Mattel (MAT) Q2 2026 earnings summary

Executive summary

• Net sales rose 10% year-over-year to $1.13 billion, with double-digit growth in North America and strong gains in Vehicles, Action Figures, Games, and digital following the Mattel163 acquisition.

• Maintained number one global position in Dolls, Vehicles, and ITPS categories, gaining share in Vehicles and Action Figures.

• Continued execution of capital allocation priorities, investing in organic growth, digital, and share buybacks while maintaining a strong balance sheet.

• Strategic investments and digital expansion are expected to drive significant growth in 2027 and beyond, with positive consumer demand and new content launches.

• Reiterated full-year 2026 guidance, with positive momentum continuing into Q3.

Financial highlights

• Q2 2026 net sales: $1.13 billion (+10% YoY); North America up 12%, International up 9%.

• Adjusted gross margin was 48.6% (down 260–270 bps YoY) due to tariffs, inflation, and higher royalties.

• Adjusted operating income was $39 million (down from $96 million prior year); adjusted EBITDA $95–96 million (down from $117–170 million); adjusted EPS $0.01 (down from $0.21).

• Net loss for Q2 was $18.2 million (vs. $53.4 million net income prior year); reported EPS was $(0.06) vs. $0.16.

• Free cash flow (TTM) was $435 million (down from $530 million); cash at quarter end was $524 million (down from $870 million); total debt $2.33–2.35 billion.

Outlook and guidance

• Full-year 2026 guidance reaffirmed: net sales growth of 3–6% in constant currency, adjusted gross margin around 50%, adjusted operating income $580–$630 million, adjusted EPS $1.27–$1.39.

• Vehicles and challenger categories expected to grow strongly, dolls to be comparable, ITPS to decline.

• FX expected to benefit full-year net sales by ~1%; gross margin to improve in the second half; no repeat of heavy promotions from 2025.

• Strategic investments of $110 million in 2026 to accelerate growth; majority of $40 million digital marketing for UNO Wild shifted to 2027.

• Guidance subject to market volatility, macroeconomic risks, and global trade/regulatory uncertainties.