Core Insights - Kartoon Studios has shown significant progress in 2024, with improvements in profitability and operational efficiency, positioning the company for continued growth in 2025 [3][12][14] Financial Performance - Total revenue for Q4 2024 increased by 8.2% compared to Q3 2024 and 7.0% compared to Q4 2023, marking the third consecutive quarter of revenue growth [5] - Mainframe Studios, the largest revenue-generating unit, achieved a 44.7% revenue increase in Q4 2024 compared to Q4 2023, driven by strong demand for high-quality animation [3][5] - Total operating expenses decreased by 66.0% in Q4 2024 compared to Q4 2023 and by 57.4% for the full year 2024 compared to 2023, reflecting effective operational efficiency initiatives [5] - Loss from operations improved by 88.0% in Q4 2024 compared to Q4 2023 and by 76.5% for the full year 2024 compared to 2023, indicating a strong path towards profitability [5] Business Segments - Kartoon Channel and Frederator Networks delivered strong results in 2024, benefiting from higher subscription revenues, distribution expansion, and increasing advertising revenue [4][7] - The family and kids' ad unit, Beacon Media Group, achieved profitability in 2024 through high-efficiency ads and data-driven strategies [12][14] - Upcoming animated series, including "Hundred Acre Wood's Winnie and Friends" and "Stan Lee Universe's The Excelsiors," are expected to launch in 2025 and 2026, contributing to future revenue streams [10][11] Market Position and Strategy - Kartoon Channel remains the 1 ranked streamer in the Apple App Store, surpassing competitors like YouTube Kids and Netflix, with a focus on children's safety [7] - The company is expanding its global content strategy, now present in over 61 territories, and plans to enter new markets in Asia, Europe, and Latin America in 2025 [8] - The emphasis on exclusive series, localized content, and ad-supported models has driven substantial revenue growth for Kartoon Channel [7][8] Future Outlook - The company is well-positioned for profitable growth in 2025, with over 90% of its 2025 revenue target already contracted and a backlog of orders expected to surpass 2025 levels [3][14] - Investments in infrastructure, technology, and key creators are expected to yield positive results, enhancing the company's ability to capitalize on growth opportunities [12][14]

Core Insights - Splitit has launched a new Embedded Shopify App that offers one-click payment installments and all-in-one credit card processing, enhancing the payment experience for consumers and merchants [1][4]. Group 1: Product Features - The Splitit Card Installments app integrates seamlessly into the Shopify checkout process, allowing consumers to choose between full payment or installment options without any redirects or applications [2][4]. - The app is designed to reduce cart abandonment, which affects 22% of online shoppers due to complex checkout processes [2]. - As a white-label solution, the app allows merchants to maintain brand identity and control over customer data, ensuring a consistent brand experience [3]. Group 2: Market Reach and Opportunities - The Embedded Shopify App caters to shoppers in over 100 countries, enabling merchants to offer localized payment options and potentially access new markets and revenue streams [4][6]. - Splitit serves many of Internet Retailer's top 500 merchants and is accepted by over 1,500 eCommerce merchants across more than 30 countries [6].

