On this page of StockholderLetter.com we present the latest annual shareholder letter from MATTEL INC /DE/ — ticker symbol MAT. Reading current and past MAT letters to shareholders can bring important insights into the investment thesis.

 •  4/14/2026 Letter Continued (Full PDF)
 •  3/31/2023 MAT Stockholder Letter
 •  4/17/2024 MAT Stockholder Letter
 •  4/3/2025 MAT Stockholder Letter
 •  More "Consumer Goods" Category Stockholder Letters
 •  MAT Benford's Law Stock Score = 73

MAT Shareholder/Stockholder Letter Transcript:

Mp,SCE
2025
Annual Report




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Dear
Dear Fellow
Fellow Stockholders,
Stockholders,


Mattel proudly
celebrated its
anniversary in
2025. We
continue
its 80th
80th anniversary
in 2025.
We continue
Mattel
proudly celebrated
to be
guided by
our mission
mission to
to create
create innovative
innovative products
and
to
be guided
by our
products and
experiences that
that inspire
fans, entertain
entertain audiences,
audiences, and
and develop
develop
experiences
inspire fans,
children through
through play,
and our
our purpose,
to empower
empower generations
generations to
to
children
play, and
purpose, to
explore the
the wonder
of childhood
childhood and
and reach
their full
full potential.
wonder of
reach their
potential.
explore
2025 was
U.S. trade
trade dynamics
dynamics that
that affected
affected
2025
was marked
marked by
by uncertainty
uncertainty in
in U.S.
retailer ordering
ordering patterns
for much
much of
of the
the year.
Looking at
at our
our full
full
retailer
patterns for
year. Looking
Chairman and
and CEO
CEO
Chairman
year financial
financial performance,
gross billings
to the
the prior
year
performance, gross
billings was
was comparable
comparable to
prior
year, with
demand positive
for the
the year
year and
and in
each of
of our
our
year,
with consumer
consumer demand
positive for
in each
four regions.
regions. Full
Full year
sales decreased
compared to
to the
the prior
growth in
International
1% compared
prior year,
year, with
with growth
in International
four
year net
net sales
decreased 1%
offset by
a decline
decline in
in North
America. Our
supply chain
chain excelled
excelled in
in a
a volatile
environment, adjusting
adjusting for
for
Our supply
volatile environment,
offset
by a
North America.
the shift
shift in
shipping patterns
from direct
to domestic
fulfillment, and
and our
our teams
teams effectively
effectively
the
in shipping
patterns from
direct import
import to
domestic fulfillment,
managed our
our owned
owned inventory
inventory to
to finish
finish the
the year
for 2026.
2026.
managed
year well
well positioned
positioned for
Ynon Kreiz
As it
to our
our full
full year
Vehicles grew
grew strongly,
strongly, Challenger
categories1
As
it relates
relates to
year portfolio
portfolio performance,
performance, Vehicles
Challenger categories'
combined grew,
grew, driven
outstanding performance
Action Figures,
Figures, while
Dolls and
and Infant,
Infant, Toddler,
Toddler,
driven by
by outstanding
performance in
in Action
while Dolls
combined
and Preschool
Preschool declined.
declined. We
gained market
market share
share in
2025 in
in key
categories globally,
globally, including
Vehicles,
key categories
including Vehicles,
and
We gained
in 2025
and Hot
Hot Wheels'
Wheels    and
and UNO's
UNO   s strong
strong momentum
Dolls, Action
Action Figures,
Figures, and
and Traditional
Traditional Games,
Dolls,
Games,'2 and
momentum
continued. Mattel
Mattel Brick
Brick Shop
had a
a very
successful launch
and is
is on
on its
its way
to becoming
an
continued.
Shop had
very successful
launch year
year and
way to
becoming an
important
growth driver
driver for
for us.
important growth
us.
We
to execute
execute on
on our
our Optimizing
