Yellow Pages (Y) Q1 2025 earnings summary

Executive summary

• Revenue decline rate improved for the fifth consecutive quarter, signaling progress toward revenue stability.

• Solid quarterly earnings reported, with continued investment in revenue initiatives and sales force expansion.

• Adjusted EBITDA margin remained strong at 23.4% despite ongoing investments in sales force expansion.

• Net income for Q1 2025 was CAD 5 million, with diluted EPS of $0.35.

• Board declared a CAD 0.25 ($0.25) per share dividend, payable June 16, 2025, to shareholders of record as of May 27, 2025.

Financial highlights

• Total revenues for Q1 2025 were CAD 50.8 million, down 7.6% year-over-year, but an improvement from the 8.1% decrease last quarter.

• Digital revenues decreased 6.8% year-over-year to CAD 40.7 million, with the decline rate improving from last quarter.

• Print revenues fell 10.5% year-over-year to CAD 10.1 million, also showing a slower decline than the previous quarter.

• Adjusted EBITDA dropped 22.3% year-over-year to CAD 11.9 million, with margin decreasing to 23.4% from 27.8%.

• Cash balance at end of April was approximately CAD 49 million.

Outlook and guidance

• Revenue pressures and ongoing investments in sales force capacity are expected to continue to impact margins in upcoming quarters.

• Fundamentals such as stable renewal rates, increased new customer acquisitions, and strong average spend per customer support a positive medium- and long-term outlook.