Mattel, Inc. · NASDAQ:MAT
Mattel — Q2 2025 Earnings Presentation
34 slides from Mattel's earnings presentation, Jul 23, 2025
Slide 1: Second Quarter 2025 Earnings
Second Quarter 2025 Earnings (Unaudited Results) July 23, 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: Q2 2025 Performance
Q2 2025 Performance Demonstrated operational excellence; strong international growth and adjusted gross margin1 expansion; US business impacted by global trade dynamics Net Sales declined 6% as reported and in constant currency1 Adjusted Gross Margin1 increased 200 bps Adjusted Earnings Per Share1 u
Slide 6: Category Updates
Category Updates Portfolio is well positioned across a range of price points and play patterns Action Figures: Strong growth driver; tentpole movie properties and evergreen strength Vehicles: Double-digit growth; outstanding performance from Hot Wheels Games: UNO grew and is more culturally relevant
Slide 7: Entertainment Update
Entertainment Update Advancing our strategy Film Masters of the Universe: Release in June 2026 Matchbox: Release in Fall 2026 Hot Wheels live action movie will be Chris Meledandri’s Illumination will directed by Jon M. Chu and develop the Barbie animated film produced by JJ Abrams’ Bad Robot Monster
Slide 8: P&L Highlights
P&L Highlights Expanded Adjusted Gross Margin1 and no change to Adjusted EPS1 YOY (in millions, Q2 2025 except EPS, percentages, and bps) Change Net Sales $1,019 -6% Constant Currency1 -6% Adjusted Gross Margin1 51.2% +200 bps Adjusted Operating Income1 $88 -$8 Adjusted EPS1 $0.19 No change Continue
Slide 9: Q2 2025 Gross Billings by Category
Q2 2025 Gross Billings by Category1 Gross Billings decreased 4% (Bars as reported, in $M; % change in constant currency) Dolls Vehicles Infant, Toddler, Action Figures, and Preschool Building Sets, +10% CC Games, and Other $414 $407 -19% CC $370 $335 +16% CC $264 $227 $190 -25% CC $143 Q2 '24 Q2 '25
Slide 10: Q2 2025 Gross Billings by Region
Q2 2025 Gross Billings by Region1 Growth in 3 of 4 regions; international up 9% (Bars as reported, in $M; % change in constant currency) North America EMEA Latin America Asia Pacific $647 -15% CC $548 +8% CC $334 $296 +5% CC +16% CC $157 $152 $101 $117 Q2 '24 Q2 '25 Q2 '24 Q2 '25 Q2 '24 Q2 '25 Q2 '2
Slide 11: Q2 2025 Adjusted Gross Margin Comparison
Q2 2025 Adjusted Gross Margin Comparison1 Expansion driven by several factors, partially offset by inflation +200bps 0.5% 0.6% 0.6% 51.2% 1.2% 1.1% 49.2% Disciplined cost management and operational excellence (1) Amounts may not sum due to rounding. Please see Appendix – Reconciliation of Non-GAAP F
Slide 12: Q2 2025 Advertising and Adjusted SG&A
Q2 2025 Advertising and Adjusted SG&A1 Advertising increase reflects Easter timing shift; Adjusted SG&A1 benefits from OPG2 savings Advertising Adj. SG&A (in $M) (in $M) -$7 $361 $354 +$5 $74 $79 Q2 '24 Q2 '25 Q2 '24 Q2 '25 Continuing to effectively manage cost structure (1) At actual. Please see Ap
Slide 13: Q2 2025 Adjusted Profit Metrics
Q2 2025 Adjusted Profit Metrics1 Adjusted EPS unchanged despite uncertain trade environment in the US (in $M) Adj. Operating Income Adj. EBITDA Adj. EPS -$1 $171 $170 -$8 No change $96 $88 $0.19 $0.19 Q2 '24 Q2 '25 Q2 '24 Q2 '25 Q2 '24 Q2 '25 Resilience despite topline pressure (1) At actual. Please
Slide 14: Q2 2025 YTD and TTM Cash Flow
Q2 2025 YTD and TTM Cash Flow1 TTM Free Cash Flow of $530M (in millions)1 YTD 2025 YTD 2024 Cash from Operations ($275) ($217) Capital Expenditures ($76) ($65) Free Cash Flow ($351) ($283) TTM 2025 TTM 2024 Cash from Operations $743 $978 Capital Expenditures ($213) ($152) Free Cash Flow $530 $826 Re
Slide 15: Balance Sheet Highlights
Balance Sheet Highlights Increased cash balance, strong balance sheet and healthy leverage profile (in millions) Q2 2025 Q2 2024 Cash $870 $722 Inventory $868 $777 Debt1 $2,337 $2,332 Leverage Ratio (Total Debt2 / Adj. EBITDA) 2.2x 2.3x Debt portfolio well positioned; $600M maturity in April 2026 (1
Slide 16: Optimizing for Profitable Growth (OPG)
Optimizing for Profitable Growth (OPG) $126M of savings achieved since launching program in 2024 Target Cumulative Target Savings1 Allocation1 $200 $200 2026 S&A $23M of savings achieved in Q2, $42M YTD $80 ~40% Target 3-year program savings of $200M by 2025 $83 2026 COGS ~60% 2024 2024 2025 2026 On
Slide 17: 2025 Guidance
2025 Guidance1 Resuming guidance with updated 2025 outlook $ in millions, Updated FY2025 Prior FY2025 FY2024 except EPS and percentages2 Guidance Guidance Actual Net Sales +1% to 3%³ +2% to 3%³ $5,380 Adjusted Gross Margin Approx. 50% Comparable 50.9% Adjusted Operating Income $700 - $750 $740 - $76
Slide 18: Closing
Closing “Our second quarter performance reflects operational excellence in the current macroeconomic environment as we continue to execute our strategy to grow Mattel’s IP-driven toy business and expand our entertainment offering. We achieved meaningful gross margin expansion, grew internationally,
Slide 19: ©2025 Mattel, Inc. All Rights Reserved.
©2025 Mattel, Inc. All Rights Reserved. 19
Slide 20: Appendix
Appendix 20
Slide 21: Consolidated Statements of Operations
Consolidated Statements of Operations ©2025 Mattel, Inc. All Rights Reserved. 21
Slide 22: Condensed Consolidated Balance Sheets
Condensed Consolidated Balance Sheets ©2025 Mattel, Inc. All Rights Reserved. 22
Slide 23: Supplemental Balance Sheet and Cash Flow Data
Supplemental Balance Sheet and Cash Flow Data ©2025 Mattel, Inc. All Rights Reserved. 23
Slide 24: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2025 Mattel, Inc. All Rights Reserved. 24
Slide 25: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©2025 Mattel, Inc. All Rights Reserved. 25
Slide 26: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures ©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: Worldwide Net Sales and Gross Billings
Worldwide Net Sales and Gross Billings ©2025 Mattel, Inc. All Rights Reserved. 30
Slide 31: Net Sales and Gross Billings by Segment
Net Sales and Gross Billings by Segment ©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: 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 34: 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