MATTEL INC /DE/
For the period ended Jun 30, 2025. Filed Jul 29, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2025 · Filed Jul 29, 2025
MAT$15.35+2.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2025-03-31; filed 2025-05-06.
0001628280-25-022312
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-06-30; filed 2025-07-29.
0001628280-25-036429
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 122 previous paragraphs and 176 current paragraphs.
65 unchanged; 36 reworded; 70 added; 21 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 9 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (70)
Current report
During the second quarter of 2025, Mattel continued executing its multi-year strategy to grow its IP-driven toy business and expand its entertainment offering, achieving strong international growth and expanding gross margin, while the U.S. business was impacted by global trade dynamics and timing shifts, particularly delays in retailer ordering patterns in light of tariff uncertainty.
Current report
U.S. global trade policy continues to evolve with significant tariffs imposed or proposed on imports from China, Vietnam, Mexico, and other countries. There is substantial uncertainty about the duration of existing tariffs, potential changes or pauses to such tariffs, tariff levels, and whether additional tariffs or other retaliatory actions may be imposed, modified, or suspended, and the impacts of such actions on Mattel's business. Mattel continues to monitor and evaluate these developments and assess their potential impact on Mattel’s business and operations.
Current report
On July 4, 2025, H.R.1- the One Big Beautiful Bill Act ("OBBBA") was enacted in the United States. The OBBBA contains significant provisions, including the permanent extension or restoration of certain expiring corporate income tax provisions, originally introduced by the Tax Cuts and Jobs Act of 2017, and incremental modifications to the international tax framework. The legislation has multiple effective dates, with certain provisions effective for the tax year beginning after December 31, 2024, and others effective for tax years beginning after December 31, 2025. Mattel is currently evaluating the provisions of the OBBBA to determine the impact on its consolidated financial statements. The effects of the OBBBA will be recorded in the third quarter of 2025, as a change in tax law is accounted for in the period of enactment.
Current report
Results of Operations—Second Quarter
Current report
Net sales in the second quarter of 2025 were $1.02 billion, a decrease of $61.2 million, or 6%, as compared to $1.08 billion in the second quarter of 2024. The decrease in net sales was due to a decrease in gross billings of $50.9 million and an increase in sales adjustments of $10.3 million.
Current report
Gross billings were $1.15 billion in the second quarter of 2025, a decrease of $50.9 million, or 4%, as compared to $1.20 billion in the second quarter of 2024. The decrease in gross billings was primarily due to lower billings of Dolls and Infant, Toddler, and Preschool products, partially offset by higher billings of Vehicles and Action Figures, Building Sets, Games, and Other products.
Current report
Infant, Toddler, and Preschool gross billings decreased 25%, of which 15% was due to lower billings of Fisher-Price products and 7% was due to lower billings of Baby Gear and Power Wheels products, due to the continued strategic exit from certain product lines in Baby Gear and Power Wheels.
Current report
Vehicles gross billings increased 10%, primarily due to higher billings of Hot Wheels products.
Current report
Action Figures, Building Sets, Games, and Other gross billings increased 16%, of which 27% was due to higher billings of Action Figures products, primarily due to higher billings of Jurassic World and Minecraft products in connection with their theatrical releases in 2025, partially offset by lower billings of Building Sets products of 8%.
Current report
Gross margin increased to 50.9% in the second quarter of 2025 from 49.2% in the second quarter of 2024. The increase in gross margin was primarily due to incremental realized savings from the OPG program of 120 basis points, lower inventory management costs of 60 basis points, primarily driven by lower close-out sales, favorable mix of 60 basis points and other factors, including supply chain efficiencies of 40 basis points, partially offset by cost inflation of 110 basis points.
Current report
Other selling and administrative expenses were $361.3 million, or 35.5% of net sales, in the second quarter of 2025, a decrease of $12.5 million, as compared to $373.8 million, or 34.6% of net sales, in the second quarter of 2024. The decrease in other selling and administrative expenses was primarily due to realized savings from the OPG program of $10.8 million and lower severance and restructuring charges of $8.3 million.
Current report
Interest expense was $29.4 million in the second quarter of 2025, relatively flat as compared to $30.0 million in the second quarter of 2024.
Current report
Interest income was $12.4 million in the second quarter of 2025, flat as compared to $12.4 million in the second quarter of 2024.
Current report
Provision for Income Taxes
Current report
Mattel's provision for income taxes was an expense of $16.2 million in the second quarter of 2025, as compared to $9.2 million in the second quarter of 2024. The increase in provision for income taxes was primarily due to a change in discrete income tax expense related to previously unrecognized tax benefits and higher income before income taxes. During the second quarter of 2025, Mattel recognized a net discrete income tax expense of $1.0 million. During the second quarter of 2024, Mattel recognized a net discrete tax benefit of $4.5 million, primarily related to previously unrecognized tax benefits.
Current report
Net sales for the North America segment in the second quarter of 2025 were $510.8 million, a decrease of $95.7 million, or 16%, as compared to $606.5 million in the second quarter of 2024. The decrease in net sales was primarily due to a decrease in gross billings of $99.3 million.
Current report
Dolls gross billings decreased 27%, of which 21% was due to lower billings of Barbie products and 4% was due to lower billings of Monster High products.
Current report
Infant, Toddler, and Preschool gross billings decreased 37%, of which 23% was due to lower billings of Fisher-Price products, 10% was due to lower billings of Baby Gear and Power Wheels products, due to the continued strategic exit from certain product lines in Baby Gear and Power Wheels, and 4% was due to lower billings of Preschool Entertainment products.
Current report
Action Figures, Building Sets, Games, and Other gross billings decreased 2%, of which 11% was due to lower billings of Building Sets products and 4% was due to lower billings of Games products, partially offset by higher billings of Action Figures products of 14%, primarily due to higher billings of Jurassic World and Minecraft products in connection with their theatrical releases in 2025.
