Mattel’s first quarter results for 2026 reflected steady revenue growth and in-line adjusted earnings per share, with management highlighting robust consumer demand and successful brand execution. CEO Ynon Kreiz pointed to strong performances from Hot Wheels, Uno, and Monster High, as well as the positive impact of new digital partnerships. Despite higher operating expenses and increased advertising investment, management credited the quarter’s top-line momentum to effective brand-driven strategies and ongoing innovation across core and emerging product categories.
Is now the time to buy MAT? Find out in our full research report (it’s free for active Edge members).
Mattel (MAT) Q1 CY2026 Highlights:
- Revenue: $862.2 million vs analyst estimates of $809 million (4.3% year-on-year growth, 6.6% beat)
- Adjusted EPS: -$0.20 vs analyst estimates of -$0.21 (in line)
- Adjusted EBITDA: -$11.7 million vs analyst estimates of $9.34 million (-1.4% margin, significant miss)
- Management raised its full-year Adjusted EPS guidance to $1.33 at the midpoint, a 7.3% increase
- Operating Margin: -9.2%, down from -4% in the same quarter last year
- Market Capitalization: $4.28 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Mattel’s Q1 Earnings Call
- Megan Christine Alexander (Morgan Stanley): Asked about exposure to rising resin and freight costs. CFO Paul Ruh reiterated that current cost impacts are included in guidance, with ongoing monitoring of oil and freight volatility.
- Arpine Kocharyan (UBS): Queried the tariff rollback’s effect on margins through 2027. Ruh explained that mitigation actions are expected to offset annualized costs, but guidance does not assume refunds due to ongoing policy uncertainty.
- James Chartier (Monness, Crespi, Hardt & Co.): Sought clarity on the persistent headwinds in the infant, toddler, and preschool segment. CEO Ynon Kreiz said the drag is diminishing, with growth expected in key sub-brands, and noted upcoming relaunches and partnerships.
- Eric Handler (ROTH Capital): Inquired about the growth prospects for Mattel Brick Shop. Kreiz detailed strong consumer demand and the unique positioning of the building sets category, emphasizing runway for long-term growth.
- Christopher Horvers (JPMorgan): Asked about potential price adjustments if tariffs decline. Ruh said pricing is set by retailers and that Mattel maintains close communication with partners to manage changes in trade dynamics.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be monitoring (1) the commercial impact of new entertainment releases like Masters of the Universe, (2) the success of Mattel’s self-published mobile games and expanded digital platforms, and (3) the pace of international growth relative to North America’s recovery. Execution on cost management, as well as consumer response to new product launches, will also be critical indicators.
Mattel currently trades at $14.76, in line with $14.89 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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