Mattel (NASDAQ:MAT) Issues Earnings Results

Key Points

• Mattel beat Q1 estimates with $862.2M in revenue (up ~4.3% YoY) and reported adjusted EPS of ($0.20) that topped consensus, and it raised FY‑2026 guidance to $1.27–$1.39 while saying sales are accelerating into Q2; Hot Wheels drove strength even as Barbie sales declined.
• Profitability is under pressure: adjusted gross margin compressed by about 460 basis points to 45.1% (cited causes: tariffs, FX and inflation), producing adjusted operating and EBITDA losses for the quarter.
• Management completed the acquisition of the remaining stake in Mattel163, plans ~$150M of 2026 investments in games, D2C and data to drive 2027+ growth, and returned capital aggressively—buying back $200M this quarter (≈$1.4B since 2023) with another $400M planned under a $1.5B authorization.

Mattel (NASDAQ:MAT - Get Free Report) released its earnings results on Wednesday. The company reported ($0.20) earnings per share for the quarter, beating analysts' consensus estimates of ($0.24) by $0.04, FiscalAI reports. Mattel had a net margin of 7.44% and a return on equity of 20.72%. The firm had revenue of $862.20 million for the quarter, compared to analysts' expectations of $809.19 million. During the same period in the previous year, the company earned ($0.03) earnings per share. The company's quarterly revenue was up 4.3% on a year-over-year basis. Mattel updated its FY 2026 guidance to 1.270-1.390 EPS.

Here are the key takeaways from Mattel's conference call:

• Net sales grew 4% (1% in constant currency) and total gross billings rose 2% cc with global POS up mid-single digits; management said they are seeing top-line acceleration in Q2 to date and gained share in vehicles and action figures.
• Adjusted gross margin compressed 460 basis points to 45.1% (cited causes: tariffs, unfavorable FX and inflation), and adjusted EPS was a loss of $0.20, with adjusted operating income and adjusted EBITDA losses for the quarter.
• Mattel completed acquisition of the remaining 50% of Mattel163 and is investing (~$150M in 2026) to scale self-published mobile games, D2C, building sets and data initiatives, expecting these investments to contribute positively to results in 2027 and beyond.
• A robust entertainment slate (Masters of the Universe wide release in June, Matchbox in October, plus Toy Story 5 and others) is being supported by cross-category product rollouts and marketing and is positioned as a near-term driver of toy sales.
• Capital allocation remained active: Mattel repurchased $200M in the quarter (totaling $1.4B since 2023), intends to repurchase $400M this year under a $1.5B authorization, while keeping debt steady and managing inventory.

Mattel Stock Performance

Mattel stock opened at $14.89 on Thursday. Mattel has a fifty-two week low of $14.10 and a fifty-two week high of $22.48. The company has a debt-to-equity ratio of 1.04, a quick ratio of 1.76 and a current ratio of 2.15. The stock has a market cap of $4.33 billion, a P/E ratio of 11.82 and a beta of 0.78. The firm's fifty day moving average price is $15.37 and its 200-day moving average price is $18.27.

Mattel News Summary

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: Q1 results and guidance beat — Mattel posted revenue of $862.2M and EPS of ($0.20), topping revenue and EPS estimates, and raised FY‑2026 EPS guidance to $1.27–$1.39 (above consensus). Management said sales are accelerating into Q2. Mattel tops quarterly sales estimates on steady toy demand, entertainment push
• Positive Sentiment: Hot Wheels is driving category strength — Demand for Hot Wheels and other evergreen SKUs (Uno, core brands) boosted sales and helped offset softness elsewhere, cited as the main growth engine in the quarter. Mattel First-Quarter Sales Beat Estimates on Hot Wheels Demand
• Neutral Sentiment: Entertainment and IP strategy progressing — Management highlighted growth in IP-driven play, family entertainment and digital initiatives (including Masters of the Universe marketing tie‑ins), which support longer‑term revenue diversification but have uncertain near‑term margin impact. Mattel Reports First Quarter 2026 Financial Results
• Neutral Sentiment: Conference call and analyst coverage — Transcripts and analyst writeups confirm the beats but note Q1 still showed a per‑share loss; investors will watch execution on cost and margin recovery. Mattel (MAT) Q1 2026 Earnings Call Transcript
• Negative Sentiment: Barbie sales declined materially — Reports indicate Barbie global sales fell (~16%), highlighting vulnerability in a formerly dominant franchise and concentration risk; investors may worry about brand-level recovery timelines. Barbie’s global sales fall 16% while Hot Wheels grows 17% and redefines Mattel’s business by 2026
• Negative Sentiment: Institutional selling noted — An investment firm disclosed a $12.5M sale of Mattel shares in an SEC filing, which could add selling pressure or signal less conviction from a shareholder. Investment Firm Closes the Book on Mattel Position, Sells $12.5 Million Shares

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Corient Private Wealth LLC bought a new stake in Mattel during the fourth quarter worth about $2,534,000. Mercer Global Advisors Inc. ADV increased its position in shares of Mattel by 144.4% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 40,070 shares of the company's stock valued at $795,000 after purchasing an additional 23,673 shares during the last quarter. EP Wealth Advisors LLC bought a new position in shares of Mattel during the 4th quarter valued at about $455,000. VARCOV Co. purchased a new position in shares of Mattel during the 4th quarter valued at about $1,027,000. Finally, Voloridge Investment Management LLC raised its holdings in shares of Mattel by 623.4% during the 4th quarter. Voloridge Investment Management LLC now owns 684,472 shares of the company's stock valued at $13,580,000 after buying an additional 589,855 shares in the last quarter. Institutional investors own 97.15% of the company's stock.

Analysts Set New Price Targets

MAT has been the topic of a number of research reports. Jefferies Financial Group lowered their price target on shares of Mattel from $25.00 to $19.00 and set a "buy" rating on the stock in a report on Wednesday, February 11th. Morgan Stanley set a $18.00 price objective on Mattel in a report on Wednesday, February 11th. UBS Group reissued a "buy" rating and issued a $28.00 target price on shares of Mattel in a research report on Thursday, March 5th. Argus upgraded Mattel to a "strong-buy" rating in a research note on Friday, March 13th. Finally, Weiss Ratings cut Mattel from a "buy (b-)" rating to a "hold (c)" rating in a research report on Wednesday, March 4th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Mattel currently has an average rating of "Hold" and an average target price of $18.44.

Mattel Company Profile

Mattel, Inc is a leading global toy company headquartered in El Segundo, California. Founded in 1945 by Harold “Matt” Matson and Elliot and Ruth Handler, the company has grown into a major player in the toy and family products industry. Mattel designs, manufactures, and markets a broad range of toys, games and entertainment products under well-known brands, including Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO and Matchbox. In addition to its proprietary labels, Mattel holds licenses with global entertainment franchises, partnering with Disney, Warner Bros., WWE and other studios to create character-driven play experiences.