Wildbrain Reports Q2 2026 Results
Executive Summary
- WildBrain reported Q2 2026 revenue of $72.4 M from continuing operations (↑11% YoY) and a net loss of $20.1 M, an improvement from the $86.4 M loss in Q2 2025.
- Adjusted EBITDA from continuing operations rose 30% to $14.9 M; discontinued operations generated $22.6 M adjusted EBITDA (↑54% YoY) driven by the Peanuts library renewal deal with Apple TV.
- The company announced a definitive agreement (Dec 2025) to sell its 41 % stake in Peanuts, which will be used to fully repay debt and leave >$40 M cash surplus; this transaction underpins a shift to a more focused, capital‑efficient business model.
Key Details
- Revenue – Continuing Operations: $72.4 M (↑11% YoY).
- Global Licensing revenue: $27.3 M (↑24%).
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Content Creation & Audience Engagement revenue: $45.1 M (↑4%).
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Gross Margin – Continuing Operations: 50% ($35.9 M), up from 48% ($31.2 M) in Q2 2025.
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Adjusted EBITDA – Continuing Operations: $14.9 M (↑30% YoY).
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Net Loss – Continuing Operations: $20.1 M vs. $86.4 M loss in Q2 2025.
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Revenue – Discontinued Operations: $131.8 M (↑83% YoY), primarily from the Peanuts library renewal with Apple TV.
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Adjusted EBITDA – Discontinued Operations: $22.6 M (↑54% YoY).
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Cash Flow: Operating cash provided $45.7 M (down from $81.4 M); free cash flow positive $15.3 M (vs. $49.3 M prior year).
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Leverage: 4.88× at quarter‑end; proceeds from Peanuts sale to repay all senior secured debt.
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Strategic Transactions:
- Definitive agreement (Dec 18, 2025) to sell 41 % of Peanuts Holdings LLC; expected cash surplus >$40 M after full debt repayment.
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Ongoing wind‑down of Canadian Television Broadcasting business; re‑segmentation of financial reporting into continuing vs. discontinued operations.
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Operational Highlights:
- Global Licensing growth driven by Strawberry Shortcake, Teletubbies, and WildBrain CPLG agency.
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New season launches: “Finding Her Edge” (Netflix) Season 2; “Yo Gabba GabbaLand!” Season 2 on Apple TV.
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Guidance Outlook: Fiscal 2026 guidance paused pending transformational initiatives; management expects to resume guidance for FY 2027 after further progress on cost‑structure and automation investments.
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Conference Call: February 12, 2026 at 10:00 a.m. ET (details provided).
Notable Quotes
- Josh Scherba, President & CEO: “Our Global Licensing business delivered standout performance… The announced transaction to sell our interest in Peanuts crystallizes the value of the brand and will eliminate our debt…”
- Nick Gawne, CFO: “The wind‑down of our Canadian Television Broadcasting business and the Peanuts transaction reflect a deliberate shift toward a more focused, scalable and capital‑efficient model.”