{"id":51326,"date":"2026-08-05T01:38:00","date_gmt":"2026-08-04T23:38:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=b96970c4067834eca476497c84452d2b"},"modified":"2026-08-05T01:38:00","modified_gmt":"2026-08-04T23:38:00","slug":"mattel-reports-second-quarter-2026-financial-results","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=51326","title":{"rendered":"Mattel Reports Second Quarter 2026 Financial Results"},"content":{"rendered":"<p>\n<b><span class=\"bwuline\">Second Quarter 2026 Highlights Versus Prior Year<\/span><\/b><\/p><br\/><a href=\"https:\/\/mms.businesswire.com\/media\/20260804279545\/en\/2866779\/5\/MAT21BG_LOGO_R01.jpg\"><img src=\"https:\/\/mms.businesswire.com\/media\/20260804279545\/en\/2866779\/22\/MAT21BG_LOGO_R01.jpg\" \/><\/a><br\/><a href=\"https:\/\/mms.businesswire.com\/media\/20260804279545\/en\/2866779\/5\/MAT21BG_LOGO_R01.jpg\"><img src=\"https:\/\/mms.businesswire.com\/media\/20260804279545\/en\/2866779\/21\/MAT21BG_LOGO_R01.jpg\" \/><\/a><ul class=\"bwlistdisc\">\n<li>\nNet Sales of $1,125 million, up 10% as reported, and 9% in constant currency<\/li>\n<li>\nGross Margin of 48.2%, a decrease of 270 basis points; Adjusted Gross Margin of 48.6%, a decrease of 260 basis points<\/li>\n<li>\nOperating Income of $11 million, a decrease of $68 million; Adjusted Operating Income of $39 million, a decrease of $57 million<\/li>\n<li>\nNet Loss of $18 million, compared to Net Income of $53 million<\/li>\n<li>\nLoss per Share of $0.06 compared to Earnings per Share of $0.16; Adjusted Earnings per Share of $0.01 compared to $0.21 per share<\/li>\n<\/ul><p>\n<b><span class=\"bwuline\">Business Highlights<\/span><\/b><\/p><ul class=\"bwlistdisc\">\n<li>\nPositive consumer demand for our products year-to-date<\/li>\n<li>\nReleased Masters of the Universe movie globally<\/li>\n<li>\nLaunched first self-published mobile game establishing publishing and digital customer acquisition capabilities; second game in soft launch<\/li>\n<li>\nIntegration of Mattel163 mobile games studio progressing well<\/li>\n<li>\nCompany reiterates 2026 guidance; reaffirms 2026 share repurchase target of $400 million<\/li>\n<\/ul><p>EL SEGUNDO, Calif.--(BUSINESS WIRE)--Mattel, Inc. (NASDAQ: MAT) today reported second quarter 2026 financial results.<\/p><p>\nYnon Kreiz, Chairman and CEO of Mattel, said: \u201cWe continued to execute our multi-year strategy to grow our IP-driven play and family entertainment business in the second quarter with strong growth in Net Sales. Growth has continued in the third quarter, and we expect to achieve our full year 2026 guidance. Our world-class brand portfolio and product offering, driven by our brand-centric operating model and global capabilities, position us well for the second half of the year.\u201d<\/p><p>\nPaul Ruh, CFO of Mattel, added: \u201cMattel achieved further savings from our three-year Optimizing for Profitable Growth program, which is on track to achieve $225 million of savings by year-end. In line with our capital allocation priorities, we are making strategic investments to accelerate growth and repurchased another $100 million of shares in the quarter, bringing the year-to-date total to $300 million of shares, and we continue to expect repurchases of $400 million in total this year, while maintaining a strong balance sheet.\u201d<\/p><p>\n<b>Second Quarter Financial Overview<\/b><\/p><p>\n<i>Net Sales<\/i><\/p><p>\nNet Sales were $1,125 million, up 10% as reported, and 9% in constant currency, versus the prior year\u2019s second quarter. The increase in Net Sales as reported was driven by a 12% increase in North America and a 9% increase in International. The increase in Net Sales in constant currency was driven by a 12% increase in North America and a 5% increase in International.