WildBrain (WILD) Q1 2025 earnings summary

Executive summary

• Achieved 5% year-over-year revenue growth to CAD 111 million ($111.0 million) in Q1 FY2025, driven by robust global licensing, especially Peanuts, Strawberry Shortcake, and Teletubbies.

• AVOD and FAST channel viewership and engagement continued to grow, with Strawberry Shortcake and Teletubbies showing strong digital and social media traction.

• Net loss narrowed to CAD 10.6 million from CAD 15.5 million in Q1 2024, reflecting improved gross margin dollars.

• Adjusted EBITDA declined 19% to CAD 15.3 million, impacted by higher SG&A and absence of a prior-year bad debt recovery.

• Cash provided by operating activities was CAD 25.8 million, a significant improvement from cash used of CAD 3.0 million in Q1 2024.

Financial highlights

• Global licensing revenue rose 27% year-over-year to CAD 63 million ($62.9 million), offsetting a 14% decline in content creation and audience engagement revenue.

• Adjusted EBITDA was CAD 15.3 million, down 19% year-over-year.

• Net loss for the quarter was CAD 10.6 million, improved from CAD 15.5 million loss year-over-year.

• Gross margin was 47%, down from 49% last year, due to higher content amortization and third-party participation expenses.

• Free cash flow improved to positive CAD 4.8 million from negative CAD 25.4 million in Q1 FY2024.

Outlook and guidance

• Reaffirmed FY2025 guidance: revenue growth of 10%-15% and Adjusted EBITDA growth of 5%-10% year-over-year.

• Content production expected to ramp up in the back half of the year, with greater impact on earnings in FY2026.

• Continued growth anticipated in AVOD and FAST channels, with licensing momentum expected to persist.