WildBrain (WILD) Q3 2025 earnings summary

Executive summary

• Achieved strong third quarter results, with revenue from continuing operations rising 42% year-over-year to CAD 128.4 million, driven by global licensing and core franchises like Peanuts, Strawberry Shortcake, and Teletubbies; owned brands now represent over 70% of continuing operations revenue, up from just over 50% year-over-year.

• Global Licensing revenue surged 44% year-over-year, led by Peanuts, Strawberry Shortcake, and Teletubbies, including a successful Peanuts-Starbucks partnership.

• Content Creation and Audience Engagement revenue increased 40% year-over-year, driven by new productions for Netflix and Apple TV+ and increased viewership across FAST and AVOD platforms.

• Strategic focus on high-potential IP and streamlining operations, including the sale of TV channels, positions the business for sustainable growth and value creation.

Financial highlights

• Revenue from continuing operations was CAD 128.4 million, up 42% year-over-year; total revenue including discontinued operations was CAD 140.1 million, up 40%.

• Global licensing revenue reached CAD 71.4 million, up 44% year-over-year.

• Adjusted EBITDA from continuing operations was CAD 15.9 million, up 18%; including discontinued operations, adjusted EBITDA was CAD 26.1 million, up 33%.

• Net loss from continuing operations was CAD 10.8 million, improved from CAD 16.4 million loss in the prior period.

• Free cash flow in the quarter was positive CAD 12.7 million, compared to negative CAD 2.9 million in Q3 2024; year-to-date free cash flow was positive CAD 66.8 million versus negative CAD 23 million in the prior nine-month period.

Outlook and guidance

• Fiscal 2025 revenue growth (including discontinued operations) expected at 10–15%, with adjusted EBITDA growth of 5–10%.

• For continuing operations, revenue growth is trending toward the higher end of the 15–20% range, while adjusted EBITDA growth is now expected at 5–10% due to timing impacts of higher-margin distribution deals.

• Sale timing of WildBrain Television could materially impact outlook; underlying growth expected in Global Licensing, AVOD, FAST, Media Solutions, and content production.

• Free cash flow expected to remain strongly positive through the fourth quarter, despite some working capital outflows.