This article first appeared on GuruFocus .
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Revenue (Q4, continuing operations):$55 million, down 29% from $77 million year-over-year.
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Revenue (FY2026, continuing operations):$246 million, down 10% from $274 million in fiscal 2025.
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Franchise and Global Licensing Revenue (Q4):$16 million, down 16%, on lower CPLG agency revenue partly offset by owned brand royalty growth led by Strawberry Shortcake.
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Franchise and Global Licensing Revenue (FY2026):$88 million, up 27%, driven by owned brand royalties and higher CPLG agency commissions.
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Content Revenue (Q4):$29 million, down 40%, on lower production and distribution revenue including absence of a significant prior-year delivery.
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Content Revenue (FY2026):$115 million, down 27% from $157 million, on lower production activity and lower distribution, music and other revenue.
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WildBrain Network Revenue (Q4):Approximately $12 million, up 6%, driven by higher direct advertising revenue.
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WildBrain Network Revenue (FY2026):$47 million, down 10%, on lower platform advertising revenue with direct advertising broadly flat.
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Gross Margin (Q4):$21 million or 39% of revenue, versus $32 million or 41% prior year quarter.
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Gross Margin (FY2026):$111 million or 45% of revenue, versus $110 million or 40% in fiscal 2025 (approximately 500 bps improvement).
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Franchise and Global Licensing Adjusted EBITDA (Q4):Negative $4 million versus positive $2 million in Q4 2025.
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Franchise and Global Licensing Adjusted EBITDA (FY2026):$22 million, up from $11 million.
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Content Adjusted EBITDA (Q4):$2 million versus $10 million in Q4 2025.
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Content Adjusted EBITDA (FY2026):$8 million versus $23 million.
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WildBrain Network Adjusted EBITDA (Q4):Approximately breakeven, improved from negative $2 million.
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WildBrain Network Adjusted EBITDA (FY2026):Negative $2 million versus approximately breakeven in fiscal 2025.
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Adjusted EBITDA (Q4):Negative $4 million versus positive $8 million prior year quarter.
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Adjusted EBITDA (FY2026):$21 million, down 22% from $27 million.
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Net Income (Q4, continuing operations):$5 million versus $6 million prior year quarter.
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Net Loss (FY2026):$75 million versus net loss of $122 million in fiscal 2025.
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Cash Used in Operating Activities (Q4):$30 million versus $2 million prior year quarter.
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Free Cash Flow (Q4, consolidated):Negative $20 million versus negative $17 million prior year quarter.
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Free Cash Flow (FY2026, consolidated):Negative $31 million versus positive $50 million in 2025.
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Cash and Cash Equivalents:$89 million at year end.
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Share Repurchases:Approximately $3.2 million returned to shareholders as of end of August.
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Fiscal 2027 Revenue Guidance:$270 million to $295 million (midpoint implies ~15% year-over-year growth).
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Fiscal 2027 Adjusted EBITDA Guidance:$28 million to $32 million (midpoint implies ~44% year-over-year growth).
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Fiscal 2027 Planned Investments:Approximately $30 million, mostly below EBITDA.
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Fiscal 2027 Free Cash Flow Outlook:Expected to be negative; positive before planned investments.
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Long-Term Outlook:Adjusted EBITDA expected to approximately double from fiscal 2027 midpoint by end of fiscal 2029.
Release Date: September 24, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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WildBrain Ltd ( WLDBF ) completed a transformational year, selling its Peanuts interest, exiting Canadian TV broadcasting, and fully repaying corporate debt, strengthening its balance sheet.
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The company repositioned around three core growth platforms: Franchise and Global Licensing, Content, and WildBrain Network, providing clearer accountability and visibility.
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Franchise and Global Licensing full-year revenue grew 27% to approximately $88 million, driven by owned brand royalties and CPLG agency commissions.
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Strawberry Shortcake and Teletubbies showed positive momentum, with Teletubbies recording its strongest quarter ever for watch time and expanding into new markets like Asia.
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WildBrain Network Q4 revenue increased 6% year-over-year to approximately $12 million, with direct advertising revenue growing over 20%.
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The acquisition of Personality AI adds kid-safe, scalable, interactive character platform capabilities, expanding the franchise flywheel into new commercial opportunities.
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Fiscal 2027 guidance projects revenue of $270-$295 million (15% growth) and adjusted EBITDA of $28-$32 million (44% growth), with expectations to double EBITDA by fiscal 2029.
Negative Points
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Q4 revenue from continuing operations declined 29% to $55 million, and full-year revenue fell 10% to $246 million, impacted by lower licensing agency revenue and content deliveries.
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Franchise and Global Licensing Q4 revenue decreased 16% due to lower CPLG agency revenue, including the loss of Paramount's licensing representation business.
