Earnings release
Page 1
Investors - WildBrain WILDBRAIN REPORTS Q2 2026 RESULTS Q2 Operational Highlights Strong revenue growth in Global Licensing with a 24% year-over-year increase, driven by both owned and partner brands. Announced an agreement in December 2025 to sell WildBrain’s 41% stake in Peanuts, with the majority of proceeds to be used to fully repay debt, leaving over $40 million cash surplus. Subsequent to the quarter, WildBrain’s hit Netflix show, Finding Her Edge, was greenlit for a second season. Subsequent to the quarter, Season 2 of Yo Gabba GabbaLand! launched on Apple TV. Q2 Financial Highlights for Continuing Operations1 Revenue from continuing operations was $72.4 million, up 11% year over year. Net loss attributable to Shareholders of the Company from continuing operations was $20.1 million, compared with net loss attributable to Shareholders of the Company of $86.4 million in Q2 2025. Adjusted EBITDA attributable to WildBrain2 from continuing operations was $14.9 million, up 30% year over year. Q2 Financial Highlights for Discontinued Operations1 Revenue from discontinued operations was $131.8 million, up 83% year over year, driven by recognition of the Peanuts library renewal deal with Apple TV. Adjusted EBITDA attributable to WildBrain2 from discontinued operations was $22.6 million, up 54% year over year. Toronto, ON – February 11, 2026 – WildBrain Ltd. (“WildBrain” or the “Company”) (TSX: WILD), a global leader in family entertainment, today reported its second quarter (“Q2 2026”) results for the period ended December 31, 2025. Josh Scherba, WildBrain President and CEO, said: “Our Global Licensing business delivered standout performance in the second quarter, driven by continued momentum across Strawberry Shortcake and Teletubbies. Our content also continues to resonate with global audiences, highlighted by the successful debut of Finding Her Edge on Netflix and its rapid renewal, reinforcing the strength of our premium content pipeline and our ability to deliver culturally relevant stories that travel internationally. “The announced transaction to sell our interest in Peanuts crystallizes the value of the brand and will eliminate our debt and provide the financial flexibility to reinvest in high-growth, high-margin opportunities. With a more focused business and the ability to invest where we see the strongest returns, I am confident in what lies ahead for WildBrain.” Nick Gawne, WildBrain CFO, added: “The second quarter marked an important period of transition for WildBrain as we advanced initiatives to simplify our operating and financial profile. The wind-down of our Canadian Television Broadcasting business and the announced Peanuts transaction reflect a deliberate shift toward a more focused, scalable and capital-efficient business model. “The anticipated repayment of our Senior Secured Credit Facility upon closing of the Peanuts transaction, will significantly strengthen our balance sheet and enhance our ability to invest in our core businesses. With a streamlined cost structure, a simplified balance sheet, plus the capital flexibility to invest for strong revenue, EBITDA and free cash flow growth, we’re entering a new phase of opportunity for WildBrain.” Fiscal Year 2026 Outlook Fiscal 2026 guidance remains paused while the Company accelerates a transformational agenda that is reshaping its growth profile and positioning it for durable, higher-quality returns. Over the past twelve months, the Company has executed a series of strategic moves — including the exit of its Television business, simplification of its share structure, and the anticipated sale of its interest in Peanuts with the associated full repayment of debt — that materially strengthen the balance sheet and sharpen management’s focus on high-growth opportunities. With debt eliminated and strong free cash flow from continuing operations, the Company is primed to invest meaningfully in structural reorganization and automation initiatives that will reduce SG&A, improve scalability, and enhance long-term margins. These investments are expected to begin delivering measurable benefits in calendar 2027 and beyond, while the Company continues to drive near-term operational performance across its owned brands, WildBrain CPLG, its production slate, and its differentiated digital platforms. To better reflect the Company’s go-forward operations and provide investors with clearer insight into underlying economics, the Company will re-segment its financial reporting. Given the timing and early stage of the infrastructure and technology investments, the Company is maintaining a pause on Fiscal 2026 guidance; management expects to learn more about the scale of our transformation opportunities in the coming months and anticipates resuming financial guidance for Fiscal 2027. The Company will continue to provide regular qualitative updates on strategic priorities, operational progress, and the path to enhanced profitability. Q2 2026 Financial Highlights from Continuing Operations1 In Q2 2026, revenue from continuing operations increased 11% to $72.4 million, compared to $65.5 million in Q2 2025. Global Licensing revenue increased 24% to $27.3 million in Q2 2026, compared to $21.9 million in Q2 2025. Revenue in the quarter was driven by WildBrain's owned brands, Strawberry Shortcake and Teletubbies, and our global licensing agency, WildBrain CPLG. Content Creation and Audience Engagement revenue increased 4% to $45.1 million in Q2 2026, compared to $43.6 million in Q2 2025. Segment revenue reflected growth in production revenues as compared to the prior year, offset by lower Audience Engagement revenues across distribution, YouTube, and FAST. Despite lower monetization, engagement levels across distribution, YouTube, and FAST platforms remained strong during the quarter, supporting ongoing brand awareness and long-term franchise growth. Gross Margin2 for Q2 2026 was 50%, compared to Gross Margin of 48% in Q2 2025. Gross Margin for Q2 2026 was $35.9 million, an increase of $4.7 million, compared to $31.2 million for Q2 2025. Adjusted EBITDA from continuing operations increased 30% to $14.9 million in Q2 2026, compared with $11.5 million in Q2 2025.
