Mattel (MAT) risk factors, FY2025 10-K

Mattel's FY2025 10-K, filed Feb 23, 2026, lists 34 risk factors. Against the prior year's 32: 5 new, 3 dropped, 11 substantially reworded.

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Risk factors listed
340 groups
New this year
5vs 32 last year
Dropped
3since the prior 10-K
Substantially reworded
11of those kept
Section length
13k wordsItem 1A

What the changes say

  • Mattel added specific risk disclosures regarding artificial intelligence adoption, climate change vulnerabilities, and digital gaming commercialization.
  • Trade policy and tariff risks were updated following a Supreme Court ruling on IEEPA.
  • Retailer private-label competition from Walmart, Target, and Amazon remains a key focus.

What changed since the prior 10-K

New

  • New

    swiftly and contribute to the transience and uncertainty of play preferences. Mattel attempts to respond to such trends and developments by modifying, refreshing, extending, and expanding its product offerings on an annual basis

    Mattel faces risks from third-party content creators and Hollywood studios delaying or canceling movie and TV releases tied to Mattel toys.

  • New

    To the extent Mattel incorporates AI into its business and products, challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability and adversely affect Mattel's business, financial condition, and results of operations

    Incorporating AI into Mattel's products and operations creates risks of legal liability, reputational harm, and intellectual property infringement.

  • New

    Failure to successfully develop, publish, and commercialize digital games could adversely affect Mattel's business, financial condition, and results of operations

    Mattel's expansion into digital games faces high competition, potential development disputes with external platform providers, and risk of unrecoverable costs.

  • New

    countries, and the responses to and results of these activities, could adversely impact Mattel, its personnel and facilities, its customers and suppliers, retail and financial markets, and general economic conditions

    Climate change and natural disasters, such as earthquakes near Mattel's El Segundo headquarters, threaten supply chains and production costs.

  • New

    management and key personnel from business operations. Findings of infringement on the IP rights of any third party by Mattel, its distributors, its licensors, or its manufacturers may require obtaining a license to use those rights, which may not be obtainable on reasonable terms, if at all

    Generative AI tools facilitate unauthorized third-party creation of infringing works based on Mattel's intellectual property.

Dropped

  • Dropped

    Failure to properly manage these risks could adversely affect Mattel's business, financial condition, and results of operations

  • Dropped

    or to be pressured or incentivized by foreign governments not to purchase goods of U.S. companies, all of which could harm Mattel's future sales in these those markets, adversely affecting Mattel's business, financial condition, and results of operations

  • Dropped

    ownership of its IP or significant infringements of its IP, could have an adverse effect on Mattel's business, financial condition, and results of operations

Reworded

  • 96% rewritten

    The production and sale of private-label, retailer-owned, and exclusive-branded toys by Mattel's retail customers may result in lower purchases of Mattel-branded products by those retail customers

    Expanded to specify that large retail customers like Walmart, Target, and Amazon offer private-label and exclusive brands competing directly with Mattel.

    Was: The production and sale of private-label toys by Mattel's retail customers may result in lower purchases of Mattel-branded products by those retail customers

  • 93% rewritten

    Political developments, including in trade relations, and/or trade actions could adversely impact Mattel, its customers or suppliers, and general economic conditions

    Updated to reflect the U.S. Supreme Court's February 20, 2026 ruling striking down certain tariffs imposed under IEEPA.

    Was: Political developments, including trade relations, and/or trade actions could adversely impact Mattel, its personnel and facilities, its customers and suppliers, retail and financial markets, and general economic conditions

  • 89% rewritten

    Inaccurately anticipating changes and trends in popular culture, media, fashion, or technology can adversely affect Mattel's business, financial condition, and results of operations

    Trimmed introductory text regarding media-based licenses and transient play preferences.

    Was: Inaccurately anticipating changes and trends in popular culture, media, fashion, or technology can adversely affect Mattel's sales, financial condition, and results of operations

  • 71% rewritten

    Mattel faces risks related to protecting its proprietary IP and information and is subject to third-party claims that Mattel is infringing on their IP rights, either of which could adversely affect Mattel's business, financial condition, and results of operations

    Shortened the section discussing IP ownership challenges and defense costs.

