MATTEL INC /DE/
For the period ended Sep 30, 2026. Filed Nov 6, 2026.
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.
Sep 30, 2026 · Filed Nov 6, 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 2026-06-30; filed 2026-08-06.
0001628280-26-054347
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-06.
0001628280-26-071218
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 177 previous paragraphs and 176 current paragraphs.
81 unchanged; 46 reworded; 47 added; 49 removed; 1 previous and 2 current paragraphs rearranged.
Tables are not compared: 15 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 (47)
Current report
On September 30, 2026, Mattel announced the appointment of Roger Lynch as Chairman of the Board and Chief Executive Officer. Mr. Lynch became Chairman of the Board effective October 2, 2026 and Chief Executive Officer effective October 12, 2026. Mr. Lynch has served as a member of Mattel's Board of Directors since 2018 and previously served as Mattel's Independent Lead Director. On October 19, 2026, Mattel announced the appointment of Peter Griffith as Chief Financial Officer and a member of the Board of Directors, effective October 20, 2026. On October 21, 2026, Mattel entered into a cooperation agreement with EdgePoint Investment Group Inc. and appointed Lee Matheson, a Partner at EdgePoint, to the Board of Directors.
Current report
In the third quarter of 2026, net sales increased 4% compared to the third quarter of 2025, gross margin increased to 54.8% from 50.0%, and operating income increased approximately $96 million to $476.3 million. The increase in gross margin and operating income benefited from approximately $88 million of refunds related to tariffs previously paid under the International Emergency Economic Powers Act ("IEEPA"), which Mattel received and recognized during the third quarter of 2026.
Current report
Results of Operations—Third Quarter
Current report
Net sales in the third quarter of 2026 were $1.81 billion, an increase of $70.7 million, or 4%, as compared to $1.74 billion in the third quarter of 2025. The increase in net sales was due to an increase in gross billings of $87.8 million, partially offset by an increase in sales adjustments of $17.1 million.
Current report
Gross billings were $2.05 billion in the third quarter of 2026, an increase of $87.8 million, or 4%, as compared to $1.97 billion in the third quarter of 2025, with a favorable impact from changes in currency exchange rates of one percentage point. The increase in gross billings was primarily due to higher billings of Vehicles, Action Figures, Building Sets, Games, and Other, and Dolls, partially offset by lower billings of Infant, Toddler, and Preschool.
Current report
Vehicles gross billings increased 9%, of which 6% was due to higher billings of Hot Wheels and 2% was due to higher billings of Cars (Disney Pixar).
Current report
Infant, Toddler, and Preschool gross billings decreased 16%, of which 11% was due to lower billings of Fisher-Price and 4% was due to lower billings of Preschool Entertainment.
Current report
Action Figures, Building Sets, Games, and Other gross billings increased 12%, of which 9% was due to higher billings of Games, which benefited from Mattel163's contribution, and 5% was due to higher billings of Action Figures, partially offset by lower billings of Building Sets of 3%.
Current report
Other selling and administrative expenses were $370.0 million, or 20.5% of net sales, in the third quarter of 2026, relatively flat as compared to $370.3 million, or 21.3% of net sales, in the third quarter of 2025. The changes in other selling and administrative expenses included lower share-based compensation and incentive expense of $34.0 million, including forfeitures associated with the departure of Mattel’s former Chief Executive Officer, offset by higher investments of $20.4 million, and higher Mattel163-related and other expenses of $13.3 million.
Current report
Interest income was $8.9 million in the third quarter of 2026, relatively flat as compared to $9.0 million in the third quarter of 2025.
Current report
Net sales for the North America segment in the third quarter of 2026 were $1.01 billion, an increase of $35.9 million, or 4%, as compared to $978.1 million in the third quarter of 2025. The increase in net sales was primarily due to an increase in gross billings of $45.7 million.
Current report
Dolls gross billings increased 6%, of which 11% was due to higher billings of partner brands, including the benefit from KPop Demon Hunters (Netflix), and 3% was due to higher billings of Monster High, partially offset by lower billings of Barbie of 6%.
Current report
Vehicles gross billings increased 10%, of which 6% was due to higher billings of Hot Wheels and 3% was due to higher billings of Cars (Disney Pixar).
Current report
Infant, Toddler, and Preschool gross billings decreased 21%, of which 14% was due to lower billings of Fisher-Price and 5% was due to lower billings of Preschool Entertainment.
Current report
Action Figures, Building Sets, Games, and Other gross billings increased 12%, of which 13% was due to higher billings of Games, which benefited from Mattel163's contribution, and 2% was due to higher billings of Action Figures, partially offset by lower billings of Building Sets of 3%.
Current report
Sales adjustments increased to $91.6 million in the third quarter of 2026 as compared to $81.8 million in the third quarter of 2025. Sales adjustments as a percentage of net sales were relatively consistent at 9.0% in the third quarter of 2026 as compared to 8.4% in the third quarter of 2025.
Current report
Cost of sales decreased by $57.1 million, or 12%, to $430.4 million in the third quarter of 2026 from $487.5 million in the third quarter of 2025, primarily due to a decrease in product and other costs of $71.1 million, which benefited from $88.4 million of IEEPA tariff refunds received in the third quarter of 2026, partially offset by an increase in royalty expense of $10.8 million.
Current report
North America segment income increased by $69.5 million to $384.7 million in the third quarter of 2026, as compared to $315.2 million in the third quarter of 2025, primarily due to lower cost of sales of $57.1 million and higher net sales of $35.9 million, partially offset by higher advertising and promotion expenses of $14.8 million.
