Tue, May 6, 10:02 AM (17 days ago)
**Mattel, Inc. (MAT) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $826.6 million, up 2% from Q1 2024. - **Gross Profit:** $408.1 million, up 5% from Q1 2024. - **Gross Margin:** 49.4%, up from 48.0% in Q1 2024. - **Operating Loss:** $52.98 million, wider than the $35.52 million loss in Q1 2024. - **Net Loss:** $40.32 million, wider than the $28.28 million loss in Q1 2024. - **EPS:** -$0.12, compared to -$0.08 in Q1 2024. **Profit Margins:** - **Gross Margin:** 49.4%, up from 48.0% in Q1 2024. - **Operating Margin:** -6.4%, compared to -4.4% in Q1 2024. **Cash Flow:** - **Operating Cash Flow:** $24.8 million, down from $35.5 million in Q1 2024. - **Investing Cash Flow:** -$31.3 million, compared to -$28.4 million in Q1 2024. - **Financing Cash Flow:** -$161.9 million, compared to -$131.3 million in Q1 2024. **Earnings Changes:** - **Year-over-Year Change in Net Sales:** +2%. - **Year-over-Year Change in Gross Profit:** +5%. - **Year-over-Year Change in Operating Loss:** -49% wider. - **Year-over-Year Change in Net Loss:** -43% wider. **Quarterly Performance Discussion:** - **Sales Growth:** Driven by higher gross billings, particularly in Action Figures, Building Sets, Games, and Other categories. - **Margin Expansion:** Benefited from lower inventory management costs, cost savings from the OPG program, and favorable foreign currency exchange rates. - **Operating Loss:** Widened due to higher selling and administrative expenses, including severance and restructuring charges, litigation costs, and increased employee compensation. - **Net Loss:** Widened due to higher operating loss and increased interest expense. **Trends & Uncertainties:** - **Cost Savings:** The OPG program is expected to deliver $200 million in annual gross cost savings by 2026. - **Trade Policy:** Recent U.S. trade policy changes and tariffs could impact Mattel's supply chain, product costs, and consumer demand. - **Macroeconomic Environment:** Volatility in global markets and economic conditions could affect consumer spending and Mattel's financial performance. **Future Operations Impact:** - **Supply Chain Diversification:** Mattel is evaluating actions to mitigate the impact of tariffs and trade policies, such as diversifying its supply chain and optimizing product sourcing. - **Pricing Actions:** Mattel may take pricing actions where necessary to offset cost inflation and other market pressures. - **Share Repurchases:** Mattel repurchased $160 million of shares in Q1 2025, reflecting its commitment to returning capital to shareholders. **Liquidity & Capital Resources:** - **Cash and Equivalents:** $1.24 billion at the end of Q1 2025, down from $1.39 billion at the end of 2024. - **Credit Facility:** $1.40 billion, with no outstanding borrowings as of Q1 2025. - **Stockholders' Equity:** $2.13 billion at the end of Q1 2025, down from $2.26 billion at the end of 2024.