Blue Ant Media (BAMI) Q3 2025 earnings summary

Executive summary

• Q3 marked the first quarter as a public company after a reverse takeover completed on August 1, 2025, which improved the balance sheet, increased available capital, and added three new production companies, enhancing scale and diversity.

• Results discussed are for Blue Ant only, excluding newly acquired businesses, and are reported in Canadian dollars for the period ended May 31, 2025.

• Adjusted EBITDA rose 31% year-over-year, driven by strong growth in Global Channels & Streaming and increased Connected TV (CTV) ad sales.

• Revenues increased 7% year-over-year, with global advertising growth offsetting declines in production revenues due to delayed greenlights.

• Net loss for the quarter was $11.2M, compared to net income of $3.8M in the prior year, impacted by one-time charges including transaction costs, goodwill impairment, and share-based compensation.

Financial highlights

• Q3 revenues were $55.7M, up 7% year-over-year, driven by global advertising, particularly CTV ad sales, and a one-time programming event boost.

• Adjusted EBITDA for the quarter was $14.6M, up from $11.1M year-over-year, reflecting margin expansion.

• Loss from continuing operations was $11.2M, compared to income of $2.7M in the prior year, due to significant one-time charges.

• Operating cash inflow for the first nine months was $5.0M, down from $5.6M, mainly due to RTO transaction costs.

• Net loss per share from continuing operations was $(0.09) for the quarter and $(0.12) for the nine months.

Outlook and guidance

• Management anticipates future quarters will reflect increased scale and strength post-RTO, with opportunities for organic and acquisition-driven growth.

• Expects continued softness in the ad market in the near term, with industry forecasts suggesting improvement as advertiser demand rebounds.

• Management sees current industry conditions as an opportunity for content and business acquisitions at attractive valuations.

• Projected future operating results in fiscal 2026 and beyond are expected to support realization of certain deferred tax assets.

• Management expects continued revenue seasonality, with peak demand in the second half of the fiscal year.