Current report
Sales adjustments decreased to $36.7 million in the second quarter of 2025 from $40.4 million in the second quarter of 2024. Sales adjustments as a percentage of net sales were relatively consistent at 7.2% in the second quarter of 2025, as compared to 6.7% in the second quarter of 2024.
Current report
Cost of sales decreased by $54.1 million, or 17%, to $265.7 million in the second quarter of 2025 from $319.8 million in the second quarter of 2024, primarily due to a decrease in product and other costs of $49.1 million.
Current report
Gross margin increased to 48.0% in the second quarter of 2025 from 47.3% in the second quarter of 2024. The increase in gross margin was primarily due to incremental realized savings from the OPG program of 130 basis points, lower inventory management costs of 40 basis points, including lower close-out sales, partially offset by cost inflation of 80 basis points and unfavorable mix and other factors of 20 basis points.
Current report
Net sales for the International segment in the second quarter of 2025 were $507.8 million, an increase of $34.5 million, or 7%, as compared to $473.2 million in the second quarter of 2024. The increase in net sales was primarily due to an increase in gross billings of $48.5 million, partially offset by an increase in sales adjustments of $14.0 million.
Current report
Gross billings for the International segment were $602.9 million in the second quarter of 2025, an increase of $48.5 million, or 9%, as compared to $554.5 million in the second quarter of 2024. The increase in the International segment gross billings was due to higher billings of Action Figures, Building Sets, Games, and Other and Vehicles products, partially offset by lower billings of Dolls and Infant, Toddler, and Preschool products.
Current report
Dolls gross billings decreased 9%, primarily due to lower billings of Barbie products.
Current report
Vehicles gross billings increased 15%, primarily due to higher billings of Hot Wheels products.
Current report
Action Figures, Building Sets, Games, and Other gross billings increased 45%, of which 45% was due to higher billings of Action Figures products, primarily due to higher billings of Jurassic World and Minecraft products in connection with their theatrical releases in 2025, and 4% was due to higher billings of Games products, partially offset by lower billings of Building Sets products of 4%.
Current report
Sales adjustments increased to $95.2 million in the second quarter of 2025 from $81.2 million in the second quarter of 2024. Sales adjustments as a percentage of net sales increased to 18.7% in the second quarter of 2025, as compared to 17.2% in the second quarter of 2024. The increase in sales adjustments as a percentage of net sales was primarily due to higher promotional activities.
Current report
Cost of sales were relatively consistent at $245.0 million in the second quarter of 2025, as compared to $247.9 million in the second quarter of 2024.
Current report
Results of Operations—First Half
Current report
Consolidated Results
Current report
N/M - not meaningful
Current report
Sales
Current report
Gross billings were $2.07 billion in the first half of 2025, a decrease of $25.6 million, or 1%, as compared to $2.10 billion in the first half of 2024, with an unfavorable impact from changes in currency exchange rates of one percentage point. The decrease in gross billings was primarily due to lower billings of Dolls and Infant, Toddler, and Preschool products, partially offset by higher billings of Action Figures, Building Sets, Games, and Other and Vehicles products.
Current report
Dolls gross billings decreased 11%, primarily due to lower billings of Barbie products.
Current report
Infant, Toddler, and Preschool gross billings decreased 17%, of which 10% was due to lower billings of Fisher-Price products and 7% was due to lower billings of Baby Gear and Power Wheels products, due to the continued strategic exit from certain product lines in Baby Gear and Power Wheels.
Current report
Vehicles gross billings increased 7%, primarily due to higher billings of Hot Wheels products.
Current report
Action Figures, Building Sets, Games, and Other gross billings increased 15%, of which 23% was due to higher billings of Action Figures products, primarily due to higher billings of Jurassic World and Minecraft products in connection with their theatrical releases in 2025, partially offset by lower billings of Building Sets products of 8%.
Current report
Cost of Sales
Current report
Cost of sales decreased by $51.5 million, or 5%, to $918.1 million in the first half of 2025 from $969.6 million in the first half of 2024. Within cost of sales, product and other costs decreased by $58.0 million, or 8%, to $687.2 million in the first half of 2025 from $745.2 million in the first half of 2024. Freight and logistics expenses decreased by $3.4 million, or 2%, to $137.2 million in the first half of 2025, as compared to $140.6 million in the first half of 2024. Royalty expense increased by $9.9 million, or 12%, to $93.7 million in the first half of 2025 from $83.8 million in the first half of 2024.
Showing the first 40 of 70 passages. Open the source sections for the rest.
Removed paragraphs (21)
Previous report
The United States has recently announced changes to its global trade policy, including significant tariffs on imports from China, Vietnam, Mexico, Canada, and other countries. These actions, and retaliatory tariffs imposed by other countries on U.S. goods and exports, have led to significant volatility and uncertainty in global markets.
Previous report
New or increased tariffs and other barriers to trade, especially in light of recent comments and executive orders made by the United States, could further impact or exacerbate these conditions. Historically, tariffs have led to increased trade and political tensions. Political tensions as a result of trade policies could reduce trade volume, investment, and other economic activities between major international economies, resulting in a material adverse effect on global economic conditions and on the stability of global financial markets. There is substantial uncertainty about the duration of existing tariffs, potential changes to existing tariffs, and whether additional tariffs may be imposed, modified, or suspended, and the impacts of such actions on Mattel's business. While the situation remains fluid, Mattel is continuing to evaluate these developments and taking actions designed to mitigate the anticipated cost impact on its business, such as further diversifying its supply chain, optimizing product sourcing and product mix, and taking pricing actions where necessary.
