Canada's WildBrain Q3 revenue falls 16%, EBITDA rises on brand momentum

WildBrain

14/05/2026 05:19

Overview

The Canadian family entertainment firm's Q3 revenue from continuing ops fell 16% yr/yr

Adjusted EBITDA from continuing ops rose 38% yr/yr, driven by Global Licensing growth

Company completed Peanuts sale, eliminated debt, and began C$542,310 share buyback

Outlook

WildBrain is maintaining a pause on fiscal 2026 guidance amid ongoing transformation initiatives

Company expects investments in reorganization and automation to deliver benefits starting in calendar 2027

Management anticipates resuming financial guidance for fiscal 2027

Result Drivers

GLOBAL LICENSING GROWTH - Co said 35% yr/yr increase in Global Licensing revenue was driven by momentum across owned brands and WildBrain CPLG

CONTENT CREATION DECLINE - Co said 33% yr/yr decrease in Content Creation and Audience Engagement revenue was due to timing of live-action production revenue and lower Audience Engagement revenue

HIGHER GROSS MARGIN - Co attributed increase in gross margin to growing contribution from higher-margin Global Licensing business

Company press release: ID:nNFC4GG3Sb

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$25.10 mln
C$77 mln (2 Analysts)
Q3 Gross Margin
46.00%
Q3 Free Cash Flow
-C$15.50 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the entertainment production peer group is "buy."

Wall Street's median 12-month price target for WildBrain Ltd is C$2.00, about 53.8% above its May 13 closing price of C$1.30

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)