Sales and Customers - In 2024, Mattel's three largest customers accounted for approximately 44% of worldwide consolidated net sales, with Walmart at $1.17 billion, Target at $0.68 billion, and Amazon at $0.51 billion[35]. - Mattel's North America segment includes products sold directly to retailers and accounted for a significant portion of sales, with no individual country in the International segment exceeding 7% of worldwide consolidated net sales during 2024[29]. Financial Performance - Advertising and promotion expenses for 2024 were $507.3 million, representing 9.4% of net sales, a slight decrease from 9.6% in 2023 and 9.8% in 2022[45]. - Royalty expenses for 2024 were $244.1 million, compared to $249.8 million in 2023 and $230.8 million in 2022[38]. - Currency exchange rate fluctuations may impact Mattel's results, and the company employs hedging strategies to mitigate foreign currency transaction exposure[46]. Product Development and Strategy - The company plans to continue expanding its product offerings in 2025, including new releases for popular franchises like Barbie, Hot Wheels, and American Girl[20][24][22]. - Fisher-Price aims to enhance consumer engagement with new product offerings and global expansion of its Wood line in 2025[23]. - The company faces increasing competition in the toy industry, influenced by trends such as shorter product life cycles and the rise of digital games[31]. Operations and Manufacturing - Mattel's manufacturing facilities are primarily located in China, Indonesia, Malaysia, Mexico, and Thailand, with plans to discontinue production at certain plants in China[42]. - Mattel's business is highly seasonal, with significant sales occurring during the holiday season, leading to increased production and inventory levels in the first three quarters[32][33]. - As of December 31, 2024, Mattel had approximately 34,000 employees, with 86% (about 29,600) located outside the United States[52]. - Mattel's global manufacturing labor workforce consists of approximately 25,100 employees[52]. Employee Engagement and Compliance - Mattel was recognized as one of Forbes 2024 World's Best Employers and named to Fast Company's Most Innovative Companies of 2024[54]. - The company emphasizes employee engagement and development, offering various online and instructor-led training programs[56]. - The company offers several benefits to promote employee well-being, including health insurance options and retirement plans[58]. - Mattel believes it is in substantial compliance with various federal, state, local, and international laws and regulations applicable to its business[51]. - The company maintains a quality control program to ensure compliance with product safety requirements, although recalls could adversely affect its business[49]. - Mattel's operations are subject to environmental laws and regulations, and it is not aware of any material cleanup liabilities[50]. - The company regularly collects feedback through an annual global engagement survey to improve employee experience and workplace culture[55]. Advertising and Regulatory Compliance - Mattel's advertising and promotion activities are subject to multiple regulations, including the Federal Trade Commission Act[49].

Mattel, Inc. (NASDAQ:MAT) Q4 2024 Earnings Conference Call February 4, 2025 5:00 PM ET Company Participants Jenn Kettnich - Vice President, Investor Relations Ynon Kreiz - Chairman and Chief Executive Officer Anthony DiSilvestro - Chief Financial Officer Conference Call Participants Stephen Laszczyk - Goldman Sachs Alexander Perry - Bank of America Megan Clapp - Morgan Stanley Chris Horvers - JPMorgan Arpine Kocharyan - UBS Eric Handler - Roth Capital Fred Wightman - Wolfe Research Linda Bolton-Weiser - D.A ...

Fourth Quarter and Full Year 2024 Earnings (Unaudited Results) February 4, 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 guidan ...

