MATTEL INC /DE/
For the period ended Mar 31, 2026. Filed May 1, 2026.
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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.
Mar 31, 2026 · Filed May 1, 2026
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 2025-09-30; filed 2025-10-29.
0001628280-25-047161
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-03-31; filed 2026-05-01.
0001628280-26-029316
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 171 previous paragraphs and 126 current paragraphs.
51 unchanged; 42 reworded; 32 added; 71 removed; 7 previous and 1 current paragraphs rearranged.
Tables are not compared: 15 previous and 9 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 (32)
Current report
•Grow its toy brands with more breakthrough innovation and adult fans and collectors, as well as evolved demand creation;
Current report
•Expand its direct-to-consumer and commercial reach through first party data, retail development, and new channels;
Current report
•Broaden content offering in film, television, and short-form content, accelerate licensing in consumer products, location-based entertainment, and publishing, and expand with new business models;
Current report
•Scale digital play through mobile games self-publishing, Mattel163 mobile games studio, licensing, and creator platforms; and
Current report
•Optimize operations and leverage artificial intelligence across its systems and supply chain.
Current report
Mattel's net sales in the first quarter of 2026 increased 4% compared to the first quarter of 2025. Gross margin declined to 44.9% in the first quarter of 2026 compared to 49.4% in the first quarter of 2025, due to the gross incremental cost of tariffs, unfavorable foreign exchange, and inflation. Gross margin benefited from mitigating actions to offset tariffs and realized savings from the Optimizing for Profitable Growth program (the "OPG program"), partially offset by other factors.
Current report
Mattel continued to progress its strategy to grow its IP driven play and family entertainment business as Mattel completed its acquisition of full ownership of Mattel163 Limited mobile games studio ("Mattel163"), on March 2, 2026 (the "Acquisition Date"). The Mattel163 acquisition is expected to advance Mattel’s digital games business and add development, publishing, and digital customer acquisition expertise. The purchase price for the remaining 50% equity interest was $178.6 million, including working capital and other adjustments, and is subject to customary post-closing adjustments. Since Mattel held a 50% equity interest in Mattel163 immediately prior to the Acquisition Date and accounted for that investment under the equity method, Mattel remeasured its prior equity interest to the estimated fair value of $178.6 million as of the Acquisition Date and recognized a gain of $147.9 million in other non-operating income, net in the consolidated statement of operations during the three months ended March 31, 2026. Mattel now owns 100% of Mattel163 and began consolidating its financial results in Mattel's consolidated financial statements following the Acquisition Date.
Current report
Results of Operations—First Quarter
Current report
N/M - not meaningful
Current report
Dolls gross billings decreased 8%, primarily due to lower billings of Barbie products.
Current report
Vehicles gross billings increased 17%, primarily due to higher billings of Hot Wheels products.
Current report
Action Figures, Building Sets, Games, and Other gross billings increased 21%, of which 14% was due to higher billings of Games, which benefitted from the partial quarter contribution from Mattel163, 4% was due to higher billings of Action Figures products, and 3% was due to higher billings of Other products.
Current report
Gross margin decreased to 44.9% in the first quarter of 2026 from 49.4% in the first quarter of 2025. The decrease in gross margin was primarily due to gross incremental tariff costs of 240 basis points, unfavorable impact from foreign currency exchange of 140 basis points, and cost inflation of 90 basis points. Gross margin benefited by 20 basis points from mitigating actions to offset tariffs and realized savings from the OPG program, partially offset by other factors.
Current report
Interest expense was $31.1 million in the first quarter of 2026, relatively flat as compared to $29.2 million in the first quarter of 2025.
Current report
Interest income decreased by $5.3 million to $10.7 million in the first quarter of 2026 from $16.0 million in the first quarter of 2025. The decrease was primarily due to lower average invested cash balances in the first quarter of 2026.
Current report
Other Non-Operating (Income)/Expense, Net
Current report
Other non-operating income increased by $161.1 million to $148.1 million in the first quarter of 2026 from an expense of $13.0 million in the first quarter of 2025, primarily driven by the gain recognized on Mattel's previously held equity interest in Mattel163. On March 2, 2026, Mattel acquired the remaining 50% equity interest in Mattel163. Prior to the acquisition of the remaining 50% equity interest in Mattel163, Mattel accounted for its investment under the equity method. Upon obtaining control, Mattel remeasured its previously held 50% equity interest to its estimated fair value as of the Acquisition Date, resulting in a gain of $147.9 million recognized in the first quarter of 2026.
Current report
Benefit from Income Taxes
Current report
The following tables provide a summary of Mattel's net sales, segment income, and gross billings by categories, along with supplemental information by brand, for the North America segment for the first quarter of 2026 and 2025:
Current report
Dolls gross billings decreased 11%, primarily due to lower billings of Barbie products.
Current report
Vehicles gross billings increased 7%, primarily due to higher billings of Hot Wheels products.
Current report
Sales adjustments were relatively flat at $33.3 million in the first quarter of 2026 compared to $34.6 million in the first quarter of 2025. Sales adjustments as a percentage of net sales was consistent at 7.0% in the first quarter of 2026 and 2025.
Current report
Cost of sales increased by $10.3 million, or 4%, to $266.6 million in the first quarter of 2026 from $256.3 million in the first quarter of 2025, primarily due to an increase in product and other costs of $5.8 million.
Current report
The following tables provide a summary of Mattel's net sales, segment income, and gross billings by categories, along with supplemental information by brand, for the International segment for the first quarter of 2026 and 2025:
Current report
Vehicles gross billings increased 27%, primarily due to higher billings of Hot Wheels products.
Current report
Infant, Toddler, and Preschool gross billings were relatively flat year-over-year.
Current report
Action Figures, Building Sets, Games, and Other gross billings increased 42%, of which 19% was due to higher billings of Games products, which benefitted from the partial quarter contribution from Mattel163, 16% was due to higher billings of Action Figures products, and 7% was due to higher billings of Building Sets products.
Current report
Cost of sales increased by $27.2 million, or 16%, to $202.7 million in the first quarter of 2026 from $175.5 million in the first quarter of 2025, primarily due to an increase in product and other costs of $17.5 million.
