Mattel, the maker of Barbie and Hot Wheels, saw its share price fall sharply after reporting a lower net profit for the fourth quarter, even though total sales climbed.  

The company earned $106 million in net income for the period, translating to 35 cents per share. This is down from $141 million and 42 cents a year earlier, while analysts had expected 55 cents per share.  

Quarterly revenue hit $1. 76 billion, a 7 percent increase over the previous year’s $1. 64 billion. Still, it missed Wall Street’s forecast of $1. 83 billion.  

Shares slipped about 17 percent to $17. 51 in after‑hours trading, dropping nearly $3. 55.

Mattel’s CEO, Ynon Kreiz, highlighted growth in the fourth quarter but noted that U. S. holiday sales were weaker than expected. He pointed to broader challenges, such as shifting consumer spending and supply‑chain disruptions caused by tariffs.  

Globally, sales of dolls, infants, toddlers and preschool items fell, but the decline was offset by stronger performance in vehicles—thanks to Hot Wheels—and other categories like action figures and building sets.

The company also announced a pending purchase of the mobile‑game studio Mattel163, although details were not released.  

Mattel’s strategy appears to be moving further into entertainment, a shift that investors have been watching since the success of its 2023 Barbie film.  

Partnerships with Disney, Warner Bros. Discovery and Netflix have led to new toy lines tied to popular franchises such as Toy Story, DC heroes and K‑Pop Demon Hunters.  

Future releases include a Masters of the Universe film slated for June 2026 and an Apple‑original movie featuring Matchbox characters set to debut in October 2026.

Mattel’s Stock Drops Despite Revenue Rise

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