Page 2
Q2 2026 net loss from continuing operations attributable to Shareholders of the Company was $20.1 million, compared to a net loss of $86.4 million in Q2 2025. Other Financial Highlights Cash provided by operating activities, which is presented on a consolidated basis, was $45.7 million, compared to cash provided by operating activities of $81.4 million in Q2 2025. Free Cash Flow2, which is presented on a consolidated basis, was positive $15.3 million, compared to positive $49.3 million in Q2 2025. Leverage as of the end of Q2 2026 was 4.88x. Proceeds from the sale of Peanuts are expected to be used to repay all of the Company’s outstanding debt. Supplemental Table: Adjusted EBITDA attributable to WildBrain - Continuing Operations Adjusted EBITDA from Continuing Operations (in millions of Cdn$) 2Q26 1Q26 4Q25 3Q25 2Q25 1Q25 Revenue3 $72.4 $58.6 $78.1 $73.9 $65.5 $59.0 Cost of Sales $(36.5) $(32.5) $(46.5) $(50.1) $(34.3) $(35.5) Gross Margin $35.9 $26.1 $31.6 $23.8 $31.2 $23.5 SG&A $(21.0) $(22.1) $(23.3) $(20.3) $(19.5) $(20.7) Adjusted EBITDA $14.9 $4.0 $8.2 $3.5 $11.7 $2.8 Portion of Adjusted EBITDA attributable to NCI $— $0.1 $(0.2) $0.8 $(0.2) $— Adjusted EBITDA from continuing operations attributable to WildBrain $14.9 $4.1 $8.1 $4.2 $11.5 $2.8 Supplemental Table: Adjusted EBITDA attributable to WildBrain - Discontinued Operations Adjusted EBITDA from Discontinued Operations (in millions of Cdn$) 2Q26 1Q26 4Q25 3Q25 2Q25 1Q25 Revenue3 $131.8 $71.9 $65.7 $71.4 $72.2 $55.7 Cost of Sales $(75.5) $(34.6) $(34.0) $(32.4) $(39.1) $(26.5) Gross Margin $56.3 $37.3 $31.7 $39.1 $33.1 $29.2 SG&A $(8.0) $(7.2) $(6.8) $(7.6) $(6.9) $(6.6) Adjusted EBITDA $48.3 $30.2 $24.9 $31.5 $26.2 $22.6 Portion of Adjusted EBITDA attributable to NCI $(25.7) $(13.4) $(8.4) $(9.7) $(11.5) $(10.0) Adjusted EBITDA from discontinued operations attributable to WildBrain $22.6 $16.8 $16.5 $21.9 $14.7 $12.5 Subsequent to the closure of Television on October 22, 2025, and the announcement of the definitive agreement to sell its 41% stake in Peanuts Holdings LLC on December 18, 2025, in order to provide a consistent and clear view of the continuing operations of the business, the Company is presenting its results both on a continuing operations and discontinued operations basis. The continuing operations basis excludes the results of Television, and Peanuts. The results of Peanuts remove the results arising directly from the Company’s ownership of 41% of Peanuts Holdings LLC, the Company's current role as distributor of Peanuts content, and any adjustments made to balances to consolidate Peanuts activity into the Company's results. For example, commissions earned representing Peanuts' consumer products business are recorded as revenue from continuing operations, and the commensurate cost of sale is recorded as discontinued operations. Free Cash Flow, Gross Margin, Adjusted EBITDA, and Adjusted EBITDA attributable to WildBrain are non-GAAP financial measures - see below for further details. Continuing and discontinued operations do not sum to previously reported consolidated revenue and cost of sales primarily due to the recognition of WildBrain CPLG commissions in continuing operations, which were previously eliminated as intercompany revenue under consolidated reporting. Q2 2026 Conference Call The Company will hold a conference call on February 12, 2026, at 10:00 a.m. ET to discuss the results. To listen online, please visit the following link: https://www.gowebcasting.com/14602 To listen by phone, please dial +1-833-752-5599 in North America (toll free) or +1 647-258-0576 internationally (tolls apply). If dialing in, please allow 10 minutes to be connected to the conference call.