  • 61% rewritten

    An increasing portion of Mattel's business may come from new or emerging markets, and growing business in these markets presents additional challenges

    Minor grammatical edits replacing 'and' with 'or' regarding emerging markets like China and India.

    Was: An increasing portion of Mattel's business may come from new and emerging markets, and growing business in new and emerging markets presents additional challenges

  • 60% rewritten

    Evolving and sometimes conflicting stakeholder expectations, regulatory requirements, and scrutiny relating to sustainability matters, could expose Mattel to potential liabilities, increase costs, cause reputational harm, and cause other adverse impacts to Mattel's business

    Refocused to emphasize capital expenditures and compliance costs for evolving sustainability, packaging, and greenhouse gas regulations.

    Was: Evolving stakeholder expectations, regulatory requirements, and increasing scrutiny relating to sustainability matters including with respect to climate change, could expose Mattel to potential liabilities, increase costs, cause reputational harm, and cause other adverse impacts to Mattel's business

  • 53% rewritten

    If Mattel fails to comply with applicable U.S. and foreign laws related to privacy, data security, AI, and data protection, it could adversely affect Mattel's business, financial condition and results of operations

    Added references to the EU Data Act, California Privacy Rights Act (CPRA), and Executive Order 14117 regarding data and AI compliance.

    Was: If Mattel fails to comply with applicable U.S. and foreign laws related to privacy, data security, AI, and data protection, it could adversely affect Mattel's operating results and financial condition

  • 38% rewritten

    Mattel and its license partners are not always able to successfully identify and/or satisfy consumer preferences, which could cause Mattel's business, financial condition, and results of operations to be adversely affected

    Retained core language on unpredictable consumer preferences and social media trends affecting toy life cycles.

  • 37% rewritten

    Mattel's stock price has been volatile over the past several years and could decline in the future, resulting in losses for Mattel's investors

  • 25% rewritten

    Mattel has significant customer concentration, such that economic difficulties or changes in the purchasing policies or patterns of its key customers could have an adverse effect on Mattel's business, financial condition, and results of operations

  • 22% rewritten

    Mattel relies extensively on information technology in its operations, and any material failure, inadequacy, interruption, or security breach of that technology could have an adverse effect on its business, financial condition, and results of operations

