Earnings release
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Yellow Pages Limited Reports Second Quarter 2026 Financial and Operating Results and Declares a Cash Dividend¹ Montreal ( Quebec ) , August 6 , 2026 - Yellow Pages Limited ( TSX : Y ) ( the “ Company ” ) , a leading Canadian digital media and marketing company , released its operating and financial results today for the quarter ended June 30 , 2026 . " In the second quarter , we delivered solid profitability , and cash generation , despite ongoing revenue pressure resulting from macroeconomic uncertainty , " said Sherilyn King , President and CEO of Yellow Pages Limited . King commented on the key developments : Good quarterly earnings . " Revenue declined 8.0 % year - over - year , while Adjusted EBITDA² remained solid at a 19.1 % margin , supported by ongoing cost discipline and operating efficiencies . " Cash to Shareholders and to Pension Plan . “ During the second quarter , we completed the previously announced plan of arrangement , distributing $ 25.0 million to shareholders through a share buyback . In connection with the plan of arrangement , we also contributed an additional $ 2.0 million to the defined benefit pension plan in April 2026. " Strong cash balance . " Following the disbursements to shareholders and the Pension Plan , our steady cash generation has grown cash on hand to approximately $ 38 million at the end of July . " Quarterly dividend declared . “ Our Board has declared a dividend of $ 0.25 per common share , to be paid on September 15 , 2026 to shareholders of record as of August 17 , 2026. " Financial Highlights ( In thousands of Canadian dollars , except percentage information and per share information ) Yellow Pages Limited For the three - month periods ended June 30 , For the six - month periods ended June 30 , 2026 2025 Revenues $ 47,564 $ 51,682 2026 $ 94,392 Adjusted EBITDA² $ 9,071 $ 10,684 $ 18,100 2025 $ 102,490 $ 22,569 Adjusted EBITDA margin² 19.1 % 20.7 % 19.2 % 22.0 % Income before income taxes $ 4,532 $ 2,187 $ 10,232 $ 8,848 Net income $ 3,304 $ 1,543 $ 7,382 $ 6,506 Basic income per share $ 0.25 $ 0.11 $ 0.55 $ 0.48 Diluted income per share $ 0.24 $ 0.11 $ 0.54 $ 0.46 CAPEX² $ 430 $ 316 $ 978 $ 789 Adjusted EBITDA less CAPEX² $ 8,641 $ 10,368 $ 17,122 $ 21,780 Adjusted EBITDA less CAPEX margin² 18.2 % 20.1 % 18.1 % 21.3 % Cash flows from operating activities $ 9,707 $ 12,144 $ 7,160 $ 15,422 ( 1 ) The dividend will be designated as an eligible dividend pursuant to subsection 89 ( 14 ) of the Income Tax Act ( Canada ) and any applicable provincial legislation pertaining to eligible dividends . ( 2 ) Adjusted EBITDA is equal to Income from operations before depreciation and amortization and restructuring and other charges ( defined herein as Adjusted EBITDA ) , as shown in Yellow Pages Limited's interim condensed consolidated statements of income . Adjusted EBITDA , Adjusted EBITDA margin , CAPEX , Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin are non - GAAP financial measures and do not have any standardized meaning under IFRS® Accounting Standards . Therefore , they are unlikely to be comparable to similar measures presented by other public companies . Refer to the section on Non - GAAP financial measures at the end of this document for more details . 1
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2 Second Quarter of 2026 Results • Total Revenues decreased 8.0% year-over-year and amounted to $47.6 million for the three-month period ended June 30, 2026, compared to the decrease of 7.4% reported for the same period last year. • Adjusted EBITDA less CAPEX 1 totalled $8.6 million and the EBITDA less CAPEX margin1 was 18.2%. • Net income amounted to $3.3 million, or to $0.24 diluted income per share. Financial Results for the Second Quarter of 2026 Total revenues for the second quarter ended June 30, 2026 decreased by 8.0% year-over-year and amounted to $47.6 million, as compared to $51.7 million for the same period last year. The decrease in revenues is mainly due to the decline of our higher margin digital media and print products and to a lesser extent to our lower margin digital services products, thereby creating pressure on our gross profit margins. The total revenues decline rate of 8.0% for the three-month period ended June 30, 2026 compares to 7.4% for the same period last year. The