WildBrain TSE: WILD said fiscal 2026 was a transition year marked by the sale of its interest in Peanuts, the exit from Canadian television broadcasting and the repayment of its corporate debt, as the children’s entertainment company reorganized around three reporting segments: Franchise & Global Licensing, Content and the WildBrain Network.
President and CEO Josh Scherba said the changes simplified the company’s operations and provided greater flexibility to invest in franchises, content, advertising capabilities, technology and infrastructure. The company said its fiscal 2027 plan will emphasize investment, which it expects to weigh on near-term profitability and free cash flow while supporting growth in later periods.
Revenue Declines in Fourth Quarter, Full Year
Revenue from continuing operations totaled CAD 55 million in the fourth quarter, down 29% from CAD 77 million a year earlier. For fiscal 2026, continuing-operations revenue declined 10% to CAD 246 million.
Adjusted EBITDA from continuing operations attributable to shareholders was negative CAD 4 million in the fourth quarter, compared with positive CAD 8 million in the prior-year period. Full-year adjusted EBITDA fell 22% to CAD 21 million from CAD 27 million.
Chief Financial Officer Nick Gawne said fourth-quarter results were affected by the wind-down of a partner relationship, provisions for certain receivables, adjustments to accrued licensing-income estimates and increased franchise marketing spending.
Net income from continuing operations attributable to shareholders was CAD 5 million in the fourth quarter, compared with CAD 6 million in the prior-year quarter. For the full year, the company reported a net loss of CAD 75 million, compared with a net loss of CAD 122 million in fiscal 2025.
WildBrain ended the year with CAD 89 million in cash and cash equivalents. Consolidated free cash flow was negative CAD 31 million for fiscal 2026, compared with positive CAD 50 million in the prior year, a comparison the company said was significantly affected by the Peanuts transaction, associated costs, interest payments before debt repayment, and working-capital movements.
Licensing Growth Offset by Agency Pressure
Franchise & Global Licensing revenue rose 27% for the full year to CAD 88 million, supported by growth in owned-brand royalties and higher WildBrain CPLG agency commissions. In the fourth quarter, however, segment revenue fell 16% to CAD 16 million as lower licensing-agency revenue partly offset continued royalty growth led by Strawberry Shortcake.
Full-year segment adjusted EBITDA rose to CAD 22 million from CAD 11 million. Fourth-quarter segment adjusted EBITDA shifted to a loss of CAD 4 million from positive CAD 2 million, reflecting lower agency revenue, higher marketing investment and higher selling, general and administrative expenses.
Scherba said Strawberry Shortcake continued to gain momentum through programming, retail, licensing and live experiences, while Teletubbies expanded in Asia. In June, the company opened a Teletubbies and In the Night Garden retail location in China called WildBrain Garden.
During the question-and-answer session, Scherba said a long-standing Paramount licensing representation relationship was affected after Paramount decided to bring its licensing representation business in-house. He said WildBrain had incorporated that impact into its fiscal 2027 forecast and was adding partners and expanding regional opportunities. The company did not quantify provisions related to uncollectible receivables.
WildBrain also announced after the quarter that it acquired Personality AI, a kid-safe interactive character platform that Scherba said can be applied across toys, apps, games, digital platforms and physical experiences. Personality AI will be included within the Franchise & Global Licensing segment.
Content Activity Expected to Rebound
Content revenue declined 40% in the fourth quarter to CAD 29 million and fell 27% for the year to CAD 115 million. The company attributed the decrease to lower live-action production activity, lower distribution revenue and the absence of a significant content delivery recognized in the prior-year fourth quarter.
Content segment adjusted EBITDA was CAD 2 million in the fourth quarter, down from CAD 10 million a year earlier. Full-year adjusted EBITDA declined to CAD 8 million from CAD 23 million, reflecting lower production activity, lower high-margin distribution and partner-brand royalty revenue, and a greater mix of lower-margin production revenue.
Management said it has greenlit animation and live-action projects that are expected to support a rebound in fiscal 2027. The company highlighted work on Snoopy Unleashed for Apple Original Films, the animated feature Little Santa, and a new Apple TV+ holiday special, Twelve Days of Snoopy. Production has also begun on the second season of Finding Her Edge for Netflix.
Network Advertising Shows Fourth-Quarter Improvement
WildBrain Network revenue increased 6% in the fourth quarter to approximately CAD 12 million, driven by higher direct advertising revenue. Full-year network revenue declined 10% to CAD 47 million, as lower platform advertising revenue more than offset broadly flat direct advertising revenue.
The company said direct advertising revenue rose more than 20% in the fourth quarter. The network, which spans more than 1,000 channels across YouTube, FAST and advertising-supported video-on-demand platforms, reported that watch time on WildBrain-owned channels increased 10% year over year. Teletubbies recorded its strongest quarter ever for watch time, according to the company.
Network adjusted EBITDA improved to approximately break-even in the fourth quarter from a CAD 2 million loss a year earlier. For the full year, the segment posted a CAD 2 million adjusted EBITDA loss, compared with approximately break-even in fiscal 2025.
WildBrain said it is investing in direct advertising sales and marketing capabilities, including an exclusive direct-advertising sales agreement covering Miraculous Corp intellectual property.
Fiscal 2027 Outlook Includes CAD 30 Million Investment Program
For fiscal 2027, WildBrain forecast revenue of CAD 270 million to CAD 295 million and adjusted EBITDA of CAD 28 million to CAD 32 million. At the midpoint, the outlook implies approximately 15% revenue growth and 44% adjusted EBITDA growth from fiscal 2026.
The company expects to make approximately CAD 30 million of planned investments in fiscal 2027, focused on owned-brand content and marketing, technology and operating infrastructure, and leasehold improvements and other capital expenditures. Gawne said the company was not providing a detailed breakdown between capital expenditures and income-statement costs.
WildBrain expects free cash flow to be negative in fiscal 2027 because of the investment program, although management said the continuing business would be expected to generate positive free cash flow before those investments. The company said it expects adjusted EBITDA to approximately double from the midpoint of its fiscal 2027 outlook by the end of fiscal 2029.
About WildBrain (TSE:WILD)
At WildBrain we inspire imaginations through the wonder of storytelling. A leader in 360° franchise management-spanning Content Creation, Audience Engagement and Global Licensing-our mission is to cultivate and grow love for our own and partner brands through exceptional entertainment experiences. Home to such franchises as Peanuts, Teletubbies, Strawberry Shortcake, Yo Gabba Gabba!, Inspector Gadget and Degrassi, we produce such acclaimed series as The Snoopy Show,¿Snoopy in Space,¿Camp Snoopy, Teletubbies Let's Go!, Yo Gabba GabbaLand!, Sonic Prime and Strawberry Shortcake: Berry in the Big City.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.
Before you consider WildBrain, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and WildBrain wasn't on the list.
While WildBrain currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
A strong long-term portfolio starts with companies that can survive recessions, inflation, changing consumer habits, and shifting market leadership.
This report names seven blue-chip stocks across technology, retail, consumer staples, healthcare, networking, sporting goods, and utilities that offer investors a mix of stability, income, growth, and staying power.
Get This Free Report
Continue following MarketBeat
Add MarketBeat as your preferred source on Google to see our latest stories in your feed.