<\/p><p>\n<i>Gross Margin<\/i><\/p><p>\nReported Gross Margin was 48.2%, versus 50.9% in the prior year\u2019s second quarter, and Adjusted Gross Margin was 48.6%, versus 51.2%. The decrease in Reported and Adjusted Gross Margin was primarily due to the gross incremental cost of tariffs, inflation, higher royalties, and unfavorable foreign exchange, partially offset by the contribution of Mattel163, and Other, including tariff mitigation actions and cost savings.<\/p><p>\n<i>Operating Income<\/i><\/p><p>\nReported Operating Income was $11 million, a decrease of $68 million, and Adjusted Operating Income was $39 million, a decrease of $57 million. The decrease in Reported and Adjusted Operating Income was primarily due to higher Advertising and SG&amp;A expenses, as well as lower gross margin, partly offset by higher Net Sales.<\/p><p>\n<i>Earnings Per Share<\/i><\/p><p>\nReported Earnings per Share was a loss of $0.06, as compared to income of $0.16, and Adjusted Earnings per Share was $0.01, as compared to $0.21. The decrease in Reported and Adjusted Earnings per Share was primarily due to the same factors that impacted Operating Income.<\/p><p>\nAs of June 30, 2026, shares outstanding totaled 285.7 million.<\/p><p>\n<i>Cash Flow<\/i><\/p><p>\nFor the six months ended June 30, 2026, Cash Flows Used for Operating Activities were $202 million, as compared to a use of $275 million, primarily due to favorable working capital usage, partially offset by a decrease in Net Income, excluding the impact of non-cash items.<\/p><p>\nCash Flows Used for Investing Activities were $195 million, compared to a use of $55 million, primarily due to cash paid in connection with the acquisition of Mattel163 net of cash acquired, and higher capital expenditures.<\/p><p>\nCash Flows Used for Financing Activities and Other were $322 million, as compared to a use of $188 million, primarily due to an increase in share repurchases and the impact of foreign currency exchange rate changes on cash.<\/p><p>\n<b>Second Quarter Gross Billings by Category<\/b><\/p><p>\nWorldwide Gross Billings for Dolls were $318 million, down 5% as reported, or 7% in constant currency, primarily due to a decline in Barbie.<\/p><p>\nWorldwide Gross Billings for Vehicles were $463 million, up 14% as reported, or 11% in constant currency, primarily driven by growth in Hot Wheels.<\/p><p>\nWorldwide Gross Billings for Infant, Toddler, and Preschool were $128 million, down 11% as reported, or 13% in constant currency, primarily due to a decline in Fisher-Price.<\/p><p>\nWorldwide Gross Billings for Action Figures, Building Sets, Games, and Other were $358 million, up 35% as reported, or 33% in constant currency, primarily driven by growth in Games (including the contribution of Digital Games, following the full acquisition of Mattel163) and Action Figures, driven by theatrical releases.<\/p><p>\n<b>2026 Guidance<\/b><\/p><p>\nMattel\u2019s full year 2026 guidance remains:<\/p><table cellspacing=\"0\" class=\"bwtablemarginb bwblockalignl bwwidth100\">\n<tr>\n<td class=\"bwalignl bwvertalignb bwpadl3 bwwidth52\" colspan=\"1\" rowspan=\"1\"><b>(in millions,<br\/>except EPS and percentages)<\/b><\/td>\n<td class=\"bwalignl bwvertalignb bwpadl0 bwwidth3\" colspan=\"1\" rowspan=\"1\"\/>\n<td class=\"bwalignc bwvertalignb bwpadl0 bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n<b>FY2026 Guidance<\/b><\/p><\/td><td class=\"bwalignc bwvertalignb bwpadl0 bwwidth3\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n\u00a0<\/p><\/td><td class=\"bwalignc bwvertalignb bwpadl0 bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n<b>FY2025 Actual<\/b><\/p><\/td><\/tr>\n<tr>\n<td class=\"bwvertalignb bwpadl3 bwwidth52\" colspan=\"1\" rowspan=\"1\"\/>\n<td class=\"bwvertalignb bwpadl0 bwwidth3\" colspan=\"1\" rowspan=\"1\"\/>\n<td class=\"bwvertalignb bwpadl0 bwalignc bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n\u00a0<\/p><\/td><td class=\"bwalignc bwvertalignb bwpadl0 bwwidth3\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n\u00a0<\/p><\/td><td class=\"bwalignc bwvertalignm bwpadl0 bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n\u00a0<\/p><\/td><\/tr>\n<tr>\n<td class=\"bwalignl bwvertalignm bwrowaltcolor0 