Financial Performance - Fourth quarter 2024 net sales increased by 2% to $1,646 million, or 3% in constant currency, compared to the prior year[3]. - Full year 2024 net sales decreased by 1% to $5,380 million, or 0.5% in constant currency, compared to the prior year[4]. - Fourth quarter 2024 reported operating income was $158 million, an increase of $18 million, while adjusted operating income was $161 million, an increase of $14 million[5]. - Full year 2024 reported net income improved by $327 million to $542 million, with earnings per share increasing to $1.58 from $0.60[5]. - Gross margin for the fourth quarter 2024 increased to 50.7%, up 190 basis points from the prior year[8]. - Worldwide net sales for the year ended December 31, 2024, were $5,379.5 million, a slight decrease of 1% compared to $5,441.2 million in 2023[47]. - Net income for the year ended December 31, 2024, was $541.8 million, a significant increase of 153% from $214.4 million in 2023[40]. - Adjusted EBITDA for the year ended December 31, 2024, was $1,057.6 million, reflecting a 12% increase from $947.8 million in 2023[46]. Shareholder Returns - The company repurchased $400 million of shares in 2024 and plans to repurchase an additional $600 million in 2025[5]. - For the year ended December 31, 2024, Mattel reported a net income per common share of $1.58, a significant increase of 163% compared to $0.60 in 2023[44]. Sales by Region - The North America segment saw a 1% increase in net sales in the fourth quarter, while international net sales increased by 3%[6][7]. - North America net sales for Q4 2024 were $975.5 million, a 1% increase from $968.5 million in Q4 2023[49]. - International net sales for Q4 2024 reached $670.9 million, reflecting a 3% increase compared to $652.2 million in Q4 2023[50]. - EMEA region saw a 10% increase in net sales, totaling $402.6 million in Q4 2024, up from $366.5 million in Q4 2023[50]. - Latin America net sales decreased by 16% in Q4 2024, totaling $153.4 million compared to $182.4 million in Q4 2023[50]. - The Asia Pacific region experienced an 11% increase in net sales, totaling $114.9 million in Q4 2024, up from $103.3 million in Q4 2023[50]. Brand Performance - Worldwide gross billings for vehicles increased by 14% to $544 million in the fourth quarter, primarily driven by growth in Hot Wheels[17]. - Barbie brand gross billings decreased by 12% to $1,350.1 million in 2024 from $1,537.8 million in 2023[48]. - Hot Wheels brand gross billings increased by 10% to $1,575.0 million in 2024 compared to $1,432.4 million in 2023[48]. - Barbie brand gross billings decreased by 14% in Q4 2024, totaling $217.4 million compared to $252.8 million in Q4 2023[49]. - Hot Wheels brand gross billings increased by 11% in Q4 2024, reaching $220.3 million, up from $198.5 million in Q4 2023[49]. Operational Metrics - Adjusted Gross Profit and Adjusted Gross Margin are key metrics, with Adjusted Gross Margin providing insight into underlying trends in core profitability[27]. - Adjusted Operating Income and Adjusted Operating Income Margin exclude severance and restructuring expenses, offering a clearer view of operational performance[29]. - Adjusted Earnings Per Share reflects core business performance, adjusted for non-recurring items, providing a more accurate earnings measure[30]. - EBITDA and Adjusted EBITDA are critical for assessing business performance, with Adjusted EBITDA excluding non-core expenses[31]. - Free Cash Flow represents net cash from operating activities minus capital expenditures, crucial for evaluating liquidity[32]. - The Leverage Ratio, calculated as Total Debt divided by Adjusted EBITDA, helps gauge financial health and operational efficiency[33]. - Net Debt, which accounts for cash and equivalents, is a vital indicator for monitoring liquidity and balance sheet strength[34]. - Constant Currency metrics are used to analyze performance trends without the impact of exchange rate fluctuations, enhancing comparability[36]. - Gross Billings serve as a key performance indicator, reflecting amounts invoiced to customers and highlighting significant business trends[37]. Inventory and Cash Flow - Cash flows provided by operating activities for the year ended December 31, 2024, were $800.6 million, down from $869.8 million in 2023[42]. - Net cash flows provided by operating activities for the year ended December 31, 2024, were $800.6 million, down 8% from $869.8 million in 2023[46]. - The company reported a decrease in inventories to $501.7 million in 2024 from $571.6 million in 2023[41]. - The accounts receivable net days of sales outstanding (DSO) improved to 55 days in 2024 from 60 days in 2023[42]. - Free cash flow for the year ended December 31, 2024, was $597.9 million, down 16% from $709.5 million in 2023[46]. Debt and Taxation - The company’s long-term debt remained stable at $2,334.4 million as of December 31, 2024, compared to $2,330.0 million in 2023[41]. - The leverage ratio (Total Debt/Adjusted EBITDA) improved to 2.2x in 2024 from 2.5x in 2023[46]. - The tax rate as reported for 2024 was 17%, a decrease of 41 percentage points from 58% in 2023[45].

