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Mattel Reports First Quarter 2026 Financial Results

MAT
  • Net sales for Q1 2026 reached $862 million, an increase of 4% as reported and 1% in constant currency versus the prior year.
  • Reported gross margin declined to 44.9% from 49.4% in the prior year, while adjusted gross margin was 45.1% compared to 49.6%.
  • The company reported an operating loss of $103 million compared to a loss of $53 million in the prior year.
  • Net income for the quarter was $61 million, contrasting with a net loss of $40 million in the same period last year.
  • Reported earnings per share were $0.20, compared to a loss of $0.12 per share in the prior year.
  • Adjusted operating loss was $70 million, an increase from an adjusted loss of $8 million in the prior year.
  • Mattel completed the acquisition of full ownership of the Mattel163 mobile games studio in early March 2026.
  • Share repurchases totaled $200 million during the quarter, with the company maintaining a $400 million target for 2026.
  • International net sales grew by 15% as reported, partially offsetting a 3% decrease in North American net sales.
  • Worldwide gross billings for Vehicles increased 17% driven by Hot Wheels, while Dolls decreased 8% due to a decline in Barbie.
  • Worldwide gross billings for Infant, Toddler, and Preschool categories fell 16% primarily due to lower Fisher-Price performance.
  • Action Figures, Building Sets, Games, and Other billings rose 21%, driven by growth in Games including partial contributions from Mattel163.
  • 2026 guidance remains unchanged, with adjusted operating income guidance recast to $580-$630 million to exclude amortization of acquired intangible assets.
  • Adjusted EPS guidance for 2026 was recast to a range of $1.27 to $1.39, compared to the prior guidance of $1.18 to $1.30.
  • A $147.9 million gain on the remeasurement of Mattel's previously held equity interest in Mattel163 contributed significantly to the net income increase.
  • Cash flows used for operating activities were $23 million, while cash flows used for investing activities were $144 million due to the Mattel163 acquisition.
  • The company reported a leverage ratio of 2.7x based on total debt divided by adjusted EBITDA for the trailing twelve months ended March 31, 2026.