Mattel’s Q1 2026 earnings guidance cut after $150 million in incremental costs pressured shares, offsetting a $1.5 billion buyback plan.
Mattel (NASDAQ:MAT) fell after announcing $150 million in unplanned spending for mobile gaming, Brick Shop, and direct-to-consumer marketing, reducing 2026 earnings guidance. The costs, equal to 15% of EBITDA, triggered a share price decline despite CEO Ynon Kreiz’s promise of a one-year payback.
The company’s Q4 2025 results missed expectations, particularly in the U.S., compounding the negative reaction. Mattel’s market capitalization stands at $4.40 billion, with shares down 24.25% over the past year. The stock closed at $15.15 on May 15, 2026.
Mattel committed to a $1.5 billion share repurchase over three years, representing 33% of outstanding shares at current prices. The buyback plan aims to counterbalance the spending impact as the company pushes IP initiatives, including two upcoming movies.