Part I [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) This section presents Mattel's unaudited consolidated financial statements for the period ended September 30, 2024, including the Balance Sheets, Statements of Operations, Comprehensive Income, Cash Flows, and Stockholders' Equity, along with detailed notes covering accounting policies, segment information, debt, and contingencies [Consolidated Balance Sheets](index=5&type=section&id=Consolidated%20Balance%20Sheets) As of September 30, 2024, Mattel's total assets increased to $6.51 billion from $6.24 billion year-over-year, while total stockholders' equity rose to $2.31 billion from $2.04 billion, with cash and equivalents improving significantly to $723.5 million and total debt remaining stable at approximately $2.33 billion Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2024 | Sep 30, 2023 | Dec 31, 2023 | | :--- | :--- | :--- | :--- | | **Total Current Assets** | $3,180,380 | $3,042,099 | $3,122,347 | | **Total Assets** | $6,513,733 | $6,244,554 | $6,435,822 | | **Total Current Liabilities** | $1,298,619 | $1,304,556 | $1,342,480 | | **Long-Term Debt** | $2,333,260 | $2,328,897 | $2,329,986 | | **Total Liabilities** | $4,200,787 | $4,209,088 | $4,286,609 | | **Total Stockholders' Equity** | $2,312,946 | $2,035,466 | $2,149,213 | [Consolidated Statements of Operations](index=6&type=section&id=Consolidated%20Statements%20of%20Operations) For the third quarter of 2024, net sales decreased 4% year-over-year to $1.84 billion, but net income surged 155% to $372.4 million, primarily due to a significantly lower provision for income taxes, with diluted EPS for Q3 at $1.09 Q3 & Nine Months Statement of Operations (in thousands, except per share data) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net Sales** | $1,843,904 | $1,918,788 | $3,733,141 | $3,820,531 | | **Gross Profit** | $978,996 | $977,934 | $1,898,602 | $1,793,527 | | **Operating Income** | $488,341 | $473,858 | $536,030 | $421,596 | | **Net Income** | $372,376 | $146,319 | $400,955 | $67,034 | | **Diluted EPS** | $1.09 | $0.41 | $1.16 | $0.19 | [Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Comprehensive income for Q3 2024 was $391.8 million, a significant increase from $109.4 million in Q3 2023, driven by higher net income and a positive swing in other comprehensive income from a loss of $36.9 million to a gain of $19.4 million, mainly due to favorable currency translation adjustments Comprehensive Income (in thousands) | Metric | Q3 2024 | Q3 2023 | Nine Months 2024 | Nine Months 2023 | | :--- | :--- | :--- | :--- | :--- | | **Net Income** | $372,376 | $146,319 | $400,955 | $67,034 | | **Other Comprehensive Income (Loss)** | $19,412 | $(36,889) | $(10,737) | $(22,663) | | **Comprehensive Income** | $391,788 | $109,430 | $390,218 | $44,371 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the nine months ended September 30, 2024, net cash used for operating activities improved to $61.6 million from $79.6 million in the prior year, while cash used for investing activities increased to $151.7 million and cash used for financing activities rose to $314.2 million, primarily due to increased share repurchases Cash Flow Summary for Nine Months Ended Sep 30 (in thousands) | Cash Flow Activity | 2024 | 2023 | | :--- | :--- | :--- | | **Net cash flows used for operating activities** | $(61,583) | $(79,641) | | **Net cash flows used for investing activities** | $(151,740) | $(93,912) | | **Net cash flows used for financing activities** | $(314,228) | $(119,451) | | **Change in Cash and Equivalents** | $(537,831) | $(305,500) | | **Cash and Equivalents at End of Period** | $723,532 | $455,735 | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations for the financial statements, covering basis of presentation, segment information changes, debt structure, restructuring programs, and legal contingencies, including the new "Optimizing for Profitable Growth" program, a new revolving credit facility, and updates on litigation - In Q1 2024, the American Girl business was integrated into the North America segment, changing the reportable segments to North America and International, with prior period data reclassified to conform[71](index=71&type=chunk) - The "Optimizing