Current report
International segment income decreased to $19.9 million in the first quarter of 2026 from $23.3 million in the first quarter of 2025, primarily due to higher cost of sales of $27.2 million, higher other selling and administrative expenses of $15.2 million, and higher advertising and promotion expenses of $12.8 million, partially offset by higher net sales of $51.8 million.
Current report
Cash flows used for investing activities were $143.6 million in the first three months of 2026, as compared to $31.3 million in the first three months of 2025. The increase in cash flows used for investing activities was primarily due to $74.8 million cash paid for the remaining 50% interest in Mattel163, net of cash acquired, and an increase in capital expenditures of $28.9 million.
Current report
Accounts receivable decreased by $410.9 million to $686.7 million at March 31, 2026 from $1.10 billion at December 31, 2025, primarily due to seasonal declines as year-end receivables are collected. Accounts receivable increased by $53.4 million to $686.7 million at March 31, 2026 from $633.3 million at March 31, 2025, primarily due to higher net sales and the timing of collections.
Current report
Accounts payable and accrued liabilities decreased by $234.0 million to $1.19 billion at March 31, 2026 from $1.43 billion at December 31, 2025, primarily due to a decrease in accounts payable of $182.2 million, a decrease in accrued royalties of $52.2 million, a decrease in accrued advertising expenses of $42.8 million, and a decrease in taxes other than income taxes of $32.6 million, partially offset by higher deferred income of $57.3 million and higher interest payable of $29.9 million. Accounts payable and accrued liabilities increased by $62.6 million to $1.19 billion at March 31, 2026 from $1.13 billion at March 31, 2025, primarily due to higher deferred income of $63.8 million and an increase in accounts payable of $54.9 million, partially offset by lower accrued incentive compensation of $56.7 million.
Removed paragraphs (71)
Previous report
•Grow toy business profitably through scaling Mattel's portfolio, optimizing operations, evolving demand creation, and growing franchise brands; and
Previous report
•Expand entertainment offering to capture the full value of Mattel's IP outside the toy aisle in highly accretive business verticals, by growing franchise brands and accelerating content, consumer products, and digital and live experiences.
Previous report
During the third quarter of 2025, Mattel’s U.S. business continued to be challenged by industry-wide shifts in retailer ordering patterns, which impacted Mattel’s net sales. Notwithstanding the impact of the current trade dynamics, the fundamentals of Mattel’s business remained strong and Mattel continued to advance its strategy to grow its IP-driven toy business and expand its entertainment offering.
Previous report
Mattel's net sales in the third quarter of 2025 decreased 6%, as compared to the third quarter of 2024. Gross margin was 50.0% in the third quarter of 2025, as compared to 53.1% in the third quarter of 2024, with unfavorable impacts from foreign currency exchange rates, inflation, tariff costs, and higher sales adjustments, partially offset by cost savings from the OPG program. Net income per diluted common share was $0.88 in the third quarter of 2025, as compared to $1.09 in the third quarter of 2024. Additionally, Mattel ended the third quarter of 2025 with cash and equivalents of $691.9 million, as compared to $723.5 million at the end of the third quarter of 2024, after $544.2 million of share repurchases during the twelve months ending September 30, 2025.
Previous report
Results of Operations—Third Quarter
Previous report
Net sales in the third quarter of 2025 were $1.74 billion, a decrease of $107.9 million, or 6%, as compared to $1.84 billion in the third quarter of 2024. The decrease in net sales was due to a decrease in gross billings of $84.3 million and an increase in sales adjustments of $23.6 million.
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 11%, 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 5%.
Previous report
Gross margin decreased to 50.0% in the third quarter of 2025 from 53.1% in the third quarter of 2024. The decrease in gross margin was primarily due to unfavorable foreign currency exchange of 120 basis points, cost inflation of 110 basis points, tariff costs of 100 basis points, higher sales adjustments of 80 basis points, partially offset by incremental realized savings from the OPG program of 80 basis points, and other factors of 20 basis points.
Previous report
Other selling and administrative expenses were $370.3 million, or 21.3% of net sales, in the third quarter of 2025, a decrease of $15.4 million, as compared to $385.7 million, or 20.9% of net sales, in the third quarter of 2024. The decrease in other selling and administrative expenses was primarily due to lower severance and restructuring charges of $26.7 million, lower employee compensation related expenses of $19.8 million, and realized savings from the OPG program of $9.1 million, partially offset by higher expenses related to inclined sleeper product recalls of $16.3 million and higher outside services and other expenses of $23.9 million.
Previous report
Interest expense was $29.4 million in the third quarter of 2025, flat as compared to $29.4 million in the third quarter of 2024.
Previous report
Interest income was $9.0 million in the third quarter of 2025, relatively flat as compared to $9.8 million in the third quarter of 2024.
Previous report
Provision for Income Taxes
Previous report
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 third quarter of 2025 and 2024:
Previous report
Infant, Toddler, and Preschool gross billings decreased 31%, of which 17% was due to lower billings of Fisher-Price products, 10% was due to lower billings of Preschool Entertainment products, and 5% 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
Action Figures, Building Sets, Games, and Other gross billings increased 3%, of which 16% 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 6% and lower billings of Games products of 5%.
Previous report
Sales adjustments increased to $81.8 million in the third quarter of 2025 from $76.0 million in the third quarter of 2024. Sales adjustments as a percentage of net sales increased to 8.4% in the third quarter of 2025 from 6.9% in the third quarter of 2024, primarily due to increased promotional activities and a shift in sales channel mix resulting in a higher proportion of sales with higher average sales adjustment rates.
Previous report
Cost of sales decreased by $47.3 million, or 9%, to $487.5 million in the third quarter of 2025 from $534.8 million in the third quarter of 2024, primarily due to a decrease in product and other costs of $48.2 million.
Previous report
Gross margin decreased to 50.2% in the third quarter of 2025 from 51.7% in the third quarter of 2024. The decrease in gross margin was primarily due to tariff costs of 180 basis points, cost inflation of 110 basis points, and higher sales adjustments of 70 basis points, partially offset by incremental realized savings from the OPG program of 90 basis points, and other factors of 120 basis points.