Previous report
Results of Operations—First Quarter
Previous report
Infant, Toddler, and Preschool gross billings decreased 6%, of which 8% was due to lower billings of Baby Gear and Power Wheels products, due to the continued strategic exit from certain product lines in Baby Gear and Power Wheels.
Previous report
Vehicles gross billings increased 4%, primarily due to higher billings of Hot Wheels products.
Previous report
Action Figures, Building Sets, Games, and Other gross billings increased 12%, of which 19% was due to higher billings of Action Figures products, primarily due to higher billings of Minecraft and Jurassic World products in advance of their theatrical releases in 2025, partially offset by lower billings of Building Sets products of 8%.
Previous report
Interest expense was $29.2 million in the first quarter of 2025, relatively flat as compared to $30.1 million in the first quarter of 2024.
Previous report
Interest income was $16.0 million in the first quarter of 2025, relatively flat as compared to $17.3 million in the first quarter of 2024.
Previous report
Net sales for the North America segment in the first quarter of 2025 were $491.4 million, an increase of $13.6 million, or 3%, as compared to $477.8 million in the first quarter of 2024. The increase in net sales was primarily due to an increase in gross billings of $19.6 million.
Previous report
Infant, Toddler, and Preschool gross billings were flat year-over-year, with lower billings of Baby Gear and Power Wheels products of 11%, substantially offset by higher billings of Preschool Entertainment products of 6% and higher billings of Fisher-Price products of 5%.
Previous report
Vehicles gross billings were flat year-over-year.
Previous report
Sales adjustments increased to $34.6 million in the first quarter of 2025 from $28.6 million in the first quarter of 2024. Sales adjustments as a percentage of net sales increased to 7.0% in the first quarter of 2025, as compared to 6.0% in the first quarter of 2024. The increase in sales adjustments as a percentage of net sales was primarily due to higher promotional activities.
Previous report
Cost of sales were relatively consistent at $256.3 million in the first quarter of 2025 as compared to $257.1 million in the first quarter of 2024.
Previous report
Gross margin increased to 47.8% in the first quarter of 2025 from 46.2% in the first quarter of 2024. The increase in gross margin was primarily due to lower inventory management costs of 120 basis points, including lower inventory obsolescence and close-out sales, and incremental realized savings from the OPG program of 110 basis points, partially offset by cost inflation of 70 basis points.
Previous report
Net sales for the International segment in the first quarter of 2025 were $335.3 million, an increase of $3.5 million, or 1%, as compared to $331.7 million in the first quarter of 2024. The increase in net sales was primarily due to an increase in gross billings of $5.7 million, partially offset by an increase in sales adjustments of $2.1 million.
Previous report
Infant, Toddler, and Preschool gross billings decreased 15%, of which 14% was due to lower billings of Fisher-Price products.
Previous report
Vehicles gross billings increased 8%, primarily due to higher billings of Hot Wheels products.
Previous report
Action Figures, Building Sets, Games, and Other gross billings increased 13%, of which 14% was due to higher billings of Action Figures products, primarily due to higher billings of Minecraft products in advance of its theatrical release in 2025, and 9% was due to higher billings of Games products, partially offset by lower billings of Building Sets products of 9%.
Previous report
Sales adjustments increased to $62.9 million in the first quarter of 2025 from $60.8 million in the first quarter of 2024. Sales adjustments as a percentage of net sales were relatively consistent at 18.8% in the first quarter of 2025, as compared to 18.3% in the first quarter of 2024.
Previous report
Cost of sales decreased by $8.6 million, or 5%, to $175.5 million in the first quarter of 2025 from $184.1 million in the first quarter of 2024, primarily due to a decrease in product and other costs of $12.0 million.
Previous report
Inventories increased $156.7 million to $658.4 million at March 31, 2025 from $501.7 million at December 31, 2024, primarily due to seasonal inventory build. Inventories decreased $10.9 million to $658.4 million at March 31, 2025 from $669.3 million at March 31, 2024, primarily due to continued inventory management efforts.
Reworded paragraphs (36)
Previous wording
Mattel's net sales in the first quarter of 2025 increased 2% compared to the first quarter of 2024. Gross margin expanded to 49.4% in the first quarter of 2025 compared to 48.0% in the first quarter of 2024, with benefits from lower inventory management costs, the OPG program, and favorable foreign currency exchange, partially offset by cost inflation. Additionally, Mattel ended the first quarter with a cash balance of $1.24 billion, compared to $1.13 billion in the first quarter of 2024 after $460.0 million of share repurchases during the trailing twelve months.
Current wording
Mattel's net sales in the second quarter of 2025 decreased 6% compared to the second quarter of 2024. Gross margin expanded to 50.9% in the second quarter of 2025, as compared to 49.2% in the second quarter of 2024, with savings from the OPG program, lower inventory management costs, favorable mix and other favorability due to supply chain efficiencies, partially offset by cost inflation. Net income per common share was $0.16 for the second quarter of 2025, as compared to $0.17 in the second quarter of 2024. Additionally, Mattel ended the second quarter with a cash balance of $870.5 million, as compared to $722.4 million in the second quarter of 2024 after $410.0 million of share repurchases during the trailing twelve months.
Previous wording
Mattel is operating in an uncertain macro-economic environment with significant volatility that may impact consumer demand. To the extent the macro-economic environment worsens, it may have a material effect on Mattel's results of operations and financial condition. Refer to Part I, Item 1A "Risk Factors" in the 2024 Annual Report and Part II, Item 1A "Risk Factors" of this Quarterly Report on Form 10-Q for further discussion regarding potential impacts on Mattel's business.
Current wording
Mattel is operating in an uncertain macro-economic environment with significant volatility that may impact consumer demand. To the extent the macro-economic environment worsens, it may have a material effect on Mattel's results of operations and financial condition. Refer to Part I, Item 1A "Risk Factors" in the 2024 Annual Report and Part II, Item 1A "Risk Factors" in the Quarterly Report on Form 10-Q for the three months ended March 31, 2025 for further discussion regarding potential impacts on Mattel's business.