Current report
Dolls gross billings increased 2%, of which 16% was due to higher billings of partner brands, including benefits from KPop Demon Hunters (Netflix), partially offset by lower billings of Barbieof 5%, lower billings of Polly Pocketof 5%, and lower billings of Monster High of 3%.
Current report
Vehicles gross billings increased 7%, of which 6% was due to higher billings of Hot Wheels.
Current report
Sales adjustments increased to $156.3 million in the third quarter of 2026 from $149.0 million in the third quarter of 2025. Sales adjustments as a percentage of net sales remained consistent at 19.7% in the third quarter of 2026 and 2025.
Current report
Cost of sales increased by $9.3 million, or 2%, to $385.1 million in the third quarter of 2026 from $375.8 million in the third quarter of 2025, primarily due to an increase in royalty expense of $4.1 million and product and other costs of $3.3 million.
Current report
International segment income was $208.8 million in the third quarter of 2026, relatively flat compared to $208.6 million in the third quarter of 2025, due to higher net sales of $34.8 million, partially offset by higher other selling and administrative expenses of $14.9 million, higher advertising and promotion expenses of $10.3 million, and higher cost of sales of $9.3 million.
Current report
Results of Operations—First Nine Months
Current report
Net sales in the first nine months of 2026 were $3.79 billion, an increase of $213.0 million, or 6%, as compared to $3.58 billion in the first nine months of 2025. The increase in net sales was due to an increase in gross billings of $252.0 million, partially offset by an increase in sales adjustments of $38.9 million.
Current report
Dolls gross billings decreased 1%, of which 8% was due to lower billings of Barbie, partially offset by higher billings of partner brands of 7%, including the benefit from KPop Demon Hunters (Netflix).
Current report
Vehicles gross billings increased 12%, of which 10% was due to higher billings of Hot Wheelsand 2% was due to higher billings of Cars (Disney Pixar).
Current report
Action Figures, Building Sets, Games, and Other gross billings increased 21%, of which 14% was due to higher billings of Games, which benefited from Mattel163's contribution, and 8% was due to higher billings of Action Figures.
Current report
Cost of sales increased by $89.8 million, or 5%, to $1.88 billion in the first nine months of 2026 from $1.79 billion in the first nine months of 2025. Within cost of sales, royalty expense increased by $38.4 million, or 21%, to $220.5 million in the first nine months of 2026 from $182.2 million in the first nine months of 2025. Product and other costs increased by $31.8 million, or 2%, to $1.41 billion in the first nine months of 2026, as compared to $1.38 billion in the first nine months of 2025. The increase in product and other costs was partially offset by the benefit from $90.1 million of IEEPA tariff refunds received in the first nine months of 2026. Freight and logistics expenses increased by $19.6 million, or 9%, to $248.1 million in the first nine months of 2026 from $228.5 million in the first nine months of 2025.
Current report
Provision for 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 nine months of 2026 and 2025:
Current report
Net sales for the North America segment in the first nine months of 2026 were $2.06 billion, an increase of $83.2 million, or 4%, as compared to $1.98 billion in the first nine months of 2025. The increase in net sales was primarily due to an increase in gross billings of $94.0 million.
Current report
Dolls gross billings increased 1%, of which 8% was due to higher billings of partner brands, including the benefit from KPop Demon Hunters (Netflix), and 2% was due to higher billings of Monster High, partially offset by lower billings of Barbie of 8%.
Current report
Vehicles gross billings increased 8%, of which 6% was due to higher billings of Hot Wheels and 2% was due to higher billings of Cars (Disney Pixar).
Current report
Infant, Toddler, and Preschool gross billings decreased 19%, of which 11% was due to lower billings of Fisher-Price, 5% was due to lower billings of Preschool Entertainment, and 3% was due to lower billings of Baby Gear and Power Wheels, due to the continued strategic exit from certain product lines in Baby Gear and Power Wheels.
Current report
Action Figures, Building Sets, Games, and Other gross billings increased 19%, of which 16% was due to higher billings of Games, which benefited from Mattel163's contribution, and 4% was due to higher billings of Action Figures.
Current report
Sales adjustments increased to $163.9 million in the first nine months of 2026 from $153.1 million in the first nine months of 2025. Sales adjustments as a percentage of net sales were relatively consistent at 7.9% for the first nine months of 2026, as compared to 7.7% for the first nine months of 2025.
Current report
Cost of sales decreased by $7.9 million, or 1%, to $1.00 billion in the first nine months of 2026 from $1.01 billion in the first nine months of 2025, primarily due to a decrease in product and other costs of $34.3 million, which includes the benefit of IEEPA tariff refunds received of $88.4 million, partially offset by an increase in royalty expense of $19.4 million.
Current report
North America segment income increased by $19.1 million to $511.2 million in the first nine months of 2026, as compared to $492.1 million in the first nine months of 2025, primarily due to higher net sales of $83.2 million, partially offset by higher advertising and promotion expenses of $47.3 million and higher other selling and administrative expenses of $24.7 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 nine months of 2026 and 2025:
Showing the first 40 of 47 passages. Open the source sections for the rest.
Removed paragraphs (49)
Previous report
Mattel's net sales in the second quarter of 2026 increased 10% compared to the second quarter of 2025. Gross margin declined to 48.2% in the second quarter of 2026 compared to 50.9% in the second quarter of 2025, due to the gross incremental cost of tariffs, inflation, higher royalties, and the unfavorable impact of foreign exchange. Gross margin benefited from Mattel163's contribution and other factors, including mitigating actions to offset tariffs and realized savings from the Optimizing for Profitable Growth program (the "OPG program").
