXHIBIT II |
|||||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS1 | ||||||||||||
|
September 30, |
|
December 31, |
||||||||||
|
2025 |
|
2024 |
|
2024 |
||||||||
| (In millions) |
(Unaudited) |
|
|
|||||||||
| Assets | ||||||||||||
| Cash and Equivalents |
$ |
691.9 |
|
$ |
723.5 |
|
$ |
1,387.9 |
|
|||
| Accounts Receivable, Net |
|
1,390.3 |
|
|
1,477.4 |
|
|
1,003.2 |
|
|||
| Inventories |
|
826.6 |
|
|
737.2 |
|
|
501.7 |
|
|||
| Prepaid Expenses and Other Current Assets |
|
246.9 |
|
|
242.3 |
|
|
234.1 |
|
|||
| Total Current Assets |
|
3,155.7 |
|
|
3,180.4 |
|
|
3,126.9 |
|
|||
| Property, Plant, and Equipment, Net |
|
542.4 |
|
|
513.8 |
|
|
516.0 |
|
|||
| Right-of-Use Assets, Net |
|
305.4 |
|
|
277.6 |
|
|
326.4 |
|
|||
| Goodwill |
|
1,389.9 |
|
|
1,389.0 |
|
|
1,381.7 |
|
|||
| Other Noncurrent Assets |
|
1,200.1 |
|
|
1,153.0 |
|
|
1,193.0 |
|
|||
| Total Assets |
$ |
6,593.4 |
|
$ |
6,513.7 |
|
$ |
6,544.1 |
|
|||
| Liabilities and Stockholders’ Equity | ||||||||||||
| Current Portion of Long-Term Debt |
$ |
599.2 |
|
$ |
— |
|
$ |
— |
|
|||
| Accounts Payable and Accrued Liabilities |
|
1,322.6 |
|
|
1,242.4 |
|
|
1,277.7 |
|
|||
| Income Taxes Payable |
|
52.8 |
|
|
56.2 |
|
|
38.0 |
|
|||
| Total Current Liabilities |
|
1,974.6 |
|
|
1,298.6 |
|
|
1,315.7 |
|
|||
| Long-Term Debt |
|
1,738.4 |
|
|
2,333.3 |
|
|
2,334.4 |
|
|||
| Noncurrent Lease Liabilities |
|
254.7 |
|
|
229.2 |
|
|
278.2 |
|
|||
| Other Noncurrent Liabilities |
|
364.5 |
|
|
339.7 |
|
|
351.7 |
|
|||
| Stockholders’ Equity |
|
2,261.2 |
|
|
2,312.9 |
|
|
2,264.1 |
|
|||
| Total Liabilities and Stockholders’ Equity |
$ |
6,593.4 |
|
$ |
6,513.7 |
|
$ |
6,544.1 |
|
|||
|
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, |
||||||||
|
2025 |
2024 |
|||||||
| Key Balance Sheet Data: | ||||||||
| Accounts Receivable, Net Days of Sales Outstanding (DSO) |
|
72 |
|
|
72 |
|
||
|
For the Nine Months Ended September 30, |
||||||||
| (In millions) |
2025 |
|
2024 |
|||||
| Condensed Cash Flow Data: | ||||||||
| Cash Flows (Used for) Operating Activities |
$ |
(203.3 |
) |
$ |
(61.6 |
) |
||
| Cash Flows (Used for) Investing Activities |
|
(97.5 |
) |
|
(151.7 |
) |
||
| Cash Flows (Used for) Financing Activities and Other |
|
(395.2 |
) |
|
(324.5 |
) |
||
| Decrease in Cash and Equivalents |
$ |
(696.0 |
) |
$ |
(537.8 |
) |
||
|
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) |
2025 |
2024 |
Change |
2025 |
2024 |
Change |
||||||||||||||
| Gross Profit | ||||||||||||||||||||
| Gross Profit, As Reported |
$ |
868.3 |
|
$ |
979.0 |
|
$ |
1,795.3 |
|
$ |
1,898.6 |
|
||||||||
| Gross Margin |
|
50.0 |
% |