Previous report
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 third quarter of 2025 and 2024:
Previous report
Infant, Toddler, and Preschool gross billings decreased 14%, of which 9% was due to lower billings of Fisher-Price products and 3% was due to lower billings of Preschool Entertainment products.
Previous report
Vehicles gross billings increased 20%, primarily due to higher billings of Hot Wheels products.
Previous report
Action Figures, Building Sets, Games, and Other gross billings increased 24%, of which 22% 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 6% was due to higher billings of Games products, partially offset by lower billings of Building Sets products of 2%.
Previous report
Cost of sales increased by $20.2 million, or 6%, to $375.8 million in the third quarter of 2025 from $355.6 million in the third quarter of 2024, primarily due to an increase in product and other costs of $10.2 million and an increase in royalty expense of $5.9 million.
Previous report
Gross margin decreased to 50.4% in the third quarter of 2025 from 51.7% in the third quarter of 2024. The decrease in gross margin was primarily due to cost inflation of 90 basis points, higher sales adjustments of 60 basis points, and other factors of 40 basis points, partially offset by incremental realized savings from the OPG program of 60 basis points.
Previous report
International segment operating income was $208.6 million in the third quarter of 2025, as compared to $217.7 million in the third quarter of 2024, primarily due to higher other selling and administrative expenses of $8.7 million.
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Results of Operations—First Nine Months
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Consolidated Results
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Sales
Previous report
Net sales in the first nine months of 2025 were $3.58 billion, a decrease of $152.0 million, or 4%, as compared to $3.73 billion in the first nine months of 2024. The decrease in net sales was due to a decrease in gross billings of $110.0 million and an increase in sales adjustments of $42.0 million.
Previous report
Gross billings were $4.04 billion in the first nine months of 2025, a decrease of $110.0 million, or 3%, as compared to $4.15 billion in the first nine months 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 Action Figures, Building Sets, Games, and Other and Vehicles products.
Previous report
Infant, Toddler, and Preschool gross billings decreased 21%, of which 12% was due to lower billings of Fisher-Price products, 5% 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.
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 21% 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 6%.
Previous report
Cost of Sales
Previous report
Cost of sales decreased by $48.7 million, or 3%, to $1.79 billion in the first nine months of 2025 from $1.83 billion in the first nine months of 2024. Within cost of sales, product and other costs decreased by $66.0 million, or 5%, to $1.38 billion in the first nine months of 2025 from $1.44 billion in the first nine months of 2024. Royalty expense increased by $14.4 million, or 9%, to $182.2 million in the first nine months of 2025, as compared to $167.7 million in the first nine months of 2024. Freight and logistics expenses increased by $2.9 million, or 1%, to $228.5 million in the first nine months of 2025 from $225.5 million in the first nine months of 2024.
Previous report
Gross Margin
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Gross margin decreased to 50.1% in the first nine months of 2025 from 50.9% in the first nine months of 2024. The decrease in gross margin was primarily due to cost inflation of 100 basis points, higher sales adjustments of 70 basis points, tariff costs of 50 basis points, and other factors of 20 basis points, partially offset by incremental realized savings from the OPG program of 100 basis points, and lower inventory management costs of 60 basis points, due to lower close-out sales and inventory obsolescence.
Previous report
Advertising and Promotion Expenses
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Other Selling and Administrative Expenses
Showing the first 40 of 71 passages. Open the source sections for the rest.
Reworded paragraphs (42)
Previous wording
Mattel is a leading global toy and family entertainment company and owner of one of the most iconic brand portfolios in the world. Mattel creates innovative products and experiences that inspire fans, entertain audiences, and develop children through play. Mattel is focused on the following strategy to grow its intellectual property ("IP") driven toy business and expand its entertainment offering:
Current wording
Mattel is a leading global play and family entertainment company and owner of one of the most iconic brand portfolios in the world. Mattel's mission is to create innovative products and experiences that inspire fans, entertain audiences, and develop children through play, and its purpose is to empower generations to explore the wonder of childhood and reach their full potential.
Previous wording
Dolls—including brands such as Barbie, American Girl, Disney Princess, Disney Frozen, Monster High, and Polly Pocket. Mattel's Dolls portfolio is driven by the flagship Barbie brand and a collection of complementary brands offered globally. Empowering girls since 1959, Barbie has inspired the limitless potential of every girl by showing them that they can be anything. Monster High, a character-driven franchise, engages fans of all ages, encouraging them to be their authentic selves and celebrate what makes them unique. American Girl, with an extensive portfolio of dolls and accessories, content, gaming, and lifestyle products, is best known for imparting valuable life lessons that instill confidence through its inspiring dolls and books, featuring characters from past and present.
Current wording
Dolls—including brands such as Barbie, American Girl, Disney Princess, Disney Frozen, Monster High, Polly Pocket, and KPop Demon Hunters. Mattel's Dolls portfolio is driven by the flagship Barbie brand and a collection of complementary brands offered globally. Empowering girls since 1959, Barbie has inspired the limitless potential in every girl, sparking imaginations and shaping futures through play. Monster High, a character-driven franchise, engages fans of all ages, encouraging them to be their authentic selves and celebrate what makes them unique. American Girl, with an extensive portfolio of dolls and accessories, content, and lifestyle products, is best known for imparting valuable life lessons that instill confidence through its inspiring dolls and books, featuring characters from past and present.
Previous wording
Vehicles—including brands such as Hot Wheels(including Hot Wheels Monster Trucksand Hot Wheels RC), Matchbox, and Cars (Disney Pixar). In production for over 50 years, Hot Wheels continues to push the limits of performance and design, and ignites and nurtures the challenger spirit of kids, adults, and collectors. From die-cast vehicles to tracks, playsets, and accessories, the Mattel Vehicles portfolio has broad appeal that engages and excites fans of all ages.
Current wording
Vehicles—including brands such as Hot Wheels(including Hot Wheels Monster Trucksand Hot Wheels RC), Matchbox, and Cars (Disney Pixar). Hot Wheels has continued to push the limits of performance and design since 1968, and ignites and nurtures the challenger spirit in kids, adults, and collectors. From die-cast vehicles to tracks, playsets, and accessories, the Mattel Vehicles portfolio has broad appeal that engages and excites fans of all ages.
