WildBrain (WILD) Q3 2025 earnings summary

Executive summary

• Revenue from continuing operations rose 42% year-over-year to CAD 128.4 million, with total revenue including discontinued operations up 40% to CAD 140.1 million.

• Global licensing revenue surged 44% year-over-year, led by Peanuts, Strawberry Shortcake, and Teletubbies, with a successful Peanuts-Starbucks partnership.

• Content creation and audience engagement revenue increased 40% year-over-year, driven by new productions for Netflix and Apple TV+ and increased viewership across AVOD and FAST platforms.

• Strategic focus on high-potential, higher-margin brands and streamlining operations, including the sale of TV channels, positions the business for sustainable growth and cash generation.

• Owned brands now represent over 70% of continuing operations revenue, up from just over 50% last year.

Financial highlights

• Net loss from continuing operations was CAD 10.8 million, improved from CAD 16.4 million loss in the prior period; net loss including discontinued operations was CAD 13.8 million, down from CAD 14.7 million.

• Adjusted EBITDA from continuing operations was CAD 15.9 million, up 18%; including discontinued operations, CAD 26.1 million, up 33%.

• Gross margin for Q3 2025 was 40%, down from 48% in Q3 2024, but gross margin dollars increased to CAD 51.4 million from CAD 43.2 million.

• Free cash flow in the quarter was positive CAD 12.7 million, compared to negative CAD 2.9 million in Q3 2024; year-to-date free cash flow was positive CAD 66.8 million, versus negative CAD 23 million in the prior nine-month period.

• Leverage ratio reduced to 4.4x from 5.3x in the previous quarter.

Outlook and guidance

• Fiscal 2025 revenue growth (including discontinued operations) expected at 10–15%; adjusted EBITDA growth at 5–10%.

• Continuing operations revenue growth expected at 15–20%, with adjusted EBITDA growth now guided at 5–10% due to timing impacts in higher-margin distribution deals.

• Free cash flow expected to remain strongly positive through the fourth quarter, despite some working capital outflows.

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