Mattel (NASDAQ:MAT) Announces Earnings Results

Mattel (NASDAQ:MAT) released its quarterly earnings data on Tuesday. The company reported $0.39 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.53 by ($0.14), FiscalAI reports. Mattel had a return on equity of 20.82% and a net margin of 7.44%.The company had revenue of $1.77 billion for the quarter, compared to analyst estimates of $1.85 billion. During the same quarter in the prior year, the company earned $0.35 earnings per share. The business’s revenue was up 7.3% compared to the same quarter last year. Mattel updated its FY 2026 guidance to 1.180-1.300 EPS.

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

• Mattel agreed to acquire full ownership of Mattel163 (total valuation $380M; $159M purchase for NetEase’s 50%); the deal is largely funded from JV cash, is expected to be immediately accretive, and materially scales Mattel’s self‑published mobile games and digital customer‑acquisition capabilities.
• Q4 gross billings grew 6% (POS +3% globally) but U.S. December orders underperformed, leaving full‑year results below expectations; the company increased promotions and took inventory actions that pressured margins and reduced 2025 profitability.
• 2026 guidance targets 3%–6% constant‑currency net sales growth, ~50% adjusted gross margin, $550M–$600M adjusted operating income and $1.18–$1.30 adjusted EPS, while Mattel plans ~$150M of strategic investments (digital games, first‑party data, D2C and performance marketing) that will weigh on 2026 but are expected to be self‑funding and drive acceleration in 2027.
• The company is moving to a brand‑centric strategy to capture IP value across toys, entertainment, D2C and digital — highlighted by global Teenage Mutant Ninja Turtles rights from 2027, two Mattel IP films in 2026 (Masters of the Universe theatrical and Matchbox on Apple TV), and the strong launch of Mattel Brick Shop — positioning for higher‑margin growth over time.

Mattel Stock Performance

NASDAQ MAT traded up $0.01 during trading on Thursday, reaching $15.81. 1,674,029 shares of the company’s stock were exchanged, compared to its average volume of 4,591,915. The company has a debt-to-equity ratio of 0.77, a current ratio of 1.60 and a quick ratio of 1.18. The business has a 50 day moving average price of $20.65 and a 200-day moving average price of $19.12. The stock has a market capitalization of $4.91 billion, a P/E ratio of 12.54, a PEG ratio of 2.23 and a beta of 0.70. Mattel has a fifty-two week low of $13.94 and a fifty-two week high of $22.48.

Institutional Investors Weigh In On Mattel

A number of large investors have recently added to or reduced their stakes in MAT. Quarry LP bought a new position in Mattel during the third quarter worth $28,000. Los Angeles Capital Management LLC bought a new stake in shares of Mattel during the 4th quarter worth about $31,000. Danske Bank A S acquired a new position in Mattel in the 3rd quarter valued at about $49,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its position in Mattel by 74.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 3,437 shares of the company’s stock worth $67,000 after acquiring an additional 1,468 shares during the last quarter. Finally, EverSource Wealth Advisors LLC lifted its position in Mattel by 191.1% during the second quarter. EverSource Wealth Advisors LLC now owns 8,777 shares of the company’s stock worth $173,000 after acquiring an additional 5,762 shares during the last quarter. Institutional investors own 97.15% of the company’s stock.

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on MAT. Roth Mkm set a $16.00 target price on shares of Mattel in a research note on Wednesday. DA Davidson cut their price objective on Mattel from $25.00 to $18.00 and set a “buy” rating for the company in a research report on Wednesday. The Goldman Sachs Group lowered Mattel from a “buy” rating to a “neutral” rating and set a $21.00 price objective on the stock. in a research note on Friday, January 9th. Jefferies Financial Group lowered their target price on Mattel from $25.00 to $19.00 and set a “buy” rating for the company in a research note on Wednesday. Finally, Cfra Research cut Mattel from a “moderate buy” rating to a “hold” rating in a report on Wednesday, October 22nd. Three investment analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and an average target price of $19.00.

Mattel News Roundup

Here are the key news stories impacting Mattel this week:

• Positive Sentiment: Mattel agreed to acquire full ownership of Mattel163, strengthening its mobile-games and digital pipeline — a strategic move to build recurring digital revenue that management says will be central to future growth. Mattel to Acquire Full Ownership of Mattel163
• Positive Sentiment: New and expanded IP/licensing activity — deals and product rollouts for Teenage Mutant Ninja Turtles (Paramount), Masters of the Universe movie toys and American Girl 40th anniversary — provide longer‑term product catalysts and merchandising opportunities. Teenage Mutant Ninja Turtles Deal Signed
• Neutral Sentiment: Zacks moved its rating from “strong sell” to “hold” — a modest vote of confidence but not a bullish re‑rating; it’s a signal that some selling pressure may stabilize if guidance execution improves. Zacks Rating Note
• Neutral Sentiment: Unusual options activity: a large spike in call buying was reported, which can reflect speculative positioning or hedging around the earnings fallout but is not definitive of directional conviction.
• Negative Sentiment: Q4 results missed and full‑year EPS guidance came in well below consensus: Q4 EPS $0.39 vs. ~$0.53 expected and FY2026 EPS guidance $1.18–$1.30 vs. ~$1.75 consensus. Management cited softer December demand, discounting, tariffs and margin pressures — the primary driver of the sharp share decline. Reuters: Mattel forecasts below estimates
• Negative Sentiment: Analyst reaction turned negative: JPMorgan downgraded MAT to “underweight” with a $14 price target, adding to selling pressure as expectations were reset lower. Finviz: JPMorgan Downgrade
• Negative Sentiment: Relative weakness vs. peers: Hasbro’s stock rallied on its digital pivot while Mattel’s weaker forecast and slower digital monetization highlighted the gap, intensifying sector‑level selling and investor rotation. Reuters: Tale of Two Toymakers

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.