WildBrain reports Q4 results; initiates FY26 outlook

WildBrain reported a positive turnaround in Q4, achieving a net income of $11.2 million, a significant improvement from the net loss of $17.0 million in the same quarter last year, with total revenue at $139.1 million—up 7% year-over-year.

The company's adjusted EBITDA increased slightly to $24.6 million, but excluding the Television segment revealed a slight decrease to $19.1 million, indicating mixed performance in this area.

WildBrain plans to discontinue its Television operations and projects substantial revenue growth for Fiscal Year 2026, expecting total revenue of $560 million to $590 million when including Television, and a 15% to 20% increase in revenue and adjusted EBITDA when excluding it.

Recommendation Rating: Positive Growth Potential

WildBrain (OTC: WLDBF) has reported its financial results for the fourth quarter. The company achieved a net income of $11.2 million, a significant recovery from a net loss of $17.0 million in Q4 of the previous year. Total revenue reached $139.1 million, reflecting a 7.0% year-over-year increase and surpassing analysts' expectations by $31.51 million. When excluding the Television segment, revenue amounted to $129.4 million, marking a 6% growth from the prior year.

Adjusted EBITDA, which accounts for earnings before interest, taxes, depreciation, and amortization, was reported at $24.6 million including the Television segment, representing a modest 3% year-over-year rise. However, when excluding Television, the adjusted EBITDA stood at $19.1 million, which reflects a slight decrease of 1% compared to last year.

The company's operating activities saw a cash outflow of $2.0 million, contrasting sharply with a net inflow of $18.3 million reported in Q4 of the previous year. Free cash flow was negative at $17.3 million, widening from a negative $6.6 million in the same quarter last year.

Looking ahead to Fiscal Year 2026, WildBrain plans to discontinue its Television operations. To facilitate comparisons, the company is providing financial projections that include and exclude the Television segment. For results that include Television, WildBrain anticipates revenue to be in the range of $560 million to $590 million, significantly higher than the consensus estimate of $411.32 million. The projected adjusted EBITDA for this category is estimated to be between $80 million and $85 million.

Excluding Television, WildBrain expects to achieve revenue growth of approximately 15% to 20%, alongside a similar increase in adjusted EBITDA. This outlook indicates strong growth potential as the company restructures its operations.