Company Overview - Proactive is a publisher that provides fast, accessible, informative, and actionable business and finance news content to a global investment audience [2] - The news team operates from key finance and investing hubs including London, New York, Toronto, Vancouver, Sydney, and Perth [2] Market Focus - The company specializes in medium and small-cap markets while also covering blue-chip companies, commodities, and broader investment stories [3] - Proactive delivers news and insights across various sectors including biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto, and emerging digital and EV technologies [3] Technology Adoption - Proactive is recognized for being a forward-looking and enthusiastic adopter of technology, utilizing decades of expertise and experience among its content creators [4] - The company employs automation and software tools, including generative AI, while ensuring that all content is edited and authored by humans [5]

Core Insights - Mattel, Inc. reported first-quarter 2025 results with both revenue and earnings exceeding Zacks Consensus Estimates, showing year-over-year improvement [1][3] - The company plans to increase prices on select toys in the U.S. due to rising costs from new tariffs, despite efforts to shift production away from China [1][2] Financial Performance - Adjusted loss per share was 3 cents, better than the expected loss of 11 cents, compared to a loss of 5 cents in the same quarter last year [3] - Net sales reached $826.6 million, surpassing the consensus estimate of $800 million by 3.4%, with a 2% increase year-over-year and a 4% increase in constant currency [3] Segment Performance - North America segment net sales increased by 3% year-over-year, while the International segment saw a 1% increase [4] - Gross billings in North America rose by 4%, driven by growth in Dolls, Action Figures, Building Sets, Games, and Other [4] - International gross billings increased by 1%, primarily due to growth in the EMEA and Asia Pacific regions [5] Category Performance - Worldwide gross billings from Mattel Power Brands increased by 3% year-over-year to $924.2 million [6] - Gross billings for Hot Wheels grew by 4%, while Fisher-Price saw a decline of 3% [7] Operating Results - Adjusted gross margin improved to 49.6%, up 130 basis points year-over-year, attributed to better inventory management and efficiencies from the Optimizing for Profitable Growth initiative [8] - Adjusted EBITDA for the quarter was $57.2 million, compared to $53.5 million in the prior-year quarter [9] Balance Sheet - As of March 31, 2025, cash and cash equivalents were $1.24 billion, up from $1.13 billion at the end of 2024 [11] - Total inventories decreased to $658.4 million from $669.3 million at the end of 2024, while long-term debt remained stable at $2.33 billion [11]

Core Viewpoint - The implementation of President Trump's 145% tariffs against China is unlikely to bring toy manufacturing back to America, as indicated by Mattel's CEO Ynon Kreiz [1]. Group 1: Manufacturing and Sourcing - A significant portion of toy creation, including design, development, product engineering, and brand management, occurs in America [2]. - Mattel has been diversifying its global manufacturing for nearly a decade to reduce dependence on China, with less than 40% of its products sourced from China by the end of the year [2]. - In two years, no single country will account for more than 25% of Mattel's sourcing [2].

Core Viewpoint - Mattel is raising prices on some toys and reducing reliance on China-sourced products due to a volatile macro-economic environment and evolving U.S. tariff landscape [1][5]. Group 1: Financial Impact and Strategy - Mattel expects around $270 million in incremental costs from tariffs in 2025, but plans to offset these costs through various mitigating actions [2]. - The company is taking steps to diversify its supply chain and reduce reliance on China-sourced products, aiming to cut imports from China to under 15% by next year [6][11]. - Despite tariffs not affecting Mattel's first quarter financial results, the company is implementing measures to fully offset potential future cost impacts [5]. Group 2: Market Conditions and Consumer Behavior - The current macro-economic environment makes it difficult to predict consumer spending and U.S. sales for the remainder of the year and holiday season [5]. - Many companies have halted production and shipping to the U.S. due to tariffs from China, indicating significant disruption in the industry [2]. Group 3: Production Adjustments - Mattel is increasing production of its UNO card game in India as part of its strategy to mitigate tariff impacts [9]. - The company imports Barbie dolls and Hot Wheels toys from Indonesia, Malaysia, and Thailand, which have also faced tariffs [9].

First Quarter 2025 Earnings (Unaudited Results) May 5, 2025 Cautionary Note Regarding Forward-Looking Statements / Presentation Information Mattel cautions the viewer that this presentation contains a number of forward-looking statements, which are statements that relate to the future and are, by their nature, uncertain. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts and include statements regarding Mattel's guidance and goals for fut ...

