WildBrain (WILD) Q3 2026 earnings summary

Executive summary

• Completed the Peanuts transaction, eliminating all corporate term debt and enhancing financial flexibility, enabling the launch of an NCIB share repurchase program.

• Strategic focus sharpened around franchise and global licensing, content, and WildBrain Network, with investments in automation, organizational redesign, and foundational technology to support scalable growth.

• Core franchises like Strawberry Shortcake and Teletubbies showed strong global momentum, with licensing, retail, and digital engagement growth.

• Expanded partnerships with major brands, including Dr. Seuss, Sega, and Rovio, reinforcing global licensing leadership.

• Launched NCIB share repurchase program, buying back over 600,000 shares, including 358,600 shares for $542,310.

Financial highlights

• Revenue from continuing operations was $61.2 million (CAD 61 million), down 16% year-over-year, due to lower production activity and digital platform revenue.

• Global Licensing revenue rose 35% to $25.1 million (CAD 25 million), while Content Creation and Audience Engagement revenue fell 33% to $36.1 million (CAD 36 million).

• Gross margin improved to 46% from 33% last year, driven by higher-margin licensing revenue.

• Adjusted EBITDA from continuing operations was $6 million (up 38% year-over-year), with net loss from continuing operations at $14 million (CAD) or $19.9 million (USD).

• Free cash flow from continuing operations was $10 million (CAD +10 million), but consolidated free cash flow was negative $15.5 million.

Outlook and guidance

• Guidance for fiscal 2026 remains paused due to recent transformation and Peanuts transaction; management expects to resume guidance for fiscal 2027.

• Investments in organizational design, automation, and technology are expected to improve scalability and margins, with benefits anticipated from 2027 onward.

• Strong franchise growth, robust content pipeline, and improved free cash flow position the business for future growth.

• Fiscal 2027 expected to benefit from new content projects, including a second season of a successful Netflix series.