Previous wording
Infant, Toddler, and Preschool—including brands such as Fisher-Price(including Little Peopleand Fisher-Price Wood), Imaginext, and Thomas & Friends. As a leader in play and child development, Fisher-Priceis dedicated to giving families the best possible start to life by making the most fun, enriching products for infants, toddlers, and preschoolers. Thomas & Friends is an award-winning preschool train brand franchise that lays the tracks to inspire, entertain, and develop young train fans through toys, content, live events, and other consumer products.
Current wording
Infant, Toddler, and Preschool—including brands such as Fisher-Price(including Little People) and Thomas & Friends, is organized into three subcategories: Fisher-Price, Preschool Entertainment, and Baby Gear and Power Wheels. The first subcategory is Fisher-Price, the power brand, which includes core Infant and Toddler product lines. As a leader in play and child development, Fisher-Priceis dedicated to giving families the best possible start to life by making the most fun, enriching products for infants, toddlers, and preschoolers. The second subcategory is Preschool Entertainment, which includes owned IP such as Thomas & Friends and partner entertainment brands. Thomas & Friends is an award-winning preschool train brand franchise that lays the tracks to inspire, entertain, and develop young train fans through toys, content, live events, and other consumer products. The third subcategory is Baby Gear and Power Wheels, in which Mattel has strategically out-licensed or exited certain product lines.
Previous wording
Action Figures, Building Sets, Games, and Other—including brands such as Masters of the Universe, MEGA, UNO, Jurassic World (NBCUniversal), Minecraft (Microsoft), WWE, and Star Wars (Disney's Lucasfilm). Mattel's Action Figures portfolio is comprised of product lines associated with licensed entertainment franchises, such as Jurassic World and WWE, as well as product lines from Mattel-owned IP, such as Masters of the Universe. As the challenger brand in Building Sets, MEGA inspires creativity through authentic building experiences for builders of all ages and fans of global franchises. Within Games, UNO is the classic matching card game that is easy to learn and fast fun for everyone. Other includes Plush, which contains products associated with movie releases from licensed entertainment franchises, as well as Mattel-owned IP.
Current wording
Action Figures, Building Sets, Games, and Other—including brands such as Masters of the Universe, Mattel Brick Shop, MEGA, UNO, Jurassic World (NBCUniversal), Minecraft (Microsoft), WWE, Toy Story (Disney Pixar), and Star Wars (Disney's Lucasfilm). Mattel's Action Figures portfolio is comprised of product lines associated with licensed entertainment franchises, such as Jurassic World and WWE, as well as product lines from Mattel-owned IP, such as Masters of the Universe. Introduced in 2025 as a new challenger brand in Building Sets, Mattel Brick Shop is designed to introduce differentiated building experiences through innovative features, materials, and techniques intended to expand traditional building play. Within Games, UNO is the classic matching card game that is easy to learn and fast fun for everyone, while the rest of the portfolio includes beloved heritage games such as Pictionary, Skip-Bo, Phase 10, and Blokus. Other includes Plush, which contains products associated with movie releases from licensed entertainment franchises such as Minecraft, as well as Mattel-owned IP.
Previous wording
Global trade policy continues to evolve with significant U.S. 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 wording
Global trade policy continues to evolve and the ultimate impact of recent developments with respect to U.S. tariffs is unclear. On February 20, 2026, the U.S. Supreme Court issued a ruling that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the United States were unauthorized. Following that ruling, the U.S. Court of International Trade issued an order directing the U.S. Customs and Border Protection ("CBP") to process refunds of the IEEPA tariffs, although the Court immediately suspended the order while CBP develops and implements the refund process. The IEEPA tariffs and related refund framework remain subject to ongoing litigation, including potential appeals, as well as regulatory and administrative developments. Accordingly, the ultimate availability, timing, and amount of any potential refunds of such tariffs remain highly uncertain. Following the Supreme Court’s decision, the U.S. presidential administration announced its intention to invoke other laws to collect tariffs and announced new tariffs on imports from all countries, in addition to any existing non-IEEPA tariffs. There remains substantial uncertainty regarding the duration of various existing and newly announced or intended tariffs, potential changes or pauses to such tariffs, tariff levels, and whether further additional tariffs or other retaliatory actions may be imposed, modified, suspended, or invalidated, 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, financial condition, and results of operations.
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 on Form 10-K 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.
Current wording
Mattel is operating in an uncertain geopolitical and macro-economic environment with significant volatility that may impact consumer demand. To the extent the geopolitical or macro-economic environment worsens, including due to further developments in the Middle East or regulatory actions impacting global trade, 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 2025 Annual Report on Form 10-K for further discussion regarding potential impacts on Mattel's business.
Previous wording
The following table presents Mattel's consolidated results for the third quarter of 2025 and 2024:
Current wording
The following table presents Mattel's consolidated results for the first quarter of 2026 and 2025:
Previous wording
Net sales for the International segment in the first nine months of 2025 were $1.60 billion, an increase of $60.3 million, or 4%, as compared to $1.54 billion in the first nine months of 2024. The increase in net sales was due to an increase in gross billings of $94.2 million, partially offset by an increase in sales adjustments of $33.9 million.
Current wording
Net sales in the first quarter of 2026 were $862.2 million, an increase of $35.5 million, or 4%, as compared to $826.6 million in the first quarter of 2025. The increase in net sales was due to an increase in gross billings of $47.7 million, partially offset by an increase in sales adjustments of $12.2 million.
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 third 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 first quarter of 2026 and 2025:
Previous wording
Gross billings for the International segment were $906.9 million in the third quarter of 2025, an increase of $40.1 million, or 5%, as compared to $866.8 million in the third quarter of 2024, with a favorable impact from changes in currency exchange rates of three 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 Dolls and Infant, Toddler, and Preschool products.
