SEDAR Interim Financial Statements

WildBrain Ltd. Interim Condensed Consolidated Financial Statements (unaudited) December 31, 2025 (expressed in thousands of Canadian dollars) February 11, 2026 Management’s Responsibility for Financial Reporting The accompanying interim condensed consolidated financial statements of WildBrain Ltd. (the “Company”) are the responsibility of management and have been approved by the Board of Directors (the “Board”). The Board is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the interim condensed consolidated financial statements. The Board carries out this responsibility through its Audit Committee. The Audit Committee reviews the Company’s interim condensed consolidated financial statements and recommends their approval by the Board. The Audit Committee is appointed by the Board and all of its members are independent directors. It meets with Company’s management and reviews internal control and financial reporting matters to ensure that management is properly discharging its responsibilities before submitting the interim condensed consolidated financial statements to the Board for approval. The interim condensed consolidated financial statements have been prepared by management in accordance with International Accounting Standard 34, Interim Financial Reporting as issued by the International Accounting Standards Board. When alternative methods of accounting exist, management has chosen those it deems most appropriate in the circumstances. The interim condensed consolidated financial statements include amounts based on informed judgments and estimates of the expected effects of current events and transactions with appropriate consideration to materiality. In addition, in preparing the interim condensed consolidated financial statements, management must make determinations as to the relevancy of information to be included, and make estimates and assumptions that affect reported information. Actual results in the future may differ materially from management's present assessment of this information because future events and circumstances may not occur as expected. (signed) "Josh Scherba" (signed) "Nicholas Gawne" President and Chief Executive Officer Chief Financial Officer Toronto, Ontario Toronto, Ontario December 31, 2025 June 30, 2025 $ $ Assets Current assets Cash 69,206 68,871 Amounts receivable (note 5) 192,153 248,058 Prepaid expenses and other 15,629 12,594 Investment in film and television programs (note 6) 54,689 97,953 331,677 427,476 Assets held-for-sale (note 4) 588,436 — 920,113 427,476 Long-term amounts receivable 8,768 9,416 Acquired and library content (note 7) 16,965 54,535 Property and equipment 15,997 20,953 Intangible assets (note 4) 9,275 373,714 Goodwill (note 4) 6,321 28,468 Deferred income taxes (note 13) 33,919 22,777 $ 22 777 1,011,358 937,339 Liabilities Current liabilities Bank indebtedness (note 9) 35,636 10,914 Accounts payable and accrued liabilities (note 8) 132,235 157,863 Deferred revenue (note 4) 18,147 37,741 Interim production financing (note 9) 57,219 56,472 Current portion of lease liabilities 9,770 10,514 Current portion of long-term debt (note 9) 5,535 69,202 258,542 342,706 Liabilities directly associated with assets held-for-sale (note 4) 97,979 — 356,521 342,706 Long-term debt (note 9) 498,947 417,931 Long-term lease liabilities 3,237 9,025 Other long-term liabilities 1,681 2,637 860,386 772,2 --- 99 Shareholders’ Equity Deficit attributable to shareholders of the Company (119,348) (88,665) Non-controlling interest (note 4) 270,320 253,705 150,972 165,040 1,011,358 937,339 The accompanying notes form an integral part of these interim condensed consolidated financial statements. WildBrain Ltd. Interim Condensed Consolidated Balance Sheets (unaudited) As at December 31, 2025 and June 30, 2025 (expressed in thousands of Canadian dollars) Three months ended Six months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ $ $ $ Revenues (note 20) 72,380 65,499 131,004 124,504 Expenses (note 15) Direct production costs and expense of film and television produced 36,472 34,315 68,971 69,801 Amortization of acquired and library content (note 7) 683 1,135 1,335 2,256 Amortization of property and equipment and intangible assets 2,800 4,985 5,767 10,181 Write-down of investment in film and television programs, acquired and library content, and intangible assets (note 12) 16,352 53,247 16,352 53,247 Selling, general and administrative 21,035 19,455 43,165 40,178 Share-based compensation (note 11) 2,969 857 4,224 2,854 Finance costs, net (note 14) 21,971 17,518 54,073 42,061 Foreign exchange (gain) loss (9,254) 25,902 (4,104) 20,567 Reorganization, development and other expense (note 15) 1,535 2,581 2,399 4,762 94,563 159,995 192,182 245,907 Loss before income taxes (22,183) (94,496) (61,178) (121,403) Provision for (recovery of) income taxes (note 13) Current 2,869 (585) 1,235 (987) Deferred (4,979) (5,435) (2,729) (9,089) (2,110) (6,020) (1,494) (10,076) Net loss from continuing operations (20,073) (88,476) (59,684) (111,327) Net income from discontinued operations (note 4) 46,179 22,900 65,024 47,446 Net income (loss) for the period 26,106 (65,576) 5,340 (63,881) Net loss from continuing operations attributable to non- controlling interests (23) (2,088) (177) (2,133) Net income from discontinued operations attributable to non- controlling interests (note 4) 26,551 11,424 38,568 23,784 Net income (loss) attributable to shareholders of the Company (422) (74,912) (33,051) (85,532) Basic and diluted loss per common share from continuing operations (note 17) (0.09) (0.41) (0.28) (0.52) Basic and diluted income per common share from discontinued operations (note 4) 0.09 0.05 0.12 0.11 Basic and diluted loss per common share attributable to the shareholders of the Company (note 17) — (0.35) (0.16) (0.41) The accompanying notes form an integral part of these interim condensed consolidated financial statements. WildBrain Ltd. Interim Condensed Consolidated Statements of Income (Loss) (unaudited) For the three and six month periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars, except for amounts per share) Three months ended Six months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ $ $ $ Net loss from continuing operations (20,073) (88,476) (59,684) (111,327) Other comprehensive (loss) income from continuing operations Items that may be subsequently reclassified to the consolidated statements of income (loss): Foreign currency translation adjustment attributable to shareholders of the Company from continuing operations (5,289) 11,397 (792) 13,232 Comprehensive loss for the period from continuing operations (25,362) (77,079) (60,476) (98,095) Net income from discontinued operations (note 4) 46,179 22,900 65,024 47,446 Other comprehensive income from discontinue --- d operations Foreign currency translation adjustment attributable to non-controlling interests from discontinued operations (4,322) 17,469 951 13,818 Comprehensive income for the period from discontinued operations 41,857 40,369 65,975 61,264 The accompanying notes form an integral part of these interim condensed consolidated financial statements. WildBrain Ltd. Interim Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited) For the three and six month periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars) Common shares Contributed surplus Accumulated other comprehensive loss Deficit Non- controlling interest Total $ $ $ $ $ $ Balance - July 1, 2024 415,808 45,794 (10,039) (462,307) 257,234 246,490 Net (loss) income for the period — — — (85,532) 21,651 (63,881) Other comprehensive income for the period — — 13,232 — 13,818 27,050 Comprehensive income (loss) for the period — — 13,232 (85,532) 35,469 (36,831) Common shares issued, net of issuance costs and payroll taxes remitted 1,283 (2,230) — — — (947) Common shares issued to settle warrant exercise 6,250 1,000 — — — 7,250 Share-based compensation — 2,854 — — — 2,854 Distributions to non-controlling interests — — — — (17,552) (17,552) Balance - December 31, 2024 423,341 47,418 3,193 (547,839) 275,151 201,264 Balance - July 1, 2025 423,371 48,786 (8,701) (552,121) 253,705 165,040 Net (loss) income for the period — — — (33,051) 38,391 5,340 Other comprehensive (loss) income for the period — — (792) — 951 159 Comprehensive (loss) income for the period — — (792) (33,051) 39,342 5,499 Common shares issued, net of issuance costs and payroll taxes remitted 1,062 (2,126) — — — (1,064) Share-based compensation — 4,224 — — — 4,224 Distributions to non-controlling interests — — — — (22,727) (22,727) Balance - December 31, 2025 424,433 50,884 (9,493) (585,172) 270,320 150,972 The accompanying notes form an integral part of these interim condensed consolidated financial statements. WildBrain Ltd. Interim Condensed Consolidated Statements of Changes in Equity (unaudited) For the six month periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars) December 31, 2025 December 31, 2024 Cash provided by (used in) $ $ Operating activities Net income (loss) for the period 5,340 (63,881) Charges (credits) to reconcile net loss to cash provided by operating activities Amortization of property and equipment 4,736 5,160 Amortization of intangible assets 1,727 5,649 Amortization of acquired and library content 2,899 3,988 Accretion expense and amortization of deferred financing fees 9,099 3,953 Unrealized foreign exchange loss 1,944 27,842 Share-based compensation 4,224 2,854 Loss on modification of debt and write-down of unamortized issue costs 16,019 6,313 Change in fair value of forward foreign exchange contract (44) 268 Interest income (776) (2,781) Interest expense 29,584 34,217 Deferred tax expense (recovery) 726 (5,436) Write-down of investment in film and television programs 10,826 32,097 Write-down of acquired and library content 5,526 15,838 Write-down of intangible assets — 5,312 Net investment in film and television programs (note 19) (3,097) 8,638 Net change in non-cash balances related to operations (note 19) (28,998) 27,194 Cash provided by operating activities 59,735 107,225 Financing activities Common shares issued, net of issuance costs and payroll taxes remitted (1,064) 6,303 Distributions to non-controlling interest --- s (22,727) (17,552) Proceeds from bank indebtedness 24,880 6,585 Repayment of bank indebtedness — (13,800) Proceeds from long-term debt — 504,947 Repayment of long-term debt (2,580) (513,567) Payment of debt issue costs (6,912) (18,020) Interest paid on long-term debt and lease liabilities (28,600) (19,003) Repayment of lease liabilities (4,581) (4,496) Net proceeds from (repayment of) interim production financing (note 19) 747 (12,095) Cash used in financing activities (40,837) (80,698) Investing activities Proceeds from sale of assets — 5,500 Acquisition of acquired and library content — (92) Acquisition of property and equipment (1,124) (70) Acquisition of intangible assets (358) (880) Cash (used in) provided by investing activities (1,482) 4,458 Effect of foreign exchange rate changes on cash (883) 1,118 Net change in cash during the period 16,533 32,103 Cash - Beginning of the period 68,871 49,715 Cash - End of the period 85,404 81,818 Cash included in assets held-for-sale (note 4) (16,198) — Cash - End of the period as reported 69,206 81,818 Supplemental information (notes 4 and 19) The accompanying notes form an integral part of these interim condensed consolidated financial statements. WildBrain Ltd. Interim Condensed Consolidated Statements of Cash Flows (unaudited) For the six month periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars) 1 Nature of business WildBrain Ltd. (the "Company" or "WildBrain"), was incorporated on February 12, 2004 under the laws of the Province of Nova Scotia, Canada, and continued on April 25, 2006 under the Canada Business Corporation Act. The Company is a public company whose common shares are traded on the Toronto Stock Exchange ("TSX") under the symbol 'WILD'. The address of the Company’s head office is 25 York Street, Unit 1201, Toronto, Ontario, M5J 2V5. The Company develops, produces and distributes films and television programs for domestic and international markets; licenses its brands in the domestic and international markets; sells advertising on various ad- supported video-on-demand platforms; and manages copyrights, licensing and brands for third parties. On December 18, 2025, the Company signed a definitive agreement to sell its 41% stake in Peanuts Holdings LLC (“Peanuts”), the holding entity for the Peanuts IP ("Intellectual Property"), to Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc. As a result, Peanuts was classified as held-for-sale in these interim condensed consolidated financial statements and their comparatives have been re-presented to show the discontinued operations separately from continuing operations. 2 Basis of preparation These interim condensed consolidated financial statements were prepared in accordance with International Financial Reporting Standards as issued by International Accounting Standards Board ("IFRS Accounting Standards"), applicable to the preparation of interim financial statements, under International Accounting Standards ("IAS") 34, Interim Financial Reporting, and follow the same accounting policies as those used in the Company's most recent audited annual consolidated financial statements. These interim condensed consolidated financial statements do not include all the disclosures included in the Company's audited annual consolidated financial statements. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited annual consolidat --- ed financial statements. These interim condensed consolidated financial statements have been authorized for issuance by the Board of Directors on February 11, 2026. 3 Summary of material accounting policies, judgments and estimation uncertainty The preparation of interim condensed consolidated financial statements under IFRS Accounting Standards requires the Company to make estimates and assumptions that affect the application of policies and reported amounts. Estimates and judgments are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable. Actual results may differ materially from these estimates. Accounting pronouncements issued but not yet effective There have been no changes to the accounting pronouncements issued but not yet effective from the filing of the Company's audited consolidated financial statements for the year ended June 30, 2025. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (1) 4 Held-for-Sale and discontinued operations Peanuts held-for-sale and discontinued operations On December 18, 2025, the Company signed a definitive agreement to sell its 41% stake in Peanuts Holdings LLC (“Peanuts”), the holding entity for the Peanuts intellectual property ("IP"), to Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc. Prior to the closing of the previously noted transaction, Sony Entertainment holds a 39.2% existing interest in Peanuts which is reflected in Non-controlling interest at $271,899 as of December 31, 2025. Under the agreement, the Company will remain a multi-year partner to Peanuts for key services, including: 1) Exclusive licensing agent through WildBrain CPLG for consumer products in all current territories across Europe, the Middle East, China, and Asia Pacific (excluding Japan & ANZ); 2) Exclusive production studio for new Peanuts content—including the previously announced feature film— under an expansive partnership with Apple TV, recently renewed through 2030; and 3) Distributor of WildBrain-produced Peanuts content and continued management of the Snoopy YouTube channel. As Peanuts represents a separate major line of business, upon classification as held-for-sale, the Interim Consolidated Statements of Income (Loss) and Interim Condensed Consolidated Statements of Comprehensive Income (Loss), and their comparatives, have been re-presented to show the discontinued operation separately from continuing operations. As a result of the Company's continuing involvement subsequent to disposal, management has elected to attribute certain transactions that would historically have been eliminated in consolidation between continuing operations and discontinued operations in a way that reflects the results of the continuing operations on an ongoing basis. For the three and six months ended December 31, 2025, the allocation of these transactions between continuing and discontinued operations resulted in a reduction of the net loss from continuing operations before income taxes and a reduction of the net income from discontinued operations before taxes of $6,328 and $11,348 respectively (2024 - $4,657 and $8,313, respectively). Within discontinued operations related to Peanuts, the Direct production costs and expen --- se of film and television produced included a benefit received from capitalized Investment in Film and television programs related to the distribution rights of certain produced content that the Company will no longer own as a result of the anticipated sale. For the three and six months ended December 31, 2025, the amounts reclassified to discontinued operations Direct production costs and expense of film and television produced was $3,852 and $7,781 respectively (2024 - $2,505 and $4,205, respectively). The operations of Peanuts were previously included in the Content Creation and Audience Engagement and Global Licensing segments. The segment disclosures in Note 20 have been adjusted to reflect the reclassification of Peanuts to discontinued operations. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (2) A reconciliation of the major classes of line items constituting net income from discontinued operations of the Peanuts business, net of tax, as presented in the Interim Consolidated Statements of Income (Loss) is as follows: Three months ended Six months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ $ $ $ Revenues 130,255 64,921 197,495 113,329 Expenses Direct production costs and expense of film and television produced 75,477 36,984 109,844 61,324 Amortization of acquired and library content 787 877 1,564 1,732 Amortization of property and equipment and intangible assets 245 293 492 559 Selling, general and administrative and other expenses 5,260 4,485 12,995 5,117 81,769 42,639 124,895 68,732 Income before taxes 48,486 22,282 72,600 44,597 Provision (recovery) of income taxes Current 2,533 (204) 4,057 468 Deferred 1,138 3,127 3,074 4,694 3671 2923 7131 5162 3,671 2,923 7,131 5,162 Net income from discontinued operations 44,815 19,359 65,469 39,435 Net income from discontinued operations attributable to non-controlling interests 26,551 11,424 38,568 23,784 Net income from discontinued operations attributable to shareholders of the Company 18,264 7,935 26,901 15,651 Basic and diluted earnings per common share 0.08 0.04 0.13 0.07 The net cash flows for the six-month period provided by Peanuts discontinued operations were as follows: December 31, 2025 December 31, 2024 $ $ Operating activities 35,448 34,074 Financing activities1 (31,070) (24,114) Net cash flow from discontinued operations 4,378 9,960 1 The financing activities within net cash flow from discontinued operations are presented net of distributions to all owners. Distributions attributable to the Company with interest of 40.8% were $12,485 for the six months ended December 31, 2025 (2024 - $9,631). WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (3) The assets and liabilities which are classified as held-for-sale related to Peanuts were as follows: December 31, 2025 $ Current assets Cash 16,198 Amounts receivable 86,064 Prepaid expenses and other 507 Investment in film and television programs 35,011 Non-current assets Long-term amounts receivable 33,137 Acquired and library content 29,219 Property and equipment 1,320 Intangible assets 364,722 Goodwill 22,258 Assets h --- eld-for-sale 588,436 Current liabilities Accounts payable and accrued liabilities 45,547 Deferred revenue 18,557 64,104 Non-current liabilities Long-term lease liabilities 1,348 Deferred Income Taxes 12,894 Other non-current liabilities 19,633 Liabilities directly associated with assets held-for-sale 97,979 WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (4) Canadian Television Broadcasting discontinued operations On October 22, 2025, the Company's Canadian Television Broadcasting business ceased operations and its broadcasting licenses were formally revoked by the CRTC on October 31, 2025. As it represents a major line of business, the Company is presenting the Canadian Television Broadcasting business as discontinued operations effective Q2 2026. The Canadian Television Broadcasting business was previously included in a separate segment. The segment disclosures in note 20 have been adjusted to reflect the reclassification of the Canadian Television Broadcasting business to discontinued operations. During Q1 2026, the Company recorded provisions of $5,105 related to severance agreements and certain contracts that were identified as onerous contracts as part of the continued windup of the Canadian Television Broadcasting business. As of December 31, 2025, there has been no material changes to the provision balance. A reconciliation of the major classes of line items constituting net income from discontinued operations of the Canadian Television Broadcasting business, net of tax, as presented in the Interim Consolidated Statements of Income (Loss) is as follows: Three months ended Six months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ $ $ $ Revenues 1,588 7,303 6,271 14,572 Expenses Direct production costs and expense of film and television produced 44 2,115 257 4,234 Amortization of property and equipment and intangible assets — 13 204 69 Selling, general and administrative and other expenses 548 2,327 6,623 3,309 592 4,455 7,084 7,612 Income (loss) before taxes 996 2,848 (813) 6,960 (Recovery of) provision for income taxes Current (749) (10) (749) (10) Deferred 381 (683) 381 (1,041) (368) (693) (368) (1,051) Net income (loss) from discontinued operations 1,364 3,541 (445) 8,011 Basic and diluted earnings per common share 0.01 0.02 0.00 0.04 WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (5) The net cash flows for the six-month period provided by the Canadian Television Broadcasting discontinued operations were as follows: December 31, 2025 