for Profitable
Profitable Growth
Growth cost
cost savings
savings program,
full year
year
Optimizing for
program, with
with full
We continued
continued to
savings totaling
totaling $89
$89 million
million and
and cumulative
cumulative savings
savings of
of $172
$172 million
since launching
launching the
the program
2024.
savings
million since
program in
in 2024.
We
are tracking
tracking ahead
ahead of
of our
our three-year
three-year $200
$200 million
million savings
savings target,
target, and
and in
the fourth
fourth quarter
of 2025
2025
in the
quarter of
We are
increased
the program   s
total gross
cost savings
savings target
target to
to $225
$225 million,
expect to
to complete
million, which
which we
we expect
complete by
by
increased the
program's total
gross cost
the end
end of
of 2026.
2026.
the
Mattel ended
ended 2025
a strong
strong balance
including $1.2
$1.2 billion
cash, after
after repurchasing
$600
Mattel
2025 with
with a
balance sheet,
sheet, including
billion in
in cash,
repurchasing $600
million
of
shares
during
the
year.
Since
resuming
share
repurchases
in
2023,
we
bought
back
more
than
million of shares during the year. Since resuming share repurchases in 2023, we bought back more than
3
$1.2
billion
of
shares,
representing
approximately
18%
of
shares
outstanding.
$1.2 billion of shares, representing approximately 18% of shares outstanding.'
Over
the last
last few
few years,
years, we
have successfully
successfully broadened
our reach
outside of
of toys
toys into
accretive
Over the
we have
broadened our
reach outside
into accretive
entertainment
verticals
and
expanded
to
new
audiences
and
fans,
including
adults.
Reflecting
this, in
in
entertainment verticals and expanded to new audiences and fans, including adults. Reflecting this,
early
2026,
we
introduced
our
new
brand-centric
strategy
to
grow
our
intellectual
property
(   IP   )
driven
early 2026, we introduced our new brand-centric strategy to grow our intellectual property ("IP") driven
play
and family
family entertainment
entertainment business,
together two
two important
and fundamental
fundamental concepts.
The
play and
business, bringing
bringing together
important and
concepts. The
first
is
the
continued
expansion
beyond
physical
product,
with
content,
licensing,
and
digital
games
as
first is the continued expansion beyond physical product, with content, licensing, and digital games as
key
high-margin growth
growth drivers.
The second
second is
an increased
increased orientation
orientation around
around brand
key high-margin
drivers. The
is an
brand management,
management,
which
will
allow
us
to
capture
the
full
value
of
our
IP
across
both
toys
and
entertainment.
which will allow us to capture the full value of our IP across both toys and entertainment.
The five
five key
of our
our strategy
strategy are:
are: to
to grow
our toy
toy brands
more breakthrough
innovation and
and
The
key priorities
priorities of
grow our
brands with
with more
breakthrough innovation
adult
fans
and
collectors,
and
continue
to
evolve
our
demand
creation;
to
expand
our
adult fans and collectors, and continue to evolve our demand creation; to expand our
direct-to-consumer and
and commercial
commercial reach
through first
first party
data, retail
retail development,
development, and
and new
party data,
new
direct-to-consumer
reach through
channels;
to
broaden
our
content
offering
in
film,
television,
and
short-form
content,
accelerate
licensing
channels; to broaden our content offering in film, television, and short-form content, accelerate licensing
in
consumer
products,
location-based
entertainment,
and
publishing,
and
expand
with
new
business
in consumer products, location-based entertainment, and publishing, and expand with new business