bwpadl3 bwwidth52\" colspan=\"1\" rowspan=\"1\">Net Sales<\/td>\n<td class=\"bwalignl bwvertalignm bwrowaltcolor0 bwpadl0 bwwidth3\" colspan=\"1\" rowspan=\"1\"\/>\n<td class=\"bwalignc bwvertalignm bwrowaltcolor0 bwpadl0 bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n+3% to 6%*<\/p><\/td><td class=\"bwvertalignb bwrowaltcolor0 bwpadl0 bwalignc bwwidth3\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n\u00a0<\/p><\/td><td class=\"bwalignc bwrowaltcolor0 bwpadl0 bwpadr0 bwvertalignb bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwcellpmargin bwalignc\">\n$5,348<\/p><\/td><\/tr>\n<tr>\n<td class=\"bwalignl bwvertalignm bwpadl3 bwwidth52\" colspan=\"1\" rowspan=\"1\">Adjusted Gross Margin<\/td>\n<td class=\"bwalignl bwvertalignm bwpadl0 bwwidth3\" colspan=\"1\" rowspan=\"1\"\/>\n<td class=\"bwalignc bwvertalignm bwpadl0 bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\nApprox. 50%<\/p><\/td><td class=\"bwvertalignm bwpadl0 bwalignc bwwidth3\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n\u00a0<\/p><\/td><td class=\"bwalignc bwpadl0 bwpadr0 bwvertalignb bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwcellpmargin bwalignc\">\n48.9%<\/p><\/td><\/tr>\n<tr>\n<td class=\"bwalignl bwvertalignm bwrowaltcolor0 bwpadl3 bwwidth52\" colspan=\"1\" rowspan=\"1\">Adjusted Operating Income<\/td>\n<td class=\"bwalignl bwvertalignm bwrowaltcolor0 bwpadl0 bwwidth3\" colspan=\"1\" rowspan=\"1\"\/>\n<td class=\"bwalignc bwvertalignm bwrowaltcolor0 bwpadl0 bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n$580 - $630<\/p><\/td><td class=\"bwvertalignb bwrowaltcolor0 bwpadl0 bwalignc bwwidth3\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n\u00a0<\/p><\/td><td class=\"bwalignc bwrowaltcolor0 bwpadl0 bwpadr0 bwvertalignb bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwcellpmargin bwalignc\">\n$652<\/p><\/td><\/tr>\n<tr>\n<td class=\"bwalignl bwvertalignm bwpadl3 bwwidth52\" colspan=\"1\" rowspan=\"1\">Adjusted Tax Rate<\/td>\n<td class=\"bwalignl bwvertalignm bwpadl0 bwwidth3\" colspan=\"1\" rowspan=\"1\"\/>\n<td class=\"bwalignc bwvertalignm bwpadl0 bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\nApprox. 24%<\/p><\/td><td class=\"bwvertalignm bwpadl0 bwalignc bwwidth3\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n\u00a0<\/p><\/td><td class=\"bwalignc bwpadl0 bwpadr0 bwvertalignb bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwcellpmargin bwalignc\">\n20%<\/p><\/td><\/tr>\n<tr>\n<td class=\"bwalignl bwvertalignm bwrowaltcolor0 bwpadl3 bwwidth52\" colspan=\"1\" rowspan=\"1\">Adjusted EPS<\/td>\n<td class=\"bwalignl bwvertalignm bwrowaltcolor0 bwpadl0 bwwidth3\" colspan=\"1\" rowspan=\"1\"\/>\n<td class=\"bwalignc bwvertalignm bwrowaltcolor0 bwpadl0 bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n$1.27 - $1.39<\/p><\/td><td class=\"bwvertalignb bwrowaltcolor0 bwpadl0 bwalignc bwwidth3\" colspan=\"1\" rowspan=\"1\"><p class=\"bwalignc bwcellpmargin\">\n\u00a0<\/p><\/td><td class=\"bwalignc bwrowaltcolor0 bwpadl0 bwpadr0 bwvertalignb bwwidth21\" colspan=\"1\" rowspan=\"1\"><p class=\"bwcellpmargin bwalignc\">\n$1.49<\/p><\/td><\/tr>\n<tr>\n<td class=\"bwalignl bwvertalignb bwpadl3\" colspan=\"5\" rowspan=\"1\"><i>* in Constant Currency<\/i><\/td>\n<\/tr>\n<\/table><p>\nOur guidance remains subject to market volatility, unexpected disruptions, as well as other macro-economic risks and uncertainties, including further developments in the Middle East and regulatory actions impacting global trade.<\/p><p>\nGuidance does not include any potential impact of tariff refunds.<\/p><p>\nA reconciliation of Mattel\u2019s non-GAAP financial measures on a forward-looking basis, including Net Sales on a constant currency basis, Adjusted Gross Margin, Adjusted Operating Income, Adjusted Tax Rate, Adjusted EPS, and Free Cash Flow, is not available without unreasonable effort. Mattel is unable to predict with sufficient certainty items that would be excluded from the corresponding GAAP measures, including the effect of foreign currency exchange rate fluctuations, unusual gains and losses or charges, and severance and restructuring charges, due to the unpredictable nature of such items, which may have a significant impact on Mattel\u2019s GAAP measures.