higher revenue decline rate is driven by the decline in print revenue while the decline rate for digital revenue has improved year-over-year. Total digital revenues decreased 6.2% year-over-y ear to $38.4 million for the three-month period ended June 30, 2026, compared to $41.0 million for the same period last year. The decline in digital revenue was mainly attributable to a lower digital customer count, partia lly offset by higher average spend per customer. The improvement in the digital revenue decline rate from 6.4% in the second quarter of 2025 to 6.2% in the second quarter of 2026 was mainly due to a higher average spend per customer, partially offsetting the decrease in digital customer count. Total print revenues decreased 14.8% year-over-year, compared to 11.2% for 2025 and amounted to $9.1 million for the three-month period ended June 30, 2026. The decline in print revenue is mainly due to the decrease in the number of print customers. While the average spend per print customer improved year-over-year as the proportion of lower-spending accounts declined. Adjusted EBITDA1 decreased by $1.6 million or 15.1% to $9.1 m illion, compared to $10.7 million for the same period last year. The Adjusted EBITDA margin1 decreased during the three-month period ended June 30, 2026 to 19.1%, compared to 20.7% for the same period last year. The decrease in Adjusted EBITDA and Adjusted EBITDA margin for the three-month period ended June 30, 2026 was mainly driven by lower revenues, pressure from product mix, higher bad debt expense, and the impact of the Company’s share price on cash settled stock-based compensation expense. These factors were partially offset by optimizations in cost of sales and reductions in other operating costs including reductions in our workfo rce and associated employee expenses including reduced variable compensation resulting from changes to the executive management team in the second half of 2025. The change in YP’s share price resulted in an expense of $0.7 million for the three-month period ended June 30, 2026, compared to an expense of $0.6 million for the same period last year. Revenue pressures and changes in product mix, partially offset by continued optimizations and cost reductions, will continue to cause pressure on margins in upcoming quarters. Adjusted EBITDA less CAPEX decreased by $1.7 million or 16.7% to $8.6 million duri ng the second quarter of 2026, compared to $10.4 million during the same period last year. The decrease in Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin for the three- month period ended June 30, 2026 is mainly driven by the decrease in Adjusted EBITDA. Net income increased to $3.3 million for the three-month period ended June 30, 2026 compared to net income of $1.5 million for the same period last ye ar. The year-over-year increase in net income for the three-month period ended June 30, 2026 is mainly due to the settlement loss on annuity purchase recorded in 2025, and lower financial charges, partially offset by lower adjusted EBITDA and an increase in restructuring and other charges. Cash flows from operating activities decreased by $2. 4 million to $9.7 million for the three-month period ended June 30, 2026 from $12.1 million for the same period last year. The decrease is main ly due to lower Adjusted EBITDA of $1.6 million and an increase in funding of post- employment benefit plans of $1.8 million due to the voluntary cash contributions made to the defined benefit pension plan, partially offset by a $1.1 million increase in change in operating assets and liabilities. The change in operating assets and liabilities is mainly due to the timing in the collection of trade receivables. (1) Adjusted EBITDA is equal to Income from operations before depreciation and amortization and restructuring and other charges (d efined herein as Adjusted EBITDA), as shown in Yellow Pages Limited’s interim condensed consolidated statements of income. Adjusted EBITDA, Adjusted EBITDA margin, CAPEX, Adjusted EBITDA less CAPEX, Adjusted EBITDA less CAPEX margin are non-GAAP financial measures and do not have any standardized meaning under IFRS Accounting Standards. Therefore, they are unlikely to be comparable to sim ilar measures presented by other public companies. Refer to the section on Non-GAAP financial measures at the end of this document for more details.
