Q2 2026 Mattel Inc Earnings Call Transcript
Key Points
- Mattel Inc (MAT) achieved strong net sales growth of 10% as reported and 9% in constant currency, with double-digit growth in North America.
- Hot Wheels delivered another outstanding quarter with 12% growth, driven by strength in both kids and adult collector segments.
- Masters of the Universe gross billings more than tripled year-to-date, boosted by the theatrical release and strong streaming performance on Prime Video.
- The full acquisition of Mattel 163 contributed nearly $49 million in revenue and approximately $14 million in adjusted operating income during the quarter.
- Mattel Inc (MAT) repurchased $100 million of shares in the quarter, bringing year-to-date repurchases to $300 million, and remains on track for $400 million for the full year.
- Adjusted operating income declined to $39 million from $96 million in the prior year period, impacted by higher advertising and SG&A expenses and lower gross margin.
- Adjusted gross margin decreased to 48.6%, pressured by 170 basis points from tariffs, 120 basis points from inflation, and 110 basis points from higher royalties.
- Dolls category declined, primarily due to lower revenue from streaming content for Barbie and Polly Pocket, partially offset by growth in other brands.
- Infant, toddler, and preschool segment declined, mainly due to Fisher-Price, despite strong momentum in Little People.
- Free cash flow on a trailing 12-month basis decreased to $435 million from $530 million, due to lower net income and higher capital expenditures.
Thank you for standing by, and welcome to the Mattel Inc. Second Quarter 2026 Earnings Conference Call. All lines have been placed on mute to prevent any background noise.
After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad.
I would now like to turn the call over to Katina Metsudakis, Mattel's Head of Investor Relations. Katina, please go ahead.
Thank you, operator, and good afternoon, everyone. Joining me today are Inan Krize, Mattel's Chairman and Chief Executive Officer Paul Roux, Mattel's Chief Financial Officer and Roberto Stinicki, Mattel's President, Chief Marketing and Global Brand Officer.
This afternoon, we reported Mattel's second quarter 2026 financial results. We will begin today's call with Anan and Paul providing commentary on our results, after which we will provide some time for questions. Please note that during the
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