Previous wording
The following table presents Mattel's consolidated results for the first quarter of 2025 and 2024:
Current wording
The following table presents Mattel's consolidated results for the second quarter of 2025 and 2024:
Previous wording
Gross billings represent amounts invoiced to a customer and do not include the impact of sales adjustments, such as trade discounts and other allowances. Changes in gross billings are discussed below because, while Mattel records the details of sales adjustments in its financial accounting systems at the time of sale, such sales adjustments are generally recorded by customer and are not associated with categories, brands, or individual products. The following tables provide a summary of Mattel's consolidated gross billings by categories, along with supplemental information by brand, for the first quarter of 2025 and 2024:
Current wording
Gross billings represent amounts invoiced to a customer and do not include the impact of sales adjustments, such as trade discounts and other allowances. Changes in gross billings are discussed below because, while Mattel records the details of sales adjustments in its financial accounting systems at the time of sale, such sales adjustments are generally recorded by customer and are not associated with categories, brands, or individual products. The following tables provide a summary of Mattel's consolidated gross billings by categories, along with supplemental information by brand, for the second quarter of 2025 and 2024:
Previous wording
Dolls gross billings increased 1%, of which 2% was due to higher billings of Disney Princess products and 2% was due to higher billings of Wicked products, partially offset by lower billings of Trolls products of 2% and lower billings of Barbie products of 1%.
Current wording
Dolls gross billings decreased 19%, of which 16% was due to lower billings of Barbie products and 2% was due to lower billings of Monster High products.
Previous wording
Cost of sales decreased by $2.1 million, or 1%, to $418.5 million in the first quarter of 2025 from $420.6 million in the first quarter of 2024. Within cost of sales, product and other costs decreased by $8.8 million, or 3%, to $310.3 million in the first quarter of 2025 from $319.1 million in the first quarter of 2024. Royalty expense increased by $6.4 million, or 18%, to $42.5 million in the first quarter of 2025 from $36.1 million in the first quarter of 2024. Freight and logistics expenses were relatively consistent at $65.7 million in the first quarter of 2025, as compared to $65.5 million in the first quarter of 2024.
Current wording
Cost of sales decreased by $49.4 million, or 9%, to $499.6 million in the second quarter of 2025 from $549.0 million in the second quarter of 2024. Within cost of sales, product and other costs decreased by $49.2 million, or 12%, to $376.9 million in the second quarter of 2025 from $426.2 million in the second quarter of 2024. Freight and logistics expenses decreased by $3.6 million, or 5%, to $71.5 million in the second quarter of 2025, as compared to $75.2 million in the second quarter of 2024. Royalty expense increased by $3.5 million, or 7%, to $51.2 million in the second quarter of 2025 from $47.7 million in the second quarter of 2024.
Previous wording
Evaluating the need for and the amount of a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence to determine whether it is more-likely-than-not that these assets will be realizable. Mattel routinely assesses the positive and negative evidence for this realizability, including the evaluation of sustained profitability and three years of cumulative pretax income for each tax jurisdiction. During the first quarter of 2025, there were no material changes to Mattel's valuation allowance.
Current wording
Evaluating the need for and the amount of a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence to determine whether it is more-likely-than-not that these assets will be realizable. Mattel routinely assesses the positive and negative evidence for this realizability, including the evaluation of sustained profitability and three years of cumulative pretax income for each tax jurisdiction. For the second quarter of 2025 and 2024, there were no material changes to Mattel's valuation allowance.
Previous wording
The following tables provide a summary of Mattel's net sales, segment operating income, and gross billings by categories, along with supplemental information by brand, for the North America segment for the first quarter of 2025 and 2024:
Current wording
The following tables provide a summary of Mattel's net sales, segment operating income, and gross billings by categories, along with supplemental information by brand, for the North America segment for the second quarter of 2025 and 2024:
Previous wording
Gross billings for the North America segment were $526.0 million in the first quarter of 2025, an increase of $19.6 million, or 4%, as compared to $506.4 million in the first quarter of 2024. The increase in the North America segment gross billings was due to higher billings of Action Figures, Building Sets, Games, and Other, and Dolls products.
Current wording
Gross billings for the North America segment were $547.5 million in the second quarter of 2025, a decrease of $99.3 million, or 15%, as compared to $646.9 million in the second quarter of 2024. The decrease in the North America segment gross billings was due to lower billings of Dolls, Infant, Toddler, and Preschool, and Action Figures, Building Sets, Games, and Other products, partially offset by higher billings of Vehicles products.
Previous wording
Dolls gross billings increased 5%, of which 2% was due to higher billings of Wicked products and 2% was due to higher billings of Disney Princess products, partially offset by lower billings of Trolls products of 2%.
Current wording
Vehicles gross billings increased 5%, of which 2% was due to higher billings of Hot Wheels products and 1% was due to higher billings of Cars (Disney Pixar) products.
Previous wording
North America segment operating income was $83.1 million in the first quarter of 2025, as compared to $73.0 million in the first quarter of 2024, primarily due to higher gross profit of $14.4 million.
Current wording
North America segment operating income was $93.8 million in the second quarter of 2025, as compared to $136.9 million in the second quarter of 2024, primarily due to lower gross profit of $41.6 million.
Previous wording
The following tables provide a summary of Mattel's net sales, segment operating income, and gross billings by categories, along with supplemental information by brand, for the International segment for the first quarter of 2025 and 2024:
Current wording
The following tables provide a summary of Mattel's net sales, segment operating income, and gross billings by categories, along with supplemental information by brand, for the International segment for the second quarter of 2025 and 2024:
Previous wording
Dolls gross billings decreased 4%, of which 3% was due to lower billings of Polly Pocket products and 3% was due to lower billings of Barbie products, partially offset by higher billings of Disney Princess products of 3%.
