WildBrain (WILD) Q2 2026 earnings summary

Executive summary

• Achieved strong double-digit growth in global licensing, led by Strawberry Shortcake and Teletubbies, with continued digital engagement momentum and premium content success such as Netflix's Finding Her Edge and Yo Gabba GabbaLand! renewals.

• Announced sale of 41% stake in Peanuts for $630 million CAD to Sony, eliminating all debt and providing a cash surplus for reinvestment and enhanced balance sheet flexibility.

• Transitioned to a more focused, debt-free business model centered on wholly owned IP, digital platforms, and cost management, with exit from Canadian TV broadcasting.

• FY26 is a transition year, focusing on digital platforms, cost management, and capital redeployment, with guidance paused until FY27.

Financial highlights

• Revenue from continuing operations was $72.4M CAD, up 11% year-over-year; Global Licensing revenue grew 24% to $27.3M, and Content Creation & Audience Engagement revenue rose 4% to $45.1M.

• Adjusted EBITDA from continuing operations increased 30% to $15M; gross margin improved to 50% from 48% year-over-year.

• Net loss narrowed to $20.1M from $86.4M year-over-year.

• Discontinued operations (mainly Peanuts) generated $131.8M in revenue, up 83%, and $22.6M in adjusted EBITDA, up 54%.

• Free cash flow was positive at $15.3M; leverage at quarter-end was 4.88x, to be eliminated post-Peanuts sale.

Outlook and guidance

• Fiscal 2026 guidance remains paused due to ongoing transformation and the Peanuts transaction, with plans to resume for fiscal 2027.

• Focused on investing in technology, infrastructure, and automation to drive efficiency, margin expansion, and growth.

• Anticipates high growth and strong free cash flow generation post-Peanuts transaction, with licensing growth and higher margin mix expected to continue.

• Plans to re-segment financial reporting for clearer insight into ongoing operations.