Blue Ant Media (BAMI) Q4 2025 & Acquisition earnings summary

Executive summary

• Announced a definitive agreement to acquire Thunderbird Entertainment, a global content studio, for CAD 89 million (USD 89 million), with closing anticipated in Q1 2026; consideration includes cash and shares at a 28% premium to the 45-day VWAP or 50% spot premium as of November 25, 2025.

• The acquisition is expected to be immediately accretive to earnings and cash flow per share, with CAD 7 million in annual cost synergies and expanded content capabilities.

• Thunderbird shareholders can elect to receive cash or Blue Ant shares, subject to a CAD 40 million cash cap and proration; 37% of shareholders have entered into voting support agreements.

• The deal was a direct negotiation, not a competitive bidding process, and is unanimously recommended by both boards, subject to regulatory, court, and shareholder approvals.

• Fairness opinions were provided by independent financial advisors.

Financial highlights

• Blue Ant reported FY2025 revenue of CAD 204 million (USD 204 million), up from CAD 196.4 million in 2024; Q4 revenue was CAD 60.8 million.

• Thunderbird reported FY2025 revenue of USD 185.7 million, net income of USD 6.3 million, and Adjusted EBITDA of USD 18.3 million, a 10% year-over-year increase.

• Blue Ant's FY2025 net income was USD 14.3 million, with Adjusted EBITDA of USD 37.1 million, nearly flat year-over-year.

• Blue Ant had CAD 54.4 million in cash as of August 31, 2025, and expects an additional CAD 48.3 million by March 2026 from RTO-related payments.

• Q4 2025 net income was USD 29.2 million, driven by a one-time RTO gain.

Outlook and guidance

• Blue Ant expects Q1 2026 results to be moderately lower than Q1 2025 due to a non-recurring promotional benefit in the prior year.

• Thunderbird expects full-year revenue growth in the mid- to high-single-digit range year-over-year, with Adjusted EBITDA margins in line with the prior year; 76% of its current production slate revenue is approved and underway.

• Annual cost synergies of CAD 7 million are expected post-acquisition, improving adjusted EBITDA and cash flow.

• Management anticipates full receipt of Value Assurance Payment based on current financial performance.