Mattel (MAT) Investor presentation summary

Strategic priorities and business model

• Focus on growing intellectual property-driven play and family entertainment business, emphasizing brand management and operational excellence.

• Expansion of direct-to-consumer and commercial reach, broadening content and licensing, and scaling digital play with AI integration.

• Mission centers on creating innovative products and experiences that inspire and develop children through play.

Financial performance highlights (2017–2025)

• Net sales increased from $4.88 billion in 2017 to $5.35 billion in 2025.

• Adjusted operating income improved from a loss of $180 million to a profit of $652 million.

• Adjusted EBITDA rose from $126 million to $927 million.

• Adjusted gross margin grew from 37.8% to 48.9%; adjusted operating margin from -3.7% to 12.2%.

• Adjusted EPS shifted from -$1.15 to $1.49; free cash flow improved from -$325 million to $411 million; leverage ratio reduced from 25.0x to 2.5x.

Non-GAAP financial measures and definitions

• Uses adjusted gross profit, adjusted operating income, adjusted EPS, EBITDA, adjusted EBITDA, free cash flow, and leverage ratio to analyze performance.

• Adjusted metrics exclude impacts from asset impairments, severance, restructuring, non-recurring executive compensation, product recalls, and amortization of acquired intangibles.

• Free cash flow defined as net cash from operating activities minus capital expenditures.

• Leverage ratio calculated as total debt divided by adjusted EBITDA.