|
53.1 |
% |
-310 bps |
|
50.1 |
% |
|
50.9 |
% |
-80 bps |
||||||
| Adjustments: |
|
|
||||||||||||||||||
| Severance and Restructuring Expenses |
|
2.4 |
|
|
0.4 |
|
|
|
6.1 |
|
|
3.0 |
|
|
||||||
| Gross Profit, As Adjusted |
$ |
870.7 |
|
$ |
979.4 |
|
|
$ |
1,801.4 |
|
$ |
1,901.6 |
|
|
||||||
| Adjusted Gross Margin |
|
50.2 |
% |
|
53.1 |
% |
-290 bps |
|
50.3 |
% |
|
50.9 |
% |
-60 bps |
||||||
|
|
|
|||||||||||||||||||
| Other Selling and Administrative Expenses |
|
|
||||||||||||||||||
| Other Selling and Administrative Expenses, As Reported |
$ |
370.3 |
|
$ |
385.7 |
|
-4% |
$ |
1,122.5 |
|
$ |
1,112.5 |
|
1% |
||||||
| % of Net Sales |
|
21.3 |
% |
|
20.9 |
% |
40 bps |
|
31.3 |
% |
|
29.8 |
% |
150 bps |
||||||
| Adjustments: |
|
|
||||||||||||||||||
| Severance and Restructuring Expenses |
|
(0.4 |
) |
|
(27.1 |
) |
|
|
(23.9 |
) |
|
(43.8 |
) |
|
||||||
| Inclined Sleeper Product Recalls |
|
(4.6 |
) |
|
11.7 |
|
|
|
(24.2 |
) |
|
5.8 |
|
|
||||||
| Other Selling and Administrative Expenses, As Adjusted |
$ |
365.2 |
|
$ |
370.3 |
|
-1% |
$ |
1,074.3 |
|
$ |
1,074.5 |
|
—% |
||||||
| % of Net Sales |
|
21.0 |
% |
|
20.1 |
% |
90 bps |
|
30.0 |
% |
|
28.8 |
% |
120 bps |
||||||
|
|
|
|||||||||||||||||||
| Operating Income |
|
|
||||||||||||||||||
| Operating Income, As Reported |
$ |
379.8 |
|
$ |
488.3 |
|
-22% |
$ |
405.4 |
|
$ |
536.0 |
|
-24% |
||||||
| Operating Income Margin |
|
21.9 |
% |
|
26.5 |
% |
-460 bps |
|
11.3 |
% |
|
14.4 |
% |
-310 bps |
||||||
| Adjustments: |
|
|
||||||||||||||||||
| Severance and Restructuring Expenses |
|
2.8 |
|
|
27.5 |
|
|
|
30.0 |
|
|
46.8 |
|
|
||||||
| Inclined Sleeper Product Recalls |
|
4.6 |
|
|
(11.7 |
) |
|
|
24.2 |
|
|
(5.8 |
) |
|
||||||
| Operating Income, As Adjusted |
$ |
387.3 |
|
$ |
504.1 |
|
-23% |
$ |
459.6 |
|
$ |
577.0 |
|
-20% |
||||||
| Adjusted Operating Income Margin |
|
22.3 |
% |
|
27.3 |
% |
-500 bps |
|
12.8 |
% |
|
15.5 |
% |
-270 bps |
||||||
| 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 per share and percentage information) |
2025 |
|
2024 |
|
Change |
|
2025 |
|
2024 |
|
Change |
|||||||||
| Earnings Per Share | ||||||||||||||||||||
| Net Income Per Common Share, As Reported |
$ |
0.88 |
|
$ |
1.09 |
|
-19% |
$ |
0.90 |
|
$ |
1.16 |
|
-22% |
||||||
| Adjustments: | ||||||||||||||||||||
| Severance and Restructuring Expenses |
|
0.01 |
|
|
0.08 |
|
|
0.09 |
|
|
0.14 |
|
||||||||
| Inclined Sleeper Product Recalls |
|
0.01 |
|
|
(0.03 |
) |
|
0.07 |
|
|
(0.02 |
) |
||||||||
| Valuation Allowance on Foreign Deferred Tax Assets |
|
— |
|
|
0.01 |
|
|
— |
|
|
0.01 |
|
||||||||
| Tax Effect of Adjustments2 |
