Core Insights - Mattel, Inc. reported lower-than-expected third-quarter 2025 results, with both earnings and revenues missing estimates, leading to a 6.8% decline in share price during after-hours trading [1][5] Financial Performance - Adjusted EPS for Q3 was 89 cents, missing the Zacks Consensus Estimate of $1.05, and down from $1.14 in the prior-year quarter [5] - Net sales were $1.74 billion, missing the consensus estimate of $1.81 billion by 4.1%, and declined 6% year over year [5] - North America segment net sales decreased by 12% year over year, while the International segment saw a 3% increase [6] Segment Performance - Gross billings in the North America segment fell 11% year over year, attributed to declines in Dolls, Infant, Toddler and Preschool, and vehicles [6] - International segment gross billings increased by 5% year over year, driven by growth in the EMEA and Asia Pacific regions [7] - Barbie gross billings fell by 17% year over year, while Hot Wheels saw an 8% increase [8][9] Operational Insights - Adjusted gross margin was 50.2%, down 290 basis points year over year, due to foreign exchange impacts, inflation, and increased tariff costs [11] - Adjusted EBITDA for the quarter was $466.1 million, compared to $584.4 million in the prior-year quarter [11] Balance Sheet Overview - As of September 30, 2025, cash and cash equivalents were $691.9 million, down from $723.5 million a year earlier [12] - Total inventories increased to $826.6 million from $737.2 million year over year, while long-term debt decreased to $1.73 billion from $2.33 billion [12] Future Outlook - Mattel expects net sales growth of 1% to 3% for 2025, with adjusted EPS projected between $1.54 and $1.66 [13] - The company anticipates an adjusted gross margin of approximately 50%, down from 50.9% reported in fiscal 2024 [13]