Company Performance - Mattel reported a quarterly loss of $0.03 per share, better than the Zacks Consensus Estimate of a loss of $0.11, and an improvement from a loss of $0.05 per share a year ago, representing an earnings surprise of 72.73% [1] - The company posted revenues of $826.6 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.37% and showing an increase from $809.5 million in the same quarter last year [2] - Over the last four quarters, Mattel has exceeded consensus EPS estimates four times and topped consensus revenue estimates two times [2] Stock Outlook - Mattel shares have declined approximately 7.6% since the beginning of the year, compared to a decline of 3.3% for the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $0.20 on revenues of $1.1 billion, and for the current fiscal year, it is $1.59 on revenues of $5.42 billion [7] - The estimate revisions trend for Mattel is currently unfavorable, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Toys - Games - Hobbies industry, to which Mattel belongs, is currently ranked in the bottom 21% of over 250 Zacks industries, suggesting a challenging environment [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact investor sentiment and stock performance [5]

Financial Performance - Mattel's net sales in Q1 2025 increased by 2% to $826.6 million compared to $809.5 million in Q1 2024[111]. - Gross billings rose by 3% to $924.2 million in Q1 2025, with a $25.2 million increase compared to $898.9 million in Q1 2024[111]. - Operating loss increased to $53.0 million in Q1 2025, compared to a loss of $35.5 million in Q1 2024, reflecting a 49% year-over-year increase[110]. - North America segment net sales were $491.4 million in Q1 2025, a 3% increase from $477.8 million in Q1 2024[124]. - International segment net sales were $335.3 million in Q1 2025, a 1% increase from $331.7 million in Q1 2024[132]. - International segment operating income rose to $23.3 million in Q1 2025, compared to $9.3 million in Q1 2024, primarily due to higher gross profit[138]. Cost and Margin Analysis - Gross margin expanded to 49.4% in Q1 2025 from 48.0% in Q1 2024, driven by lower inventory management costs and favorable foreign currency exchange[106]. - Cost of sales decreased by 1% to $418.5 million in Q1 2025 from $420.6 million in Q1 2024[116]. - Other selling and administrative expenses rose to $390.9 million, or 47.3% of net sales, in Q1 2025, up from $352.9 million, or 43.6% of net sales, in Q1 2024[119]. - Advertising and promotion expenses as a percentage of net sales were 8.5% in Q1 2025, compared to 8.8% in Q1 2024[118]. - Sales adjustments increased to $97.5 million in Q1 2025, up from $89.4 million in Q1 2024, representing 11.8% of net sales[115]. Cash Flow and Financial Position - Mattel ended Q1 2025 with a cash balance of $1.24 billion, up from $1.13 billion in Q1 2024[106]. - Cash flows from operating activities were $24.8 million in Q1 2025, down from $35.5 million in Q1 2024, primarily due to a decrease in net income[150]. - Cash flows used for investing activities increased to $31.3 million in Q1 2025 from $28.4 million in Q1 2024, mainly due to higher capital expenditures[151]. - Cash flows used for financing activities rose to $161.9 million in Q1 2025 from $131.3 million in Q1 2024, driven by $60 million in higher share repurchases[152]. - Total debt was $2.34 billion as of March 31, 2025, consistent with $2.33 billion at December 31, 2024[159]. - Stockholders' equity decreased by $134.5 million to $2.13 billion at March 31, 2025, primarily due to share repurchases of $160 million and a net loss of $40.3 million[160]. Inventory and Receivables - Accounts receivable decreased by $369.9 million to $633.3 million at March 31, 2025, primarily due to seasonal declines[155]. - Inventories increased by $156.7 million to $658.4 million at March 31, 2025, primarily due to seasonal inventory build[156]. - Cash and equivalents decreased by $144.2 million to $1.24 billion at March 31, 2025, from $1.39 billion at December 31, 2024, mainly due to share repurchases[154]. Currency and Foreign Exchange - Mattel's financial results are impacted by foreign currency exchange rate fluctuations, particularly with the Euro and British pound sterling[170]. - The company uses foreign currency forward exchange contracts to hedge its exposure, with maturity dates of up to 24 months[170]. - A one percent change in the U.S. dollar would have impacted Mattel's Q1 2025 net sales by approximately 0.2%[172]. - The estimated impact of a one percent change in the U.S. dollar on net income per share would be less than $0.01[172]. - Currency translation adjustments are recorded as a component of accumulated other comprehensive loss within stockholders' equity[171]. Strategic Initiatives - The OPG program aims for $200 million in targeted annual gross cost savings by 2026, with 60% benefiting cost of sales and 40% benefiting other selling and administrative expenses[139]. - Mattel's estimated costs associated with the OPG program range from $115 million to $145 million, including severance and restructuring costs of $110 million to $135 million[140]. - As of March 31, 2025, cumulative severance and restructuring charges related to the OPG program amounted to approximately $94 million, with realized cumulative cost savings of approximately $103 million, representing a 60% benefit to cost of sales[141].

