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Dec 31, 2025
Mattel Q4 2025 Earnings Report
Mattel reported its financial results for the fourth quarter and full year ended December 31, 2025, showing mixed performance with strong topline growth in Q4 but a decrease in net income and EPS.
Key Takeaways
Mattel achieved strong topline growth in the fourth quarter of 2025, with net sales up 7% as reported, driven by increases in North America and International segments. However, net income decreased by 25% to $106.2 million, and diluted EPS fell to $0.34 from $0.42 in the prior year. Full-year net sales were down 1%, with net income decreasing by 27%.
Fourth quarter net sales increased by 7% to $1,766.5 million, driven by growth in both North America and International markets.
Gross margin decreased by 480 basis points to 45.9% in Q4 2025, primarily due to higher discounts, inflation, and unfavorable foreign exchange.
Net income for Q4 2025 was $106.2 million, a 25% decrease from $140.9 million in Q4 2024.
Diluted earnings per share (EPS) for Q4 2025 were $0.34, down from $0.42 in the same period last year, while adjusted diluted EPS increased to $0.39 from $0.35.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Mattel's 2026 guidance anticipates net sales growth of 3% to 6% in constant currency, with an adjusted gross margin of approximately 50%. Adjusted operating income is projected to be between $550 million and $600 million, and adjusted EPS between $1.18 and $1.30.
Positive Outlook
- Expected net sales growth of 3% to 6% in constant currency for 2026.
- Anticipated adjusted gross margin of approximately 50% for 2026.
- Projected adjusted operating income between $550 million and $600 million for 2026.
- Forecasted adjusted EPS between $1.18 and $1.30 for 2026.
- Strategic investments of approximately $110 million in new capabilities and technology are expected to accelerate growth in 2027 and beyond.
Challenges Ahead
- Strategic investments will impact the bottom line in 2026.
- Guidance is subject to market volatility and unexpected disruptions.
- Potential for further regulatory actions impacting global trade.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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