for Profitable Growth" (OPG) program was announced in February 2024, targeting **$200 million in annual gross cost savings by 2026**, with cumulative charges of **$73 million** recorded as of September 30, 2024[60](index=60&type=chunk)[64](index=64&type=chunk)[124](index=124&type=chunk) - In July 2024, Mattel entered into a new **$1.40 billion** senior unsecured revolving credit facility maturing in 2029, replacing the prior secured facility[28](index=28&type=chunk) - A settlement was preliminarily approved in August 2024 for the Fisher-Price Rock 'n Play Sleeper class action lawsuit, with the accrued liability not material[68](index=68&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the financial results for the third quarter and first nine months of 2024, highlighting a 4% decline in Q3 net sales year-over-year due to the 2023 Barbie movie success, but significant gross margin expansion to 53.1% and a 154% increase in net income, supported by strong liquidity and a new credit facility [Results of Operations—Third Quarter](index=30&type=section&id=Results%20of%20Operations%E2%80%94Third%20Quarter) In Q3 2024, net sales fell 4% to $1.84 billion, while gross profit was flat at $979.0 million and operating income grew 3% to $488.3 million, with gross margin improving by 210 basis points to 53.1% due to supply chain efficiencies and cost savings, leading to a 154% surge in net income to $372.4 million Q3 2024 vs Q3 2023 Consolidated Results (in millions) | Metric | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $1,843.9 | $1,918.8 | -4% | | **Gross profit** | $979.0 | $977.9 | 0% | | **Gross Margin** | 53.1% | 51.0% | +210 bps | | **Operating income** | $488.3 | $473.9 | +3% | | **Net income** | $372.4 | $146.3 | +154% | Q3 2024 Gross Billings by Category (in millions) | Category | Q3 2024 | Q3 2023 | % Change | | :--- | :--- | :--- | :--- | | Dolls | $757.1 | $884.5 | -14% | | Infant, Toddler, and Preschool | $349.8 | $361.1 | -3% | | Vehicles | $580.0 | $518.5 | +12% | | Action Figures, Building Sets, Games, and Other | $364.3 | $357.7 | +2% | | **Total Gross Billings** | **$2,051.1** | **$2,121.8** | **-3%** | - Gross margin increased to **53.1%** from **51.0%** year-over-year, driven by supply chain efficiencies (**+190 bps**), OPG program savings (**+80 bps**), favorable FX (**+70 bps**), and cost deflation (**+50 bps**), partially offset by unfavorable mix (**-180 bps**)[89](index=89&type=chunk) [Results of Operations—First Nine Months](index=36&type=section&id=Results%20of%20Operations%E2%80%94First%20Nine%20Months) For the first nine months of 2024, net sales decreased 2% to $3.73 billion, while gross margin expanded significantly by 400 basis points to 50.9% due to efficiencies and cost deflation, leading to a 27% rise in operating income to $536.0 million and a nearly six-fold increase in net income to $401.0 million Nine Months 2024 vs 2023 Consolidated Results (in millions) | Metric | Nine Months 2024 | Nine Months 2023 | % Change | | :--- | :--- | :--- | :--- | | **Net sales** | $3,733.1 | $3,820.5 | -2% | | **Gross profit** | $1,898.6 | $1,793.5 | +6% | | **Gross Margin** | 50.9% | 46.9% | +400 bps | | **Operating income** | $536.0 | $421.6 | +27% | | **Net income** | $401.0 | $67.0 | +498% | Nine Months 2024 Gross Billings by Category (in millions) | Category | Nine Months 2024 | Nine Months 2023 | % Change | | :--- | :--- | :--- | :--- | | Dolls | $1,465.6 | $1,631.1 | -10% | | Infant, Toddler, and Preschool | $675.1 | $708.6 | -5% | | Vehicles | $1,247.4 | $1,165.9 | +7% | | Action Figures, Building Sets, Games, and Other | $763.2 | $755.0 | +1% | | **Total Gross Billings** | **$4,151.4** | **$4,260.6** | **-3%** | [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) Mattel's primary liquidity sources are its cash balance, a new $1.40 billion revolving credit facility, and operating cash flows, with cash and equivalents at $723.5 million as of September 30, 2024, and $887.8 million in operating cash flow for the trailing twelve months, while total debt remained stable at $2.33 billion Capitalization Summary (in millions) | Component | Sep 30, 2024 | Sep 30, 2023 | Dec 31, 2023 | | :--- | :--- | :--- | :--- | | Cash and equivalents | $723.5 | $455.7 | $1,261.4 | | Total debt | $2,333.3 | $2,328.9 | $2,330.0 | | Stockholders' equity | $2,312.9 | $2,035.5 | $2,149.2 | | **Total capitalization** | **$4,646.2** | **$4,364.4** | **$4,479.2** | - Cash and equivalents stood at **$723.5 million**, with **$499.4 million** held by foreign subsidiaries[129](index=129&type=chunk) - In the first nine months of 2024, cash used for operating activities improved to **$61.6 million** from **$79.6 million** year-over-year, while cash used for financing increased to **$314.2 million** from **$119.5 million**, mainly due to **$158.4 million** of higher share repurchases[133](index=133&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=46&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Mattel is primarily exposed to foreign currency exchange rate risk, particularly from the Euro, Chinese yuan, and Mexican peso, which it mitigates using foreign currency forward exchange contracts, with a hypothetical one percent change in the U.S. dollar estimated to impact Q3 net sales by approximately 0.3% and have a minimal impact on EPS - The primary currencies causing foreign currency transaction exposure in the first nine months of 2024 were the Euro, Chinese yuan, and Mexican peso[145](index=145&type=chunk) - Mattel estimates that a **1% change in the U.S. dollar** would have impacted its third-quarter net sales by approximately **0.3%** and would have less than a **$0.01** impact on its net income per share[145](index=145&type=chunk) [Controls and Procedures](index=47&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that as of September 30, 2024, the company's disclosure controls and procedures were not effective due to a previously disclosed material weakness in internal control over financial reporting, for which a remediation plan is underway with new controls implemented but requiring further testing - The CEO and CFO concluded that disclosure controls and procedures are **not effective** as of September 30, 2024, due to a material weakness in internal control over financial reporting[146](index=146&type=chunk) - A remediation plan is in progress, with new program change management controls implemented in Q3 2024, however, the material weakness is not yet considered remediated as additional time is needed for testing and implementation of other controls[147](index=147&type=chunk) Part II [Legal Proceedings](index=48&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the details from Note 20 of the financial statements, which discusses ongoing litigation, including key cases related to Yellowstone do Brasil, the Fisher-Price Rock 'n Play Sleeper, and the Fisher-Price Snuga Swings - This section references Note 20, which details contingencies and legal proceedings concerning Yellowstone do Brasil, Fisher-Price Rock 'n Play Sleeper, and Fisher-Price Snuga Swings[149](index=149&type=chunk)[67](index=67&type=chunk)[68](index=68&type=chunk) [Risk Factors](index=48&type=section&id=Item%201A.%20Risk%20Factors) The company states that there have been no material changes to the risk factors previously disclosed in its Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No material changes to risk factors from the 2023 Annual Report on Form 10-K were reported[150](index=150&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=48&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q3 2024, Mattel purchased approximately 3.8 million shares of its common stock for an average price of $19.10 per share, with $731.7 million remaining authorized for repurchase under its $1.00 billion program announced in February 2024 Issuer Purchases of Equity Securities (Q3 2024) | Period | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining in Program | | :--- | :--- | :--- | :--- | | July 1-31 | 5,677 | $19.28 | $800,014,073 | | August 1-31 | 3,733,131 | $19.10 | $731,693,173 | | September 1-30 | 53,845 | $19.04 | $731,693,173 | | **Total** | **3,792,653** | **$19.10** | **$731,693,173** | - As of September 30, 2024, **$731.7 million** remained available for share repurchases under the **$1.00 billion** program authorized in February 2024[151](index=151&type=chunk)

Third Quarter 2024 Earnings (Unaudited Results) October 23, 2024 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 fo ...

