Barbie and Hot Wheels toy maker Mattel has posted lower fourth quarter earnings, even as it recorded higher overall revenues.
For the fourth quarter, Mattel reported net income of $106 million, or 35 cents per share, compared to a year-earlier $141 million in net income, and 42 cents per share. Analysts had forecast 55 cents per-share in earnings for Mattel during the latest financial quarter.
The latest quarterly revenues came to $1.76 billion, which were up 7 percent on a year-earlier $1.64 billion in revenues. But Mattel during the latest quarter missed Wall Street expectations of $1.83 billion in overall sales. Shares in Mattel tumbled $5.46, or 26 percent, to $15.60 in after hours trading on the NASDAQ Exchange on news of a disappointing holiday sales season for the toy maker.
Ynon Kreiz, chairman and CEO of Mattel, in a statement that accompanied his latest financial results pointed to topline growth in the fourth quarter. But he added “December gross billings in the U.S. ended up growing less than expected” during a key Christmas retail season. That underlined how Mattel and other toy makers face consumer spending headwinds and tariff and global trade disruption.
Kreiz on an after-market analyst call said “2025 was marked by uncertainty in our trade dynamics that affected retailer ordering patterns for much of the year.” He added retailers, after delaying buying amid Donald Trump’s tariffs war with China and other international markets, put in increased orders in the fourth quarter ahead of the holiday season. “December, however, ended up growing less than anticipated in the U.S., and our full year results finished below expectations,” he added.
During the fourth quarter, the toy maker said worldwide gross billings for dolls, infant, toddler and preschool products were down. That was offset by higher worldwide gross billings for vehicles, driven by Hot Wheels sales growth, and action figures, building sets and other toy lines.
On Tuesday, Mattel also announced it had reached an agreement to acquire full ownership of Mattel163 mobile games studio, subject to closing conditions. Kriez pointed to a $159 million price tag for the 50 percent interest acquired from NetEase, an internet and game services provider, to value Mattel163 at $380 million.
The Mattel chief said the acquisition, which aims to accelerate growth in the digital gaming space, was part of a strategy to move beyond physical products and play. “We see content licensing and digital games as key high margin growth drivers. And the acquisition of Mattel163 is an important building block of the strategy,” he told analysts.
The fourth quarter results offer a window on a continuing pivot by Mattel to the entertainment space, a move being watched closely by investors after the 2023 box office success of its Barbie movie release. The toy maker has a deal with Disney to supply Toy Story 5 action figures and other product around a tentpole release later this year, and also has a KPop Demon Hunters doll line based on the Netflix franchise.
Another deal has Mattel in a partnership with Warner Bros. Discovery to release DC-themed action figures and other product lines. Also Tuesday, Paramount and Mattel unveiled a multi-year global licensing partnership for the Teenage Mutant Ninja Turtles animated franchise.
And as it cashes in on its own toy brands, Amazon MGM Studios and Mattel Studios have Masters of the Universe coming out June 5, 2026 and Matchbox The Movie, an Apple original film from Skydance Media and Mattel Films set for a global debut on Oct. 9, 2026.
Kreiz added in a statement about his company’s expected performance during 2026: “We expect growth to be led by innovation in toys, major partnerships with leading IP owners, and an inflection in
entertainment, with two movie releases and an expansion of digital games, amplified by the full
acquisition of Mattel163 mobile games studio.”