WildBrain Reports Full Year 2025 and Q4 2025 Results

Executive Summary

• WildBrain Ltd. reported full-year and fourth-quarter fiscal 2025 results, highlighting strong growth in its Global Licensing business driven by owned IP such as Peanuts, Strawberry Shortcake, and Teletubbies.
• The company announced it will cease operations of its Canadian Television Broadcasting business in Fiscal 2026, having previously attempted to sell the segment but ultimately deciding to wind it down due to market realities and channel cancellations by Bell.
• Fiscal 2025 saw a significant improvement in free cash flow, turning positive at $49.5 million compared to a negative $29.5 million in the prior year, while revenue grew 13% year-over-year to $523.4 million.

Key Details

• Q4 2025 Financials (Including Television):
  • Revenue: $139.1 million (up 7% YoY).
  • Net Income: $9.5 million (compared to a net loss of $80.7 million in Q4 2024).
  • Adjusted EBITDA: $24.6 million (up 3% YoY).
  • Free Cash Flow: Negative $17.3 million (compared to negative $6.6 million in Q4 2024).
  • Cash Used in Operating Activities: $2.0 million (compared to $18.3 million provided in Q4 2024).
• Fiscal 2025 Financials (Including Television):
  • Revenue: $523.4 million (up 13% YoY).
  • Net Loss: $89.8 million (improved from a net loss of $106.0 million in FY 2024).
  • Adjusted EBITDA: $92.3 million (up 5% YoY).
  • Free Cash Flow: Positive $49.5 million (compared to negative $29.5 million in FY 2024).
  • Cash Provided by Operating Activities: $152.5 million (compared to $73.6 million in FY 2024).
• Operational Highlights:
  • Global Licensing revenue grew significantly, driven by owned brands. Strawberry Shortcake revenue grew nearly 200% YoY; Peanuts had its strongest year ever; Teletubbies delivered double-digit gains.
  • Leverage stood at 4.76x at the end of Q4 2025.
• Television Business Status:
  • The company announced in August 2025 that it would cease operations of its Canadian Television Broadcasting business later in the year.
  • The segment was reinstated to held-for-use in June 2025 after a sale agreement was renegotiated/cancelled due to Bell cancelling TV channels.
  • Television results will be reported in net income from operations until cessation, returning to discontinued operations in Q2 2026.
• Fiscal 2026 Outlook:
  • Revenue (including Television): Expected between $560 million and $590 million.
  • Adjusted EBITDA (including Television): Expected between $80 million and $85 million.
  • Revenue Growth (excluding Television): Expected to grow 15% to 20%.
  • Adjusted EBITDA Growth (excluding Television): Expected to grow 15% to 20%.

Notable Quotes

• Josh Scherba, President and CEO: "Fiscal 2025 was a pivotal year for WildBrain as we sharpened our focus on our premium franchises and delivered strong growth across our Global Licensing business... As previously announced, we made the difficult decision to exit the Canadian broadcast television business, a step which reflects the realities of the evolving market and our commitment to concentrating resources on higher-margin, higher-growth opportunities that are shaping the future of kids' and family entertainment."
• Nick Gawne, CFO: "In Fiscal 2025, our focus on our core brands, our investments in high-growth areas and our continued financial discipline drove growth in revenue, adjusted EBITDA and Free Cash Flow. Looking to Fiscal 2026, we expect that story to continue with strong underlying growth in the core business, driven by doubling down on high-growth areas alongside continued focus on operating efficiency."