Mattel, Inc. (MAT) had a rough Tuesday evening, with shares cratering more than 25% after the toy company delivered a fourth-quarter earnings report that missed analyst expectations across the board.

The Numbers

Mattel reported quarterly earnings of 39 cents per share, falling short of the 54-cent consensus estimate by 27.64%. Revenue came in at $1.77 billion, missing the $1.84 billion analyst forecast.

Here's how the quarter stacked up compared to last year:

• Net sales of $1.766 billion, up 7% as reported and 5% in constant currency
• Adjusted gross margin of 46%, down 480 basis points
• Adjusted operating income of $160 million, down $1 million
• Net income of $106 million, down $35 million

CEO Ynon Kreiz acknowledged the mixed results: "We achieved strong topline growth in the fourth quarter and consumer demand was positive in every region for both the quarter and full year, but December gross billings in the U.S. ended up growing less than expected."

Looking Ahead

The real gut punch came from Mattel's fiscal 2026 guidance. The company expects adjusted EPS between $1.18 and $1.30, dramatically below the $1.75 analyst estimate. Revenue is projected in a range of $5.51 billion to $5.67 billion, compared to the $5.62 billion consensus.

Shares fell 25.74% to $15.64 in after-hours trading.