|
0.00 |
|
|
(0.01 |
) |
|
(0.04 |
) |
|
(0.03 |
) |
||||||||
| Net Income Per Common Share, As Adjusted |
$ |
0.89 |
|
$ |
1.14 |
|
-22% |
$ |
1.03 |
|
$ |
1.26 |
|
-18% |
||||||
| EBITDA and Adjusted EBITDA | ||||||||||||||||||||
| Net Income, As Reported |
$ |
278.4 |
|
$ |
372.4 |
|
-25% |
$ |
291.4 |
|
$ |
401.0 |
|
-27% |
||||||
| Adjustments: | ||||||||||||||||||||
| Interest Expense |
|
29.4 |
|
|
29.4 |
|
|
88.0 |
|
|
89.4 |
|
||||||||
| Provision for Income Taxes |
|
86.9 |
|
|
106.4 |
|
|
72.5 |
|
|
94.8 |
|
||||||||
| Depreciation |
|
33.7 |
|
|
33.0 |
|
|
102.4 |
|
|
101.7 |
|
||||||||
| Amortization |
|
7.9 |
|
|
7.9 |
|
|
23.6 |
|
|
23.5 |
|
||||||||
| EBITDA |
|
436.2 |
|
|
549.0 |
|
|
577.9 |
|
|
710.3 |
|
||||||||
| Adjustments: | ||||||||||||||||||||
| Share-Based Compensation |
|
22.3 |
|
|
19.7 |
|
|
61.0 |
|
|
57.4 |
|
||||||||
| Severance and Restructuring Expenses |
|
2.8 |
|
|
27.5 |
|
|
30.0 |
|
|
46.8 |
|
||||||||
| Inclined Sleeper Product Recalls |
|
4.6 |
|
|
(11.7 |
) |
|
24.2 |
|
|
(5.8 |
) |
||||||||
| Adjusted EBITDA |
$ |
466.1 |
|
$ |
584.4 |
|
-20% |
$ |
693.1 |
|
$ |
808.8 |
|
-14% |
||||||
| Free Cash Flow | ||||||||||||||||||||
| Net Cash Flows (Used for) Operating Activities |
$ |
(203.3 |
) |
$ |
(61.6 |
) |
||||||||||||||
| Capital Expenditures |
|
(124.9 |
) |
|
(156.9 |
) |
||||||||||||||
| Free Cash Flow |
$ |
(328.2 |
) |
$ |
(218.5 |
) |
||||||||||||||
|
1 |
Amounts may not sum due to rounding. |
||||||||||||
|
2 |
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. |
||||||||||||
| 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) |
2025 |
|
2024 |
|
Change |
|||||
| Tax Rate | ||||||||||
| Income Before Income Taxes, As Reported |
$ |
358.5 |
|
$ |
471.7 |
|
||||
| Adjustments: | ||||||||||
| Severance and Restructuring Expenses |
|
2.8 |
|
|
27.5 |
|
||||
| Inclined Sleeper Product Recalls |
|
4.6 |
|
|
(11.7 |
) |
||||
| Income Before Income Taxes, As Adjusted |
$ |
366.0 |
|
$ |
487.4 |
|
||||
| Provision for Income Taxes, As Reported |
$ |
86.9 |
|
$ |
106.4 |
|
||||
| Adjustments: | ||||||||||
| Valuation Allowance on Foreign Deferred Tax Assets |
|
— |
|
|
(3.2 |
) |
||||
| Tax Effect of Adjustments2 |
|
1.4 |
|
|
3.7 |
|
||||
| Provision for Income Taxes, As Adjusted |
$ |
88.3 |
|
$ |
106.9 |
|
||||
| Tax Rate, As Reported |
|
24 |
% |
|
23 |
% |
1 pt |
|||
| Tax Rate, As Adjusted |
|
24 |
% |
|
22 |
% |
2 pts |
|||
|
September 30, |
||||||||||
|
2025 |
|
2024 |
||||||||
| Net Debt | ||||||||||
| Long-Term Debt |
$ |
1,738.4 |
|
$ |
2,333.3 |
|
||||
| Current Portion of Long-Term Debt |
|
599.2 |
|
|
— |
|
||||
| Adjustments: | ||||||||||