<\/p><p>\n<b>Conference Call and Live Webcast<\/b><\/p><p>\nAt 5:00 p.m. (Eastern Daylight Time) today, Mattel will host a conference call with investors and financial analysts to discuss its latest financial results. The conference call will be webcast on Mattel's Investor Relations website, <a  href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Finvestors.mattel.com%2F&amp;esheet=54582649&amp;newsitemid=20260804279545&amp;lan=en-US&amp;anchor=https%3A%2F%2Finvestors.mattel.com&amp;index=1&amp;md5=5dc18cb7e4809508b5b2b1bf16d9331a\" rel=\"nofollow\" shape=\"rect\">https:\/\/investors.mattel.com<\/a>. To listen to the live call, log on to the website at least 10 minutes early to register, download, and install any necessary audio software. An archive of the webcast will be available on Mattel's Investor Relations website for 12 months and may be accessed beginning approximately three hours after the completion of the live call.<\/p><p>\n<b>Forward-Looking Statements<\/b><\/p><p>\nThis press release contains a number of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts or by their nature are uncertain, and include statements regarding Mattel\u2019s guidance and goals for future periods and other future events. The use of words such as \u201canticipates,\u201d \u201cexpects,\u201d \u201cintends,\u201d \u201cplans,\u201d \u201cprojects,\u201d \u201clooks forward,\u201d \u201cconfident that,\u201d \u201cbelieves,\u201d and \u201ctargeted,\u201d among others, generally identify forward-looking statements. These forward-looking statements are based on currently available operating, financial, economic, and other information and assumptions, and are subject to a number of significant risks and uncertainties. A variety of factors or combination of factors, many of which are beyond Mattel\u2019s control, may cause actual results or outcomes, or the timing of those results or outcomes, to differ materially from those contained in any forward-looking statements. Specific factors that might cause such a difference include, but are not limited to: (i) Mattel\u2019s ability to design, develop, produce, manufacture, source, ship, and distribute products in a timely and cost-effective manner; (ii) sufficient interest in and demand for the products and entertainment Mattel offers by retail customers and consumers to profitably recover Mattel\u2019s costs; (iii) downturns in economic conditions affecting Mattel\u2019s markets which can negatively impact retail customers and consumers, and which can result in lower employment levels and lower consumer disposable income and spending, including lower spending on purchases of Mattel\u2019s products; (iv) other factors which can lower discretionary consumer spending, such as higher costs for fuel and food, drops in the value of homes or other consumer assets, and high levels of consumer debt; (v) potential difficulties or delays Mattel may experience in implementing cost savings and efficiency enhancing initiatives; (vi) other economic and public health conditions or regulatory changes in the markets in which Mattel and its customers and suppliers operate, which could create delays or increase Mattel\u2019s costs, such as higher commodity prices, labor costs, transportation costs, or outbreaks of disease; (vii) the effect of inflation on Mattel\u2019s business, including cost inflation in supply chain inputs and increased labor costs, as well as pricing actions taken in an effort to mitigate the effects of inflation; (viii) currency fluctuations, including movements in foreign exchange rates, which can lower Mattel\u2019s net revenues and earnings, and significantly impact Mattel\u2019s costs; (ix) the concentration of Mattel\u2019s customers, potentially increasing the