Mattel Inc (NASDAQ:MAT) stock is down 24.6% at $15.88 at last check, after the company announced lower-than-anticipated fourth-quarter earnings and revenue and a disappointing earnings forecast.
Mattel, Inc (NASDAQ:MAT) shares opened 27% lower on Wednesday after the toymaker reported quarterly results that fell short of Wall Street expectations and outlined a year of strategic investments that are likely to pressure near-term earnings. The company posted net sales of $1.77 billion in the fourth quarter, up 7% as reported and 5% in constant currency.
Mattel and Hasbro both delivered disappointing forecasts for 2026. But Hasbro shares rose as much as 9% on Tuesday on the strength of its digital gaming business, and Mattel stock sank 30% premarket on Wednesday and was set for its worst intraday plunge in over four decades.
Mattel, Inc. (MAT) Q4 2025 Earnings Call Transcript
While the top- and bottom-line numbers for Mattel (MAT) give a sense of how the business performed in the quarter ended December 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
Mattel (MAT) came out with quarterly earnings of $0.39 per share, missing the Zacks Consensus Estimate of $0.53 per share. This compares to earnings of $0.35 per share a year ago.
The toy maker's anticipated holiday surge failed to materialize, leading it to post sales and profit below Wall Street expectations in the fourth-quarter.
Mattel on Tuesday forecast full-year profit below Wall Street expectations after missing fourth-quarter estimates, as weak discretionary spending weighed on toy demand.
MAT's Q4 results are likely to reflect strong holiday demand and brand momentum, partly offset by tariffs, FX headwinds and higher seasonal spending.
Mattel (MAT) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Mattel launched a new line of action figures on Thursday for its upcoming live-action movie "Masters of the Universe", aiming to repeat the success of its 2023 smash hit "Barbie".
Mattel is positioned for stronger performance in 2026, benefiting from rebounding toy sales and effective tariff management. MAT's Hot Wheels brand continues to set records, while upcoming content partnerships and demographic recovery should support growth in Fisher-Price and other segments. Free cash flow is expected at $520–$540 million in 2026, supporting ongoing buybacks and an attractive 8.3% free cash flow yield.