| Cash and Equivalents |
|
(691.9 |
) |
|
(723.5 |
) |
||||
| Net Debt |
$ |
1,645.7 |
|
$ |
1,609.7 |
|
||||
|
1 |
Amounts 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 Trailing Twelve Months Ended September 30, |
||||||||||
| (In millions, except percentage and pts information) |
2025 |
|
2024 |
|
Change |
|||||
| Leverage Ratio (Total Debt/Adjusted EBITDA) | ||||||||||
| Total Debt | ||||||||||
| Long-Term Debt |
$ |
1,738.4 |
|
$ |
2,333.3 |
|
||||
| Current Portion of Long-Term Debt |
|
599.2 |
|
|
— |
|
||||
| Adjustments: | ||||||||||
| Debt Issuance Costs and Debt Discount |
|
12.4 |
|
|
16.7 |
|
||||
| Total Debt |
$ |
2,350.0 |
|
$ |
2,350.0 |
|
||||
| EBITDA and Adjusted EBITDA | ||||||||||
| Net Income, As Reported |
$ |
432.3 |
|
$ |
548.3 |
|
-21% |
|||
| Adjustments: |
|
|||||||||
| Interest Expense |
|
117.4 |
|
|
120.7 |
|
|
|||
| Provision for Income Taxes |
|
83.4 |
|
|
67.5 |
|
|
|||
| Depreciation |
|
137.4 |
|
|
137.1 |
|
|
|||
| Amortization |
|
31.4 |
|
|
32.8 |
|
|
|||
| EBITDA |
|
801.7 |
|
|
906.4 |
|
|
|||
| Adjustments: |
|
|||||||||
| Share-Based Compensation |
|
82.9 |
|
|
88.4 |
|
|
|||
| Severance and Restructuring Expenses |
|
31.3 |
|
|
44.8 |
|
|
|||
| Inclined Sleeper Product Recalls |
|
26.0 |
|
|
3.2 |
|
|
|||
| Adjusted EBITDA |
$ |
941.9 |
|
$ |
1,042.7 |
|
-10% |
|||
|
|
||||||||||
| Total Debt / Net Income |
5.4x |
4.3x |
|
|||||||
| Leverage Ratio (Total Debt / Adjusted EBITDA) |
2.5x |
2.3x |
|
|||||||
|
|
||||||||||
| Free Cash Flow |
|
|||||||||
| Net Cash Flows Provided by Operating Activities |
$ |
658.9 |
|
$ |
887.8 |
|
-26% |
|||
| Capital Expenditures |
|
(170.5 |
) |
|
(199.7 |
) |
|
|||
| Free Cash Flow |
$ |
488.3 |
|
$ |
688.2 |
|
-29% |
|||
|
|
||||||||||
| Net Cash Flows Provided by Operating Activities / Net Income |
|
152 |
% |
|
162 |
% |
-10 pts |
|||
| Free Cash Flow Conversion (Free Cash Flow/Adjusted EBITDA) |
|
52 |
% |
|
66 |
% |
-14 pts |
|||
|
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 Year Ended |
||||
| (In millions, except percentage and per share information) |
2024 |
|||
| Gross Profit | ||||
| Gross Profit, As Reported |
$ |
2,734.1 |
|
|
| Gross Margin |
|
50.8 |
% |
|
| Adjustments: | ||||
| Severance and Restructuring Expenses |
|
4.3 |
|
|
| Gross Profit, As Adjusted |
$ |
2,738.3 |
|
|
| Adjusted Gross Margin |
|
50.9 |
% |
|
| Operating Income | ||||
| Operating Income, As Reported |
$ |
694.3 |
|
|
| Operating Income Margin |
|
12.9 |
% |
|
| Adjustments: | ||||
| Severance and Restructuring Expenses |
|
48.1 |
|
|
| Inclined Sleeper Product Recalls |
|
(4.1 |
) |
|
| Operating Income, As Adjusted |
