WildBrain (WILD) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 was transformational, with the sale of Peanuts interest, exit from Canadian TV broadcasting, and full repayment of corporate debt, resulting in a simplified business and strengthened balance sheet.

• The company reorganized around three core growth platforms: Franchise & Global Licensing, Content, and WildBrain Network, with new segment reporting effective Q4.

• Repurchased and cancelled CAD 3.2 million in common shares under NCIB, demonstrating commitment to shareholder returns.

• Acquired Personality AI, adding proprietary generative AI capabilities to the franchise ecosystem.

• Expanded fan engagement with new Strawberry Shortcake series and opened WildBrain Garden retail experience in China.

Financial highlights

• Q4 2026 revenue from continuing operations was CAD 55 million, down 29% year-over-year; full-year revenue was CAD 246 million, down 10%.

• Q4 gross margin was CAD 21 million (39% of revenue), down from CAD 32 million (41%) last year; full-year gross margin was CAD 111 million (45%).

• Adjusted EBITDA from continuing operations was -CAD 4 million in Q4 (vs. +CAD 8 million prior year); full-year adjusted EBITDA was CAD 21 million, down 22%.

• Net income from continuing operations was CAD 5 million in Q4 (vs. CAD 6 million prior year); full-year net loss was CAD 75 million, improved from CAD 122 million loss in 2025.

• Free cash flow was -CAD 20 million in Q4 and -CAD 31 million for the year, impacted by working capital and the Peanuts transaction.

Outlook and guidance

• Fiscal 2027 revenue guidance: CAD 270–295 million (midpoint ~15% growth); adjusted EBITDA guidance: CAD 28–32 million (midpoint ~44% growth).

• Fiscal 2027 is an investment year, with ~CAD 30 million in planned investments across content, marketing, technology, and infrastructure.

• Free cash flow expected to be negative in fiscal 2027 due to investments, but positive before these planned investments.

• Adjusted EBITDA expected to approximately double by fiscal 2029 from the 2027 midpoint.