negative impact to Mattel of difficulties experienced by any of Mattel\u2019s customers, such as bankruptcies or liquidations or a general lack of success, or changes in their purchasing or selling patterns; (x) the inventory policies of Mattel\u2019s retail customers, as well as the concentration of Mattel\u2019s revenues in the second half of the year, which, coupled with reliance by retailers on quick response inventory management techniques, increases the risk of underproduction, overproduction, and shipping delays; (xi) legal, reputational, and financial risks related to security breaches or cyberattacks; (xii) work disruptions, including as a result of supply chain disruption such as plant or port closures, which may impact Mattel\u2019s ability to manufacture or deliver product in a timely and cost-effective manner; (xiii) the impact of competition on revenues, margins, and other aspects of Mattel\u2019s business, including the ability to offer products that consumers choose to buy instead of competitive products; (xiv) the ability to secure, maintain, and renew popular licenses from licensors of entertainment properties; (xv) the ability to successfully develop, publish, and commercialize digital games; (xvi) the ability to attract and retain talented employees and adapt to evolving workplace models; (xvii) the risk of product recalls or product liability suits and costs associated with product safety regulations; (xviii) tariffs, tariff-related developments, including refunds, trade restrictions, or trade barriers, which depending on the effective date and duration of such measures, changes in the amount, scope, and nature of such measures in the future, any countermeasures that the target countries may take, and any mitigating actions that may become available, could increase Mattel\u2019s product costs and other costs of doing business, and other changes in laws or regulations in the United States and\/or in other major markets, such as China, in which Mattel operates, including, without limitation, with respect to taxes, trade policies, product safety, or sustainability, which may also increase Mattel\u2019s product costs and other costs of doing business, and in each case reduce Mattel\u2019s earnings and liquidity; (xix) business disruptions or other unforeseen impacts due to economic instability, political instability, civil unrest, armed hostilities, such as the conflict in the Middle East, or terrorist activities, natural and man-made disasters, pandemics or other public health crises, or other catastrophic events; (xx) failure to realize the planned benefits from any investments or acquisitions made by Mattel, including Mattel163; (xxi) the impact of other market conditions or third-party actions or approvals, including those that result in any significant failure, inadequacy, or interruption from vendors or outsourcers, which could reduce demand for Mattel\u2019s products, delay or increase the cost of implementation of Mattel\u2019s programs, or alter Mattel\u2019s actions and reduce actual results; (xxii) changes in financing markets or the inability of Mattel to obtain financing on attractive terms; (xxiii) the impact of litigation, arbitration, or regulatory decisions or settlement actions; (xxiv) Mattel\u2019s ability to navigate regulatory frameworks in connection with new areas of investment, product development, or other business activities, such as artificial intelligence; (xxv) the potential impact of the development, use, and integration of artificial intelligence and machine learning technologies in Mattel\u2019s business and products; (xxvi) the sufficiency of additional controls and procedures that Mattel has implemented to remediate the prior material weakness in Mattel's internal control over financial reporting, additional material weaknesses or other deficiencies in the future, or the failure to maintain an effective system of internal control; and (xxvii) other risks and uncertainties as may be described in Mattel\u2019s filings with the Securities and Exchange Commission, including the \u201cRisk Factors\u201d section of Mattel\u2019s Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and subsequent periodic filings, as well as in Mattel\u2019s other public statements. Mattel does not update forward-looking statements and expressly disclaims any obligation to do so, except as required by law.