Postmedia Reports First Quarter Results

Executive Summary

• Postmedia reported Q1 FY 2026 revenue of C$111.9 M, a modest 1.5% increase year‑over‑year, driven primarily by higher parcel and other revenues.
• Net loss narrowed to C$20.4 M (C$0.21 per share) from C$24.5 M (C$0.25 per share) in the comparable period, reflecting lower amortization, restructuring costs and foreign‑exchange losses.
• Cash balance improved to C$5.33 M at quarter end, supported by a C$2.11 M advance on its asset‑based lending facility and reduced financing outflows.

Key Details

• Revenue: C$111.875 M vs. C$110.270 M YoY (+1.5%).
• Advertising: C$56.437 M (−0.06 %)
• Circulation: C$33.720 M (‑6.2 %)
• Parcel services: C$16.706 M (+27.1 %)
• Other: C$5.012 M (+6.4 %)
• Operating Expenses (excl. D&A, impairment, restructuring): C$39.127 M vs. C$37.514 M YoY (+5.0 %). Main drivers were higher compensation and distribution costs; offset by lower newsprint expenses.
• Operating Income before D&A, impairment & restructuring: C$5.095 M vs. C$5.470 M YoY (‑6.8 %).
• Net Loss: C$20.379 M vs. C$24.485 M YoY; loss per share reduced to $(0.21) from $(0.25). Contributing factors: lower amortization, restructuring and foreign‑exchange losses; higher interest expense partially offset gains on derivatives.
• Cash Flow Highlights:
• Operating cash generated: C$4.478 M (down from C$9.490 M YoY).
• Investing cash used: C$0.590 M (primarily purchases of PPE and intangibles).
• Financing cash outflow: C$1.836 M, net of a C$2.105 M advance on the asset‑based lending facility and repayments of C$1.422 M to that facility plus other debt repayments.
• Balance Sheet (as of Nov 30, 2025):
• Cash: C$5.330 M (up from C$3.278 M).
• Total assets: C$134.180 M vs. C$128.025 M YoY.
• Total liabilities: C$553.595 M vs. C$527.010 M YoY, driven by higher long‑term debt (C$398.470 M).
• Liquidity: Asset‑based lending facility provided additional liquidity; cash position increased despite operating cash decline.

Notable Quotes

“Our first quarter performance marks a solid start as we build momentum and continue to advance our fiscal 2026 priorities,” said Andrew MacLeod, President & CEO.
“Growth in parcels and other revenue highlights the importance of diversification… ensuring that Canadian businesses and households were not left without the service they rely on.”

All amounts are expressed in Canadian dollars unless otherwise noted.