Page 3
Replay will be available at the above link or by dialing 1-855-669-9658 in North America (toll free) or +1 412-317-0088 internationally (tolls apply), until February 19, 2026, using access code 6771886. The audio and transcript will also be archived on WildBrain's website approximately three business days following the call. For more information, please contact: Investor Relations: Kathleen Persaud - VP, Investor Relations, WildBrain kathleen.persaud@wildbrain.com +1 212-405-6089 Media: Shaun Smith - Sr. Director, Global Communications & Public Relations, WildBrain shaun.smith@wildbrain.com +1 416-977-7230 About WildBrain At WildBrain we inspire imaginations through the wonder of storytelling. A leader in 360° franchise management—spanning Content Creation, Audience Engagement and Global Licensing—our mission is to cultivate and grow love for our own and partner brands through exceptional entertainment experiences. Home to such franchises as Peanuts, Teletubbies, Strawberry Shortcake, Yo Gabba Gabba!, Inspector Gadget and Degrassi, we produce such acclaimed series as The Snoopy Show, Snoopy in Space, Camp Snoopy, Teletubbies Let’s Go!, Yo Gabba GabbaLand!, Sonic Prime and Strawberry Shortcake: Berry in the Big City. With a library of approximately 14,000 half-hours, our shows reach kids and families everywhere, including on our YouTube network, which has generated more than 1.7 trillion minutes of watch time. Our consumer products licensing arm, WildBrain CPLG, represents our own and partner brands in every major territory worldwide. Headquartered in Toronto, WildBrain trades on the Toronto Stock Exchange (TSX: WILD). Visit us at wildbrain.com. Forward-Looking Statements This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects WildBrain’s current assumptions and expectations regarding future events as at the time they are made. The words “will”, “expects”, “anticipates”, “believes”, “plans”, “intends” and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond WildBrain’s control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include but are not limited to: changes in general economic, business and political conditions. WildBrain undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. Non-IFRS Measures In addition to the results reported in accordance with IFRS as issued by the International Accounting Standards Board, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of our operating performance and financial position. These non-GAAP financial measures are provided to enhance the user’s understanding of our historical and current financial performance and our prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of our core operating results and ongoing operations and provide a consistent basis for comparison between periods. The following discussion explains the Company’s use of certain non-GAAP financial measures, which are Adjusted EBITDA, Adjusted EBITDA attributable to the Shareholders of the Company, Gross Margin and Free Cash Flow. Investors are cautioned that these non-GAAP financial measures should not be construed as an alternative measure to net income or loss, or other measures as determined in accordance with GAAP, or as an indicator of the Company’s financial performance or a measure of liquidity and cash flows. “Adjusted EBITDA” means earnings (loss) before net finance costs, income taxes, amortization of property & equipment and right-of-use and intangible assets, amortization of acquired and library content, equity-settled share-based compensation expense, changes in fair value of embedded derivatives, gain/loss on foreign exchange, reorganization, development and other expenses, impairment of certain investments in film and television programs/acquired and library content/P&E/intangible assets/goodwill, and also includes adjustments for other identified charges, as specified in the accompanying tables. Adjusted EBITDA is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Management believes that certain lenders, investors and analysts use Adjusted EBITDA to measure a company’s ability to service debt and meet other payment obligations, and as a common valuation measurement in the media and entertainment industry. Further, certain of our debt covenants use Adjusted EBITDA in the calculation. The most comparable GAAP measure is earnings before income taxes. “Adjusted EBITDA attributable to the Shareholders of the Company” means Adjusted EBITDA excluding the portion of Adjusted EBITDA attributable to non- controlling interests. “Gross Margin” means revenue less direct production costs and expense of film and television produced. Gross Margin is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Gross Margin may not be comparable to similar measures presented by other issuers. Management believes Gross Margin is a useful measure of profitability before considering operating and other expenses and can be used to assess the Company’s ability to generate positive net earnings and cash flows. The most comparable GAAP measure is gross profit. “Free Cash Flow” means operating cash flow less distributions to non-controlling interests, changes in interim production financing, cash interest paid on our long-term debt, bank indebtedness, and lease liabilities, and principal repayments on our lease liabilities. Free Cash Flow does not have a standardized meaning prescribed by GAAP; accordingly, Free Cash Flow may not be comparable to similar measures presented by other issuers. Management believes Free Cash Flow is a useful measure of the Company’s ability to repay debt, finance strategic business acquisitions and investments, pay dividends, and repurchase shares. The most comparable GAAP measure is cash from operating activities. https://investors.wildbrain.com/2026-02-11-WILDBRAIN-REPORTS-Q2-2026-RESULTS