December 31, 2024 $ $ Operating activities 3,677 4,923 Net cash flow from discontinued operations 3,677 4,923 5 Amounts receivable December 31, 2025 June 30, 2025 $ $ Trade receivables (note 4) 122,842 180,111 Less: ECL allowance on trade receivables (7,607) (7,261) Trade receivables, net of loss allowance 115,235 172,850 Sales tax receivable 2,610 3,482 Federal and provincial film tax credits 74,308 71,726 Amounts receivable 192,153 248,058 WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expresse --- d in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (6) 6 Investment in film and television programs Development In Production Delivered Program and film rights - broadcasting Total $ $ $ $ Cost June 30, 2025 1,384 17,769 898,770 185,024 1,102,947 Additions 1,037 8,639 22,772 — 32,448 Reclassifications(1) (352) (137) 489 — — Impact of foreign exchange (274) — (3,585) — (3,859) Assets reclassified as held-for- sale(2) — (25,081) (186,637) — (211,718) December 31, 2025 1,795 1,190 731,809 185,024 919,818 Accumulated amortization June 30, 2025 819,970 185,024 1,004,994 Amortization 29,076 — 29,076 Write-downs 10,826 — 10,826 Assets reclassified as held-for- sale(2) (176,707) — (176,707) Impact of foreign exchange (3,059) — (3,059) December 31, 2025 680,106 185,024 865,130 Net book value June 30, 2025 1,384 17,769 78,800 — 97,953 December 31, 2025 1,795 1,190 51,703 — 54,688 (1) Reclassifications represent content that has progressed from one classification to another (such as from Development to In Production). (2) Net book value of $35,011 reclassified as held-for-sale (see note 4). During the six-month period ended December 31, 2025, interest of $209 (June 30, 2025 - $570) was capitalized to investment in film and television programs. During the six-month period ended December 31, 2025, additions to investment in film and television programs were reduced by $6,842 (June 30, 2025 - $20,502) in respect of production tax credits. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (7) 7 Acquired and library content Acquired and library content $ Cost June 30, 2025 173,741 Assets reclassified as held-for-sale(1) (68,319) Impact of foreign exchange (265) December 31, 2025 105,157 Accumulated amortization June 30, 2025 119,206 Amortization 1,335 Write-down 5,526 Assets reclassified as held-for-sale(1) (39,100) Impact of foreign exchange 1,225 December 31, 2025 88,192 Net book value June 30, 2025 54,535 December 31, 2025 16,965 (1) Net book value of $29,219 reclassified as held-for-sale (see note 4). 8 Accounts payable and accrued liabilities The following table presents the Company's accounts payable and accrued liabilities: December 31, 2025 June 30, 2025 $ $ Accounts payable 29,949 31,829 Accrued liabilities Accrued agency, participation and licensor fees 40,178 59,650 Accrued goods and services received 34,600 27,935 Accrued people costs 5,520 14,465 Accrued interest and loan fees 10,423 10,107 Minimum guarantees payable 986 1,531 Other — 362 Income tax payable 10,579 11,984 132,235 157,863 WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (8) 9 Credit facilities On July 23, 2024, the Company entered into a five year US$415,000 credit agreement (the "Senior Secured Credit Facility") consisting of a US$375,000 Term Loan Facility (the "Term Loan Facility") and a US$40,000 Revolving Facility (the "Revolving Facility"). The Senior Secured Credit Facility may be drawn in USD, with the option of a Secured Overnight Financing Rate ("SOFR") plus 5.5% to 6.0% or a Base Rate (the "Base Rate") plus 4.5% to 5.0%. The Base Rate is calculated as the --- highest of (a) the Federal Funds Rate plus 0.5%, (b) the Prime Rate in effect and (c) SOFR for a one-month tenor in effect + 1%. The Revolving Credit Facility bears interest at the selected interest rate + 4.5% to 6.0%, depending on the type of rate chosen and the leverage ratio at the time of the draw. The Senior Secured Credit Facility matures on July 23, 2029. December 31, 2025 June 30, 2025 $ $ Revolving Facility 35,636 10,914 Term Loan Facility, net of unamortized issue costs of $nil (June 30, 2025 - $14,541) 504,482 487,133 Interim production financing(1) 57,219 56,472 Total 597,337 554,519 Less: amount due within 12 months (98,390) (136,588) Amount due beyond 12 months 498,947 417,931 (1) Assignment and direction of specific production financing, licensing contracts receivable and film tax credits receivable have been pledged as security. As at December 31, 2025, the Canadian dollar bank prime rate was 4.70% (June 30, 2025 - 4.95%). In June 2025, the Company agreed with its lenders to reduce leverage by implementing one or several de- leveraging events by Q2 2026. De-leveraging events included asset dispositions and, or equity raises. The proceeds of the de-leveraging events would be used to repay a portion of the Term Loan Facility or the Revolving Facility. As the Company did not have the right to defer settlement of the proceeds against the Senior Secured Credit Facility for at least 12 months from the balance sheet date, the Company reclassified an additional $64.1 million in excess of scheduled payments on the Term Loan Facility to current liabilities as of June 30, 2025. In September 2025, the Company agreed with its lenders to a further amendment to the Senior Secured Credit Facility which (i) removed the requirement to execute one or several de-leveraging events by Q2 2026, (ii) added a 1.5% prepayment premium in the event of early repayment of the loan, (iii) added further fees to lenders of $6 million that were paid on October 1, 2025 and other lender fees in respect of the timing of any de- leveraging events that the Company may enter into, which may result under certain scenarios in additional finance charges of 0.6% to 6.0% per annum and (iv) further changes to the financial maintenance covenant, as outlined below: WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (9) Fiscal Quarter Total Leverage Ratio(1) Total Leverage Ratio As Amended(2) Fiscal quarters ending September 30, 2024 and December 31, 2024 6.50x N/A Fiscal quarters ending March 31, 2025 and June 30, 2025 6.25x 6.25x Fiscal quarters ending September 30, 2025, December 31, 2025 and March 31, 2026 5.75x 5.75x Fiscal quarter ending June 30, 2026 5.75x 6.00x Fiscal quarter ending September 30, 2026 5.00x 5.50x Fiscal quarters ending December 31, 2026 through and including June 30, 2027 5.00x 5.00x Fiscal quarters ending September 30, 2027 through and including June 30, 2028 4.50x 4.50x June 30, 2028 and thereafter 4.00x 4.00x (1) As defined in the Senior Secured Credit Facility (2) As defined in the September 2025 amendment of the Senior Secured Credit Facility As a result of the amendment signed in September 2025, the Company recorded a loss on the modification of its debt of $16,019. Subsequent to December 31, 2025, the Company made a 1.5% prepayment premium of US$5,998 --- in accordance with the amended agreement. a) Revolving Facility During the six-month period ended December 31, 2025, the Revolving Facility bore average interest of 9.48%. Amounts owed under the Revolving Facility are recorded in Bank Indebtedness and are classified as current liabilities. As at December 31, 2025, US$25,000 or $35,636 (June 30, 2025 - US$8,000 or $10,914) was drawn on the Revolving Facility. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (10) b) Term Loan Facility Commencing on the quarter ending September, 30, 2024, the Term Loan Facility requires quarterly repayment equal to 0.25% of the initial principal amount and annual repayments of Excess Cash Flow (as defined in the Senior Secured Credit Facility documents), commencing for the fiscal year ended June 30, 2025, as outlined below: Total Leverage Ratio(1) Excess Cash Flow % Payable Greater than 3.50x 100% Greater than 3.00x and less than 3.50x 50% Less than 3.00x 25% (1) As defined in the Senior Secured Credit Facility During the six-month period ended December 31, 2025, the Term Loan Facility bore average interest of 9.48%. The Company is required to comply with a leverage covenant of 5.75x. As at December 31, 2025, the Company's Total Net Leverage Ratio was 4.88x and in compliance with the leverage covenant requirement. As at December 31, 2025, the Company's Term Loan had a principal balance of US$365,840, or $504,482 (June 30, 2025 - US$367,715 or $501,674). Refer to Management of financial risks and financial instruments (note 16) for information related to principal and fixed rate interest payments as at December 31, 2025. 10 Share capital December 31, 2025 June 30, 2025 Number Amount Number Amount # $ # $ Common shares Opening balance 212,380,753 423,371 206,116,162 415,808 Options exercised — — 716,747 — Issuance of Common Shares 1,273,045 1,062 547,844 1,313 Shares for warrant exercise — — 5,000,000 6,250 Ending balance 213,653,798 424,433 212,380,753 423,371 On November 18, 2025, following the cessation of the Company’s television broadcast business, shareholders approved a special resolution approving an amendment to the Company’s Articles to, among other things, (i) eliminate the Company’s non-voting shares and Preferred Variable Voting Shares, (ii) redesignate the Common Voting Shares and Variable Voting Shares as “Common shares”, (iii) amend the rights, privileges and restrictions attached to the “Common shares” and (iv) create an unlimited number of Preferred shares, issuable in series. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (11) 11 Share-based compensation Omnibus equity incentive plan ("Omnibus Plan") As at December 31, 2025, the total amount available for issuance under the Omnibus Plan subject to the 10% maximum was 21,365,380 (December 31, 2024 - at 10% - 20,724,943). During the three and six-month periods ended December 31, 2025, the Company recognized the following share-based compensation expense with a corresponding adjustment to contributed surplus: Three months ended Six months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ --- $ $ $ Options — 9 — 9 Performance share unit plan ("PSUs") — 127 — 346 Restricted share unit plan ("RSUs") 2,695 492 3,310 1,116 Deferred share unit plan ("DSUs") 274 229 914 1,383 2,969 857 4,224 2,854 Options As at December 31, 2025 and 2024, the Company had the following stock options outstanding: Weighted average Number of exercise price options per stock option # $ Outstanding at June 30, 2024 1,911,000 2.71 Granted 450,000 1.51 Expired (587,500) 5.75 Exercised (450,000) 1.51 Outstanding at December 31, 2024 1,323,500 1.57 Exercisable at December 31, 2024 1,323,500 1.57 Outstanding at June 30, 2025 798,500 1.62 Outstanding at December 31, 2025 798,500 1.62 Exercisable at December 31, 2025 798,500 1.62 WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (12) The range of exercise prices for options outstanding at December 31, 2025 and 2024, is presented below. Weighted Weighted Weighted Number average average Number average outstanding at remaining exercise outstanding at exercise Range of December 31, 2025 contractual life price December 31, 2024 price exercise prices # years $ # $ $1.50 - $3.49 798,500 0.25 1.62 1,323,500 1.57 Total 798,500 0.25 1.62 1,323,500 1.57 Performance share unit plan ("PSUs") The following table illustrates the movements in the number of PSUs during the period. Six months ended December 31, 2025 December 31, 2024 PSUs PSUs # # Outstanding, beginning of period 2,192,508 1,890,163 Granted 482,812 717,345 Forfeited (614,122) (245,000) Exercised (249,346) — Outstanding, end of period 1,811,852 2,362,508 Restricted share unit plan ("RSUs") The following table illustrates the movements in the number of RSUs during the period. Six months ended December 31, 2025 December 31, 2024 RSUs RSUs # # Outstanding, beginning of period 4,088,815 2,227,137 Granted 802,577 915,526 Forfeited (14,957) (73,860) Exercised (919,784) (1,034,123) Outstanding, end of period 3,956,651 2,034,680 WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (13) Deferred share unit plan ("DSUs") The following table illustrates the movements in the number of DSUs during the period. Six months ended December 31, 2025 December 31, 2024 DSUs DSUs # # Outstanding, beginning of period 4,235,744 3,008,691 Granted 177,119 1,066,696 Outstanding, end of period 4,412,863 4,075,387 12 Write-down of Certain Investments in Film and Television Programs, Acquired and Library Content, and Intangible Assets For the three and six-month period ended December 31, 2025, an impairment charge of $16,352 was recorded, (December 31, 2024 - $53,247). This included an intangible asset impairment of $nil (December 31, 2024 - $5,312), write-down of acquired and library content of $5,526 (December 31, 2024 - $15, 838) and investment in film assets of $10,826 (December 31, 2024 - $32,097). The write-downs reflect the weaker than expected revenue performance and current market conditions for the brands and titles impaired in library that the Company invested into prior to 2025 and the Company's change in capital allocation strategy. 13 Income taxes For the three and six months period ended December 31, 2025, t --- he Company recorded an income tax recovery at a rate of 9.5% and 2.4% on the net loss from continuing operations, respectively (December 31, 2024 – income tax recovery rate of 6.4% and 8.3%, respectively). The income tax recovery in each period reflects the mix of taxing jurisdictions in which pre-tax income and losses were recognized. The income attributable to non- controlling interests is taxed outside the Company. Further items impacting the effective tax rate include the different statutory tax rates in the taxing jurisdictions, non-deductible items, the utilization of certain unrecognized tax losses and the continued non-recognition of certain deferred tax assets in Canada. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (14) 14 Finance costs, net Net finance costs comprise the following: Three months ended Six months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ $ $ $ Finance costs (income) Loss on modification of debt and write- down of unamortized issue costs — — 16,019 6,313 Interest on long-term debt 20,928 14,983 34,424 30,992 Amortization of deferred financing fees — 1,022 889 1,663 Change in fair value of interest rate swap and forward contract (725) 93 (44) 269 Interest expense on bank indebtedness 1,534 956 2,095 1,722 Interest on completed and released productions 300 634 672 1,507 Accretion on convertible debentures, exchangeable debentures, lease liabilities and other 26 326 313 2,175 Interest income (92) (496) (295) (2,580) 21,971 17,518 54,073 42,061 Interest income consists of accretion on long-term amounts receivable and cash interest earned on bank deposits, tax credit receivables and amounts held in escrow. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (15) 15 Expenses by nature The following sets out the expenses by nature: Three months ended Six months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ $ $ $ Direct production costs and expense of film and television produced: Direct production and new media costs 21,377 23,298 39,895 46,856 Expense of film and television programs 15,095 11,017 29,076 22,945 36,472 34,315 68,971 69,801 Selling, general and administrative: Office and administrative 3,651 3,707 6,943 7,415 Investor relations and marketing 252 486 325 650 Professional and regulatory 2,150 1,533 3,740 3,301 Salaries and employee benefits 14,982 13,729 32,157 28,812 21,035 19,455 43,165 40,178 Reorganization, development and other expense: Reorganization, development and other expenses(2) 1,508 1,082 1,839 1,984 Termination and other benefits 27 1,499 560 2,778 1,535 2,581 2,399 4,762 Amortization of property and equipment and intangible assets 2,800 4,985 5,767 10,181 Amortization of acquired and library content 683 1,135 1,335 2,256 Write-down of investment in film and television programs, acquired and library content, and intangible assets (note 12) 16,352 53,247 16,352 53,247 Share-based compensation (note 11) 2,969 857 4,224 2,854 Finance costs, net (note 14) 21,971 17,518 54,073 42,061 Impact of foreign exchange (9,254) 25,902 (4,104) 20,567 35,521 103,64 --- 4 77,647 131,166 94,563 159,995 192,182 245,907 WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (16) (2) The following sets out the expenses included in reorganization, development and other expenses: Three months ended Six months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ $ $ $ Development write-off 217 305 217 305 System implementation costs — 57 — 301 Write-down of refinancing costs — 447 — 1,037 Other 1,291 272 1,622 340 1,508 1,082 1,839 1,984 16 Management of financial risks and financial instruments The financial risks arising from the Company’s operations include credit, interest rate, liquidity, currency and market risk. These risks arise from the normal course of operations. The risks associated with these financial instruments and the policies on how to mitigate these risks are set out in the audited annual consolidated financial statements. The Company's current debt facility contains financial covenants which decrease over time. Compliance with such covenants are a material factor within liquidity risk. If the Company were to breach these covenants, the lender would have the right to accelerate the repayment of outstanding balances. The Company's debt facility is also denominated in US$, exposing the Company to significant volatility in interest and principal payments, as well as in unrealized foreign exchange gains and losses as the debt facility is revalued each reporting period. Management monitors these exposures to ensure appropriate measures are implemented on a timely and effective manner to manage these risks. The following table summarizes the Company's financial liabilities and their contractual maturities: Less than 1 to 3 3 to 5 After 5 Total 1 year years years years $ $ $ $ $ Bank indebtedness 35,636 35,636 — — — Accounts payable and accrued liabilities 132,235 132,235 — — — Interim production financing 57,219 57,219 — — — Other long-term liabilities 21,729 — 21,729 — — Term facility 664,974 52,298 125,874 486,802 — Finance lease obligations 18,549 10,653 5,854 2,042 — 930,342 288,041 153,457 488,844 — Contractual payments in the table above include fixed and variable interest obligations at current rates and are not discounted. The Company operates a diverse range of business lines, including production studio services, content distribution, consumer products licensing, and representation. While the operating results may vary from period to period, operating cash flows are generally predictable based on the Company's production and content pipeline, contract renewals, royalty agreements, and minimum guarantees. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (17) As at December 31, 2025 the Company had an unrestricted cash balance of $69,206 and current amounts receivable of $192,153 (June 30, 2025, $68,871 and $248,058 respectively). Based on the Company's cash balances and available credit facilities, expected collection of trade and other receivables and forecast operating results, management believes it will be able to fulfill its financial obligations as they become due. In June 2025, the Compa --- ny agreed with its lenders to reduce leverage by implementing one or several de-leveraging events by Q2 2026. De-leveraging events included asset dispositions and, or equity raises. The proceeds of the de-leveraging events would be used to repay a portion of Term Loan Facility or the Revolving Facility. The Company also amended the Senior Secured Credit Facility to revise the Total Leverage Ratio required for covenant compliance in future quarters. In September 2025, the Company agreed with its lenders to a further amendment to the Senior Secured Credit Facility which (i) removed the requirement to execute one or several de-leveraging events by Q2 2026, (ii) added a 1.5% prepayment premium in the event of early repayment of the loan, which was paid in Q3 2026, (iii) added further fees to lenders of $6 million were paid on October 1, 2025 and other lender fees in respect of the timing of any de-leveraging events that the Company may enter into, which may result under certain scenarios in additional finance charges of 0.6% to 6.0% per annum, and (iv) further changes to the financial maintenance covenant, as outlined in note 9. As a result of this amendment, the Company recorded a loss on the modification of its long-term debt of $16,019. The Company is bound by certain financial maintenance covenants in its Senior Secured Credit Facility, specifically a Leverage Ratio condition based on trailing twelve-month EBITDA ("Earnings Before Interest, Taxes, Depreciation, and Amortization") of a restricted group of WildBrain entities, adjusted for certain one- time and non-cash charges. Non-compliance with the financial maintenance covenant would be considered an event of default under the Senior Secured Credit facility, which could, absent a waiver from the lenders or cure by the Company, restrict the Company's access to funds required to run its business and settle its obligations in a timely manner. Management considers conditions that may cast significant doubt upon its ability to continue as a going concern, including the Company's ability to meet future covenants. The Company's future liquidity is dependent on the closing of the Peanuts sale, the proceeds of which would be used to pay down the Senior Secured Credit Facility, or absent that, on generating sufficient cash flows in accordance with its business plans to manage its leverage levels, or if these plans are not carried out, generate additional capital to reduce outstanding leverage by way of managing working capital, future equity raises or through the sale of other assets. The estimation of future cash flows in accordance with its business plans and the forecasting of leverage levels to meet required financial maintenance covenants is subjective and involves judgment. In the second half of 2026, the Company expects to repay the Senior Secured Credit Facility in full upon the closing of the Peanuts sale, although there can be no assurances it will be successful in doing so. As such, management has concluded that there are no material uncertainties that may cast significant doubt on the Company's ability to continue as a going concern. Fair value of financial instruments Financial instruments recorded at fair value on the interim condensed consolidated balance sheet are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. Fair value estimates are made at a specific point in time based on relevant market information. Thes --- e are estimates and involve uncertainties, and matters of significant judgment and cannot be determined with precision. Changes in assumptions and estimates could significantly affect fair values. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (18) Financial assets and (liabilities) measured at fair value As at December 31, 2025 June 30, 2025 Fair value hierarchy Fair value(1) Fair value hierarchy Fair value(1) $ $ Foreign currency forwards(1) Level 2 (29) Level 2 (106) Foreign currency forwards(1) Level 2 4 Level 2 96 (1) The fair value of foreign currency contracts is determined using prevailing exchange rates. These are classified as Derivative assets and Derivative liabilities, respectively, in the interim condensed consolidated balance sheet. As at December 31, 2025, the Company held forward contract options with the following notional value and average contractual exchange rates: US$ exchange for GBP Less than one year US$1,394 to US$2,091 Weighted average rate 1.3943 US$ exchange for Canadian dollars Less than one year US$10,598 to US$10,598 Weighted average rate 1.3670 Japanese Yen ("Yen") exchange for US$ Less than one year US$11,078 to US$11,078 Weighted average rate 157.3652 Financial assets and liabilities not measured at fair value The carrying amount of all financial instruments presented in the interim condensed consolidated financial statements approximate their fair values. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (19) 17 Earnings or loss per common share Basic earnings or loss per common share is calculated by dividing the net income (loss) attributable to shareholders of the Company by the weighted average number of common shares outstanding during the period. Three months ended Six months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ $ $ $ Net loss attributable to shareholders of the Company (422) (74,912) (33,051) (85,532) Weighted average number of common shares outstanding (in 000's) - Basic 213,639 212,131 213,010 211,186 Basic and diluted loss per common share attributable to shareholders of the Company1 — (0.35) (0.16) (0.41) Net loss from continuing operations attributable to shareholders of the Company (20,050) (86,389) (59,506) (109,196) Weighted average number of common shares outstanding (in 000's) - Basic 213,639 212,131 213,010 211,186 Basic and diluted loss per common share from continuing operations1 (0.09) (0.41) (0.28) (0.52) Net income from discontinued operations attributable to shareholders of the Company 19,628 11,476 26,456 23,662 Weighted average number of common shares outstanding (in 000's) - Basic 213,639 212,131 213,010 211,186 Weighted average number of common shares outstanding (in 000's) - Diluted 214,743 212,177 215,980 211,240 Basic and diluted (loss) income per common share from discontinued operations 0.09 0.05 0.12 0.11 1 During the three and six-month periods ended December 31, 2025 and December 31, 2024, the diluted weighted average number of common shares outstanding was the same as the basic weighted average number of common shares outstanding, as the Company had --- a net loss attributable to shareholders of the Company and net loss from continuing operations and all potential dilutive instruments were anti-dilutive. Basic and diluted loss per share are calculated using an adjusted denominator as shown above. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (20) 18 Capital disclosures The Company’s objectives when managing capital are to provide an adequate return to shareholders, safeguard its assets, maintain a competitive cost structure and continue as a going concern in order to pursue the development, production, distribution and licensing of its film and television properties and broadcast operations. The balance of the Company’s cash is being used to reduce leverage. The Company’s capital structure is summarized in the table below: December 31, 2025 June 30, 2025 $ $ Total bank indebtedness and long-term debt, excluding interim production financing 540,118 498,047 Less: Cash (69,206) (68,871) Net debt 470,912 429,176 Total shareholders’ equity 150,972 165,040 621,884 594,216 To facilitate the management of its capital structure, the Company prepares annual operating budgets that are updated as necessary depending on various factors including industry conditions and operating cash flows. These budgets are regularly reviewed by the Board of Directors. 19 Interim Condensed Consolidated statement of cash flows - supplementary information Net change in non-cash balances related to operations December 31, December 31, 2025 2024 $ (Increase) decrease in amounts receivable (2,207) 35,196 (Increase) decrease in prepaid expenses and other (3,924) 582 Decrease in long-term amounts receivable 648 9,386 Increase (decrease) in accounts payable and accrued liabilities 2,598 (6,190) Increase in deferred revenue 1,934 384 Net change in non-cash balances related to continuing operations (951) 39,358 Net change in non-cash balances related to discontinued operations (28,047) (12,164) (28,998) 27,194 WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (21) Net change in film and television programs December 31, December 31, 2025 2024 $ $ Net change in development costs (411) 279 Net additions to productions in progress and productions completed and released (31,764) (17,158) Additions to program and film rights - broadcasting — (1,095) Amortization of film and television programs 29,076 22,945 Amortization of program and film rights - broadcasting — 3,667 Net change in film and television programs (3,099) 8,638 Net change in interim production financing1 December 31, December 31, 2025 2024 $ $ Proceeds from interim production financing 13,034 16,575 Repayment of interim production financing (12,287) (28,670) 747 (12,095) (1) There were no change in cash flow for interim production financing related to discontinued operations Supplemental cash flow information December 31, December 31, 2025 2024 $ $ Taxes paid (1,308) (837) Taxes refunded 250 1 (1,058) (836) WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars u --- nless otherwise noted, except for amounts per share) (22) Reconciliation between the opening and closing balances on the interim condensed consolidated balance sheet arising from financing activities: Senior unsecured Term convertible Lease facility debentures liabilities Total $ $ $ $ Balance - June 30, 2024 371,301 138,434 24,954 534,689 Proceeds 504,947 — (4,495) 500,452 Repayments (373,567) (140,000) — (513,567) Payment of debt issue costs (18,020) — — (18,020) Total financing cash flow activities 113,360 (140,000) (4,495) (31,135) Amortization of deferred financing costs 1,663 240 — 1,903 Lease liabilities additions — — 2,615 2,615 Interest paid on lease liabilities — — (760) (760) Accretion expense — 1,327 760 2,087 Impact of foreign exchange 27,896 (1) 200 28,095 Loss on modification of long-term debt and write-down of unamortized issue costs 6,313 — — 6,313 Total other activities 35,872 1,566 2,815 40,253 Balance - December 31, 2024 520,533 — 23,274 543,807 WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (23) Senior unsecured Term convertible Lease facility debentures liabilities Total $ $ $ $ Balance - June 30, 2025 487,133 — 19,539 506,672 Proceeds — — (4,581) (4,581) Repayments (2,580) — — (2,580) Payment of debt issue costs (6,912) — — (6,912) Total financing cash flow activities (9,492) — (4,581) (14,073) Amortization of deferred financing costs 889 — — 889 Interest paid on lease liabilities — — (602) (602) Accretion expense 7,607 — 602 8,209 Impact of foreign exchange 2,326 — 4 2,330 Write-down of unamortized issue costs 16,019 — (607) 15,412 Reclassification of lease liability to discontinued operation — — (1,348) (1,348) Total other activities 26,841 — (1,951) 24,890 Balance - December 31, 2025 504,482 — 13,007 517,489 WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (24) 20 Revenues and segmented information WildBrain operates entities and offices throughout Canada, the United States, the United Kingdom, Europe and Asia. The Company has an integrated approach to managing and monetizing its content and intellectual property ("IP"), including production, distribution and consumer-product royalties, representation, and organization structure. In evaluating performance, the Chief Operating Decision Maker ("CODM"), defined as the Company's President and CEO, and CFO, rely on recommendations by the CIG to assess and allocate resources. The Company views its results in three reportable segments, being 1) Content and Licensing; 2) Global Licensing and 3) Canadian Television Broadcasting. In Q2 2026, Broadcasting ceased and the licenses were formally revoked by the CRTC on October 31, 2025. The Company is presenting the operations of Television as discontinued operations effective Q2 2026. As a result, the Company further refined its view of the reportable segments to report two reportable segments, being 1) Content and Licensing, and 2) Global Licensing. 1) Content Creation and Audience Engagement - comprises revenue generated from production of proprietary content and distribution of proprietary titles owned by the Company and its strategic partners, an --- d third-party service work. 2) Global Licensing - comprises royalties from IPs owned by the Company and its strategic partners, and commissions earned from the licensing agency business. In Q2 2026, the Company signed a definitive agreement to sell its 41% stake in Peanuts, the holding entity for the Peanuts IP, to Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc (see Note 4). As a result, the Content Creation and Audience Engagement and Global Licensing segments were further refined to exclude the results of the Peanuts discontinued operation. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (25) Three months ended December 31, 2025 Content Creation and Audience Engagement Global Licensing Total $ $ $ Revenues 45,116 27,264 72,380 Direct production costs and expense of film and television produced 34,776 1,696 36,472 Segment margin 10,340 25,568 35,908 Share based compensation and selling, general and administrative 7,525 10,474 17,999 Segment profit 2,815 15,094 17,909 Corporate selling, general and administrative expense and items unallocated to segments 6,005 Amortization of property and equipment and intangible assets 2,800 Amortization of acquired and library content 683 Write-down of investment in film and television programs and acquired and library content 16,352 Finance costs, net 21,971 Impact of foreign exchange (9,254) Reorganization, development and other expenses 1,535 Loss before income taxes (22,183) WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (26) Three months ended December 31, 2024 Content Creation and Audience Engagement Global Licensing Total $ $ $ Revenues 43,581 21,918 65,499 Direct production costs and expense of film and television produced 33,729 586 34,315 Segment margin 9,852 21,332 31,184 Share based compensation and selling, general and administrative 7,328 9,293 16,621 Segment profit 2,524 12,039 14,563 Corporate selling, general and administrative expense and items unallocated to segments 3,691 Amortization of property and equipment and intangible assets 4,985 Amortization of acquired and library content 1,135 Write-down of investment in film and television programs, and acquired and library content (note 12) 53,247 Finance costs, net 17,518 Impact of foreign exchange 25,902 Reorganization, development and other expenses 2,581 Loss before income taxes (94,496) WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (27) Six months ended December 31, 2025 Content Creation and Audience Engagement Global Licensing Total $ $ $ Revenues 83,585 47,419 131,004 Direct production costs and expense of film and television produced 66,490 2,481 68,971 Segment margin 17,095 44,938 62,033 Share based compensation and selling, general and administrative 15,684 21,086 36,770 Segment profit 1,411 23,852 25,263 Corporate selling, general and administrative expense and items unallocated to segments 10,619 Amortization of property and equipme --- nt and intangible assets 5,767 Amortization of acquired and library content 1,335 Write-down of investment in film and television programs and acquired and library content 16,352 Finance costs, net 54,073 Impact of foreign exchange (4,104) Reorganization, development and other expenses 2,399 Loss before income taxes (61,178) Six months ended December 31, 2024 Content Creation and Audience Engagement Global Licensing Total $ $ $ Revenues 82,058 42,446 124,504 Direct production costs and expense of film and television produced 66,356 3,445 69,801 Segment margin 15,702 39,001 54,703 Share based compensation and selling, general and administrative 14,824 18,333 33,157 Segment profit 878 20,668 21,546 Corporate selling, general and administrative expense and items unallocated to segments 9,875 Amortization of property and equipment and intangible assets 10,181 Amortization of acquired and library content 2,256 Write-down of investment in film and television programs, and acquired and library content (note 12) 53,247 Finance costs, net 42,061 Impact of foreign exchange 20,567 Reorganization, development and other expenses 4,762 Loss before income taxes (121,403) WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (28) The following table presents the Company's disaggregated revenues recognized from contracts with customers: Three months ended Six months ended December 31, 2025 December 31, 2024 December 31, 2025 December 31, 2024 $ $ $ $ Timing of revenue recognition At a point in time(1) Content Creation and Audience Engagement 1,868 2,908 3,584 12,109 1,868 2,908 3,584 12,109 Over time Content Creation and Audience Engagement (including royalties) 43,248 40,673 80,001 69,949 Global licensing 27,264 21,917 47,419 42,445 72,380 65,498 131,004 124,503 (1) All revenues recognized at a point in time relate to Audience Engagement. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (29) 21 Commitments and contingencies The Company is, from time-to-time, involved in various claims, legal proceedings and complaints arising in the normal course of business and as such, provisions have been recorded where appropriate. Management does not believe that the final determination of these claims will have a material adverse effect on the financial position or results of operations of the Company. WildBrain Ltd. Notes to the Interim Condensed Consolidated Financial Statements (unaudited) For the periods ended December 31, 2025 and 2024 (expressed in thousands of Canadian dollars unless otherwise noted, except for amounts per share) (30)