Mattel Highlights Q4 Earnings, Announces Mattel163 Acquisition

Company sees growth in vehicles and challenger categories, but weaker-than-expected US performance in December

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 Q4 and full-year 2025 earnings call, while acknowledging that weaker-than-expected US performance in December weighed on full-year results and profitability. The company delivered 6% growth in Q4 gross billings, but noted its US growth was less than anticipated. Management highlighted strength in vehicles and challenger categories, while infant, toddler, and preschool (ITPS) declined. Mattel also announced an agreement to acquire full ownership of its mobile games joint venture Mattel163 for $380 million.

Why it matters

Mattel's Q4 and full-year results provide insights into the broader toy industry trends, with the company's performance reflecting a mix of strengths and challenges. The Mattel163 acquisition signals the company's strategic focus on expanding its digital gaming capabilities and leveraging its iconic brands across entertainment platforms.

The details

In Q4, Mattel's gross billings grew 6% in constant currency, with vehicles up 16% and challenger categories up 14%. However, ITPS gross billings fell 10%. 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%. Adjusted gross margin in Q4 was 46%, down 480 basis points, due to higher discounting, inflation, and foreign exchange impacts. Adjusted operating income in Q4 was flat at $160 million, while full-year adjusted operating income declined 16% to $620 million.

  • Mattel delivered 6% growth in Q4 gross billings.
  • For the full year, total company gross billings were comparable.

The players

Mattel

A leading global toy company headquartered in El Segundo, California. Founded in 1945, Mattel designs, manufactures, and markets a broad range of toys, games, and entertainment products under well-known brands like Barbie, Hot Wheels, Fisher-Price, and UNO.

Ynon Kreiz

Chairman and CEO of Mattel.

Paul Ruh

CFO of Mattel.

Mattel163

Mattel's mobile games joint venture with NetEase, which has released four games based on Mattel IP since 2018 and has approximately 20 million monthly active users and more than 550 million downloads worldwide.

NetEase

Mattel's joint venture partner in Mattel163, from which Mattel is acquiring the remaining 50% stake.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

“Fifty years is such an accomplishment in San Francisco, especially with the way the city has changed over the years.”

— Gordon Edgar, grocery employee (Instagram)

What’s next

Mattel plans to invest approximately $110 million in strategic initiatives in 2026, including digital games, first-party data, D2C, toy innovation, AI, and infrastructure. The company also expects to invest about $40 million in digital performance marketing and user acquisition tied to two self-published mobile game launches.

The takeaway

Mattel's Q4 and full-year results highlight the company's efforts to diversify its business and leverage its iconic brands across toys, entertainment, and digital gaming. The Mattel163 acquisition signals a strategic focus on expanding its mobile gaming capabilities, which could help drive future growth and profitability.