Mattel reported second-quarter 2026 results with net sales of $1,125.3 million, up 10% year-over-year (9% constant currency), while adjusted gross margin narrowed to 48.6%. Reported operating income was $10.9 million and adjusted operating income was $38.8 million; the company recorded a net loss of $18.2 million and adjusted diluted earnings per share of $0.01. Mattel reiterated full-year 2026 guidance, including an adjusted operating income target of $580–$630 million and adjusted EPS of $1.27–$1.39.

Financial Highlights

  • Net sales: $1,125.3 million for Q2 2026, up 10% as reported and 9% in constant currency versus Q2 2025.
  • Gross profit and margin: Gross profit $542.1 million; reported gross margin 48.2%, adjusted gross margin 48.6% (down ~260–270 bps vs. prior year).
  • Operating income: Reported operating income $10.9 million; adjusted operating income $38.8 million (decline vs. prior year).
  • Net (loss) income: Net loss of $18.2 million for the quarter; reported loss per share (diluted) $(0.06).
  • Adjusted earnings per share: Adjusted diluted EPS $0.01 for Q2 2026 (compared with $0.21 adjusted in Q2 2025).

Business Highlights

  • Consumer demand remained positive year-to-date, with continued sales growth into the third quarter.
  • Released the Masters of the Universe movie globally, supporting franchise and action-figure momentum.
  • Completed full acquisition of Mattel163 and integrated the mobile games studio; launched the company's first self-published mobile game and has a second game in soft launch, establishing publishing and digital customer-acquisition capabilities.
  • Category performance: Vehicles (led by Hot Wheels) and Action Figures/Building Sets/Games (including digital games contribution) showed strong growth; Dolls (including Barbie) and Infant/Toddler/Preschool (including Fisher-Price) declined versus prior year.
  • Continued execution of the Optimizing for Profitable Growth program, on track for $225 million of savings by year-end; repurchased $100 million of shares in Q2 (year-to-date $300 million), reaffirming a $400 million repurchase target for 2026.

Original SEC Filing:

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