Previous report
Mattel continued to execute on its capital allocation priorities, including making strategic investments in organic growth initiatives and repurchasing shares of its common stock, while maintaining a strong balance sheet. During the second quarter of 2026, Mattel's share repurchases totaled approximately $100 million.
Previous report
Results of Operations—Second Quarter
Previous report
N/M - not meaningful
Previous report
Net sales in the second quarter of 2026 were $1.13 billion, an increase of $106.8 million, or 10%, as compared to $1.02 billion in the second quarter of 2025. The increase in net sales was due to an increase in gross billings of $116.4 million, partially offset by an increase in sales adjustments of $9.6 million.
Previous report
Dolls gross billings decreased 5%, of which 9% was due to lower billings of Barbie, partially offset by higher billings of partner brands of 5%, including the benefit from KPop Demon Hunters (Netflix).
Previous report
Vehicles gross billings increased 14%, of which 13% was due to higher billings of Hot Wheels and 1% was due to higher billings of partner brands, including the benefit from Cars (Disney Pixar).
Previous report
Infant, Toddler, and Preschool gross billings decreased 11%, of which 6% was due to lower billings of Fisher-Price and 4% was due to lower billings of Preschool Entertainment.
Previous report
Action Figures, Building Sets, Games, and Other gross billings increased 35%, of which 21% was due to higher billings of Games, which benefited from Mattel163's contribution, and 15% was due to higher billings of Action Figures, which benefited from the timing of theatrical releases.
Previous report
Other selling and administrative expenses were $406.9 million, or 36.2% of net sales, in the second quarter of 2026, an increase of $45.6 million, as compared to $361.3 million, or 35.5% of net sales, in the second quarter of 2025. The increase in other selling and administrative expenses was primarily due to higher investments of $20.0 million, higher employee compensation expenses of $8.1 million, and higher expenses associated with Mattel163 and other expenses of $23.9 million, partially offset by realized savings from the OPG program of $8.9 million.
Previous report
Interest income decreased by $5.3 million to $7.0 million in the second quarter of 2026 from $12.4 million in the second quarter of 2025. The decrease was primarily due to lower average invested cash balances in the second quarter of 2026.
Previous report
Net sales for the North America segment in the second quarter of 2026 were $574.3 million, an increase of $63.5 million, or 12%, as compared to $510.8 million in the second quarter of 2025. The increase in net sales was primarily due to an increase in gross billings of $65.8 million.
Previous report
Vehicles gross billings increased 7%, primarily due to higher billings of Hot Wheels.
Previous report
Infant, Toddler, and Preschool gross billings decreased 8%, of which 4% was due to lower billings of Preschool Entertainment and 3% was due to lower billings of Baby Gear and Power Wheels, 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 39%, of which 26% was due to higher billings of Games, which benefited from Mattel163's contribution, and 13% was due to higher billings of Action Figures, which benefited from the timing of theatrical releases.
Previous report
Sales adjustments increased to $39.0 million in the second quarter of 2026 as compared to $36.7 million in the second quarter of 2025. Sales adjustments as a percentage of net sales were relatively consistent at 6.8% in the second quarter of 2026 as compared to 7.2% in the second quarter of 2025.
Previous report
Cost of sales increased by $38.9 million, or 15%, to $304.6 million in the second quarter of 2026 from $265.7 million in the second quarter of 2025, primarily due to an increase in product and other costs of $31.4 million and royalty expense of $6.3 million.
Previous report
North America segment income was $92.0 million in the second quarter of 2026, as compared to $93.8 million in the second quarter of 2025, primarily due to higher cost of sales of $38.9 million and higher advertising and promotion expenses of $22.6 million, partially offset by higher net sales of $63.5 million.
Previous report
Net sales for the International segment in the second quarter of 2026 were $551.0 million, an increase of $43.3 million, or 9%, as compared to $507.8 million in the second quarter of 2025. The increase in net sales was primarily due to an increase in gross billings of $50.6 million, partially offset by an increase in sales adjustments of $7.4 million.
Previous report
Vehicles gross billings increased 19%, primarily due to higher billings of Hot Wheels.
Previous report
Action Figures, Building Sets, Games, and Other gross billings increased 32%, of which 17% was due to higher billings of Action Figures, which benefited from the timing of theatrical releases, and 14% was due to higher billings of Games, which benefited from Mattel163's contribution.
Previous report
Sales adjustments increased to $102.5 million in the second quarter of 2026 from $95.2 million in the second quarter of 2025. Sales adjustments as a percentage of net sales were relatively consistent at 18.6% in the second quarter of 2026, as compared to 18.7% in the second quarter of 2025.
Previous report
Cost of sales increased by $29.4 million, or 12%, to $274.4 million in the second quarter of 2026 from $245.0 million in the second quarter of 2025, primarily due to an increase in product and other costs of $14.1 million and royalty expense of $9.4 million.
Previous report
International segment income decreased to $81.9 million in the second quarter of 2026 from $114.9 million in the second quarter of 2025, primarily due to higher cost of sales of $29.4 million, higher other selling and administrative expenses of $24.3 million, and higher advertising and promotion expenses of $22.6 million, partially offset by higher net sales of $43.3 million.