Current wording
Infant, Toddler, and Preschool gross billings decreased 7%, of which 3% was due to lower billings of Baby Gear and Power Wheels products, due to the continued strategic exit from certain product lines in Baby Gear and Power Wheels, and 3% was due to lower billings of Fisher-Price products.
Previous wording
Gross margin increased to 47.6% in the first quarter of 2025 from 44.5% in the first quarter of 2024. The increase in gross margin was primarily due to favorable foreign currency exchange of 300 basis points, incremental realized savings from the OPG program of 120 basis points, and lower inventory management costs of 110 basis points, including lower inventory obsolescence and close-out sales, partially offset by cost inflation of 140 basis points and unfavorable mix and other factors of 80 basis points.
Current wording
Gross margin increased to 51.7% in the second quarter of 2025 from 47.6% in the second quarter of 2024. The increase in gross margin was primarily due to favorable changes in foreign currency exchange rates of 190 basis points, favorable mix and other factors of 150 basis points, incremental realized savings from the OPG program of 110 basis points, and lower inventory management costs of 90 basis points, including lower close-out sales and inventory obsolescence, partially offset by cost inflation of 130 basis points.
Previous wording
International segment operating income was $23.3 million in the first quarter of 2025, as compared to $9.3 million in the first quarter of 2024, primarily due to higher gross profit of $12.1 million and lower advertising and promotion expenses of $5.1 million.
Current wording
International segment operating income was $114.9 million in the second quarter of 2025, as compared to $77.3 million in the second quarter of 2024, primarily due to higher gross profit of $37.3 million.
Previous wording
Net sales in the first quarter of 2025 were $826.6 million, an increase of $17.1 million, or 2%, as compared to $809.5 million in the first quarter of 2024. The increase in net sales was primarily due to an increase in gross billings of $25.2 million, partially offset by an increase in sales adjustments of $8.1 million.
Current wording
Net sales in the first half of 2025 were $1.85 billion, a decrease of $44.0 million, or 2%, as compared to $1.89 billion in the first half of 2024. The decrease in net sales was due to a decrease in gross billings of $25.6 million and an increase in sales adjustments of $18.4 million.
Previous wording
Sales adjustments generally represent arrangements with Mattel's customers to provide sales incentives, support customer promotions, and provide allowances for returns and defective merchandise. Such programs are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. Additionally, sales adjustments may include foreign currency transaction gains and losses from the remeasurement of accounts receivable denominated in currencies that are different from the relevant entity's functional currency. Sales adjustments increased to $97.5 million in the first quarter of 2025, from $89.4 million in the first quarter of 2024. Sales adjustments as a percentage of net sales increased to 11.8% in the first quarter of 2025, as compared to 11.0% in the first quarter of 2024. The increase in sales adjustments as a percentage of net sales was primarily due to higher promotional activities.
Current wording
Sales adjustments generally represent arrangements with Mattel's customers to provide sales incentives, support customer promotions, and provide allowances for returns and defective merchandise. Such programs are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. Additionally, sales adjustments may include foreign currency transaction gains and losses from the remeasurement of accounts receivable denominated in currencies that are different from the relevant entity's functional currency. Sales adjustments increased to $229.4 million in the first half of 2025 from $211.0 million in the first half of 2024. Sales adjustments as a percentage of net sales increased to 12.4% in the first half of 2025, as compared to 11.2% in the first half of 2024. The increase in sales adjustments as a percentage of net sales was primarily due to higher promotional activities.
Previous wording
Gross margin increased to 49.4% in the first quarter of 2025 from 48.0% in the first quarter of 2024. The increase in gross margin was primarily due to lower inventory management costs and other of 130 basis points, primarily lower inventory obsolescence and close-out sales, and incremental realized savings from the OPG program of 110 basis points, partially offset by cost inflation of 100 basis points.
Current wording
Gross margin increased to 50.2% in the first half of 2025 from 48.7% in the first half of 2024. The increase in gross margin was primarily due to incremental realized savings from the OPG program of 120 basis points, lower inventory management costs of 90 basis points, driven by lower close-out sales and inventory obsolescence, and favorable mix and other factors of 40 basis points, partially offset by cost inflation of 100 basis points.
Previous wording
Advertising and promotion expenses primarily consist of: (i) media costs, which include the media, planning, and buying fees for television, print, and online advertisements, (ii) non-media costs, which include commercial and website production, merchandising, and promotional costs, (iii) retail advertising costs, which include consumer direct catalogs, and (iv) general advertising costs, which include trade show costs. Advertising and promotion expenses as a percentage of net sales were relatively consistent at 8.5% in the first quarter of 2025, as compared to 8.8% in the first quarter of 2024.
Current wording
Advertising and promotion expenses primarily consist of: (i) media costs, which include the media, planning, and buying fees for television, print, and online advertisements, (ii) non-media costs, which include commercial and website production, merchandising, and promotional costs, (iii) retail advertising costs, which include consumer direct catalogs; and (iv) general advertising costs, which include trade show costs. Advertising and promotion expenses as a percentage of net sales was relatively consistent at 8.1% in the first half of 2025, as compared to 7.7% in the first half of 2024.
Previous wording
Other selling and administrative expenses were $390.9 million, or 47.3% of net sales, in the first quarter of 2025, an increase of $37.9 million, as compared to $352.9 million, or 43.6% of net sales, in the first quarter of 2024. The increase in other selling and administrative expenses was primarily due to higher severance and restructuring charges of $15.1 million, higher expenses related to inclined sleeper product recall litigation of $10.4 million, higher employee compensation of $10.0 million, and higher outside services spend and other administrative expenses of $8.2 million, partially offset by realized savings from cost savings programs of $9.5 million.