Current wording
Gross billings were $971.9 million in the first quarter of 2026, an increase of $47.7 million, or 5%, as compared to $924.2 million in the first quarter of 2025, with a favorable impact from changes in currency exchange rates of three percentage points. The increase in gross billings was primarily due to higher billings of Vehicles and Action Figures, Building Sets, Games, and Other products, partially offset by lower billings of Dolls and Infant, Toddler, and Preschool products.
Previous wording
Infant, Toddler, and Preschool gross billings decreased 12%, of which 8% was due to lower billings of Fisher-Price products, 2% 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 2% was due to lower billings of Preschool Entertainment products.
Current wording
Infant, Toddler, and Preschool gross billings decreased 16%, of which 8% was due to lower billings of Fisher-Price products, 5% was due to lower billings of Preschool Entertainment products, and 2% 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 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 $230.8 million in the third quarter of 2025 from $207.2 million in the third quarter of 2024. Sales adjustments as a percentage of net sales increased to 13.3% in the third quarter of 2025, as compared to 11.2% in the third quarter of 2024, primarily due to increased promotional activities and a shift in sales channel mix resulting in a higher proportion of sales with higher average sales adjustment rates.
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 $109.7 million in the first quarter of 2026 from $97.5 million in the first quarter of 2025. Sales adjustments as a percentage of net sales increased to 12.7% in the first quarter of 2026, as compared to 11.8% in the first quarter of 2025, primarily due to a higher proportion of sales occurring in regions with higher average sales rates and a shift in sales channel mix resulting in a higher proportion of sales with higher average sales adjustment rates.
Previous wording
Cost of sales was relatively consistent at $867.7 million in the third quarter of 2025, as compared to $864.9 million in the third quarter of 2024. Within cost of sales, product and other costs decreased by $8.1 million, or 1%, to $688.0 million in the third quarter of 2025 from $696.1 million in the third quarter of 2024. Freight and logistics expenses increased by $6.3 million, or 7%, to $91.3 million in the third quarter of 2025, as compared to $84.9 million in the third quarter of 2024. Royalty expense increased by $4.5 million, or 5%, to $88.5 million in the third quarter of 2025 from $83.9 million in the third quarter of 2024.
Current wording
Cost of sales increased by $56.9 million, or 14%, to $475.4 million in the first quarter of 2026 from $418.5 million in the first quarter of 2025. Within cost of sales, product and other costs increased by $42.7 million, or 14%, to $353.0 million in the first quarter of 2026 from $310.3 million in the first quarter of 2025. Royalty expense increased by $7.8 million, or 18%, to $50.4 million in the first quarter of 2026 from $42.5 million in the first quarter of 2025. Freight and logistics expenses increased by $6.4 million, or 10%, to $72.1 million in the first quarter of 2026, as compared to $65.7 million in the first quarter of 2025.
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 increased to 6.8% in the third quarter of 2025, as compared to 5.7% in the third 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 to support consumer demand and lower sales in the third quarter of 2025, as compared to the third 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 increased to 10.8% in the first quarter of 2026, as compared to 8.5% in the first quarter of 2025. The increase in advertising and promotion expenses as a percentage of net sales was primarily due to increased advertising and promotion programs and the timing of holiday activations in the first quarter of 2026 compared to the first quarter of 2025.
Previous wording
Other selling and administrative expenses were $1.12 billion, or 31.3% of net sales, in the first nine months of 2025, an increase of $10.0 million, as compared to $1.11 billion, or 29.8% of net sales, in the first nine months of 2024. The increase in other selling and administrative expenses was primarily due to higher expenses related to inclined sleeper product recalls of $30.0 million and higher outside services and other expenses of $39.3 million, partially offset by realized savings from the OPG program of $29.4 million, lower severance and restructuring charges of $19.9 million, and lower employee compensation related expenses of $10.0 million.
Current wording
Other selling and administrative expenses were $396.6 million, or 46.0% of net sales, in the first quarter of 2026, an increase of $5.7 million, as compared to $390.9 million, or 47.3% of net sales, in the first quarter of 2025. The increase in other selling and administrative expenses was primarily due to expenses incurred in connection with the acquisition of Mattel163 of approximately $9 million, and higher investments and other expenses of $27.7 million, partially offset by lower expenses related to inclined sleeper product recalls and related litigation of $18.3 million, realized savings from the OPG program of $13.2 million, and lower severance and restructuring charges of $4.9 million.
Previous wording
Mattel's provision for income taxes was $86.9 million in the third quarter of 2025, as compared to $106.4 million in the third quarter of 2024. The decrease in provision for income taxes was primarily due to lower income before income taxes, partially offset by a non-recurring discrete income tax benefit from previously unrecognized tax benefits recognized in the third quarter of 2024. During the third quarter of 2025, Mattel recognized a net discrete income tax benefit of $2.3 million. During the third quarter of 2024, Mattel recognized a net discrete income tax benefit of $3.4 million, primarily related to previously unrecognized tax benefits, partially offset by the establishment of a valuation allowance on certain foreign deferred tax assets.
Current wording
Mattel's benefit from income taxes was $32.5 million for the three months ended March 31, 2026, compared to $30.6 million for the three months ended March 31, 2025. The increase in benefit from income taxes was driven by a higher net loss from continuing operations before income taxes excluding the impact of the gain recognized on the acquisition of Mattel163, partially offset by lower net discrete income tax benefits in the first quarter of 2026. Mattel recognized a net discrete income tax benefit of $4.6 million during the three months ended March 31, 2026, primarily related to previously unrecognized tax benefits, partially offset by a discrete tax expense related to the acquisition of Mattel163. Mattel recognized a net discrete tax benefit of $11.4 million during the three months ended March 31, 2025, primarily related to a change of its indefinite reinvestment assertion relating to certain foreign subsidiary earnings.
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. For the first nine months of 2025 and 2024, 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 three months ended March 31, 2026, there were no material changes to Mattel's valuation allowance.
Previous wording
Net sales for the North America segment in the third quarter of 2025 were $978.1 million, a decrease of $130.2 million, or 12%, as compared to $1.11 billion in the third quarter of 2024. The decrease in net sales was primarily due to a decrease in gross billings of $124.4 million.