Previous report
Results of Operations—First Half
Previous report
N/M - not meaningful
Previous report
Net sales in the first half of 2026 were $1.99 billion, an increase of $142.3 million, or 8%, as compared to $1.85 billion in the first half of 2025. The increase in net sales was due to an increase in gross billings of $164.1 million, partially offset by an increase in sales adjustments of $21.8 million.
Previous report
Gross billings were $2.24 billion in the first half of 2026, an increase of $164.1 million, or 8%, as compared to $2.07 billion in the first half 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 Action Figures, Building Sets, Games, and Other and Vehicles, partially offset by lower billings of Dolls and Infant, Toddler, and Preschool.
Previous report
Dolls gross billings decreased 7%, of which 9% was due to lower billings of Barbie, partially offset by higher billings of partner brands of 2%, including the benefit from KPop Demon Hunters (Netflix).
Previous report
Vehicles gross billings increased 15%, primarily due to higher billings of Hot Wheels.
Previous report
Action Figures, Building Sets, Games, and Other gross billings increased 29%, of which 18% was due to higher billings of Games, which benefited from Mattel163's contribution, and 11% was due to higher billings of Action Figures, which benefited from the timing of theatrical releases.
Previous report
Cost of sales increased by $140.5 million, or 15%, to $1.06 billion in the first half of 2026 from $918.1 million in the first half of 2025. Within cost of sales, product and other costs increased by $103.2 million, or 15%, to $789.8 million in the first half of 2026 from $687.2 million in the first half of 2025. Royalty expense increased by $23.5 million, or 25%, to $117.2 million in the first half of 2026, as compared to $93.7 million in the first half of 2025. Freight and logistics expenses increased by $13.8 million, or 10%, to $151.0 million in the first half of 2026 from $137.2 million in the first half of 2025.
Previous report
Benefit from Income Taxes
Previous 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 half of 2026 and 2025:
Previous report
Vehicles gross billings increased 7%, primarily due to higher billings of Hot Wheels.
Previous report
Infant, Toddler, and Preschool gross billings decreased 17%, of which 8% was due to lower billings of Fisher-Price, 6% was due to lower billings of Preschool Entertainment, and 3% was due to lower billings of Baby Gear and Power Wheels, due to the continued strategic exit from certain product lines in Baby Gear and Power Wheels.
Previous report
Sales adjustments increased to $72.3 million in the first half of 2026 from $71.3 million in the first half of 2025. Sales adjustments as a percentage of net sales were relatively consistent at 6.9% for the first half of 2026, as compared to 7.1% for the first half of 2025.
Previous report
Cost of sales increased by $49.2 million, or 9%, to $571.2 million in the first half of 2026 from $522.0 million in the first half of 2025, primarily due to increases in product and other costs of $36.8 million and royalty expense of $8.6 million.
Previous report
North America segment income decreased by $50.4 million to $126.5 million in the first half of 2026, as compared to $176.9 million in the first half of 2025, primarily due to higher cost of sales of $49.2 million, higher advertising and promotion expenses of $32.5 million, and higher selling and administrative expenses of $16.0 million, partially offset by higher net sales of $47.3 million.
Previous 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 half of 2026 and 2025:
Showing the first 40 of 49 passages. Open the source sections for the rest.
Reworded paragraphs (46)
Previous wording
Global trade policy continues to evolve and the ultimate impact of recent developments with respect to U.S. tariffs is unclear. In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") on goods imported into the United States were unauthorized and subsequently a refund process was implemented, which was appealed and is subject to ongoing litigation, as well as refund process developments. Following the U.S. Supreme Court's decision on IEEPA tariffs, the U.S. presidential administration (the "Administration") imposed temporary global tariffs on imports under Section 122 of the Trade Act of 1974 ("Section 122"), which expired on July 24, 2026. These Section 122 tariffs are currently subject to legal challenge and in May 2026, the CIT issued a ruling that the Section 122 tariffs are unauthorized by the statute, although this ruling is currently stayed pending appeal. Accordingly, the ultimate availability, timing, and amount of potential tariff refunds remain uncertain. During the three months ended June 30, 2026, Mattel received certain refunds under the IEEPA tariff refund process, which were not material. As of June 30, 2026, Mattel had not recognized a receivable related to additional tariff refunds because they were not realized or realizable. However, it is reasonably possible that the impact of tariff refunds could be material. In July 2026, the Administration imposed additional tariffs under Section 301 of the Trade Act of 1974. These Section 301 tariffs are currently subject to legal challenge. 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.
Current wording
Global trade policy continues to evolve, and the ultimate impact of recent developments with respect to U.S. tariffs remains uncertain. In February 2026, the U.S. Supreme Court ruled that tariffs imposed under IEEPA on goods imported into the United States were unauthorized and subsequently a phased refund process was implemented, including the launch of Phase 3 on October 6, 2026 for certain eligible importers. The U.S. Court of International Trade’s refund order has been appealed and the IEEPA tariffs and related refund framework remain subject to ongoing legal proceedings, further guidance from U.S. Customs and Border Protection, as well as other refund process developments. Following the U.S. Supreme Court's decision on IEEPA tariffs, temporary global tariffs were imposed on imports under Section 122 of the Trade Act of 1974 ("Section 122"), which expired on July 24, 2026. These Section 122 tariffs are currently subject to legal challenge and in May 2026, the CIT issued a ruling that the Section 122 tariffs are unauthorized by the statute, although this ruling is currently stayed pending appeal. Following the expiration of the Section 122 tariffs, additional tariffs have been imposed under Section 301 of the Trade Act of 1974 and other statutory authorities. Accordingly, the ultimate availability, timing, and amount of any additional tariff refunds remain uncertain, but if recognized, could be material. As of September 30, 2026, Mattel had not recognized a receivable for additional IEEPA tariff refunds because they were not realized or realizable.
