Mattel (MAT) FY2025 results: revenue $5.3 billion, down 0.6% on the year
Mattel Inc. (MAT) reported revenue of $5.3 billion for fiscal 2025, the year ended 31 December 2025, down 0.6% on the year before. Net income was $398 million, down 26.6%, and diluted earnings per share $1.24. The figures are the company's own, from the 10-K it filed with the SEC on 23 February 2026.
this yearthe year beforeHover a bar for its figure.
The year in brief
What management said about the year
Guidance figures: 10 new.
- Fourth-quarter net sales rose 7%: Net sales were $1,766 million, against $1,646 million a year earlier; constant-currency growth was 5%.
- Full-year operating income fell $148 million: Operating income was $546 million, down $148 million; net income was $398 million, down $144 million. Operating margin was 10.2%, against 12.9%.
- Fourth-quarter gross margin fell 480 basis points: Gross margin was 45.9% against 50.7%; adjusted gross margin was 46.0% against 50.8%. The company cited higher discounts, inflation, unfavorable foreign exchange and a tariff cost timing lag, partly offset by cost savings.
- Free cash flow fell to $411 million: Free cash flow was $411.3 million against $597.9 million, after capital expenditures of $182.0 million against $202.6 million; conversion was 44% against 57%.
- Debt refinanced, investment grade kept: The company refinanced $600 million of debt in the fourth quarter and kept its investment grade rating. Net debt was $1,088.7 million against $946.4 million; leverage ratio was 2.5x against 2.2x.
From this 10-K
Mattel designs, makes and sells toys and games, and licenses its brands for films, television, consumer products, mobile games and other entertainment. It owns brands such as Barbie, Hot Wheels, Fisher-Price, American Girl and UNO and also makes products under licenses from entertainment companies including Disney, Microsoft, NBCUniversal, Warner Bros. and WWE. It reports two segments, North America, covering the United States and Canada, and International.
The four quarters: Q1 FY2025 · Q2 FY2025 · Q3 FY2025 · Q4 FY2025
Income statement (profit and loss)
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Revenue | 5,348 | 5,380 | 5,441 | -0.6% | |
| Cost of revenue | 2,742 | 2,645 | 2,858 | +3.6% | |
| Gross profit | 2,606 | 2,734 | 2,584 | -4.7% | |
| Gross margin | 48.7% | 50.8% | 47.5% | ||
| Research and development | 227 | 194 | 199 | +17.2% | |
| Operating income | 546 | 694 | 562 | -21.3% | |
| Operating margin | 10.2% | 12.9% | 10.3% | ||
| Interest expense | 119 | 119 | 124 | -0.1% | |
| Pre-tax income | 459 | 623 | 465 | -26.2% | |
| Income tax | 89.8 | 106 | 269 | -15.0% | |
| Effective tax rate | 19.5% | 17.0% | 57.9% | ||
| Net income | 398 | 542 | 214 | -26.6% | |
| Net margin | 7.4% | 10.1% | 3.9% | ||
| Diluted EPS | $1.24 | $1.58 | $0.60 | -21.5% |
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Free cash flow is operating cash flow less capital expenditure; the effective tax rate is income tax over pre-tax income; margins are the line over revenue. Gross profit is revenue less cost of revenue, and operating income is revenue less the company's own total costs, where the statement does not print those lines. Those four are arithmetic on the filed numbers; everything else is as filed. Money is in $ million as the company files it, or in $ billion by the switch above the tables; per share figures and share counts are as they are.Cash flow
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Operating cash flow | 593 | 801 | 870 | -25.9% | |
| Capital expenditure | 111 | 135 | 85.8 | -18.2% | |
| Free cash flow | 483 | 665 | 784 | -27.5% | |
| Free cash flow margin | 9.0% | 12.4% | 14.4% | ||
| Cash from investing | -155 | -189 | -142 | ||
| Cash from financing | -621 | -449 | -227 | ||
| Depreciation and amortisation | 168 | 168 | 177 | +0.0% | |
| Share-based compensation | 79.7 | 79.4 | 83.3 | +0.4% | |
| Buybacks | 600 | 400 | 203 | +50.0% | |
| Dividend per share | $0.00 | $0.00 | $0.00 | ||
| Diluted shares, weighted | 322m | 343m | 357m | -6.3% |
Balance sheet
| $ million | FY2025 | FY2024 | FY2023 | On the year | Last 8 years |
|---|---|---|---|---|---|
| Shareholders' equity | 2,233 | 2,264 | 2,149 | -1.4% | |
| Short-term borrowings | 0.0 | 0.0 | 0.0 | ||
| Debt | 2,332 | 2,334 | 2,330 | -0.1% | |
| Operating lease liabilities | 268 | 278 | 260 | -3.5% | |
| Other liabilities | 1,807 | 1,667 | 1,697 | +8.4% | |
| Total liabilities and equity | 6,640 | 6,544 | 6,436 | +1.5% | |
| Fixed assets | 590 | 516 | 466 | +14.3% | |
| Goodwill | 1,390 | 1,382 | 1,385 | +0.6% | |
| Intangible assets | 337 | 361 | 393 | -6.5% | |
| Cash and equivalents | 1,243 | 1,388 | 1,261 | -10.4% | |
| Receivables | 1,098 | 1,003 | 1,082 | +9.4% | |
| Inventory | 563 | 502 | 572 | +12.2% | |
| Other assets | 1,419 | 1,393 | 1,278 | +1.9% | |
| Total assets | 6,640 | 6,544 | 6,436 | +1.5% |
10-K for the year ended 31 December 2025, filed 23 February 2026: the filing.