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3 Conference Call & Webcast Yellow Pages Limited will hold an analyst and media call and simultaneous webcast at 8:30 a.m. (Eastern Time) on August 6, 2026 to discuss second quarter 2026 results. To join by phone: USA - Toll-Free (800) 715-9871 USA / International Toll +1 (646) 307-1963 Canada - Toronto (647) 932-3411 Canada - Toll-Free (800) 715-9871 Passcode: 6097436 To join by webcast: • ENG: https://edge.media-server.com/mmc/p/ovjj797t • FR: https://edge.media-server.com/mmc/p/ovjj797t/lan/fr The call phone numbers and the webcast links can also be found on the Company's website at: https://corporate.yp.ca/events/q2-2026-financial-and-operational-results. The conference call will be archived in the Investors section of the site at: https://corporate.yp.ca/en/investors/financial-events-presentations. About Yellow Pages Limited Yellow Pages Limited (TSX: Y) is a Canadian digital media and marketing company that creates opportunities for buyers and sellers to interact and transact in the local economy. Yellow Pages holds some of Canada’s leading local online properties including YP.ca, Canada411 and 411.ca. The Company also holds the YP, Canada411 and 411 mobile applications and Yellow Pages print directories. For more information visit www.corporate.yp.ca. Caution Concerning Forward-Looking Statements This press release contains forward-looking statements about the objectives, strategies, financial conditions and results of operations and businesses of YP (including, wi thout limitation, payment of a cash dividend per share per quarter to its common shareholders). These statements are forward-looking as they are based on our current expectations, as at August 5, 2026, about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed in section 5 of our August 5, 2026 Management’s Discussion and Analysis. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason. Contact: Investors & Media Philip Samman General Counsel & Corporate Secretary investors@yp.ca communications@yp.ca
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4 Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA margin In order to provide a better understanding of the results, the Company uses the terms Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA is equal to Income from operations before depreciation and amorti zation and restructuring and other charges (defined her ein as Adjusted EBITDA), as shown in Yello w Pages Limited’s interim condensed consolidated statements of income. Adjusted EBITDA ma rgin is defined as the percentage of Adjusted EBITD A to revenues. Adjusted EBITDA and Adjusted EBITDA margin are not performance measures defined under IFRS Accounting Standards and are not considered an alternative to income from operations or net income in the context of measuring Yellow Pages performance. Adjusted EBITDA and Adjusted EBITDA margin do not have a standardized meaning under IFRS Accounting Standards and are therefore not likely to be comparable to similar measures used by other public ly traded companies. Adjusted EBITDA and Adjusted EBITDA margin should not be used as exclusive measures of cash flow since they do not account for the impact of working capital changes, income taxes, interest payments, pension funding, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed on page 11 of our August 5, 2026 MD&A. Management uses Adjusted EBITDA and Adjusted EBITDA marg in to evaluate the perform ance of its business as it reflects its ongoing profitability. Management believes that certain investors and analysts use Adjusted EBITDA and Adjusted EBITDA margin to measure a company’s ability to service debt and to meet other payment obligations or as comm on measurement to value companies in the media and marketing solutions industry as well as to evaluate the performance of a business. Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin The Company also uses Adjusted EBITDA less CAPEX, which is defined as Adjusted EBITDA, as defined above, less CAPEX which we define as additions to intangible assets and additions to property and equipment as reported in the Investing Activities section of the Company’s consolidated statements of cash flow s. Adjusted EBITDA less CAPEX margin is defined as the percentage of Adjusted EBITDA less CAPEX to revenues. Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin are non-GAAP financial measures and do not have any standardized meaning under IFRS Accounting Standards. Therefore, are unlikely to be comparable to similar measures presented by other publicly traded companies. We use Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin to evaluate the performance of our business as it reflects cash generated from business activities. We believe that certain investors and analysts use Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin to evaluate the performance of businesses in our industry. The most comparable financial measure under IFRS Accounting Standards to Adjusted EBITDA less CAPEX is Income from operations before depreciation and amortization and restructuring and other charges (defined above as Adjusted EBITDA) as shown in Yellow Pages Limited’s interim condensed consolidated statements of income. Refer to table below for reconciliation of Adjusted EBITDA less CAPEX. Adjusted EBITDA less CAPEX (In thousands of Canadian dollars, except percentage information) For the three and six-month periods ended June 30, 2026 2025 2026 2025 Income from operations bef ore depreciation and amortization and restructuring and other charges (Adjusted EBITDA) $ 9,071 $ 10,684 $ 18,100 $ 22,569 CAPEX 430 316 978 789 Total Adjusted EBITDA less CAPEX $ 8,641 $ 10,368 $ 17,122 $ 21,780