Previous wording
The following table presents Mattel's consolidated results for the second quarter of 2026 and 2025:
Current wording
The following table presents Mattel's consolidated results for the third quarter of 2026 and 2025:
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 second quarter of 2026 and 2025:
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 third quarter of 2026 and 2025:
Previous wording
Dolls gross billings increased 4%, of which 9% was due to higher billings of partner brands, including benefits from KPop Demon Hunters (Netflix) and Disney Princess and Disney Frozen, and higher billings of American Girl of 3%, partially offset by lower billings of Barbie of 7%.
Current wording
Dolls gross billings increased 4%, of which 13% was due to higher billings of partner brands, including the benefit from KPop Demon Hunters (Netflix), partially offset by lower billings of Barbie of 6% and lower billings of Polly Pocket of 3%.
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 $141.5 million in the second quarter of 2026 from $131.9 million in the second quarter of 2025. Sales adjustments as a percentage of net sales were relatively consistent at 12.6% in the second quarter of 2026, as compared to 12.9% in the second quarter of 2025.
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 $247.9 million in the third quarter of 2026 from $230.8 million in the third quarter of 2025. Sales adjustments as a percentage of net sales were relatively consistent at 13.7% in the third quarter of 2026, as compared to 13.3% in the third quarter of 2025.
Previous wording
Cost of sales increased by $83.6 million, or 17%, to $583.2 million in the second quarter of 2026 from $499.6 million in the second quarter of 2025. Within cost of sales, product and other costs increased by $60.6 million, or 16%, to $437.5 million in the second quarter of 2026 from $376.9 million in the second quarter of 2025. Royalty expense increased by $15.6 million, or 31%, to $66.8 million in the second quarter of 2026 from $51.2 million in the second quarter of 2025. Freight and logistics expenses increased by $7.4 million, or 10%, to $78.9 million in the second quarter of 2026, as compared to $71.5 million in the second quarter of 2025.
Current wording
Cost of sales decreased by $50.6 million, or 6%, to $817.1 million in the third quarter of 2026 from $867.7 million in the third quarter of 2025. Within cost of sales, product and other costs decreased by $70.7 million, or 10%, to $617.3 million in the third quarter of 2026 from $688.0 million in the third quarter of 2025, which benefited from $88.4 million of IEEPA tariff refunds received in the third quarter of 2026. Royalty expense increased by $14.9 million, or 17%, to $103.3 million in the third quarter of 2026 from $88.5 million in the third quarter of 2025. Freight and logistics expenses increased by $5.2 million, or 6%, to $96.4 million in the third quarter of 2026, as compared to $91.3 million in the third quarter of 2025.
Previous wording
Gross margin decreased to 48.2% in the second quarter of 2026 from 50.9% in the second quarter of 2025. The decrease in gross margin was primarily due to gross incremental tariff costs of 170 basis points, cost inflation of 120 basis points, higher royalty expense of 110 basis points, and an unfavorable impact from foreign currency exchange of 60 basis points. Gross margin benefited from Mattel163's contribution of 120 basis points, and other factors, including mitigating actions to offset tariffs, and realized savings from the OPG program of 70 basis points.
Current wording
Gross margin increased to 54.8% in the third quarter of 2026 from 50.0% in the third quarter of 2025. The increase in gross margin was primarily due to the benefit from IEEPA tariff refunds received of 490 basis points, Mattel163's contribution of 60 basis points, favorable foreign currency exchange impact of 60 basis points, and other factors totaling 150 basis points, partially offset by cost inflation of 200 basis points and higher royalty expense of 80 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 increased to 11.0% in the second quarter of 2026, as compared to 7.8% in the second quarter of 2025. The increase in advertising and promotion expenses as a percentage of net sales was primarily due to expenses associated with Mattel163, promotional activities for theatrical releases, and investments in brand, marketing, and consumer engagement activities during the quarter.
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 7.9% in the third quarter of 2026, as compared to 6.8% in the third quarter of 2025. The increase was primarily due to expenses associated with Mattel163, and investments in brand and marketing during the quarter.
Previous wording
Interest expense increased to $31.8 million in the second quarter of 2026, as compared to $29.4 million in the second quarter of 2025. The increase was primarily due to higher average interest rates on outstanding borrowings in the second quarter of 2026.
Current wording
Interest expense increased to $31.9 million in the third quarter of 2026, as compared to $29.4 million in the third quarter of 2025. The slight increase was primarily due to higher average interest rates on outstanding long-term debt in the third quarter of 2026.
Previous wording
Mattel's provision for income taxes was an expense of $0.2 million in the second quarter of 2026, as compared to an expense of $16.2 million in the second quarter of 2025. The decrease in provision for income taxes was primarily due to the current period net loss from continuing operations, partially offset by higher net discrete income tax expense related to interest expense accrued on previously unrecognized tax benefits. During the second quarter of 2026, Mattel recognized a net discrete income tax expense of $4.5 million, primarily related to interest expense accrued on previously unrecognized tax benefits. During the second quarter of 2025, Mattel recognized a net discrete income tax expense of $1.0 million.