$ |
738.3 |
|
|
| Adjusted Operating Income Margin |
|
13.7 |
% |
|
| Earnings Per Share | ||||
| Net Income Per Common Share, As Reported |
$ |
1.58 |
|
|
| Adjustments: | ||||
| Severance and Restructuring Expenses |
|
0.14 |
|
|
| Inclined Sleeper Product Recalls |
|
(0.01 |
) |
|
| Changes to Deferred Tax Assets |
|
(0.06 |
) |
|
| Tax Effect of Adjustments2 |
|
(0.03 |
) |
|
| Net Income Per Common Share, As Adjusted |
$ |
1.62 |
|
|
|
1 |
Amounts may not sum due to rounding. |
||||||||||||
|
2 |
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. |
||||||||||||
| 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 information) |
2024 |
|||
| Tax Rate | ||||
| Income Before Income Taxes, As Reported |
$ |
622.5 |
|
|
| Adjustments: | ||||
| Severance and Restructuring Expenses |
|
48.1 |
|
|
| Inclined Sleeper Product Recalls |
|
(4.1 |
) |
|
| Income Before Income Taxes, As Adjusted |
$ |
666.5 |
|
|
| Provision for Income Taxes, As Reported |
$ |
105.6 |
|
|
| Adjustments: | ||||
| Changes to Deferred Tax Assets |
|
21.1 |
|
|
| Tax Effect of Adjustments2 |
|
10.2 |
|
|
| Provision for Income Taxes, As Adjusted |
$ |
136.9 |
|
|
| Tax Rate, As Reported |
|
17 |
% |
|
| Tax Rate, As Adjusted |
|
21 |
% |
|
| Free Cash Flow | ||||
| Net Cash Flows Provided by Operating Activities |
$ |
800.6 |
|
|
| Capital Expenditures |
|
(202.6 |
) |
|
| Free Cash Flow |
$ |
597.9 |
|
|
|
1 |
Amounts 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 IV |
|||||||||||||||||||||||||||
| WORLDWIDE NET SALES AND GROSS BILLINGS1 (Unaudited)2 | ||||||||||||||||||||||||||||
|
For the Three Months Ended September 30, |
|
For the Nine Months Ended September 30, |
||||||||||||||||||||||||||
|
2025 |
|
2024 |
|
% Change |
|
% Change in |
|
2025 |
|
2024 |
|
% Change |
|
% Change in |
||||||||||||||
|
(In millions, except percentage information) |
||||||||||||||||||||||||||||
| Worldwide Net Sales: | ||||||||||||||||||||||||||||
| Net Sales |
$ |
1,736.0 |
|
$ |
1,843.9 |
|
-6 |
% |
-7 |
% |
$ |
3,581.2 |
|
$ |
3,733.1 |
|
-4 |
% |
-4 |
% |
||||||||
| Worldwide Gross Billings by Categories: | ||||||||||||||||||||||||||||
| Dolls |
$ |
674.1 |
|
$ |
757.1 |
|
-11 |
% |
-12 |
% |
$ |
1,305.8 |
|
$ |
1,465.6 |
|
-11 |
% |
-11 |
% |
||||||||
| Infant, Toddler, and Preschool |
|
262.5 |
|
|
349.8 |
|
-25 |
|
-26 |
|
|
532.3 |
|
|
675.1 |
|
-21 |
|
-21 |
|
||||||||
| Vehicles |
|
626.2 |
|
|
580.0 |
|
8 |
|
6 |
|
|
1,342.2 |
|
|
1,247.4 |
|
8 |
|
7 |
|
||||||||
| Action Figures, Building Sets, Games, and Other |
|
404.0 |
|
|
364.3 |
|
11 |
|
9 |
|
|
861.2 |
|
|
763.2 |
|
13 |
|
12 |
|
||||||||
| Gross Billings |
