Mattel, Inc. · NASDAQ:MAT
Mattel — Q1 2025 Earnings Presentation
35 slides from Mattel's earnings presentation, May 5, 2025
Slide 1: First Quarter 2025 Earnings
First Quarter 2025 Earnings (Unaudited Results) May 5, 2025
Slide 2: Cautionary Note Regarding Forward-Looking Statements / Presentation Information
Cautionary Note Regarding Forward-Looking Statements / Presentation Information Mattel cautions the viewer that this presentation contains a number of forward-looking statements, which are statements that relate to the future and are, by their nature, uncertain. Forward-looking statements can be ide
Slide 3: Mattel, Inc. Who We Are
Mattel, Inc. Who We Are Mattel is a leading global toy and family entertainment company and owner of one of the most iconic brand portfolios in the world. We engage consumers and fans through our franchise brands, including Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO, Mast
Slide 4: Mattel's Strategy
Mattel’s Strategy Grow IP-Driven Toy Business and Expand Entertainment Offering TOYS ENTERTAINMENT GROW CAPTURE PROFITABLY FULL VALUE OF IP ACCELERATE SCALE OPTIMIZE EVOLVE DEMAND GROW CONTENT, CONSUMER PORTFOLIO OPERATIONS CREATION FRANCHISE PRODUCTS, DIGITAL AND BRANDS LIVE EXPERIENCES Our mission
Slide 5: Q1 2025 Performance
Q1 2025 Performance Strong first quarter, with top line growth and gross margin expansion Net Sales grew 2% as reported and 4% in constant currency1 Adjusted Gross Margin1 increased 130 bps to 49.6% Adjusted EBITDA1 grew 7% to $57M Continue to benefit from a strong balance sheet, including $1.24B in
Slide 6: Tariffs Update
Tariffs Update Mitigating actions designed to fully offset potential incremental cost impact1 Optimizing Product Diversifying Supply Chain Pricing Sourcing and Mix Accelerating plans to further reduce Shifting sourcing flows between Taking pricing action in US, where reliance on China countries wher
Slide 7: Category Highlights
Category Highlights Business grew across most categories and geographies Dolls Infant, Toddler, and Preschool Dolls grew, with strong performance in Disney Princess and Wicked New Barney toy line, Fisher-Price Wood, Barbie continues to resonate, driven by and Little People performed well innovation,
Slide 8: Entertainment Offering
Entertainment Offering Recent Updates Film Television Masters of the Universe set for June 2026 Hot Wheels Let’s Race Season 3 premiered on Netflix Matchbox slated for release Fall 2026 Barbie & Teresa special Barney movie in development with A24 and premiered on Netflix will be written by award win
Slide 9: Q2 2025 Update
Q2 2025 Update POS off to a strong start in Q2 POS up double digits QTD, both in the US and internationally Expect Q2 to benefit from: - Jurassic World product - Minecraft innovative product - Hot Wheels momentum Mattel Brick Shop Strengthening our position as a trusted partner for retailers and con
Slide 10: 2025 Outlook
2025 Outlook Diversified manufacturing footprint and flexible model allow Mattel to adapt efficiently to changing market conditions Given volatile macro-economic environment International business not expected to be materially and evolving U.S. tariff situation, it is impacted by tariffs difficult t
Slide 11: P&L Highlights
P&L Highlights Grew topline and expanded gross margins YOY (in millions, Q1 2025 except EPS, percentages, and bps) Change Net Sales $827 +2% Constant Currency1 +4% Adjusted Gross Margin1 49.6% +130 bps Adjusted Operating Loss1 ($16) +$7 Adjusted EPS1 ($0.03) +$0.02 Adjusted EBITDA1 $57 +7% Broad-bas
Slide 12: Q1 2025 Gross Billings by Category
Q1 2025 Gross Billings by Category¹ Gross Billings increased 5% Dolls Vehicles Infant, Toddler, Action Figures, (as reported, in $M) (as reported, in $M) and Preschool Building Sets, (as reported, in $M) Games, and Other (as reported, in $M) +2% CC +6% CC $297 $298 $308 $295 +14% CC -5% CC $193 $172
Slide 13: Q1 2025 Gross Billings by Region
Q1 2025 Gross Billings by Region¹ Growth in 3 of our 4 regions North America EMEA Asia Pacific Latin America (as reported, in $M) (as reported, in $M) (as reported, in $M) (as reported, in $M) +4% CC $506 $526 +8% CC $223 $239 +12% CC -7% CC $76 $84 $93 $76 Q1 '24 Q1 '25 Q1 '24 Q1 '25 Q1 '24 Q1 '25
Slide 14: Q1 2025 Adjusted Gross Margin Comparison
Q1 2025 Adjusted Gross Margin Comparison 1 Gross margin improvement compared to the prior year +130bps 1.1% 1.1% 49.6% 48.3% 1.0% Benefiting from lower inventory management costs and OPG cost savings (1) Amounts may not sum due to rounding. Please see Appendix – Reconciliation of Non-GAAP Financial