Current wording
Mattel's provision for income taxes was $96.8 million in the third quarter of 2026, as compared to $86.9 million in the third quarter of 2025. The increase in provision for income taxes was primarily due to discrete tax items. During the third quarter of 2026, Mattel recognized a net discrete income tax expense of $9.9 million primarily related to the income tax expense associated with IEEPA tariff refunds, partially offset by discrete tax benefits related to previously unrecognized tax benefits. During the third quarter of 2025, Mattel recognized a net discrete income tax benefit of $2.3 million.
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 second quarter of 2026 and 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 third quarter of 2026 and 2025, there were no changes to Mattel's valuation allowance.
Previous wording
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 second quarter of 2026 and 2025:
Current wording
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 third quarter of 2026 and 2025:
Previous wording
Gross billings for the North America segment were $613.3 million in the second quarter of 2026, an increase of $65.8 million, or 12%, as compared to $547.5 million in the second quarter of 2025. The increase in the North America segment gross billings was due to higher billings of Action Figures, Building Sets, Games, and Other, Vehicles, and Dolls, partially offset by lower billings of Infant, Toddler, and Preschool.
Current wording
Gross billings for the North America segment were $1.11 billion in the third quarter of 2026, an increase of $45.7 million, or 4%, as compared to $1.06 billion in the third quarter of 2025. The increase in the North America segment gross billings was due to higher billings of Vehicles, Action Figures, Building Sets, Games, and Other, and Dolls, partially offset by lower billings of Infant, Toddler, and Preschool.
Previous wording
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 second quarter of 2026 and 2025:
Current wording
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 third quarter of 2026 and 2025:
Previous wording
Net sales for the North America segment in the first half of 2026 were $1.05 billion, an increase of $47.3 million, or 5%, as compared to $1.00 billion in the first half of 2025. The increase in net sales was primarily due to an increase in gross billings of $48.3 million.
Current wording
Net sales for the International segment in the third quarter of 2026 were $792.7 million, an increase of $34.8 million, or 5%, as compared to $757.9 million in the third quarter of 2025. The increase in net sales was primarily due to an increase in gross billings of $42.1 million.
Previous wording
Gross billings for the International segment were $653.6 million in the second quarter of 2026, an increase of $50.6 million, or 8%, as compared to $602.9 million in the second quarter of 2025, with a favorable 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, partially offset by lower billings of Dolls and Infant, Toddler, and Preschool.
Current wording
Gross billings for the International segment were $949.0 million in the third quarter of 2026, an increase of $42.1 million, or 5%, as compared to $906.9 million in the third quarter of 2025, with a favorable impact from changes in currency exchange rates of two percentage points. The increase in the International segment gross billings was due to higher billings of Vehicles, Action Figures, Building Sets, Games, and Other, and Dolls, partially offset by lower billings of Infant, Toddler, and Preschool.
Previous wording
Infant, Toddler, and Preschool gross billings decreased 14%, of which 10% was due to lower billings of Fisher-Price and 3% was due to lower billings of Preschool Entertainment.
Current wording
Action Figures, Building Sets, Games, and Other gross billings increased 11%, of which 10% was due to higher billings of Action Figures, and 5% was due to higher billings of Games, which benefited from Mattel163's contribution, partially offset by lower billings of Building Sets of 3%.
Previous wording
The following table presents Mattel's consolidated results for the first half of 2026 and 2025:
Current wording
The following table presents Mattel's consolidated results for the first nine months of 2026 and 2025:
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 half of 2026 and 2025:
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 nine months of 2026 and 2025:
Previous wording
Gross billings were $1.27 billion in the second quarter of 2026, an increase of $116.4 million, or 10%, as compared to $1.15 billion in the second quarter of 2025, with a favorable 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 and Vehicles, partially offset by lower billings of Dolls and Infant, Toddler, and Preschool.
Current wording
Gross billings were $4.29 billion in the first nine months of 2026, an increase of $252.0 million, or 6%, as compared to $4.04 billion in the first nine months of 2025, with a favorable 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 and Vehicles, partially offset by lower billings of Infant, Toddler, and Preschool, and Dolls.
Previous wording
Infant, Toddler, and Preschool gross billings decreased 13%, of which 7% was due to lower billings of Fisher-Price, 4% was due to lower billings of Preschool Entertainment, and 2% was due to lower billings of Baby Gear and Power Wheels, due to the continued strategic exit from certain product lines in Baby Gear and Power Wheels.
Current wording
Infant, Toddler, and Preschool gross billings decreased 15%, of which 9% was due to lower billings of Fisher-Price, 4% was due to lower billings of Preschool Entertainment, and 2% was due to lower billings of Baby Gear and Power Wheels, 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 $251.2 million in the first half of 2026 from $229.4 million in the first half of 2025. Sales adjustments as a percentage of net sales were relatively consistent at 12.6% in the first half of 2026, as compared to 12.4% in the first half of 2025.
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 $499.2 million in the first nine months of 2026 from $460.3 million in the first nine months of 2025. Sales adjustments as a percentage of net sales were relatively consistent at 13.2% in the first nine months of 2026, as compared to 12.9% in the first nine months of 2025.
Previous wording
Gross margin decreased to 46.7% in the first half of 2026 from 50.2% in the first half of 2025. The decrease in gross margin was primarily due to gross incremental tariff costs of 200 basis points, cost inflation of 110 basis points, higher royalty expense of 100 basis points, and an unfavorable impact from foreign currency exchange of 100 basis points. Gross margin benefited from Mattel163's contribution of 90 basis points, and other factors including mitigating actions to offset tariffs, and realized savings from the OPG program, of 70 basis points.