<\/p><p>\n<b>Presentation Information \/ Non-GAAP Financial Measures<\/b><\/p><p>\nThe financial results included herein are preliminary until Mattel\u2019s Form 10-Q is filed with the SEC. Actual results may differ from these preliminary results.<\/p><p>\nTo supplement our financial results presented in accordance with generally accepted accounting principles in the United States (\u201cGAAP\u201d), Mattel presents certain non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. The non-GAAP financial measures that Mattel uses in this earnings release include Adjusted Gross Profit, Adjusted Gross Margin, Adjusted Other Selling and Administrative Expenses, Adjusted Operating Income\/Loss, Adjusted Operating Income\/Loss Margin, Adjusted Earnings Per Share, earnings before interest expense, taxes, depreciation and amortization (\u201cEBITDA\u201d), Adjusted EBITDA, Free Cash Flow, Free Cash Flow Conversion (Free Cash Flow \/ Adjusted EBITDA), Leverage Ratio (Total Debt \/ Adjusted EBITDA), Net Debt, Adjusted Tax Rate, and constant currency. Mattel uses these measures to analyze its continuing operations and to monitor, assess, and identify meaningful trends in its operating and financial performance, and each is discussed below. Mattel believes that the disclosure of non-GAAP financial measures provides useful supplemental information to investors to be able to better evaluate ongoing business performance and certain components of Mattel\u2019s results. These measures are not, and should not be viewed as, substitutes for GAAP financial measures and may not be comparable to similarly titled measures used by other companies. Reconciliations of the non-GAAP financial measures to the most directly comparable GAAP financial measures are attached to this earnings release as exhibits and to our earnings slide presentation as an appendix.<\/p><p>\nThis earnings release and our earnings slide presentation are available on Mattel's Investor Relations website, <a  href=\"https:\/\/cts.businesswire.com\/ct\/CT?id=smartlink&amp;url=https%3A%2F%2Finvestors.mattel.com%2F&amp;esheet=54582649&amp;newsitemid=20260804279545&amp;lan=en-US&amp;anchor=https%3A%2F%2Finvestors.mattel.com%2F&amp;index=2&amp;md5=b98da0f4e168c691268a8cb65a1c29a0\" rel=\"nofollow\" shape=\"rect\">https:\/\/investors.mattel.com\/<\/a>, under the subheading \u201cFinancials \u2013 Quarterly Results.\u201d<\/p><p>\n<i>Adjusted Gross Profit and Adjusted Gross Margin<\/i><\/p><p>\nAdjusted Gross Profit and Adjusted Gross Margin represent reported Gross Profit and reported Gross Margin, respectively, adjusted to exclude amortization of acquired intangible assets, severance and restructuring expenses, and acquisition-related expenses, including integration expenses. Adjusted Gross Margin represents Mattel\u2019s Adjusted Gross Profit, as a percentage of Net Sales. Adjusted Gross Profit and Adjusted Gross Margin are presented to provide additional perspective on underlying trends in Mattel\u2019s core Gross Profit and Gross Margin, which Mattel believes is useful supplemental information for investors to be able to gauge and compare Mattel\u2019s current business performance from one period to another.<\/p><p>\n<i>Adjusted Other Selling and Administrative Expenses<\/i><\/p><p>\nAdjusted Other Selling and Administrative Expenses represents Mattel\u2019s reported Other Selling and Administrative Expenses, adjusted to exclude amortization of acquired intangible assets, severance and restructuring expenses, the impact of the inclined sleeper product recalls, and acquisition-related expenses, including professional fees and integration expenses, which are not part of Mattel\u2019s core business. Adjusted Other Selling and Administrative Expenses is presented to provide additional perspective on underlying trends in Mattel\u2019s core other selling and administrative expenses, which Mattel believes is useful supplemental information for investors to be able to gauge and compare Mattel\u2019s current business performance from one period to another.