Current wording
Other selling and administrative expenses were $752.2 million, or 40.8% of net sales, in the first half of 2025, an increase of $25.4 million, as compared to $726.8 million, or 38.5% of net sales, in the first half of 2024. The increase in other selling and administrative expenses was primarily due to higher expenses related to inclined sleeper product recalls of $13.7 million, higher employee compensation of $7.7 million, higher severance and restructuring charges of $6.8 million, and higher outside services and other administrative expenses of $12.4 million, partially offset by realized savings from the OPG program of $20.3 million.
Previous wording
Mattel's benefit from income taxes was $30.6 million in the first quarter of 2025, compared to $20.8 million in the first quarter of 2024. The increase in benefit from income taxes was driven by higher loss before income taxes and higher discrete income tax benefits in the first three months of 2025. During the three months ended March 31, 2025, Mattel recognized a net discrete tax benefit of $11.4 million, primarily related to a change of its indefinite reinvestment assertion relating to certain foreign subsidiary earnings. During the three months ended March 31, 2024, Mattel recognized a net discrete income tax benefit of $8.4 million, primarily related to tax elections filed to amortize certain intangible assets transferred as part of Mattel's intra-group intellectual property rights transfer of $10.1 million, partially offset by interest related to unrecognized tax benefits.
Current wording
Mattel's benefit from income taxes was $14.4 million for the first half of 2025, as compared to $11.6 million for the first half of 2024. The increase in benefit from income taxes was due to higher loss before income taxes, partially offset by lower discrete income tax benefits. During the first half of 2025, Mattel recognized a net discrete income tax benefit of $10.4 million, primarily related to a change of its indefinite reinvestment assertion relating to certain foreign subsidiary earnings. During the first half of 2024, Mattel recognized a net discrete tax benefit of $12.9 million, primarily related to tax elections filed to amortize certain intangible assets transferred as part of Mattel's intra-group intellectual property rights transfer and previously unrecognized tax benefits.
Previous wording
Action Figures, Building Sets, Games, and Other gross billings increased 12%, of which 22% was due to higher billings of Action Figures products, primarily due to higher billings of Jurassic World and Minecraft products in advance of their theatrical releases in 2025, partially offset by lower billings of Building Sets products of 8% and lower billings of Games products of 3%.
Current wording
Action Figures, Building Sets, Games, and Other gross billings increased 4%, of which 18% was due to higher billings of Action Figures products, primarily due to higher billings of Jurassic World and Minecraft products in connection with their theatrical releases in 2025, partially offset by lower billings of Building Sets products of 9% and lower billings of Games products of 3%.
Previous wording
Gross billings were $924.2 million in the first quarter of 2025, an increase of $25.2 million, or 3%, as compared to $898.9 million in the first quarter of 2024, with an unfavorable impact from changes in currency exchange rates of two percentage points. The increase in gross billings was primarily due to higher billings of Action Figures, Building Sets, Games, and Other, Vehicles, and Dolls products, partially offset by lower billings of Infant, Toddler, and Preschool products.
Current wording
Net sales for the International segment in the first half of 2025 were $843.0 million, an increase of $38.1 million, or 5%, as compared to $805.0 million in the first half 2024, with an unfavorable impact from changes in currency exchange rates of two percentage points. The increase in net sales was due to an increase in gross billings of $54.1 million, partially offset by an increase in sales adjustments of $16.1 million.
Previous wording
Gross billings for the International segment were $398.2 million in the first quarter of 2025, an increase of $5.7 million, or 1%, as compared to $392.5 million in the first quarter of 2024, with an unfavorable impact from changes in currency exchange rates of four percentage points. The increase in the International segment gross billings was due to higher billings of Vehicles and Action Figures, Building Sets, Games, and Other products, partially offset by lower billings of Infant, Toddler, and Preschool and Dolls products.
Current wording
Gross billings for the International segment were $1.00 billion in the first half of 2025, an increase of $54.1 million, or 6%, as compared to $947.0 million in the first half of 2024, with an unfavorable impact from changes in currency exchange rates of two percentage points. The increase in gross billings was due to higher billings of Action Figures, Building Sets, Games, and Other and Vehicles products, partially offset by lower billings of Dolls and Infant, Toddler, and Preschool products.
Previous wording
As of March 31, 2025, Mattel has recorded cumulative severance and other restructuring charges related to the OPG program of approximately $94 million, which includes approximately $2 million of non-cash charges. Mattel realized cumulative cost savings (before severance, restructuring costs, and cost inflation) of approximately $103 million, which represents approximately 60% benefit to cost of sales, and 40% benefit to other selling and administrative expenses, as of March 31, 2025, in connection with the OPG Program.
Current wording
As of June 30, 2025, Mattel has recorded cumulative severance and other restructuring charges related to the OPG program of approximately $98 million, which includes approximately $3 million of non-cash charges. Mattel realized cumulative cost savings (before severance, restructuring costs, and cost inflation) of approximately $126 million, which represents approximately 60% benefit to cost of sales, and 40% benefit to other selling and administrative expenses, as of June 30, 2025, in connection with the OPG Program.
Previous wording
Mattel's primary sources of liquidity are its domestic and foreign cash and equivalents balances, short-term borrowing facilities, including its $1.40 billion Credit Facility, and access to capital markets to fund its operations and obligations. Such obligations may include capital expenditures, debt service, future royalty payments pursuant to licensing agreements, future inventory and service purchases, and required cash contributions and payments related to benefit plans. Of Mattel's $1.24 billion in cash and equivalents at March 31, 2025, $931.2 million was held by foreign subsidiaries, including $68.6 million held in Russia. Mattel's cash held in Russia can be used within the country; however, its movement out of Russia is currently limited. In early 2022, Mattel paused all shipments into Russia.