Current wording
Net sales for the North America segment in the first quarter of 2026 were $475.1 million, a decrease of $16.2 million, or 3%, as compared to $491.4 million in the first quarter of 2025. The decrease in net sales was primarily due to a decrease in gross billings of $17.5 million.
Previous wording
Gross billings for the North America segment were $1.06 billion in the third quarter of 2025, a decrease of $124.4 million, or 11%, as compared to $1.18 billion in the third quarter of 2024. The decrease in the North America segment gross billings was due to lower billings of Infant, Toddler, and Preschool, Dolls, and Vehicles products, partially offset by higher billings of Action Figures, Building Sets, Games, and Other products.
Current wording
Gross billings for the North America segment were $508.5 million in the first quarter of 2026, a decrease of $17.5 million, or 3%, as compared to $526.0 million in the first quarter of 2025. The decrease in the North America segment gross billings was due to lower billings of Infant, Toddler, and Preschool and Dolls products, partially offset by higher billings of Action Figures, Building Sets, Games, and Other and Vehicles products.
Previous wording
Action Figures, Building Sets, Games, and Other gross billings increased 4%, of which 17% 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% and lower billings of Games products of 4%.
Current wording
Action Figures, Building Sets, Games, and Other gross billings increased 9%, of which 11% was due to higher billings of Games, which benefitted from the partial quarter contribution from Mattel163, and 5% was due to higher billings of Other products, partially offset by lower billings of Building Sets products of 4% and lower billings of Action Figures products of 3%.
Previous wording
North America segment operating income was $315.2 million in the third quarter of 2025, as compared to $412.4 million in the third quarter of 2024, primarily due to lower gross profit of $82.9 million and higher advertising and promotion expenses of $10.8 million.
Current wording
North America segment income was $34.5 million in the first quarter of 2026, as compared to $83.1 million in the first quarter of 2025, due to lower net sales of $16.2 million, higher other selling and administrative expenses of $12.2 million, higher cost of sales of $10.3 million, and higher advertising and promotion expenses of $9.9 million.
Previous wording
Net sales for the International segment in the third quarter of 2025 were $757.9 million, an increase of $22.3 million, or 3%, as compared to $735.6 million in the third quarter of 2024. The increase in net sales was primarily due to an increase in gross billings of $40.1 million, partially offset by an increase in sales adjustments of $17.8 million.
Current wording
Net sales for the International segment in the first quarter of 2026 were $387.0 million, an increase of $51.8 million, or 15%, as compared to $335.3 million in the first quarter of 2025. The increase in net sales was primarily due to an increase in gross billings of $65.2 million, partially offset by an increase in sales adjustments of $13.5 million.
Previous wording
Gross billings were $1.97 billion in the third quarter of 2025, a decrease of $84.3 million, or 4%, as compared to $2.05 billion in the third quarter of 2024, with a favorable impact from changes in currency exchange rates of one percentage point. The decrease in gross billings was primarily due to lower billings of Infant, Toddler, and Preschool and Dolls products, partially offset by higher billings of Vehicles and Action Figures, Building Sets, Games, and Other products.
Current wording
Gross billings for the International segment were $463.4 million in the first quarter of 2026, an increase of $65.2 million, or 16%, as compared to $398.2 million in the first quarter of 2025, with a favorable impact from changes in currency exchange rates of eight 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 Dolls products.
Previous wording
Vehicles gross billings decreased 4%, primarily due to lower billings of Hot Wheels products.
Current wording
Dolls gross billings decreased 4%, primarily due to lower billings of Barbie products.
Previous wording
Sales adjustments increased to $149.0 million in the third quarter of 2025 from $131.2 million in the third quarter of 2024. Sales adjustments as a percentage of net sales increased to 19.7% in the third quarter of 2025, as compared to 17.8% in the third quarter of 2024. The increase in sales adjustments as a percentage of net sales was primarily due to increased promotional activities and a shift in sales channel mix resulting in a higher proportion of sales with higher average sales adjustment rates.
Current wording
Sales adjustments increased to $76.4 million in the first quarter of 2026 from $62.9 million in the first quarter of 2025. Sales adjustments as a percentage of net sales increased to 19.7% in the first quarter of 2026, as compared to 18.8% in the first quarter of 2025. The increase in sales adjustments as a percentage of net sales was primarily due to a higher proportion of sales occurring in regions with higher average sales rates and increased promotional activities.
Previous wording
On February 7, 2024, Mattel announced the OPG program, a multi-year cost savings program that follows the Optimizing for Growth program (the "OFG program"), which concluded in the fourth quarter of 2023. The OPG program is designed to achieve further efficiency and cost savings opportunities, primarily within Mattel’s global supply chain, including its manufacturing footprint. The OPG program includes cost savings actions in connection with discontinuing production at a plant in China, as previously announced in the third quarter of 2023, as well as savings from other previous actions taken in 2023 that were not recognized in the OFG program. Targeted annual gross cost savings from actions associated with the OPG program, which are expected to be completed by 2026, are $200 million. Of the $200 million in targeted annual gross costs savings, approximately 60% is expected to benefit cost of sales and 40% is expected to benefit other selling and administrative expenses. Total cash expenditures under the OPG program are expected to be between $115 and $140 million and total non-cash charges are expected to be up to $5 million.
Current wording
On February 7, 2024, Mattel announced the OPG program, a multi-year cost savings program that follows the OFG program, which concluded in the fourth quarter of 2023. The OPG program is designed to achieve further efficiency and cost savings opportunities, primarily within Mattel's global supply chain, including its manufacturing footprint. The OPG program includes cost savings actions in connection with discontinuing production at a plant in China, as previously announced in the third quarter of 2023, as well as savings from other previous actions taken in 2023 that were not recognized in the OFG program. Targeted annual gross cost savings from actions associated with the OPG program, which are expected to be completed by the end of 2026, were increased from $200 million to $225 million in the fourth quarter of 2025. Of the $225 million in targeted annual gross costs savings, approximately 60% is expected to benefit cost of sales and 40% is expected to benefit other selling and administrative expenses. Total cash expenditures under the OPG program are expected to be up to approximately $140 million and total non-cash charges are expected to be approximately $5 million.
