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Sep 30
Mattel Q3 2025 Earnings Report
Mattel reported its third quarter 2025 financial results, with net sales and net income decreasing compared to the prior year.
Key Takeaways
Mattel experienced a challenging third quarter in 2025, with net sales down 6% to $1,736 million and net income decreasing by 25% to $278 million. The decline was primarily driven by a 12% decrease in North America sales and lower gross margin due to unfavorable foreign exchange, inflation, and tariff costs. Despite these challenges, the company reiterated its full-year 2025 guidance, anticipating strong topline growth in the fourth quarter and a good holiday season.
Net Sales for Q3 2025 were $1,736 million, a 6% decrease as reported and 7% in constant currency compared to Q3 2024.
Net Income for the quarter was $278 million, a 25% decrease from $372.4 million in the prior year's third quarter.
Adjusted Earnings per Share (EPS) was $0.89, down from $1.14 in Q3 2024, while reported EPS was $0.88.
The company repurchased $202 million of shares during the quarter and reaffirmed its 2025 guidance, including a $600 million share repurchase target.
Mattel
Mattel
Mattel Revenue by Segment
Mattel Revenue by Geographic Location
Revenue by Segment
North America Net Sales Revenue
CapyFin.comInternational Net Sales Revenue
CapyFin.comRevenue by Geographic Location
EMEA Net Sales Revenue
CapyFin.comLatin America Net Sales Revenue
CapyFin.comAsia Pacific Net Sales Revenue
CapyFin.com Forward Guidance
Mattel reiterated its full-year 2025 guidance, expecting net sales growth of 1% to 3% in constant currency, an adjusted gross margin of approximately 50%, and adjusted operating income between $700 million and $750 million. The company also reaffirmed its target to repurchase $600 million in shares for the year.
Positive Outlook
- Reiterated full-year 2025 guidance, indicating confidence in future performance.
- Anticipates strong topline growth in the fourth quarter.
- Expects a good holiday season for Mattel products.
- On track to repurchase $600 million in shares for the year, demonstrating commitment to shareholder returns.
- Fundamentals of the business are strong, with growth in consumer demand across every region.
Challenges Ahead
- Guidance remains subject to market volatility and unexpected disruptions.
- Potential for further regulatory actions impacting global trade.
- Macro-economic risks and uncertainties could affect performance.
- Inability to predict with certainty items excluded from GAAP measures, such as foreign currency fluctuations and unusual charges.
- Reliance on retailer ordering patterns, which were challenged in Q3.
Revenue & Expenses
Visualization of income flow from segment revenue to net income