Teletubbies owner WildBrain's Q4 revenue falls on lower content production

WildBrain

24/09/2026 02:43

Overview
Canada family entertainment firm's Q4 revenue from continuing operations fell 29% yr/yr
Adjusted EBITDA for Q4 was negative C$4 mln, down C$12 mln from prior year
Company, which owns franchises like Strawberry Shortcake and Teletubbies, repurchased and cancelled shares worth C$3.2 mln since launching NCIB

Outlook
WildBrain expects fiscal 2027 revenue of C$270 mln to C$295 mln
Company sees fiscal 2027 Adjusted EBITDA of C$28 mln to C$32 mln
WildBrain expects Adjusted EBITDA to double from 2027 midpoint by end of fiscal 2029

Result Drivers
LICENSING REVENUE DECLINE - Co said lower licensing agency revenues at WildBrain CPLG, due to timing differences and changes in partner relationships, weighed on Q4 revenue
CONTENT PRODUCTION SLOWDOWN - Co said lower live-action production activity and absence of major content delivery reduced Q4 content revenue
ADVERTISING REVENUE GROWTH - Co said higher direct advertising revenue drove growth in WildBrain Network in Q4

Company press release: ID:nNFC1pGp6f

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue from continuing operations 
 
C$55 mln
 
Q4 Net Income
 
C$4.5 mln
 
Q4 Adjusted EBITDA
 
-C$4 mln
 
Q4 Gross Margin
 
39%
 
Q4 Free Cash Flow
 
-C$19.6 mln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 4 "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$1.88, about 21% above its September 22 closing price of C$1.55
The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 213 three months ago

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(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.)