Financial Data and Key Metrics Changes - Net sales declined 4% as reported and 3% in constant currency compared to the prior year [7][14] - Adjusted gross margin increased 210 basis points to 53.1% [7][18] - Adjusted EBITDA improved 1% to $584 million [7][19] - Adjusted EPS grew 6% to $1.14 [7][19] - Free cash flow in the trailing 12 months improved nearly 50% to $688 million [7][20] Performance by Business Line - Dolls gross billings were down 14%, impacted by the prior year's success of the Barbie movie [15][8] - Vehicles gross billings grew 13%, driven by Hot Wheels and supported by streaming content [15][8] - Infant, Toddler, and Preschool declined 2%, while Fisher-Price grew 2% [16][8] - Challenger categories collectively grew 3%, with the Games category achieving double-digit growth driven by Uno [16][8] Market Data and Key Metrics Changes - North America declined 3% primarily due to the Barbie movie comparison [17] - EMEA declined 6%, also impacted by the movie-related comparison [17] - Latin America grew 2%, driven by gains in Mexico and Brazil [17] - Asia-Pacific grew 8%, driven by gains in India and Japan [17] Company Strategy and Industry Competition - The company continues to execute its multiyear strategy to grow its IP-driven toy business and expand its entertainment offerings [6][13] - The toy industry is expected to return to growth beyond 2024, driven by strong fundamentals and increased demand for toys [12][39] - The company is well-positioned competitively with a broad-based lineup of innovative products for the holiday season [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in a good holiday season, supported by positive retail sentiment and demand for toys [27][63] - The company anticipates growth in the fourth quarter and expects to gain market share [27][34] - Management noted that the toy industry continues to perform better than initially expected, with a modest decline anticipated for the full year [12][38] Other Important Information - The company has repurchased $268 million of shares through the first nine months of the year [7][20] - The Optimizing for Profitable Growth Program is expected to generate approximately $75 million of savings in 2024, exceeding the original target [22][58] Q&A Session Summary Question: Retail environment concerns and growth guidance for Q4 - Management noted that the toy industry is performing better than expected and anticipates growth in Q4, supported by consumer demand for well-known brands [26][27] Question: Margin outlook for Q4 - Management indicated that margins may be pressured due to expected cost inflation and the wrap of movie-related benefits [28][29] Question: Understanding POS and gross billings relationship - Management explained that retail inventory movements can be volatile and that they are well-positioned for the holiday season despite the decline in POS [31][33] Question: Factors driving optimism for industry growth in 2025 - Management highlighted strong industry fundamentals and the importance of toys in consumers' lives as key drivers for future growth [38][39] Question: Impact of retail partner payment term changes on free cash flow - Management confirmed no impact on free cash flow guidance despite changes in payment terms from a major retail partner [40] Question: Capital expenditures and share repurchase pace - Management discussed the acquisition of a new global design center and indicated that share repurchases will continue in line with capital allocation priorities [41][44] Question: Digital gaming initiatives and launch schedule - Management outlined the strategy for digital gaming, emphasizing the importance of extending physical play into the virtual world [46][48] Question: SG&A growth drivers - Management noted that SG&A is expected to increase slightly as a percent of sales due to investments in digital gaming and IT capabilities [49] Question: Changes in outlook for Power brands - Management stated there were no changes in overall category guidance or expectations for Power brands [64]

Exhibit 99.1 NEWS RELEASE MATTEL REPORTS THIRD QUARTER 2024 FINANCIAL RESULTS Third Quarter 2024 Highlights Versus Prior Year • Net Sales of $1,844 million, down 4% as reported, and 3% in constant currency • Gross Margin of 53.1%, an increase of 210 basis points; Adjusted Gross Margin of 53.1%, an increase of 210 basis points • Operating Income of $488 million, an increase of $14 million; Adjusted Operating Income of $504 million, a decrease of $2 million • Net Income of $372 million, an improvement of $226 ...