$ |
1,966.8 |
|
$ |
2,051.1 |
|
-4 |
% |
-5 |
% |
$ |
4,041.4 |
|
$ |
4,151.4 |
|
-3 |
% |
-3 |
% |
||||||||
| Supplemental Gross Billings Disclosure | ||||||||||||||||||||||||||||
| Worldwide Gross Billings by Top 3 Power Brands: | ||||||||||||||||||||||||||||
| Barbie |
$ |
413.9 |
|
$ |
500.6 |
|
-17 |
% |
-18 |
% |
$ |
788.3 |
|
$ |
944.1 |
|
-16 |
% |
-17 |
% |
||||||||
| Hot Wheels |
|
547.2 |
|
|
508.2 |
|
8 |
|
6 |
|
|
1,173.3 |
|
|
1,093.7 |
|
7 |
|
7 |
|
||||||||
| Fisher-Price |
|
215.4 |
|
|
265.4 |
|
-19 |
|
-20 |
|
|
413.4 |
|
|
494.7 |
|
-16 |
|
-16 |
|
||||||||
| Other |
|
790.2 |
|
|
777.0 |
|
2 |
|
– |
|
|
1,666.3 |
|
|
1,618.9 |
|
3 |
|
3 |
|
||||||||
| Gross Billings |
$ |
1,966.8 |
|
$ |
2,051.1 |
|
-4 |
% |
-5 |
% |
$ |
4,041.4 |
|
$ |
4,151.4 |
|
-3 |
% |
-3 |
% |
||||||||
|
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, |
||||||||||||||||||||||||||
|
2025 |
|
2024 |
|
% Change |
|
% Change in |
|
2025 |
|
2024 |
|
% Change |
|
% Change in |
||||||||||||||
|
(In millions, except percentage information) |
||||||||||||||||||||||||||||
| North America Net Sales: | ||||||||||||||||||||||||||||
| Net Sales |
$ |
978.1 |
|
$ |
1,108.3 |
|
-12 |
% |
-12 |
% |
$ |
1,980.3 |
|
$ |
2,192.6 |
|
-10 |
% |
-10 |
% |
||||||||
| North America Gross Billings by Categories: | ||||||||||||||||||||||||||||
| Dolls |
$ |
393.8 |
|
$ |
442.3 |
|
-11 |
% |
-11 |
% |
$ |
734.8 |
|
$ |
838.2 |
|
-12 |
% |
-12 |
% |
||||||||
| Infant, Toddler, and Preschool |
|
157.1 |
|
|
228.0 |
|
-31 |
|
-31 |
|
|
307.1 |
|
|
420.1 |
|
-27 |
|
-27 |
|
||||||||
| Vehicles |
|
276.5 |
|
|
288.5 |
|
-4 |
|
-4 |
|
|
600.8 |
|
|
605.5 |
|
-1 |
|
-1 |
|
||||||||
| Action Figures, Building Sets, Games, and Other |
|
232.5 |
|
|
225.5 |
|
3 |
|
3 |
|
|
490.7 |
|
|
473.8 |
|
4 |
|
4 |
|
||||||||
| Gross Billings |
$ |
1,059.9 |
|
$ |
1,184.3 |
|
-11 |
% |
-10 |
% |
$ |
2,133.4 |
|
$ |
2,337.6 |
|
-9 |
% |
-9 |
% |
||||||||
| Supplemental Gross Billings Disclosure | ||||||||||||||||||||||||||||
| North America Gross Billings by Top 3 Power Brands: | ||||||||||||||||||||||||||||
| Barbie |
$ |
234.2 |
|
$ |
285.1 |
|
-18 |
% |
-18 |
% |
$ |
418.3 |
|
$ |
517.5 |
|
-19 |
% |
-19 |
% |
||||||||
| Hot Wheels |
|
235.7 |
|
|
249.7 |
|
-6 |
|
-6 |
|
|
508.7 |
|
|
521.1 |
|
-2 |
|
-2 |
|
||||||||
| Fisher-Price |
|
129.9 |
|
|
168.5 |
|
-23 |
|
-23 |
|
|
240.3 |
|
|
300.6 |
|
-20 |
|
-20 |
|
||||||||
| Other |
|
460.2 |
|
|
481.0 |
|
-4 |
|
-4 |
|
|
966.1 |
|
|
998.4 |
|
-3 |
|
-3 |
|
||||||||
| Gross Billings |
$ |
1,059.9 |
|
$ |
1,184.3 |
|
-11 |
% |
-10 |
% |
$ |
2,133.4 |
|
$ |
2,337.6 |
|
-9 |
% |
-9 |
% |
||||||||
|