<\/p><p>\n<i>Adjusted Operating Income (Loss) and Adjusted Operating Income (Loss) Margin<\/i><\/p><p>\nAdjusted Operating Income (Loss) and Adjusted Operating Income (Loss) Margin represent reported Operating Income and reported Operating Income Margin, respectively, adjusted to exclude amortization of acquired intangible assets, severance and restructuring expenses, the impact of the inclined sleeper product recalls, and acquisition-related expenses, including professional fees and integration expenses, which are not part of Mattel\u2019s core business. Adjusted Operating Income Margin represents Mattel\u2019s Adjusted Operating Income, as a percentage of Net Sales. Adjusted Operating Income and Adjusted Operating Income Margin are presented to provide additional perspective on underlying trends in Mattel\u2019s core operating results, which Mattel believes is useful supplemental information for investors to be able to gauge and compare Mattel\u2019s current business performance from one period to another.<\/p><p>\n<i>Adjusted Earnings Per Share<\/i><\/p><p>\nAdjusted Earnings Per Share represents Mattel\u2019s reported Diluted Earnings Per Common Share, adjusted to exclude amortization of acquired intangible assets, severance and restructuring expenses, the impact of the inclined sleeper product recalls, acquisition-related expenses, net, including professional fees and integration expenses, and gain on previously held equity interest in Mattel163, which are not part of Mattel\u2019s core business. The aggregate tax effect of the adjustments was determined using the effective tax rates on a jurisdictional basis of the respective adjustments and dividing by the reported weighted-average number of common shares. Adjusted Earnings Per Share is presented to provide additional perspective on underlying trends in Mattel\u2019s core business. Mattel believes it is useful supplemental information for investors to gauge and compare Mattel\u2019s current earnings results from one period to another. Adjusted Earnings Per Share is a performance measure and should not be used as a measure of liquidity.<\/p><p>\n<i>EBITDA and Adjusted EBITDA<\/i><\/p><p>\nEBITDA represents Mattel\u2019s Net Income\/Loss, adjusted to exclude the impact of interest expense, taxes, depreciation, and amortization. Adjusted EBITDA represents EBITDA adjusted to exclude share-based compensation, severance and restructuring expenses, the impact of the inclined sleeper product recalls, acquisition-related expenses, net, including professional fees and integration expenses, and gain on previously held equity interest in Mattel163, which are not part of Mattel\u2019s core business. Mattel believes EBITDA and Adjusted EBITDA are useful supplemental information for investors to gauge and compare Mattel\u2019s business performance to other companies in its industry with similar capital structures. The presentation of Adjusted EBITDA differs from how Mattel calculates EBITDA for purposes of covenant compliance under the indentures governing its high yield senior notes and the revolving credit agreement governing its revolving credit facility. Because of these limitations, EBITDA and Adjusted EBITDA should not be considered as measures of discretionary cash available to invest in the growth of Mattel\u2019s business. As a result, Mattel relies primarily on its GAAP results and uses EBITDA and Adjusted EBITDA only supplementally.