Current wording
Mattel's primary sources of liquidity are its domestic and foreign cash and equivalents balances, driven by cash flows from operating activities, short-term borrowing facilities, including its $1.40 billion Credit Facility, and access to capital markets to fund its operations and obligations. Such obligations may include capital expenditures, debt service, future royalty payments pursuant to licensing agreements, future inventory and service purchases, and required cash contributions and payments related to benefit plans. Of Mattel's $870.5 million in cash and equivalents at June 30, 2025, $635.3 million was held by foreign subsidiaries, including $73.6 million held in Russia. Mattel's cash held in Russia can be used within the country; however, its movement out of Russia is currently limited. In early 2022, Mattel paused all shipments into Russia.
Previous wording
Cash flows provided by operating activities were $24.8 million in the first three months of 2025, as compared to $35.5 million in the first three months of 2024. The decrease in cash flows provided by operating activities was primarily due to a decrease in net income, excluding the impact of non-cash items, partially offset by a decrease in cash used for working capital of $14.2 million. The decrease in cash used for working capital is primarily due to $45.5 million of favorable changes in accounts payable and accrued liabilities and $25.1 million of favorable changes in prepaid assets and other current assets, partially offset by $26.2 million of unfavorable changes in inventory and $20.0 million of unfavorable changes in accounts receivable, net.
Current wording
Cash flows used for operating activities were $275.3 million in the first half of 2025, as compared to $217.4 million in the first half of 2024. The increase in cash flows used for operating activities was primarily due to a decrease in net income, excluding the impact of non-cash items, and an increase in cash used for working capital of $18.4 million. The increase in cash used for working capital was primarily due to $71.8 million of unfavorable changes in inventory, partially offset by $41.5 million of favorable changes in prepaid expenses.
Previous wording
Cash flows used for investing activities were $31.3 million in the first three months of 2025, as compared to $28.4 million in the first three months of 2024. The increase in cash flows used for investing activities was primarily due to higher capital expenditures of $5.7 million in the first three months of 2025.
Current wording
Cash flows used for investing activities were $54.6 million in the first half of 2025, as compared to $72.7 million in the first half of 2024. The decrease in cash flows used for investing activities was primarily due to an increase in proceeds from Mattel-owned life insurance policies of $8.7 million and an increase in proceeds from foreign currency forward exchange contracts of $8.4 million in the first half of 2025.
Previous wording
Cash flows used for financing activities were $161.9 million in the first three months of 2025, as compared to $131.3 million in the first three months of 2024. The increase in cash flows used for financing activities was primarily due to $60.0 million of higher share repurchases in the first three months of 2025 as compared to the first three months of 2024.
Current wording
Cash flows used for financing activities were $222.4 million in the first half of 2025, as compared to $240.0 million in the first half of 2024. The decrease in cash flows used for financing activities was primarily due to a decrease in cash used for other financing activities of $28.0 million, partially offset by $10.0 million of higher share repurchases in the first half of 2025 as compared to the first half of 2024.
Previous wording
Mattel's cash and equivalents decreased $144.2 million to $1.24 billion at March 31, 2025 from $1.39 billion at December 31, 2024, primarily due to share repurchases of $160.0 million and capital expenditures of $36.2 million, partially offset by cash flows provided by operating activities of $24.8 million during the three months ended March 31, 2025. Mattel's cash and equivalents increased $113.5 million to $1.24 billion at March 31, 2025 from $1.13 billion at March 31, 2024, primarily due to cash flows provided by operating activities of $789.9 million during the trailing twelve months, partially offset by $460.0 million of share repurchases and $208.3 million of capital expenditures during the trailing twelve months.
Current wording
Mattel's cash and equivalents decreased $517.5 million to $870.5 million at June 30, 2025 from $1.39 billion at December 31, 2024, primarily due to cash flows used for operating activities of $275.3 million, share repurchases of $210.0 million, and capital expenditures of $76.0 million, partially offset by favorable effects of currency exchange rate changes on cash of $34.8 million. Mattel's cash and equivalents increased $148.0 million to $870.5 million at June 30, 2025 from $722.4 million at June 30, 2024, primarily due to cash flows provided by operating activities of $744.6 million during the trailing twelve months, partially offset by $410.0 million of share repurchases and $213.2 million of capital expenditures during the trailing twelve months.
Previous wording
Accounts receivable decreased $369.9 million to $633.3 million at March 31, 2025 from $1.00 billion at December 31, 2024, primarily due to seasonal declines as year-end receivables are collected. Accounts receivable decreased by $40.0 million to $633.3 million at March 31, 2025 from $673.3 million at March 31, 2024, primarily due to timing of sales and collections.
Current wording
Accounts receivable decreased $210.7 million to $792.5 million at June 30, 2025 from $1.00 billion at December 31, 2024, primarily due to seasonal declines as year-end receivables were collected. Accounts receivable decreased by $46.9 million to $792.5 million at June 30, 2025 from $839.4 million at June 30, 2024, primarily due to lower sales and timing of collections.
Previous wording
Prepaid expenses and other current assets increased $17.0 million to $251.1 million at March 31, 2025 from $234.1 million at December 31, 2024, primarily due to increases in prepaid insurance of $12.5 million and prepaid income taxes of $10.8 million, partially offset by a decrease in derivative receivables of $11.2 million. Prepaid expenses and other current assets decreased $11.6 million to $251.1 million at March 31, 2025 from $262.7 million at March 31, 2024, primarily due to decreases in prepaid income taxes of $22.3 million.
