Yellow Pages Q2 2026 Earnings Report

Yellow Pages EPS Results

• Actual EPS: C$0.29
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

Yellow Pages Revenue Results

• Actual Revenue: $47.56 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

Yellow Pages Announcement Details

• Quarter: Q2 2026
• Date: 8/6/2026
• Time: Before Market Opens
• Conference Call Date: Thursday, August 6, 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 Q2 2026 Earnings Call Transcript

Key Takeaways

• Negative Sentiment: Revenue fell 8% year over year to CAD 47.6 million, driven primarily by continued declines in higher-margin digital media and print products amid macroeconomic uncertainty.
• Negative Sentiment: Adjusted EBITDA declined 15.1% to CAD 9.1 million, with margin contracting to 19.1% from 20.7% due to lower revenue, adverse product mix, higher bad debt expense, and share-based compensation costs. Management expects ongoing revenue and mix pressures to weigh on margins in coming quarters.
• Neutral Sentiment: Digital revenue declined 6.2%, a modest improvement from the 6.4% decline a year earlier, as higher average customer spending partly offset a lower customer count. Print revenue decreased 14.8% to CAD 9.1 million, mainly because of fewer print customers.
• Positive Sentiment: Cost reductions, workforce optimization, and operating efficiencies helped offset some revenue pressure, while net income increased to CAD 3.3 million from CAD 1.5 million a year earlier.
• Positive Sentiment: Yellow Pages completed its CAD 25.3 million share repurchase and made an additional CAD 2 million pension contribution, yet reported approximately CAD 38 million in cash at July 31. The board also declared a CAD 0.25-per-share dividend payable September 15, 2026.

Presentation

[Operator]

Good morning, ladies and gentlemen. Welcome to Yellow Pages' second quarter 2026 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 second quarter of 2026. 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, Roy. Good morning, everyone. Welcome to our second quarter 2026 analyst call. We really appreciate your interest in joining our call today. Today, I'm joined by Assunta Tortis, our Chief Financial Officer. I will begin with some overview comments, then Assunta will provide you more details on our financial results for this quarter. Then we will take any questions you may have at the end of this call. We are pleased with our results reported for our second quarter of 2026. In the second quarter, we delivered solid profitability and cash generation despite ongoing revenue pressures resulting from macroeconomic uncertainty. Revenue declined 8% year-over-year, while our Adjusted EBITDA remained solid at 19.1% margin, supported by our ongoing cost discipline and operating efficiencies. During the second quarter, we completed the previously announced plan of arrangement, distributing CAD 25 million to shareholders through a share buyback.

[Sherilyn King, President and CEO at Yellow Pages]

In connection with the plan of arrangement, we also contributed an additional CAD 2 million to the defined benefit pension plan in April of 2026. Following these disbursements to our shareholders and the pension plan, our steady cash generation has grown to cash on hand to approximately CAD 38 million as of July 31st, 2026. Lastly, our board has declared a dividend of CAD 0.25 per common share to be paid on September 15th, 2026, to shareholders of record as of August 17th, 2026. I will now pass it over to Assunta to provide you additional details on the numbers.

[Assunta Tortis, CFO at Yellow Pages]

Thanks, Sherilyn. Good morning, everyone. Let me take you through our financial results for the second quarter ended June 30th, 2026. Our total revenues decreased by CAD 4.1 million or 8% year-over-year and amounted to CAD 47.6 million for the second quarter. The year-over-year decrease in revenues is mainly due to the decline of our higher margin digital media and print products, and to a lesser extent, our lower margin digital services products, thereby creating pressure on our gross profit margins. The total revenues decline of 8% for the three-month period ended June 30th compares to 7.4% reported for the same period last year. The higher revenue decline rate is driven by the decline in print revenue, while the decline rate for digital revenue has improved slightly year-over-year. Digital revenues decreased 6.2% year-over-year and amounted to CAD 38.4 million during the second quarter.

[Assunta Tortis, CFO at Yellow Pages]

The improvement of the digital revenue decline from 6.4% reported in the second quarter of 2025 to 6.2% in the second quarter of 2026 was mainly due to a higher average spend per customer, partially offsetting the decrease in digital customer count. Print revenues decreased 14.8% year-over-year and amounted to CAD 9.1 million for the three-month period ended June 30th. The decline in print revenue is mainly due to the decrease in the number of print customers, while the spend per print customer improved year-over-year as the proportion of lower spending accounts has declined. Adjusted EBITDA for the second quarter was impacted by lower revenues, pressure from the product mix, higher bad debt expense, and the impact of the company's share price on cash-settled share-based compensation expense.

[Assunta Tortis, CFO at Yellow Pages]

These factors were partially offset by optimization in cost of sales and reductions in other operating costs, including reductions in our workforce and associated employee expenses. As a result, Adjusted EBITDA decreased year-over-year by CAD 1.6 million or 15.1% to CAD 9.1 million for the second quarter. Adjusted EBITDA margin decreased to 19.1% compared to 20.7% for the same period last year. Revenue pressures and changes in product mix partially offset by continued optimizations of cost reductions will continue to cause some pressure on margins in upcoming quarters. Adjusted EBITDA less CapEx for the second quarter decreased by CAD 1.7 million to CAD 8.6 million, mainly driven by lower Adjusted EBITDA.

[Assunta Tortis, CFO at Yellow Pages]

During the second quarter, we completed the previously announced plan of arrangement whereby the company repurchased from shareholders on a pro-rata basis an aggregate of 2,037,489 common shares, including 28,137 shares held by the trustee, at a purchase price of CAD 12.27 per share for a total of CAD 25.3 million, including CAD 0.1 million of transaction costs, CAD 0.5 million of tax on repurchase of equity, and net of CAD 0.3 million related to the cancellation of the shares held by trustee. In connection to the 2026 Arrangement, the company also voluntarily contributed CAD 2 million to the defined benefit pension plan in April 2026. Net income increased to CAD 3.3 million for the second quarter of 2026 compared to CAD 1.5 million for the same period last year.

[Assunta Tortis, CFO at Yellow Pages]

This increase was mainly due to the settlement loss of annuity purchase recorded in 2025 and lower financial charges, partially offset by lower Adjusted EBITDA and an increase in restructuring and other charges. As Sherilyn mentioned, our cash on hand at the end of July stood at CAD 38 million. Finally, the board has declared a cash dividend of CAD 0.25 per common share, payable on September 15, 2026 to shareholders of record as at August 17, 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. We will now be opening the question and answer session. If you would like to ask a question, press star then the number one on your telephone keypad. To withdraw your question, please press star one again. Thank you. We will be standing by briefly for the questions to come in. Thank you. Again, if you would like to ask a question, please press star then the number one on your telephone keypad. That concludes with our question and answer session. I will now like to turn the call over back to Mrs. Sherilyn King for closing remarks.

[Sherilyn King, President and CEO at Yellow Pages]

Thank you, Roy. Thank you everyone for joining our call today, and we look forward to having you join us in November for our Q3 release. Thank you.

[Operator]

Ladies and gentlemen, this concludes today's call. You may now disconnect.

Participants

Executives

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