Mattel (MAT) Q1 2025 Earnings Call May 05, 2025 05:00 PM ET Company Participants Jenn Kettnich - VP - Investor RelationsYnon Kreiz - Chairman & CEOAnthony DiSilvestro - Chief Financial OfficerArpine Kocharian - Executive DirectorStephen Laszczyk - Vice PresidentMegan Clapp - Executive DirectorKylie Cohu - Consumer Equity ResearchAlexander Perry - Director, Equity Research Conference Call Participants Eric Handler - MD & Senior Research AnalystChristopher Horvers - Senior Analyst Operator Ladies and gentleme ...

Financial Data and Key Metrics Changes - Net sales grew 2% as reported and 4% in constant currency to $827 million [6][25] - Adjusted gross margin increased by 130 basis points to 49.6% [6][25] - Adjusted EBITDA grew 7% to $57 million [6][25] - Cash balance at quarter end was $1.24 billion, an increase of $113 million year-over-year [32] - Total debt remained approximately $2.34 billion [33] Business Line Data and Key Metrics Changes - Dolls gross billings increased 2%, driven by Disney Princess and Wicked, while Barbie and American Girl were comparable to the prior year [26][15] - Vehicles increased 6%, with Hot Wheels growing 7% [26][15] - Infant toddler and preschool overall declined 5%, primarily due to declines in baby gear and Power Wheels [26] - Challenger categories overall increased 14%, driven by growth in Action Figures and Games [28] Market Data and Key Metrics Changes - Gross billings increased 4% in North America, including double-digit growth in Canada [29] - EMEA increased 8% with growth across almost every market [29] - Asia Pacific increased 12%, driven by growth in Australia, India, and China [29] - Latin America declined 7%, reflecting the impact of retailers reducing inventory levels [29] Company Strategy and Development Direction - The company is diversifying its supply chain to reduce reliance on China, with plans to relocate production of 500 toy SKUs from China to other locations in 2025 [9][10] - Aiming to reduce U.S. imports from China to less than 15% of global production by 2026 and less than 10% by 2027 [13][12] - The company is committed to maintaining a strong balance sheet and executing a $600 million share repurchase program for 2025 [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in mitigating actions to offset potential tariff impacts, emphasizing a strong balance sheet and operational excellence [22][23] - The company is pausing full-year 2025 guidance due to uncertainty in consumer spending and the evolving tariff situation [21][22] - Management noted that the toy industry has historically proven resilient during uncertain times [22] Other Important Information - The company reported a strong first quarter with top-line growth and gross margin expansion [6][23] - The entertainment strategy is progressing, with several movies in production and partnerships with major entertainment companies [18][19] Q&A Session Summary Question: Can you outline the roadmap to offset the impact of incremental tariffs? - Management indicated that Q1 was not impacted by tariffs and expects Q2 to be unaffected as well, with potential impacts starting in Q3 [42] - Current exposure to tariffs is estimated at $270 million, before considering mitigating actions [43][44] Question: What flexibility exists in the supply chain to transition out of China? - The company has established a flexible, modular supply chain over seven years, sourcing from multiple countries [50][52] Question: How confident is the company in passing along pricing to retailers? - Management emphasized long-standing relationships with retailers and a strategic approach to pricing, ensuring affordability [55][59] Question: What is the current state of inventory levels post-Easter? - The company reported that both owned and retail inventories are at appropriate levels, with some increases due to the later Easter holiday [78] Question: Have there been changes in retailer buying behavior? - No significant changes in buying behavior were noted, but some volatility is expected in gross billings due to direct import assessments [82][84]

NEWS RELEASE Exhibit 99.1 MATTEL REPORTS FIRST QUARTER 2025 FINANCIAL RESULTS First Quarter 2025 Highlights Versus Prior Year EL SEGUNDO, Calif., May 5, 2025 – Mattel, Inc. (NASDAQ: MAT) today reported first quarter 2025 financial results. Ynon Kreiz, Chairman and CEO of Mattel, said: "This was a strong quarter for Mattel, with positive performance and continued operational excellence. Our brands are thriving, our products and experiences stand out in the marketplace, and our balance sheet gives us resilien ...