Whereas Hasbro managed to bounce back from its 2025 declines, Mattel has shared that its full-year net sales for last year were down slightly by 1% from 2024. 

Chairman and CEO Ynon Kreiz says that Mattel recovered well in the fourth quarter by achieving growth in every region, But the toyco attributes the shaky year to its US gross billings (the amount invoiced to consumers) declining due to changes in retail order timing and tariffs. Mattel is looking to course-correct in 2026 by investing in new verticals and identifying more brands with growth potential. Here are some highlights from Mattel’s Q4 financial report: 

Q4 earnings: US$1.7 billion in global net sales 

Year-over-year change: Up 7% from US$1.65 billion in Q4 2024

Holiday season billings: Fourth-quarter gross billings in North America grew by 7%, and  international markets were also up by 4%.

Full-year earnings: Global net sales totaled US$5.3 billion, down 1% from US$5.38 billion in 2024.

Regional breakdown: Gross billings in North America declined by 4% to US$3.2 billion, as did LatAm (down 1% to US$716 million). APAC (up 11%) and EMEA (up 5%) were the only regions to report gains in gross billings in 2025. 

Top-performing categories: Mattel’s challenger (action figures and construction sets) and vehicles segments emerged as its top categories of the year, up 13% and 10%, respectively. Mattel noted that the Hot Wheels brand posted record-breaking sales for an eighth consecutive year. Meanwhile, dolls declined by 7% due to softer Barbie sales, and gross billings for the infant, toddler and preschool segment dropped 18% due to weaker demand for Fisher-Price, Baby Gear and Power Wheels. 

Turtle Power: Paramount has just awarded Mattel multi-year global toy rights to the Teenage Mutant Ninja Turtles franchise that will activate in 2027 after its deal with Playmates Toys expires. Two TMNT feature films are in production (Mutant Mayhem 2 and a live-action reboot planned for 2028), and Mattel will develop action figures for both.

Expanding digital strategy: The company is bolstering its digital gaming business by acquiring mobile games studio Mattel163 from NetEase for US$318 million. The developer has launched four games based on Mattel IPs since it launched in 2017: UNO! Mobile, UNO Wonder, Phase 10: World Tour and Skip-Bo Mobile. These games have a combined player base of 20 million monthly active users, and have been downloaded more than 550 million times. 

Scaling the business: Mattel plans to invest another US$110 million in new capabilities and technology, which includes developing more video games, acquiring new licenses, creating innovative toys and incorporating AI into its processes and infrastructure. The toyco claims this will impact its 2026 bottom line, but will have a higher ROI in 2027 and beyond. 

CEO’s remarks: “2026 will be an important year for Mattel as we implement our new brand-centric strategy to grow our IP-driven play and family entertainment business,” says Kreiz. “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 the Mattel163 mobile games studio.”