Previous wording
(a)Severance and other restructuring costs recorded within cost of sales in the consolidated statements of operations are included in segment operating income in "Note 21 to the Consolidated Financial Statements—Segment Information."
Current wording
(a)Severance and other restructuring costs recorded within cost of sales in the consolidated statements of operations are included in segment income in "Note 22 to the Consolidated Financial Statements—Segment Information."
Previous wording
(b)Severance and other restructuring costs recorded within other selling and administrative expenses in the consolidated statements of operations are included in corporate and other expense in "Note 21 to the Consolidated Financial Statements—Segment Information."
Current wording
(b)Severance and other restructuring costs recorded within other selling and administrative expenses in the consolidated statements of operations are included in unallocated corporate and other operating expenses in "Note 22 to the Consolidated Financial Statements—Segment Information."
Previous wording
As of September 30, 2025, Mattel has recorded cumulative severance and other restructuring charges related to the OPG program of approximately $100 million, which includes approximately $5 million of non-cash charges. Mattel realized cumulative cost savings (before severance, restructuring costs, and cost inflation) of approximately $148 million, which represents approximately 60% benefit to cost of sales, and 40% benefit to other selling and administrative expenses, as of September 30, 2025, in connection with the OPG program.
Current wording
As of March 31, 2026, in connection with the OPG program, Mattel recorded cumulative severance and other restructuring charges of approximately $132 million, which included approximately $5 million of non-cash charges. Mattel realized cumulative cost savings (before severance, restructuring costs, and cost inflation) of approximately $189 million, which represents approximately 55% benefit to cost of sales, and approximately 45% benefit to other selling and administrative expenses, as of March 31, 2026, in connection with the OPG program.
Previous 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 $691.9 million in cash and equivalents at September 30, 2025, $479.1 million was held by foreign subsidiaries, including $70.0 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 in aggregate principal amount of senior unsecured revolving credit facilities (the "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 $866.0 million in cash and equivalents at March 31, 2026, $652.8 million was held by foreign subsidiaries, including $72.3 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 from operating activities could be negatively impacted by decreased demand for Mattel's products, which could result from factors such as, but not limited to, adverse economic conditions and changes in public and consumer preferences, or by increased costs associated with manufacturing and distribution of products, such as tariffs, or shortages in raw materials or component parts. Additionally, Mattel's ability to issue long-term debt and obtain seasonal financing could be adversely affected by factors such as, but not limited to, global economic crises and tight credit environments, an inability to comply with its debt covenants and its Credit Facility covenants, or deterioration of Mattel's credit ratings. However, based on Mattel's current business plan and factors known to date, it is expected that existing cash and equivalents, cash flows from operations, availability under the Credit Facility, and access to capital markets will be sufficient to meet working capital, operating expenditure, and other contractual requirements for the next twelve months and in the long-term.
Current wording
Cash flows from operating activities could be negatively impacted by decreased demand for Mattel's products, which could result from factors such as, but not limited to, adverse economic conditions and changes in public and consumer preferences, or by increased costs associated with manufacturing and distribution of products, such as tariffs, or shortages in raw materials or component parts. Additionally, Mattel's ability to issue long-term debt and obtain seasonal financing could be adversely affected by factors such as, but not limited to, global economic crises and tight credit environments, inability to comply with its debt covenants and its Credit Facility covenants, or deterioration of Mattel's credit ratings. However, based on Mattel's current business plan and factors known to date, it is expected that existing cash and equivalents, cash flows from operations, availability under the Credit Facility, and access to capital markets will be sufficient to meet working capital, operating expenditure, and other contractual requirements for the next twelve months and in the long-term.
Previous wording
Mattel intends to utilize its existing cash and equivalents, cash flow from operations, and borrowings under the Credit Facility to meet its short-term liquidity needs. At September 30, 2025, Mattel had no outstanding borrowings under the Credit Facility and approximately $9 million in outstanding letters of credit under the Credit Facility.
Current wording
Mattel intends to utilize its existing cash and cash equivalents, cash flow from operations, and borrowings under the Credit Facility to meet its short-term liquidity needs. At March 31, 2026, Mattel had no outstanding borrowings under the Credit Facility and approximately $9 million in outstanding letters of credit under the Credit Facility.
Previous wording
Cash flows used for operating activities were $203.3 million in the first nine months of 2025, as compared to $61.6 million in the first nine months 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, partially offset by a decrease in cash used for working capital of $20.5 million.
Current wording
Cash flows used for operating activities were $22.9 million in the first three months of 2026, as compared to cash flows provided by operating activities of $24.8 million in the first three months of 2025. 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, partially offset by a decrease in cash used for working capital of $11.3 million.
Previous wording
Cash flows used for financing activities were $426.3 million in the first nine months of 2025, as compared to $314.2 million in the first nine months of 2024. The increase in cash flows used for financing activities was primarily due to $144.2 million of increased share repurchases in the first nine months of 2025 as compared to the first nine months of 2024.
Current wording
Cash flows used for financing activities were $208.3 million in the first three months of 2026, as compared to $161.9 million in the first three months of 2025. The increase in cash flows used for financing activities was primarily due to $40.0 million of increased share repurchases in the first three months of 2026 as compared to the first three months of 2025.
Previous wording
Mattel's cash and equivalents decreased $696.0 million to $691.9 million at September 30, 2025 from $1.39 billion at December 31, 2024, primarily due to share repurchases of $412.5 million, cash flows used for operating activities of $203.3 million, and capital expenditures of $124.9 million, partially offset by favorable effects of currency exchange rate changes on cash of $31.1 million. Mattel's cash and equivalents decreased $31.6 million to $691.9 million at September 30, 2025 from $723.5 million at September 30, 2024, primarily due to cash paid for share repurchases of $544.2 million and capital expenditures of $170.5 million during the twelve months ended September 30, 2025, partially offset by cash flows generated from operating activities of $658.9 million during that twelve month period.