Current wording
Gross margin increased to 50.6% in the first nine months of 2026 from 50.1% in the first nine months of 2025. The increase in gross margin was primarily due to the benefit from IEEPA tariff refunds received of 240 basis points, Mattel163's contribution of 70 basis points, and the net benefit from other factors of 90 basis points, including mitigating actions to offset tariffs, and realized savings from the OPG program. The increase was partially offset by cost inflation of 150 basis points, gross incremental tariff costs of 110 basis points, and higher royalty expense of 90 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 increased to 10.9% in the first half of 2026 from 8.1% in the first half of 2025, primarily due to expenses associated with Mattel163, promotional activities for theatrical releases, and investments in brand, marketing, and consumer engagement activities during the first half of 2026.
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 9.5% in the first nine months of 2026 from 7.5% in the first nine months of 2025. The increase was primarily due to investments in brand, marketing, and promotional activities for theatrical releases, and expenses associated with Mattel163.
Previous wording
Other selling and administrative expenses were $803.5 million, or 40.4% of net sales, in the first half of 2026, an increase of $51.3 million, as compared to $752.2 million, or 40.8% of net sales, in the first half of 2025. The increase in other selling and administrative expenses was primarily due to higher investments of $35.9 million, unfavorable impact from foreign currency exchange of $9.0 million, and higher expenses associated with Mattel163, including acquisition-related expenses, and other expenses of $43.9 million, partially offset by realized savings from the OPG program of $22.1 million and lower expenses related to inclined sleeper product recalls and related litigation of $17.7 million.
Current wording
Other selling and administrative expenses were $1.17 billion, or 30.9% of net sales, in the first nine months of 2026, an increase of $51.0 million, as compared to $1.12 billion, or 31.3% of net sales, in the first nine months of 2025. The increase in other selling and administrative expenses was primarily due to higher investments of $56.5 million, higher employee wages of $15.8 million, higher expenses associated with Mattel163, including acquisition-related expenses, and other expenses of $70.2 million. The increase was partially offset by lower share-based compensation and incentive expense of $41.2 million, including forfeitures associated with the departure of Mattel’s former Chief Executive Officer, additional realized savings from the OPG program of $31.7 million, and lower expenses related to inclined sleeper product recalls and related litigation of $18.6 million.
Previous wording
Interest expense was $62.8 million in the first half of 2026, as compared to $58.6 million in the first half of 2025. The increase was primarily due to higher average interest rates on the outstanding borrowings in the first half of 2026.
Current wording
Interest expense was $94.7 million in the first nine months of 2026, as compared to $88.0 million in the first nine months of 2025. The increase was primarily due to higher average interest rates on outstanding long-term debt in the first nine months of 2026.
Previous wording
Interest income was $17.7 million in the first half of 2026, as compared to $28.3 million in the first half of 2025. The decrease was primarily due to lower average invested cash balances in the first half of 2026.
Current wording
Interest income was $26.6 million in the first nine months of 2026, as compared to $37.3 million in the first nine months of 2025. The decrease was primarily due to lower average invested cash balances in the first nine months of 2026.
Previous wording
Other non-operating income increased by $155.6 million to $144.0 million in the first half of 2026 from an expense of $11.6 million in the first half of 2025, primarily due to 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 half of 2026.
Current wording
Other non-operating income increased by $153.6 million to $141.1 million in the first nine months of 2026 from an expense of $12.6 million in the first nine months of 2025, primarily due to 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 nine months of 2026.
Previous wording
Mattel's benefit from income taxes was $32.2 million for the first half of 2026, as compared to $14.4 million for the first half of 2025. The increase in benefit from income taxes was primarily due to 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 higher net discrete income tax expense for the first half of 2026. During the first half of 2026, Mattel’s discrete income tax items had no net impact, with discrete income tax expense related to interest accrued on previously unrecognized tax benefits and the acquisition of Mattel163 being largely offset by a discrete income tax benefit related to previously unrecognized 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.
Current wording
Mattel's provision for income taxes was $64.6 million for the first nine months of 2026, as compared to $72.5 million for the first nine months of 2025. The decrease in the provision for income taxes was primarily due to lower operating income before the benefit from IEEPA tariff refunds, partially offset by higher net discrete income tax expense. During the first nine months of 2026, Mattel recognized a net discrete tax expense of $10.7 million, primarily related to the income tax expense on IEEPA tariff refunds and interest expense accrued on previously unrecognized tax benefits, partially offset by discrete tax benefits related to previously unrecognized tax benefits. During the first nine months of 2025, Mattel recognized a net discrete income tax benefit of $12.6 million, primarily related to a change in 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 half of 2026 and 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 first nine months of 2026 and 2025, there were no changes to Mattel's valuation allowance.
Previous wording
Gross billings for the North America segment were $1.12 billion in the first half of 2026, an increase of $48.3 million, or 4%, as compared to $1.07 billion in the first half of 2025. The increase in the North America segment gross billings was primarily due to higher billings of Action Figures, Building Sets, Games, and Other and Vehicles, partially offset by lower billings of Dolls and Infant, Toddler, and Preschool.
Current wording
Gross billings for the North America segment were $2.23 billion in the first nine months of 2026, an increase of $94.0 million, or 4%, as compared to $2.13 billion in the first nine months of 2025. The increase in the North America segment gross billings was primarily due to higher billings of Action Figures, Building Sets, Games, and Other, Vehicles, and Dolls, partially offset by lower billings of Infant, Toddler, and Preschool.
