Mattel, Inc. Q1 2026 Earnings Recap

Mattel shares closed up 2.0% following first-quarter results, with the market responding to modest net sales growth and highlighted progress in digital and entertainment initiatives. Results aligned with expectations, as investors weighed incremental revenue gains against an EPS decline and ongoing strategic investments.

Key Takeaways

• Net sales grew 4% as reported (1% in constant currency), with gross billings up 2% in constant currency versus the prior year.
• Adjusted earnings per share declined by $0.18, as Mattel continued to invest in growth initiatives.
• Notable category performance included double-digit growth in brands such as Hot Wheels, Uno, Monster High, and licensed franchises like Toy Story and WWE.
• Mattel acquired full ownership of the Mattel 163 mobile game studio and repurchased $200 million in shares, maintaining a strong balance sheet.
• Management reaffirmed strategic investments of $150 million for 2026, targeting accelerated growth and profitability with projected contribution in 2027 and beyond.