WildBrain (WILD) Q4 2026 earnings summary

Executive summary

• Fiscal 2026 reshaped operations after the sale of the Peanuts interest and exit from Canadian TV broadcasting; corporate debt was repaid and reporting reorganized around three platforms.

• Focus shifted from debt servicing to investment in scalable growth, with a deliberate investment plan for fiscal 2027.

• Strawberry Shortcake and Teletubbies showed momentum; Personality AI added proprietary generative AI capabilities to the franchise ecosystem.

Financial highlights

• Q4 continuing-operations revenue was $55.0M, down 29% YoY; FY2026 revenue was $245.7M, down 10%.

• Q4 gross margin was $21.2M, or 39% of revenue versus 41% in Q4 2025; FY2026 gross margin was $111.2M, or 45%, up 500 bps YoY.

• Q4 Adjusted EBITDA was $(4.0)M versus $8.1M; FY2026 Adjusted EBITDA was $20.8M, down 22%.

• Q4 continuing-operations net income was $4.5M versus $6.2M; FY2026 net loss was $74.9M, improved from $121.6M in FY2025.

• Free Cash Flow was $(19.6)M in Q4 and $(30.5)M for FY2026; reported FY2026 FCF was $1.1M on a normalized continuing basis after specified adjustments.

Outlook and guidance

• FY2027 revenue guidance is $270M–$295M, with 15% growth at the midpoint; Adjusted EBITDA guidance is $28M–$32M, with ~44% growth at the midpoint.

• FY2027 is an investment year, with ~$30M planned for owned-brand content, franchise marketing, technology, infrastructure, and other capital expenditures.

• Free Cash Flow is expected to be negative after planned FY2027 investment and positive before the $30M investment.

• FY2029 Adjusted EBITDA is targeted at ~2x the FY2027 guidance midpoint; Free Cash Flow is expected to improve as earnings grow and investment moderates.

• Free Cash Flow timing remains sensitive to working capital, production financing, content investment, and capital expenditures.