Current wording
Mattel's cash and equivalents decreased by $376.9 million to $866.0 million at March 31, 2026 from $1.24 billion at December 31, 2025, primarily due to share repurchases of $200.0 million, $74.8 million of cash paid for the remaining 50% equity interest in Mattel163, net of cash acquired, and capital expenditures of $65.1 million during the three months ended March 31, 2026. Mattel's cash and equivalents decreased by $377.7 million to $866.0 million at March 31, 2026 from $1.24 billion at March 31, 2025, primarily due to share repurchases of $640.0 million, capital expenditures of $210.9 million, and $74.8 million of cash paid for the remaining 50% equity interest in Mattel163, net of cash acquired, during the trailing twelve months ended March 31, 2026, partially offset by cash flows provided by operating activities of $545.5 million during that twelve-month period.
Previous wording
Inventories increased $324.9 million to $826.6 million at September 30, 2025 from $501.7 million at December 31, 2024, primarily due to seasonal inventory build. Inventories increased $89.4 million to $826.6 million at September 30, 2025 from $737.2 million at September 30, 2024, primarily due to tariff related impacts and lower sales in the third quarter of 2025 as compared to the third quarter of 2024 and the impact of foreign currency translation.
Current wording
Inventories increased by $113.7 million to $676.9 million at March 31, 2026 from $563.1 million at December 31, 2025, primarily due to seasonal inventory build-up. Inventories increased by $18.5 million to $676.9 million at March 31, 2026 from $658.4 million at March 31, 2025, primarily due to tariff related impacts in the United States, partially offset by higher net sales in the first quarter of 2026 and the impact of foreign currency translation.
Previous wording
Prepaid expenses and other current assets increased $12.8 million to $246.9 million at September 30, 2025 from $234.1 million at December 31, 2024, primarily due to increases in prepaid royalties of $28.2 million, partially offset by a decrease in derivative receivables of $16.4 million. Prepaid expenses and other current assets were $246.9 million at September 30, 2025, relatively flat as compared to $242.3 million at September 30, 2024.
Current wording
Prepaid expenses and other current assets increased by $35.4 million to $262.5 million at March 31, 2026 from $227.1 million at December 31, 2025, primarily due to increases in prepaid income taxes of $37.1 million. Prepaid expenses and other current assets increased by $11.4 million to $262.5 million at March 31, 2026 from $251.1 million at March 31, 2025, primarily due to increases in prepaid income taxes of $30.3 million, partially offset by a decrease in prepaid insurance of $6.2 million.
Previous wording
Total debt was $2.34 billion at September 30, 2025, and $2.33 billion at both December 31, 2024 and September 30, 2024. Mattel has $600.0 million of 2021 Senior Notes due 2026 that mature in April 2026, which Mattel intends to repay or refinance prior to the scheduled maturity date.
Current wording
Total debt was $2.33 billion at both March 31, 2026 and December 31, 2025, and $2.34 billion at March 31, 2025. During 2025, Mattel issued $600.0 million of 2025 Senior Notes due November 2030 and used the proceeds plus cash on hand to repay $600.0 million of 2021 Senior Notes due April 2026.
Previous wording
Stockholders' equity was flat at $2.26 billion at September 30, 2025 and December 31, 2024, with share repurchases of $416.3 million during the nine months ended September 30, 2025 being substantially offset by net income of $291.4 million, currency translation adjustments of $105.7 million, and share-based compensation of $61.0 million during that period. Stockholders' equity decreased $51.7 million to $2.26 billion at September 30, 2025 from $2.31 billion at September 30, 2024, primarily due to share repurchases of $549.2 million during the twelve months ended September 30, 2025, partially offset by net income of $432.3 million and the impact of share-based compensation on additional paid-in capital of $82.9 million during that twelve month period.
Current wording
Stockholders' equity decreased by $126.6 million to $2.11 billion at March 31, 2026 from $2.23 billion at December 31, 2025, primarily due to share repurchases of $201.7 million, partially offset by net income of $61.0 million during the three months ended March 31, 2026. Stockholders' equity decreased by $23.1 million to $2.11 billion at March 31, 2026 from $2.13 billion at March 31, 2025, primarily due to share repurchases of $645.7 million during the trailing twelve months ended March 31, 2026, partially offset by net income of $498.9 million and the net effect of share-based compensation and the related issuance of treasury stock of $60.1 million during that twelve-month period.
Showing the first 40 of 42 pairs. Open the source sections for the rest.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Mattel is focused on the following brand-centric strategy to grow its intellectual property ("IP") driven play and family entertainment business:
Rearranged previous paragraphs (7)
Previous report — wording carried elsewhere
Infant, Toddler, and Preschool is further divided into three subcategories. The first subcategory is Fisher-Price, the power brand, which includes the core Infant, Little People, and Newborn product lines, as well as the recently launched Fisher-Price Wood product line. The second subcategory is Preschool Entertainment, which includes owned IP such as Thomas & Friends and Barney, Mattel's character based Imaginext line, and partner entertainment brands. The third subcategory is Baby Gear and Power Wheels, in which Mattel is strategically out-licensing or exiting certain product lines.
Previous report — wording carried 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 third quarter of 2025 and 2024, there were no material changes to Mattel's valuation allowance.
Previous report — wording carried elsewhere
The following table presents Mattel's consolidated results for the first nine months of 2025 and 2024:
Previous report — wording carried 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 nine months of 2025 and 2024:
Previous report — wording carried 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 $460.3 million in the first nine months of 2025 from $418.3 million in the first nine months of 2024. Sales adjustments as a percentage of net sales increased to 12.9% in the first nine months of 2025, as compared to 11.2% in the first nine months of 2024. The increase in sales adjustments as a percentage of net sales was primarily due to increased promotional activities and a shift in sales channel mix resulting in a higher proportion of sales with higher average sales adjustment rates.
Previous report — wording carried 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 7.5% in the first nine months of 2025 from 6.7% in the first nine months of 2024, primarily due to a shift in the timing of advertising and promotion programs to support consumer demand, and lower sales in the first nine months of 2025 as compared to the first nine months of 2024.
Previous report — wording carried elsewhere
Infant, Toddler, and Preschool gross billings decreased 27%, of which 14% was due to lower billings of Fisher-Price products, 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, and 5% was due to lower billings of Preschool Entertainment products.