In Q1 2026, Mattel reported a 4% increase in net sales fueled by strength in Vehicles and the consolidation of Mattel163 after acquiring full ownership. Despite revenue growth, gross margins contracted due to tariff impacts, inflation, and unfavorable currency, partially offset by cost-saving initiatives. The company continues to execute on its IP-centric strategy, broadening digital play offerings and content while navigating geopolitical trade uncertainties. Liquidity remains solid with a cash balance of $866 million as of March 31, 2026.