Thunderbird Entertainment Group (TBRD) Q1 2025 earnings summary

Executive summary

• Entered fiscal 2025 on solid footing, maintaining forecast for top-line growth by year-end, with Q1 revenue rising 36% year-over-year to $45.7 million driven by increased production service engagements.

• Adjusted EBITDA increased 64% year-over-year to $4.1 million, with margins up 150 basis points to 8.9%.

• Net income reached $1.6 million, up from a loss of $0.7 million in the prior year period.

• Free cash flow improved to $9.7 million from negative $2.4 million, mainly due to higher deferred revenue.

• Recognized as one of Canada's top-growing companies for the second year, with a three-year growth rate of 105%.

Financial highlights

• Q1 revenue was $45.7 million, up 36% year-over-year from $33.6 million.

• Adjusted EBITDA rose to $4.1 million from $2.5 million year-over-year; margin 8.9% vs. 7.4%.

• Net income of $1.6 million, compared to a loss of $0.7 million in the prior year.

• Gross margin declined to 19.6% from 23.5% due to increased lower-margin production services and reduced licensing fees.

• Free cash flow: $9.7 million (Q1 FY25) vs. negative $2.4 million (Q1 FY24).

Outlook and guidance

• Reaffirmed fiscal 2025 targets: 20% revenue growth and over 10% Adjusted EBITDA growth, supported by a strong content pipeline and strategic investments.

• Adjusted EBITDA expected to grow more slowly than revenue due to business mix.

• Good visibility into 2025 and 2026 with ongoing production contracts and new IP launches expected in late fiscal 2025.

• Anticipates gross margin differences due to project mix; continues to seek operational efficiencies.

• Maintains robust balance sheet with no corporate debt, enabling investment in new content.