Previous wording
Gross billings for the International segment were $1.12 billion in the first half of 2026, an increase of $115.9 million, or 12%, as compared to $1.00 billion in the first half of 2025, with a favorable impact from changes in currency exchange rates of six percentage points. The increase in gross billings was due to higher billings of Vehicles and Action Figures, Building Sets, Games, and Other, partially offset by lower billings of Infant, Toddler, and Preschool, and Dolls.
Current wording
Gross billings for the International segment were $2.07 billion in the first nine months of 2026, an increase of $158.0 million, or 8%, as compared to $1.91 billion in the first nine months of 2025, with a favorable impact from changes in currency exchange rates of four percentage points. The increase in gross billings was due to higher billings of Vehicles, Action Figures, Building Sets, Games, and Other, partially offset by lower billings of Dolls and Infant, Toddler, and Preschool.
Previous wording
Dolls gross billings decreased 4%, of which 9% was due to lower billings of Barbie, partially offset by higher billings of partner brands of 4%, including the benefit from KPop Demon Hunters (Netflix).
Current wording
Dolls gross billings decreased 4%, of which 8% was due to lower billings of Barbie, and 4% was due to lower billings of Polly Pocket, partially offset by higher billings of partner brands of 8%, including the benefit of KPop Demon Hunters (Netflix).
Previous wording
Action Figures, Building Sets, Games, and Other gross billings increased 24%, of which 19% was due to higher billings of Games, which benefited from Mattel163's contribution, and 5% was due to higher billings of Action Figures, which benefited from the timing of theatrical releases.
Current wording
Action Figures, Building Sets, Games, and Other gross billings increased 24%, of which 14% was due to higher billings of Action Figures and 11% was due to higher billings of Games, which benefited from Mattel163's contribution.
Previous 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 cost savings, approximately 55% is expected to benefit cost of sales and 45% 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.
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. The targeted annual gross cost savings from actions associated with the OPG program were increased from $200 million to $225 million in the fourth quarter of 2025. Annual gross cost savings from the OPG program are now expected at or above the $225 million target, and the program is expected to be completed by the end of 2026. Of the expected annual gross cost savings, approximately 55% is expected to benefit cost of sales and 45% 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
As of June 30, 2026, in connection with the OPG program, Mattel recorded cumulative severance and other restructuring charges of approximately $134 million, which included approximately $5 million of non-cash charges. Mattel realized cumulative cost savings (before severance, restructuring costs, and cost inflation) of approximately $205 million, which represents approximately 55% benefit to cost of sales, and approximately 45% benefit to other selling and administrative expenses, as of June 30, 2026, in connection with the OPG program.
Current wording
As of September 30, 2026, in connection with the OPG program, Mattel recorded cumulative severance and other restructuring charges of approximately $136 million, which included approxima tely $5 million of non-cash charges. Mattel realized cumulative cost savings (before severance, restructuring costs, and cost inflation) of approximately $225 million, which represents approximately 55% benefit to cost of sales, and approximately 45% benefit to other selling and administrative expenses, as of September 30, 2026, in connection with the OPG program.
Previous wording
Mattel's primary sources of liquidity are its domestic and foreign cash and equivalents balances, due to 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 $523.9 million in cash and equivalents at June 30, 2026, $393.0 million was held by foreign subsidiaries, including $75.5 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 2022, Mattel paused all shipments into Russia.
Current wording
Mattel's primary sources of liquidity are its domestic and foreign cash and equivalents balances, 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 $541.4 million in cash and equivalents at September 30, 2026, $380.4 million was held by foreign subsidiaries, including $71.3 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 2022, Mattel paused all shipments into Russia.
Previous 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 June 30, 2026, 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 September 30, 2026, Mattel had no outstanding borrowings under the Credit Facility and approximately $13 million in outstanding letters of credit under the Credit Facility.
Previous wording
Cash flows used for operating activities were $202.1 million in the first half of 2026, as compared to $275.3 million in the first half of 2025. The decrease in cash flows used for operating activities was primarily due to a decrease in cash used for working capital of $206.6 million, partially offset by a decrease in net income, excluding the impact of non-cash items.
Current wording
Cash flows used for operating activities were $113.5 million in the first nine months of 2026, as compared to $203.3 million in the first nine months of 2025. The decrease in cash flows used for operating activities was primarily due to a decrease in cash used for working capital of $186.4 million, partially offset by a decrease in net income, excluding the impact of non-cash items.
Previous wording
Cash flows used for investing activities were $195.3 million in the first half of 2026, as compared to $54.6 million in the first half of 2025. The increase in cash flows used for investing activities was primarily due to $74.8 million of cash paid for the remaining 50% interest in Mattel163, net of cash acquired, and an increase in capital expenditures of $49.8 million.
Current wording
Cash flows used for investing activities were $249.9 million in the first nine months of 2026, as compared to $97.5 million in the first nine months of 2025. The increase in cash flows used for investing activities was primarily due to $74.8 million of cash paid for the remaining 50% equity interest in Mattel163, net of cash acquired, and an increase in capital expenditures of $61.4 million.
Showing the first 40 of 46 pairs. Open the source sections for the rest.
Rearranged current paragraphs (2)
Current report — wording carried from elsewhere
There remains substantial uncertainty regarding the duration of existing and newly announced or planned 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.
Current report — wording carried from elsewhere
Infant, Toddler, and Preschool gross billings decreased 9%, of which 7% was due to lower billings of Fisher-Price.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Dolls gross billings decreased 15%, of which 11% was due to lower billings of Barbie and 4% was due to lower billings of Polly Pocket.