<\/p><p>\n<i>Free Cash Flow and Free Cash Flow Conversion<\/i><\/p><p>\nFree Cash Flow represents Mattel\u2019s net cash flows from operating activities less capital expenditures. Free Cash Flow Conversion represents Mattel\u2019s free cash flow divided by Adjusted EBITDA. Mattel believes Free Cash Flow and Free Cash Flow Conversion are useful supplemental information for investors to gauge Mattel\u2019s liquidity and performance and to compare Mattel\u2019s business performance to other companies in our industry. Free Cash Flow does not represent cash available to Mattel for discretionary expenditures.<\/p><p>\n<i>Leverage Ratio (Total Debt \/ Adjusted EBITDA)<\/i><\/p><p>\nThe leverage ratio is calculated by dividing Total Debt by Adjusted EBITDA. Total Debt represents the aggregate of Mattel\u2019s current portion of long-term debt, short-term borrowings, and long-term debt, excluding the impact of debt issuance costs and debt discount. Mattel believes the leverage ratio is useful supplemental information for investors to gauge trends in Mattel\u2019s business and to compare Mattel\u2019s business performance to other companies in its industry.<\/p><p>\n<i>Net Debt<\/i><\/p><p>\nNet Debt represents the aggregate of Mattel\u2019s current portion of long-term debt, short-term borrowings, and long-term debt, less cash and equivalents. Mattel believes Net Debt is useful supplemental information for investors to monitor Mattel\u2019s liquidity and evaluate its balance sheet.<\/p><p>\n<i>Adjusted Tax Rate<\/i><\/p><p>\nThe Adjusted Tax Rate is calculated by dividing Adjusted Provision for Income Taxes by Adjusted Income Before Income Taxes. Adjusted Income Before Income Taxes represents reported Income Before Income Taxes, adjusted to exclude amortization of acquired intangible assets, severance and restructuring expenses, the impact of inclined sleeper product recalls, acquisition-related expenses, net, and gain on previously held equity interest in Mattel163. The Adjusted Provision for Income Taxes represents reported Provision for Income Taxes, adjusted to exclude the aggregate tax effect of adjustments. Mattel believes the adjusted tax rate provides useful supplemental information for investors to gauge and compare the impact of tax expense on Mattel's earnings results from one period to another.<\/p><\/td><\/td><\/td><\/td><\/td><\/td><\/td><\/td><br\/> <b>Contacts<\/b> <br\/><p>\n<b>Securities Analysts<\/b><br\/>Katina Metzidakis\n<br\/><a  href=\"mailto:katina.metzidakis@Mattel.com\" rel=\"nofollow\" shape=\"rect\">katina.metzidakis@Mattel.com<\/a><\/p><p>\n<b>News Media<\/b><br\/>Catherine Frymark\n<br\/><a  href=\"mailto:catherine.frymark@mattel.com\" rel=\"nofollow\" shape=\"rect\">catherine.frymark@mattel.com<\/a><\/p><br\/> <a href=\"http:\/\/www.businesswire.com\/news\/home\/20260804279545\/en\/Mattel-Reports-Second-Quarter-2026-Financial-Results\/?feedref=Zd8jjkgYuzBwDixoAdXmJgT1albrG1Eq4mAeVP39212bri8lIe-zl5tWvCOnRHW3evRMp3sIgu8q3wq1OF24lT93qbEzrwa15HGbLqMObxY5fjCLYi_If30KxIsYuhwbuLAuCkn8FS6sh-I3dfDZEg==\"> Read full story here <\/a>","protected":false},"excerpt":{"rendered":"<p>Second Quarter 2026 Highlights Versus Prior Year<\/p>\n<p>Net Sales of $1,125 million, up 10% as reported, and 9% in constant currency<\/p>\n<p>Gross Margin of 48.2%, a decrease of 270 basis points; Adjusted Gross Margin of 48.6%, a decrease of 260 basis points<\/p>\n<p>Oper&#8230;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-51326","post","type-post","status-publish","format-standard","hentry","category-infos-businesswire"],"_links":{"self":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/51326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=51326"}],"version-history":[{"count":1,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/51326\/revisions"}],"predecessor-version":[{"id":51327,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/51326\/revisions\/51327"}],"wp:attachment":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=51326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=51326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=51326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}