Thunderbird Entertainment Group (TBRD) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue rose 29% year-over-year to CAD 45.5 million, with year-to-date revenue up 22% to CAD 138.3 million, driven by increased production service engagements.

• Adjusted EBITDA for Q3 was CAD 5.9 million, up 79% year-over-year, and year-to-date adjusted EBITDA rose 46% to CAD 14.2 million, with margin up 160 bps to 10.2%.

• Net income for Q3 was CAD 2.2 million, marking the sixth consecutive profitable quarter and a rebound from CAD 5,000 a year ago.

• The company remains debt-free, maintaining a strong balance sheet and financial flexibility to support growth initiatives.

• Creative achievements included an Emmy win for "Molly of Denali," eight Canadian Screen Awards nominations, and new international distribution deals.

Financial highlights

• Q3 revenue: CAD 45.5 million (up from CAD 35.4 million); year-to-date: CAD 138.3 million (up from CAD 113.5 million).

• Q3 adjusted EBITDA: CAD 5.9 million (up from CAD 3.3 million); year-to-date: CAD 14.2 million (up from CAD 9.7 million).

• Q3 net income: CAD 2.2 million (up from CAD 5,000); year-to-date: CAD 4.5 million (up from a CAD 104,000 loss).

• Q3 gross margin: 24.2% (up from 23.3%); year-to-date: 21.7% (down from 22.9%).

• Licensing and distribution revenue surged 302% to CAD 10.8 million in Q3, driven by major content deliveries.

Outlook and guidance

• Fiscal 2025 guidance reaffirmed: targeting 20% revenue growth and over 10% adjusted EBITDA growth.

• Management remains optimistic about top-line growth but notes uncertainty due to potential U.S. tariffs on non-U.S. content.

• Gross margin variance anticipated due to project mix in fiscal 2025 versus 2024.

• Several ongoing productions provide visibility beyond 2025.

• Company continues to seek operational efficiencies and cost savings while investing in new content.