All 34 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01Mattel and its license partners are not always able to successfully identify and/or satisfy consumer preferences, which could cause Mattel's business, financial condition, and results of operations to be adversely affected38% rewritten
  2. 02High levels of competition and low barriers to entry can make it difficult to achieve, maintain, or build upon the success of Mattel's brands, products, and product lines
  3. 03Inaccurately anticipating changes and trends in popular culture, media, fashion, or technology can adversely affect Mattel's business, financial condition, and results of operations89% rewritten
  4. 04swiftly and contribute to the transience and uncertainty of play preferences. Mattel attempts to respond to such trends and developments by modifying, refreshing, extending, and expanding its product offerings on an annual basisNew
  5. 05Mattel's failure to successfully market or advertise its products could have an adverse effect on Mattel's business, financial condition, and results of operations
  6. 06If Mattel does not correctly anticipate demand for its products, Mattel may not be able to secure sufficient quantities or cost-effective production of its products or it could have costly excess production or inventories
  7. 07Mattel has significant customer concentration, such that economic difficulties or changes in the purchasing policies or patterns of its key customers could have an adverse effect on Mattel's business, financial condition, and results of operations25% rewritten
  8. 08To the extent Mattel incorporates AI into its business and products, challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability and adversely affect Mattel's business, financial condition, and results of operationsNew
  9. 09Failure to successfully develop, publish, and commercialize digital games could adversely affect Mattel's business, financial condition, and results of operationsNew
  10. 10Liquidity problems or bankruptcy of Mattel's key customers could have an adverse effect on Mattel's business, financial condition, and results of operations
  11. 11Failure to successfully implement new initiatives or meet product introduction schedules could have an adverse effect on Mattel's business, financial condition, and results of operations
  12. 12The production and sale of private-label, retailer-owned, and exclusive-branded toys by Mattel's retail customers may result in lower purchases of Mattel-branded products by those retail customers96% rewritten
  13. 13Mattel depends on key personnel and may not be able to hire, retain, and integrate sufficient qualified personnel to maintain and expand its business
  14. 14The deterioration of global or regional economic conditions could adversely affect Mattel's business, financial condition, and results of operations
  15. 15Significant changes in currency exchange rates or the ability to transfer capital across borders could have an adverse effect on Mattel's business, financial condition, and results of operations
  16. 16An increasing portion of Mattel's business may come from new or emerging markets, and growing business in these markets presents additional challenges61% rewritten
  17. 17countries, and the responses to and results of these activities, could adversely impact Mattel, its personnel and facilities, its customers and suppliers, retail and financial markets, and general economic conditionsNew
  18. 18Political developments, including in trade relations, and/or trade actions could adversely impact Mattel, its customers or suppliers, and general economic conditions93% rewritten
  19. 19Evolving and sometimes conflicting stakeholder expectations, regulatory requirements, and scrutiny relating to sustainability matters, could expose Mattel to potential liabilities, increase costs, cause reputational harm, and cause other adverse impacts to Mattel's business60% rewritten
  20. 20To the extent Mattel is unable to realize the anticipated cost savings from its previously announced cost savings programs or incurs additional and/or unexpected costs to realize such cost savings, Mattel's business, financial condition, and results of operations could be adversely affected
  21. 21The level of returns on pension plan assets and the actuarial assumptions used for valuation purposes could affect Mattel's earnings in future periods. Changes in standards and government regulations could also affect its pension plan expense and funding requirements
  22. 22If Mattel's goodwill becomes impaired, Mattel's results of operations could be adversely affected
  23. 23Mattel's stock price has been volatile over the past several years and could decline in the future, resulting in losses for Mattel's investors37% rewritten
  24. 24Mattel relies extensively on information technology in its operations, and any material failure, inadequacy, interruption, or security breach of that technology could have an adverse effect on its business, financial condition, and results of operations22% rewritten
  25. 25If Mattel fails to comply with applicable U.S. and foreign laws related to privacy, data security, AI, and data protection, it could adversely affect Mattel's business, financial condition and results of operations53% rewritten
  26. 26Mattel faces risks related to protecting its proprietary IP and information and is subject to third-party claims that Mattel is infringing on their IP rights, either of which could adversely affect Mattel's business, financial condition, and results of operations71% rewritten
  27. 27management and key personnel from business operations. Findings of infringement on the IP rights of any third party by Mattel, its distributors, its licensors, or its manufacturers may require obtaining a license to use those rights, which may not be obtainable on reasonable terms, if at allNew
  28. 28Unfavorable resolution of, or adverse developments in, legal proceedings, other investigations, or regulatory matters could have an adverse effect on Mattel's business, financial condition, and results of operations
  29. 29In addition, increases in import and excise duties and/or sales or value added taxes in the jurisdictions in which Mattel operates could affect the affordability of Mattel's products and, therefore, reduce demand
  30. 30Mattel's substantial indebtedness could adversely affect its ability to raise additional capital to fund its operations, limit its ability to react to changes in the economy or its industry, and expose it to interest rate risk to the extent of its variable rate debt
  31. 31To service Mattel's indebtedness, Mattel requires a significant amount of cash and Mattel's ability to generate cash depends on many factors beyond Mattel's control
  32. 32Mattel's variable rate indebtedness subjects Mattel to interest rate risk, which could cause Mattel's debt service obligations to increase significantly
  33. 33Mattel is dependent upon its lenders for financing to execute its business strategy and meet its liquidity needs. If Mattel's lenders are unable to fund borrowings under their credit commitments or Mattel is unable to borrow, it could adversely affect Mattel's business, financial condition, and results of operations
  34. 34Mattel's stock repurchase program could affect the price of its common stock and may be suspended at any time, and there is no guarantee that repurchases under the program, if any, will enhance stockholder value

Other Mattel 10-Ks

  • FY2024 10-K risk factors
    32 risks

    Mattel faces severe customer concentration with Walmart, Target, and Amazon generating 44% of total net sales. Mattel carries $2.33 billion in debt and $1.40 billion in revolving credit commitments. International markets represent 41% of net sales, exposing Mattel to currency and geopolitical risks.

    Filed Feb 26, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.