Mattel Highlights Improving Demand Trends and Strategic Moves in Q4 Earnings Call

Company acknowledges weaker-than-expected U.S. performance in December impacted full-year results and profitability.

Published on Feb. 10, 2026

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Mattel (NASDAQ:MAT) executives emphasized improving demand trends and major strategic moves during the company's fourth quarter and full-year 2025 earnings call, while acknowledging that weaker-than-expected U.S. performance in December weighed on full-year results and profitability.

Why it matters

Mattel's performance in the key holiday quarter provides insights into the broader toy industry and consumer spending trends. The company's strategic moves, including the acquisition of its mobile games joint venture, also signal its evolving focus on digital and intellectual property (IP) expansion.

The details

Mattel delivered 6% growth in fourth-quarter gross billings, with 7% growth in North America and 4% internationally. However, the company noted its U.S. growth was less than anticipated, which affected full-year results. Management attributed this to trade-related uncertainty that drove U.S. retailers to shift orders and adopt a more 'just-in-time' approach. In response, Mattel increased promotional activity and took steps to manage owned inventory, actions that had a larger-than-expected impact on margins. Globally, the company saw strength in vehicles and challenger categories, while infant, toddler, and preschool (ITPS) declined. For the full year, total company gross billings were comparable, with dolls declining 7%, vehicles growing 10%, ITPS declining 18%, and challenger categories growing 13%.

  • Mattel announced an agreement with NetEase to acquire full ownership of Mattel163, its mobile games joint venture, in a deal expected to close by the end of the first quarter of 2026.
  • Mattel plans approximately $110 million of targeted strategic investments in 2026, including in digital games, first-party data, D2C, toy innovation, AI, and infrastructure.
  • The company plans to invest about $40 million primarily in digital performance marketing and user acquisition tied to two self-published mobile game launches in 2026.

The players

Ynon Kreiz

Chairman and CEO of Mattel.

Paul Ruh

Chief Financial Officer of Mattel.

Mattel163

Mattel's mobile games joint venture with NetEase, which Mattel is acquiring full ownership of.

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What they’re saying

“Mattel163 has released four games based on Mattel IP since 2018, with approximately 20 million monthly active users and more than 550 million downloads worldwide.”

— Ynon Kreiz, Chairman and CEO (marketbeat.com)

“The acquisition of Mattel163 will add development, publishing, and user-acquisition expertise, increase mobile-game output, and improve alignment with Mattel's broader product roadmap through cross-promotion and performance marketing scale benefits.”

— Ynon Kreiz, Chairman and CEO (marketbeat.com)

What’s next

Mattel plans to continue its strategic investments in digital games, first-party data, D2C, toy innovation, AI, and infrastructure in 2026, with the goal of achieving mid- to high-single-digit revenue growth and double-digit growth in adjusted operating income by 2027.

The takeaway

Mattel's acquisition of its mobile games joint venture and focus on expanding its intellectual property across toys and entertainment signal the company's evolving strategy to capture more value from its iconic brands and adapt to changing consumer preferences in the digital age.