This Toy Maker’s Stock Plummets 25% After Disappointing Holiday Earnings Report

The holidays have not been kind to Mattel’s stock.

Shares of Mattel (MAT) were down nearly 25% to just under $16 in recent trading after the toy maker’s latest earnings report covering the winter holiday shopping season—typically its strongest sales period of the year—disappointed.

The maker of Barbie, Hot Wheels, and dozens of other toy brands said after the bell Tuesday that it earned an adjusted 39 cents per share in the fourth quarter on $1.77 billion in revenue, each below the analyst consensus compiled by Visible Alpha.

Mattel CEO Ynon Kreiz said in Tuesday’s earnings call that the company’s December order growth was slower than expected after retailers spent the first part of the quarter catching up on orders delayed by uncertainty over the Trump administration’s tariffs. Kreiz said the shortfall was largely in the U.S., as Mattel’s international business grew as expected in the quarter, per an AlphaSense transcript.

Mattel also warned earnings could decline this year, while analysts were looking for growth. The company projected adjusted EPS of $1.18 to $1.30 for 2026, down from $1.41 in 2025, though revenues are seen growing 3% to 6%, roughly in line with expectations.

Mattel on Tuesday also announced an agreement to acquire the remaining stake in Mattel163, the company that makes mobile games based on Mattel properties, from its 50% partner NetEase (NTES). The toy maker announced a multi-year licensing deal with Paramount Skydance (PSKY) to make Teenage Mutant Ninja Turtle toys as well.

JPMorgan analysts downgraded Mattel stock to “underweight” and cut their price target to $14 from $23 following Tuesday’s results, citing uncertainty over when Mattel’s key Barbie business will improve, along with fears that Mattel’s plans to make 2026 an “investment year” will hamper the company’s margins.

UBS analysts kept their “buy” rating and $30 price target, writing they “continue to believe Mattel is in early innings of realizing the full potential of its [intellectual property],” but said Mattel’s plans to invest $150 million in its businesses this year will likely push back its timeline to grow profits.

Wednesday’s drop brought Mattel stock to its lowest level since last April, when tariff uncertainty hammered the stock.