models; to
to scale
scale digital
digital play
through mobile
mobile games
games self-publishing,
self-publishing, Mattel163
mobile games
games studio,
studio,
models;
play through
Mattel163 mobile
licensing,
and creator
creator platforms;
and to
to optimize
optimize operations
operations and
and leverage
artificial intelligence
intelligence across
across our
our
licensing, and
platforms; and
leverage artificial
systems and
and supply
supply chain.
chain.
systems
Looking ahead,
ahead, 2026
2026 will
an important
year for
for Mattel
Mattel as
as we
our brand-centric
strategy to
to
Looking
will be
be an
important year
we implement
implement our
brand-centric strategy
grow our
our IP-driven
IP-driven play
and family
family entertainment
entertainment business.
expect growth
growth to
to be
driven by
innovation
grow
play and
business. We
We expect
be driven
by innovation
in
toys, major
IP owners,
owners, and
and an
an inflection
inflection in
in our
our entertainment
entertainment offering.
offering. This
This
in toys,
major partnerships
partnerships with
with leading
leading IP
year,
two movies
movies based
on Mattel
Mattel IP,
IP, Masters
of the
the Universe
Universe in
in June
and Matchbox
Matchbox in
in October
October
year, two
based on
Masters of
June 2026
2026 and
2026, are
are scheduled
scheduled for
for release,
release, and
and we
expect exciting
exciting momentum
in digital
including the
the release
momentum in
digital play,
play, including
release
2026,
we expect
of our
our first
first two
two self-published
self-published games,
games, amplified
amplified by
the full
full acquisition
acquisition of
of Mattel163
Mattel163 mobile
mobile games
studio
of
by the
games studio
earlier this
this year.
year.
earlier
Consistent with
our capital
capital allocation
allocation priorities,
strategic investments
in new
Consistent
with our
priorities, we
we will
will be
be making
making strategic
investments in
new
capabilities, technology,
technology, and
and infrastructure
infrastructure to
to scale
scale our
our organic
organic business
and accelerate
accelerate growth.
growth. These
These
capabilities,
business and
investment
decisions follow
follow a
a rigorous
assessment that
that identified
opportunities for
for capital
deployment
investment decisions
rigorous assessment
identified opportunities
capital deployment
within
our capital
capital light
framework in
accretive growth
growth areas,
areas, which
enable us
to
within our
light framework
in highly
highly accretive
which we
we believe
believe will
will enable
us to
capture more
more value
from IP,
IP, faster.
faster. While
While in
aggregate these
these investments
investments will
impact our
our profit
2026,
capture
value from
in aggregate
will impact
profit in
in 2026,
we
expect them
them to
to yield
high returns
returns and
and drive
drive incremental
growth in
in top
top and
and bottom
2027 and
and
we expect
yield high
incremental growth
bottom lines
lines in
in 2027
beyond.
beyond.
Given
the strength
strength of
of our
our balance
sheet and
and cash
flow, and
and our
our confidence
confidence in
our strategic
strategic plan,
Mattel   s
Given the
balance sheet
cash flow,
in our
plan, Mattel's
Board of
of Directors
Directors authorized
authorized earlier
earlier this
this year
year a
a new
new $1.5
$1.5 billion
share repurchase
Board
billion share
repurchase program,
program, which
which we
we
expect to
to complete
complete by
the end
end of
of 2028.
2028.
expect
by the
Our
commitment to
to corporate
corporate citizenship
citizenship is
is ongoing,
ongoing, as
as is
is our
our aim
aim to
to foster
foster an
an environment
environment that
that attracts
attracts
Our commitment
incredibly
talented people
and provides
a culture
culture of
of respect
and belonging.
Mattel is
is consistently
consistently
belonging. Mattel
incredibly talented
people and
provides a
respect and
recognized
for its
culture by
and institutions,
institutions, such
such as
as Fast
Fast Company,
recognized for
its workplace
workplace culture
by leading
leading publications
publications and
Company,
Newsweek, and
and Great
Place to
to Work
Institute, among
among many
others.
Great Place
Work Institute,
many others.
Newsweek,
We
to thank
thank the
the entire
entire Mattel
Mattel team
team for
for their
their dedication,
and we
thank you,
our stockholders,
stockholders,
We would
would like
like to
dedication, and
we thank
you, our
for your
your ongoing
ongoing support.
support. We
We believe
are well
to execute
execute our
our strategy
strategy and
and create
create
for
believe we
we are
well positioned
positioned to
long-term
stockholder value
and look
look forward
forward to
to sharing
sharing our
our progress.
long-term stockholder
value and
progress.
Sincerely,
Sincerely,
A/D
Ynon Krei7
Kreiz
Ynon
Chairman and
and Chief
Executive Officer
Chairman
Chief Executive
Officer
(1)
categories collectively
refer to
Action Figures,
Games, and
Other Category
Category
(1) Mattel's
Mattel   s Challenger
Challenger categories
collectively refer
to its
its Action
Figures, Building
Building Sets,
Sets, Games,
and Other
(2)
market share
data: Circana,
G10 (US,
CA, MX,
MX, BR,
SP, UK,
Dolls, Vehicles,
(2) Source
Source for
for market
share data:
Circana, LLC,
LLC, Retail
Retail Tracking
Tracking Service,
Service, G10
(US, CA,
BR, SP,
UK, DE,
DE, IT,
IT, FR,
FR, AU),
AU), Dolls,
Vehicles, Infant,
Infant, Toddler,
Toddler, and
and Preschool,
Preschool,
and Action
Game Subsegment,
Jan -- Dec
Dec 2025
and
Action Figures
Figures &
& Acc
Acc Supercategories,
Supercategories, Games
Games Excl
Excl Trade
Trade Card
Card Game
Subsegment, Projected
Projected USD,
USD, Jan
2025
(3)
repurchased from
31, 2025;
of shares
outstanding based
based on
Mattel's total
of February
(3) Shares
Shares repurchased
from February
February 10,
10, 2023
2023 to
to December
December 31,
2025; 18%
18% of
shares outstanding
on Mattel   s
total shares
shares outstanding
outstanding as
as of
February 10,
10, 2023
2023

4/14/2026 Letter Continued (Full PDF)

 

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