Slide 15: Q1 2025 Advertising and Adjusted SG&A
Q1 2025 Advertising and Adjusted SG&A 1 Advertising comparable; Adjusted SG&A impacted by several factors Advertising Adj. SG&A (in $M) (in $M) +4% $343 $355 -2% $71 $70 Q1 '24 Q1 '25 Q1 '24 Q1 '25 Continuing to effectively manage cost structure (1) At actual. Please see Appendix – Reconciliation of
Slide 16: Q1 2025 Adjusted Profit Metrics
Q1 2025 Adjusted Profit Metrics 1 Year over year improvements in key adjusted profit metrics Adj. Operating Income Adj. EBITDA Adj. EPS (in $M) (in $M) (in $) +$4 $54 $57 +$7 +$0.02 ($16) ($0.03) ($23) ($0.05) Q1 '24 Q1 '25 Q1 '24 Q1 '25 Q1 '24 Q1 '25 Improvement driven by Net Sales growth and Adjus
Slide 17: Q1 2025 and TTM Cash Flow
Q1 2025 and TTM Cash Flow 1 TTM Free Cash Flow of $582M (in millions)1 Q1 2025 Q1 2024 Net Loss ($40) ($28) Depreciation & Amortization $42 $42 Share-Based Compensation $20 $18 Other Non-Cash Charges $6 $20 Changes in Working Capital & Other ($3) ($17) Cash from Operations $25 $35 Capital Expenditur
Slide 18: Balance Sheet Highlights
Balance Sheet Highlights Leverage Ratio1 benefiting from increase in TTM Adjusted EBITDA1 (in millions) Q1 2025 Q1 2024 Cash $1,244 $1,130 Accounts Receivable $633 $673 Inventory $658 $669 Debt $2,335 $2,331 Leverage Ratio (Total Debt / Adj. EBITDA) 2.2x 2.3x Debt portfolio well positioned with next
Slide 19: Optimizing for Profitable Growth (OPG)
Optimizing for Profitable Growth (OPG) $103M of savings achieved since launching program in 2024 Target Cumulative Target Savings1 Allocation1 $200 $200 2026 S&A $80 ~40% $19M of savings achieved in Q1 $60 2025 Target program savings of $200M by 2026 $83 (prior) COGS ~60% 2024 2024 2025 2026 Increas
Slide 20: 2025 Outlook
2025 Outlook Operating in a dynamic macro-economic environment with significant volatility Assessing wide range of potential scenarios Mitigating actions designed to fully offset the potential incremental cost impact of tariffs Tariffs will impact costs starting in Q3; many mitigating actions also i
Slide 21: Closing
Closing “This was a strong quarter for Mattel, with positive performance and continued operational excellence. Our brands are thriving, our products and experiences stand out in the marketplace, and our balance sheet gives us resilience and flexibility to execute our strategy. As we navigate the cur
Slide 22: ©2025 Mattel, Inc. All Rights Reserved.
©2025 Mattel, Inc. All Rights Reserved. 22
Slide 23: Appendix
Appendix 23
Slide 24: Consolidated Statements of Operations
Consolidated Statements of Operations ©2025 Mattel, Inc. All Rights Reserved. 24
Slide 25: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets ©2025 Mattel, Inc. All Rights Reserved. 25
Slide 26: Supplemental Balance Sheet and Cash Flow Data
Supplemental Balance Sheet and Cash Flow Data ©2025 Mattel, Inc. All Rights Reserved. 26
Slide 27: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2025 Mattel, Inc. All Rights Reserved. 27
Slide 28: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2025 Mattel, Inc. All Rights Reserved. 28
Slide 29: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2025 Mattel, Inc. All Rights Reserved. 29
Slide 30: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2025 Mattel, Inc. All Rights Reserved. 30
Slide 31: Worldwide Net Sales and Gross Billings
Worldwide Net Sales and Gross Billings ©2025 Mattel, Inc. All Rights Reserved. 31
Slide 32: Net Sales and Gross Billings by Segment
Net Sales and Gross Billings by Segment ©2025 Mattel, Inc. All Rights Reserved. 32
Slide 33: Net Sales and Gross Billings by Segment
Net Sales and Gross Billings by Segment ©2025 Mattel, Inc. All Rights Reserved. 33
Slide 34: Glossary of Non-GAAP Financial Measures & Key Performance Indicator
Glossary of Non-GAAP Financial Measures & Key Performance Indicator NON-GAAP FINANCIAL MEASURES To supplement our financial results presented in accordance with generally accepted accounting principles in the United States (“GAAP”), Mattel presents certain non-GAAP financial measures within the mean
Slide 35: Glossary of Non-GAAP Financial Measures & Key Performance Indicator
Glossary of Non-GAAP Financial Measures & Key Performance Indicator NON-GAAP FINANCIAL MEASURES Free Cash Flow and Free Cash Flow Conversion Free Cash Flow represents Mattel’s net cash flows from operating activities less capital expenditures. Free Cash Flow Conversion represents Mattel’s free cash