Current wording
Prepaid expenses and other current assets increased $34.1 million to $268.2 million at June 30, 2025 from $234.1 million at December 31, 2024, primarily due to increases in prepaid royalties of $18.3 million, prepaid income taxes of $11.0 million, and prepaid insurance of $8.8 million, partially offset by a decrease in derivative receivables of $16.3 million. Prepaid expenses and other current assets were $268.2 million at June 30, 2025, relatively flat as compared to $265.7 million at June 30, 2024.
Previous wording
Accounts payable and accrued liabilities decreased $146.0 million to $1.13 billion at March 31, 2025 from $1.28 billion at December 31, 2024, due to seasonal declines in expenditure levels. Accounts payable and accrued liabilities increased $47.6 million to $1.13 billion at March 31, 2025 from $1.08 billion at March 31, 2024, primarily due to increases in accrued compensation of $24.2 million and accrued royalties of $20.2 million.
Current wording
Accounts payable and accrued liabilities decreased $154.7 million to $1.12 billion at June 30, 2025 from $1.28 billion at December 31, 2024, due to seasonal declines in expenditure levels. Accounts payable and accrued liabilities increased $117.5 million to $1.12 billion at June 30, 2025 from $1.01 billion at June 30, 2024, primarily due to an increase in accounts payable of $42.4 million and an increase in derivative liabilities of $28.8 million.
Previous wording
Total debt was $2.34 billion at March 31, 2025, and $2.33 billion at December 31, 2024 and March 31, 2024, respectively.
Current wording
Total debt was $2.34 billion at June 30, 2025, and $2.33 billion at both December 31, 2024 and June 30, 2024. Mattel's $600.0 million of 2021 Senior Notes are scheduled to mature in April 2026, which Mattel intends to repay or refinance prior to the scheduled maturity date.
Previous wording
Stockholders' equity decreased $134.5 million to $2.13 billion at March 31, 2025 from $2.26 billion at December 31, 2024, primarily due to share repurchases of $160.0 million and net loss of $40.3 million, partially offset by other comprehensive income of $47.9 million and the impact of share-based compensation on additional paid-in capital of $19.9 million during the first three months of 2025. Stockholders' equity increased $104.3 million to $2.13 billion at March 31, 2025 from $2.03 billion at March 31, 2024, primarily due to net income of $529.8 million and the impact of share-based compensation on additional paid-in capital of $81.4 million during the trailing twelve months, partially offset by share repurchases of $464.2 million and other comprehensive loss of $30.9 million during the trailing twelve months.
Current wording
Stockholders' equity decreased $92.3 million to $2.17 billion at June 30, 2025 from $2.26 billion at December 31, 2024, primarily due to share repurchases of $211.9 million, partially offset by other comprehensive income of $77.5 million and the impact of share-based compensation on additional paid-in capital of $38.6 million during the first half of 2025. Stockholders' equity increased $198.7 million to $2.17 billion at June 30, 2025 from $1.97 billion at June 30, 2024, primarily due to net income of $526.3 million and the impact of share-based compensation on additional paid-in capital of $80.3 million during the trailing twelve months, partially offset by share repurchases of $413.7 million.
Previous wording
Mattel's critical accounting policies and estimates are included in the 2024 Annual Report on Form 10-K and did not materially change during the first three months of 2025.
Current wording
Mattel's critical accounting policies and estimates are included in the 2024 Annual Report on Form 10-K and did not materially change during the first half of 2025.
Rearranged current paragraphs (5)
Current report — wording carried from elsewhere
Sales adjustments generally represent arrangements with Mattel's customers to provide sales incentives, support customer promotions, and provide allowances for returns and defective merchandise. Such programs are based primarily on customer purchases, customer performance of specified promotional activities, and other specified factors such as sales to consumers. Additionally, sales adjustments may include foreign currency transaction gains and losses from the remeasurement of accounts receivable denominated in currencies that are different from the relevant entity's functional currency. Sales adjustments increased to $131.9 million in the second quarter of 2025, from $121.6 million in the second quarter of 2024. Sales adjustments as a percentage of net sales increased to 12.9% in the second quarter of 2025, as compared to 11.3% in the second quarter of 2024 primarily due to higher promotional activities and a shift in sales channel mix resulting in a higher proportion of sales with higher average sales adjustment rates.
Current report — wording carried from elsewhere
Advertising and promotion expenses primarily consist of: (i) media costs, which include the media, planning, and buying fees for television, print, and online advertisements, (ii) non-media costs, which include commercial and website production, merchandising, and promotional costs, (iii) retail advertising costs, which include consumer direct catalogs, and (iv) general advertising costs, which include trade show costs. Advertising and promotion expenses as a percentage of net sales increased to 7.8% in the second quarter of 2025, as compared to 6.8% in the second quarter of 2024. The increase in advertising and promotion expenses as a percentage of net sales was primarily due to a shift in the timing of advertising and promotion programs from the first quarter of 2025 to the second quarter of 2025.
Current report — wording carried from elsewhere
The following table presents Mattel's consolidated results for the first half of 2025 and 2024:
Current report — wording carried from elsewhere
Gross billings represent amounts invoiced to a customer and do not include the impact of sales adjustments, such as trade discounts and other allowances. Changes in gross billings are discussed below because, while Mattel records the details of sales adjustments in its financial accounting systems at the time of sale, such sales adjustments are generally recorded by customer and are not associated with categories, brands, or individual products. The following tables provide a summary of Mattel's consolidated gross billings by categories, along with supplemental information by brand, for the first half of 2025 and 2024:
Current report — wording carried from elsewhere
Evaluating the need for and the amount of a valuation allowance for deferred tax assets often requires significant judgment and extensive analysis of all available evidence to determine whether it is more-likely-than-not that these assets will be realizable. Mattel routinely assesses the positive and negative evidence for this realizability, including the evaluation of sustained profitability and three years of cumulative pretax income for each tax jurisdiction. For the first half of 2025 and 2024, there were no material changes to Mattel's valuation allowance.