Yellow Pages Q4 2025 Earnings Report

Yellow Pages EPS Results

• Actual EPS: C$0.55
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Yellow Pages Revenue Results

• Actual Revenue: $48.05 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Yellow Pages Announcement Details

• Quarter: Q4 2025
• Date: 2/12/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, February 12, 2026
• Conference Call Time: 8:30AM ET

Yellow Pages (TSE:Y) Ltd is a media and marketing solutions company in Canada, offering small and medium-sized enterprises (SMEs) services to help them connect with local consumers. The company has two reportable segments namely Yellow Pages and Other. It generates maximum revenue from the Yellow Pages segment.

Yellow Pages Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Adjusted EBITDA rose 27.3% y/y to CAD 10.5M in Q4, lifting margin to 21.8% (full-year adjusted EBITDA CAD 43M, 21.6%), driven by cost optimization and a recovery in stock‑based compensation.
• Negative Sentiment: Total revenues declined 6.5% y/y in Q4 to CAD 48M (full-year down 7.4%), with digital revenues down 5.6% and print down 10.9% (print decline would be ~15.6% Q4 excluding Canada Post strike timing).
• Positive Sentiment: The company finished the period with a strong cash balance of ~CAD 64M, the board declared a CAD 0.25/share dividend payable March 16, 2026, and approved completion of the remaining CAD 2M voluntary pension contribution in Q1 2026.
• Neutral Sentiment: Headcount was reduced 11.7% to 499 employees, which supported margin improvement, but management cautioned that ongoing investments in telesales capacity and revenue pressures could constrain margins in upcoming quarters.

Presentation

[Operator]

Good morning, ladies and gentlemen. Welcome to Yellow Pages' fourth quarter 2025 earnings release call. Today's conference call contains forward-looking information about Yellow Pages' outlook, objectives, and strategy. These statements are based on assumptions and are subject to important risks and uncertainties. Yellow Pages' actual results could differ materially from expectations discussed. The details of Yellow Pages' caution regarding forward-looking information, including key assumptions and risks, can be found in Yellow Pages' management discussion and analysis for the fourth quarter of 2025. This call is being recorded and webcast, and all of the disclosure documents are available on the company's website and on SEDAR. I would now like to turn the meeting over to Mrs. Sherilyn King, President and Chief Executive Officer. Please go ahead, madam.

[Sherilyn King, President and CEO at Yellow Pages]

Thank you, Josh. Good morning, everyone. Welcome to our fourth quarter 2025 analyst call and year-end for 2025. We really appreciate your interest in joining our call today. I am joined by Assunta Tortis, our Chief Financial Officer. I will begin with some overview comments, and then Assunta will dive into more detail on our financial results for the quarter and the year. We will answer any questions that you may have at the end of our call. We are quite pleased with our results reported for fourth quarter in 2025. In the fourth quarter, we delivered good profitability, a strong cash balance, and we continue our momentum across our revenue initiatives. We continue to see encouraging progress on key revenue drivers as the decline rate of total revenues all improved year-over-year.

[Sherilyn King, President and CEO at Yellow Pages]

Our total revenues for the fourth quarter ended on December 31, 2025, and decreased by 6.5% year-over-year. The total revenue decline of 7.4% for the year 2025 compares to a 10.3% reported for 2024. We also reported good quarterly earnings. Our Adjusted EBITDA for the quarter and full year was 20.8% and 21.6% of revenue, respectively. We have a strong cash balance at approximately CAD 64 million at the end of January 2026. As announced on May 21, 2025, the company intended to voluntarily contribute an additional CAD 4 million to the defined pension plan by the end of June 2026, subject to review by its board of directors.

[Sherilyn King, President and CEO at Yellow Pages]

On February 11, 2026, our board approved the completion of the remaining CAD 2 million of the announced voluntary cash contributions by the end of the first quarter of 2026. Our board has also declared a dividend of CAD 0.25 per common share to be paid on March 16, 2026, to shareholders of record as of February 25, 2026. I will pass it to Assunta to provide additional details on our numbers. Thank you.

[Assunta Tortis, CFO at Yellow Pages]

Thanks, SK. Good morning, everyone. Let me take you through our financial results for the fourth quarter ended December 31, 2025. Our total revenues decreased by CAD 3.4 million, or 6.5% year-over-year, and amounted to CAD 48 million for the fourth quarter. The year-over-year decrease in revenues is mainly due to the decline in our higher margin digital media and print products and to a lesser extent, our lower margin digital service products, thereby creating pressure on our gross profit margin. Furthermore, print revenues were favorably impacted by the recognition of approximately CAD 0.5 million in revenue deferred from the third quarter due to the Canada Post worker strike.

