WildBrain (WILD) Q2 2025 earnings summary

Executive summary

• Achieved strong quarterly results led by global licensing, with record growth across multiple franchises and territories.

• Revenue from continuing operations rose 7% year-over-year to CAD 126 million, with total revenue including discontinued operations up to CAD 133 million.

• Strategic focus on core franchises, consumer products licensing, and AVOD platform has driven sustainable, high-quality earnings and cash generation.

• Streamlined operations, reduced senior management, and refinanced debt to extend maturity and improve efficiency.

• Entered a definitive agreement to sell a two-thirds stake in the television business, pending regulatory approval, to focus and simplify operations.

Financial highlights

• Revenue from continuing operations in Q2 was CAD 126 million, up 7% year-over-year; including discontinued operations, revenue was CAD 133 million, up 4%.

• Global licensing revenue reached CAD 80 million, up 32% year-over-year, with Peanuts achieving its highest-ever licensing quarter.

• Adjusted EBITDA from continuing operations was CAD 22 million, up 11%; including discontinued operations, adjusted EBITDA was CAD 26 million, up 4%.

• Free cash flow was positive CAD 49 million, compared to CAD 5 million in the prior year quarter.

• Net loss for continuing operations was CAD 69 million, compared to net income of CAD 7 million last year, due to non-cash FX losses and impairments.

Outlook and guidance

• Reaffirmed fiscal 2025 guidance: revenue growth (including discontinued operations) of 10%-15% and adjusted EBITDA growth of 5%-10%.

• Excluding television, underlying revenue growth expected at 15%-20% and adjusted EBITDA growth at 12.5%-17.5%, trending toward the higher end.

• Free cash flow expected to remain positive for the year, with a significant portion of first-half gains holding through year-end.

• Sale of WildBrain Television could materially impact outlook; strong growth expected in Global Licensing, AVOD, FAST, Media Solutions, and a return to growth in content production.

• Confident in double-digit growth through fiscal 2026 and beyond.