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, |
||||||||||||||||||||||||||
|
2025 |
|
2024 |
|
% Change |
|
% Change in |
|
2025 |
|
2024 |
|
% Change |
|
% Change in |
||||||||||||||
|
(In millions, except percentage information) |
||||||||||||||||||||||||||||
| International Net Sales by Geographic Area: | ||||||||||||||||||||||||||||
| EMEA |
$ |
424.0 |
|
$ |
401.9 |
|
5 |
% |
1 |
% |
$ |
898.6 |
|
$ |
837.9 |
|
7 |
% |
4 |
% |
||||||||
| Latin America |
|
230.3 |
|
|
240.6 |
|
-4 |
|
-6 |
|
|
423.6 |
|
|
454.8 |
|
-7 |
|
-4 |
|
||||||||
| Asia Pacific |
|
103.5 |
|
|
93.1 |
|
11 |
|
12 |
|
|
278.7 |
|
|
247.9 |
|
12 |
|
14 |
|
||||||||
| Net Sales |
$ |
757.9 |
|
$ |
735.6 |
|
3 |
% |
— |
% |
$ |
1,600.9 |
|
$ |
1,540.6 |
|
4 |
% |
4 |
% |
||||||||
| International Gross Billings by Geographic Area: | ||||||||||||||||||||||||||||
| EMEA |
$ |
515.0 |
|
$ |
478.6 |
|
8 |
% |
3 |
% |
$ |
1,088.0 |
|
$ |
998.3 |
|
9 |
% |
6 |
% |
||||||||
| Latin America |
|
274.8 |
|
|
281.9 |
|
-3 |
|
-4 |
|
|
502.4 |
|
|
531.3 |
|
-5 |
|
-2 |
|
||||||||
| Asia Pacific |
|
117.1 |
|
|
106.3 |
|
10 |
|
11 |
|
|
317.6 |
|
|
284.2 |
|
12 |
|
13 |
|
||||||||
| Gross Billings |
$ |
906.9 |
|
$ |
866.8 |
|
5 |
% |
2 |
% |
$ |
1,908.0 |
|
$ |
1,813.8 |
|
5 |
% |
5 |
% |
||||||||
| International Gross Billings by Categories: | ||||||||||||||||||||||||||||
| Dolls |
$ |
280.2 |
|
$ |
314.8 |
|
-11 |
% |
-14 |
% |
$ |
571.0 |
|
$ |
627.5 |
|
-9 |
% |
-10 |
% |
||||||||
| Infant, Toddler, and Preschool |
|
105.3 |
|
|
121.8 |
|
-14 |
|
-16 |
|
|
225.2 |
|
|
255.0 |
|
-12 |
|
-12 |
|
||||||||
| Vehicles |
|
349.8 |
|
|
291.5 |
|
20 |
|
17 |
|
|
741.3 |
|
|
641.9 |
|
15 |
|
15 |
|
||||||||
| Action Figures, Building Sets, Games, and Other |
|
171.6 |
|
|
138.8 |
|
24 |
|
20 |
|
|
370.4 |
|
|
289.4 |
|
28 |
|
27 |
|
||||||||
| Gross Billings |
$ |
906.9 |
|
$ |
866.8 |
|
5 |
% |
2 |
% |
$ |
1,908.0 |
|
$ |
1,813.8 |
|
5 |
% |
5 |
% |
||||||||
| Supplemental Gross Billings Disclosure | ||||||||||||||||||||||||||||
| International Gross Billings by Top 3 Power Brands: | ||||||||||||||||||||||||||||
| Barbie |
$ |
179.8 |
|
$ |
215.5 |
|
-17 |
% |
-19 |
% |
$ |
370.0 |
|
$ |
426.6 |
|
-13 |
% |
-14 |
% |
||||||||
| Hot Wheels |
|
311.6 |
|
|
258.4 |
|
21 |
|
18 |
|
|
664.6 |
|
|
572.6 |
|
16 |
|
16 |
|
||||||||
| Fisher-Price |
|
85.6 |
|
|
96.9 |
|
-12 |
|
-14 |
|
|
173.2 |
|
|
194.1 |
|
-11 |
|
-10 |
|
||||||||
| Other |
|
330.0 |
|
|
296.1 |
|
11 |
|
8 |
|
|
700.3 |
|
|
620.5 |
|
13 |
|
12 |
|
||||||||
| Gross Billings |
$ |
906.9 |
|
$ |
866.8 |
|
5 |
% |
2 |
% |
$ |
1,908.0 |
|
$ |
1,813.8 |
|
5 |
% |
5 |
% |
||||||||