[Assunta Tortis, CFO at Yellow Pages]

Had the deferred print revenues been recognized in the third quarter, the decline rate for total revenues would have been 7.4% for the fourth quarter of 2025, compared to 8.1% reported for the same period last year. Digital revenues decreased 5.6% year-over-year and amounted to CAD 39.7 million during the fourth quarter of 2025, an improvement from the decrease of 6.2% reported last quarter. The year-over-year decline is mainly attributable to a decrease in digital customer count, partially offset by an increase in average spend per customer. Print revenues decreased 10.9% year-over-year and amounted to CAD 8.4 million for the three-month period ended December 31, 2025.

[Assunta Tortis, CFO at Yellow Pages]

The decline in print revenues is mainly due to the decrease in the number of print customers, while the spend per customer has improved year-over-year, driven by price increases. Again, excluding the impact of the Canada Post labor disruption, as described earlier, the year-over-year decline in print revenues would have been 15.6% for Q4 2025. The total revenue for, excuse me, the total revenues for the full year of 2025 totaled CAD 198.9 million, a decrease of 7.4% year-over-year. Adjusted EBITDA for the fourth quarter improved due to inefficiencies from optimization in cost of sales and reductions in other operating costs.

[Assunta Tortis, CFO at Yellow Pages]

These include reductions in our workforce and associated employee expenses, reductions in variable compensation expense resulting from changes in the executive management team earlier in the year, and the impact of the company's share price on cash-settled stock-based compensation expense. These efficiencies were partially offset by revenue pressures and the ongoing investments in our telesales force capacity. As a result, adjusted EBITDA increased year-over-year by CAD 2.3 million, or 27.3% to CAD 10.5 million for the quarter. Adjusted EBITDA margin increased to 21.8%, compared to 16% for the same period last year.

[Assunta Tortis, CFO at Yellow Pages]

The revaluation of the cash-settled stock-based compensation liabilities, based on the change in the YP's share price, resulted in a recovery of CAD 0.3 million during the fourth quarter of 2025, compared to a charge of CAD 1.5 million for the same period in 2024. Revenue pressures, coupled with continued investment in our telesales force capacity, partially offset by continued optimization, will continue to cause some pressure on margins in upcoming quarters. Adjusted EBITDA for the full year of 2025 was CAD 43 million, or 21.6% of revenues. Adjusted EBITDA less CapEx for the fourth quarter increased by CAD 2.4 million year-over-year to CAD 10.1 million, driven by higher adjusted EBITDA and a decrease in CapEx spend year-over-year.

[Assunta Tortis, CFO at Yellow Pages]

Adjusted EBITDA less CapEx for the full year of 2025 was CAD 41.5 million, or 20.9% of revenues. As SK mentioned, as we announced on May 21, 2025, the company intended to voluntarily contribute an additional CAD 4 million to the remaining defined benefit pension plan by the end of June 2026. On February 11, 2026, our board approved the completion of the remaining CAD 2 million of the announced voluntary contributions by the end of first quarter 2026. Net income increased to CAD 7.6 million for the fourth quarter of 2025, compared to CAD 2.7 million for the same period last year, due principally to higher adjusted EBITDA and lower income taxes. For the full year of 2025, net income totaled CAD 18.1 million.

[Assunta Tortis, CFO at Yellow Pages]

As of December 31, 2025, our total workforce decreased to 499 employees compared to 565 for the same date last year, a decrease of 11.7%. Our cash on hand at the end of January stood at approximately CAD 64 million. As SK also mentioned, the board has declared a cash dividend of CAD 0.25 per common share, payable on March 16, 2026, to shareholders of record as at February 25, 2026. This concludes our formal remarks. Thank you for taking the time to join us this morning. We will now take your questions.

[Operator]

Thank you. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. One moment for questions. I'm not showing any questions at this time. I would now like to turn the call back over to Mrs. King for any closing remarks.

[Sherilyn King, President and CEO at Yellow Pages]

Thank you, Josh. Thank you, everyone, for joining our call today. We truly appreciate it, and we will speak with you again next quarter in May of 2026. Thank you. Have a great day.

[Operator]

Thank you. This concludes the conference. Thank you for your participation. You may now disconnect.

Participants

Executives

• Assunta Tortis, CFO
• Sherilyn King, President and CEO