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Content segment Q4 revenue dropped 40% to $29 million, and full-year revenue fell 27% to $115 million, due to lower production and distribution activity.
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Adjusted EBITDA from continuing operations was negative $4 million in Q4 and down 22% for the full year to $21 million, affected by discrete items and increased investments.
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Free cash flow was negative $31 million for fiscal 2026, and is expected to remain negative in fiscal 2027 due to a $30 million investment program.
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The company faces near-term profitability pressures from increased franchise marketing, SG&A growth, and investments in technology and infrastructure.
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Uncollectible trade receivables and changes in partner relationships, such as the Paramount transition, create uncertainty and potential revenue volatility.
Q & A Highlights
Q: Can you break down the $30 million investment between CapEx and operating costs? A: CFO Nicholas Gawne declined to disclose the specific split, stating the $30 million will be spread across adjusted EBITDA (franchise marketing and content amortization) and "real development and other costs within CapEx," with the majority sitting in reorganization, development and other costs and CapEx. He noted IFRS capitalization rules differ from US GAAP and said the focus should be on the expected return, which underpins the target to roughly double fiscal 2027 EBITDA by fiscal 2029.
Q: Can you elaborate on the changes in partner relationships at CPLG? A: CEO Josh Scherba said the impact stems from Paramount, which has decided to take its licensing representation business back in-house amid its own consolidation. WildBrain has built that adjustment into its fiscal 2027 forecast and beyond. He remains optimistic about CPLG, citing new partners such as Miraculous, expanded rights on Dr. Seuss, and significant geographic momentum in Asia, including offices in Taiwan, Seoul and Shanghai.
Q: What is driving SG&A growth in fiscal 2027? A: CFO Nicholas Gawne explained that WildBrain has shifted from a content-investment-driven business to people-driven licensing and network businesses. Content investment has fallen sharply over five years but has been replaced by investment in people to launch more licensing programs. He noted content amortization is moderating, which partly offsets SG&A growth, though that moderation is less visible. CEO Josh Scherba added that infrastructure and systems investments should let the company scale in fiscal 2028 and 2029 without proportional headcount increases.
Q: Can you quantify the uncollectible trade receivables provision? A: CFO Nicholas Gawne declined to quantify the amount, saying it was a fourth quarter impact based on new information received. He characterized it as discrete, stating it does not speak to the quality of the trading business or the license fee investment program for Strawberry Shortcake and Teletubbies.
Q: Which Paramount brands were taken back in-house? A: CEO Josh Scherba declined to list the specific brands, confirming only that WildBrain had represented a portfolio of Paramount brands and that Paramount has taken that business back in-house.
Q: What is the fiscal 2027 revenue and adjusted EBITDA guidance? A: CFO Nicholas Gawne guided to fiscal 2027 revenue of $270 million to $295 million, representing roughly 15% year-over-year growth at the midpoint, and adjusted EBITDA of $28 million to $32 million, representing approximately 44% growth at the midpoint. He said the outlook is supported by underlying segment trends and visibility into contracted activity and the current pipeline.
Q: What is the longer-term profitability outlook beyond fiscal 2027? A: CFO Nicholas Gawne said adjusted EBITDA is expected to approximately double from the midpoint of the fiscal 2027 outlook by the end of fiscal 2029, driven by growth in owned-brand licensing revenue, higher total advertising revenue in the WildBrain Network, improved operating leverage and moderating transformation spending. Free cash flow is also expected to improve as EBITDA grows and the fiscal 2027 investment program moderates.
Q: Why will free cash flow be negative in fiscal 2027? A: CFO Nicholas Gawne said the roughly $30 million planned investment program will drive negative free cash flow in fiscal 2027. Importantly, he noted that before these planned investments, the continuing business would be expected to generate positive free cash flow in fiscal 2027. Operating cash flow is expected to fund a material portion of the investments, supplemented by the $89 million cash balance.
Q: What drove the fourth quarter revenue decline in continuing operations? A: CFO Nicholas Gawne reported Q4 continuing operations revenue of $55 million, down 29% from $77 million a year earlier. The decline reflected lower licensing agency revenue at WildBrain CPLG, lower content production and distribution revenue (including the absence of a significant prior-year content delivery), partly offset by growth in owned-brand royalties led by Strawberry Shortcake and higher direct advertising revenue.
Q: What were the key drivers of the full year fiscal 2026 results? A: CFO Nicholas Gawne reported full year continuing operations revenue of $246 million, down 10%, with adjusted EBITDA of $21 million, down 22%. Franchise and Global Licensing revenue grew 27% to $88 million on owned-brand royalties and CPLG commissions, while Content revenue fell 27% to $115 million and WildBrain Network revenue fell 10% to $47 million. Gross margin improved about 500 basis points to 45% on a higher mix of owned-brand licensing.
Q: What is the status of the balance sheet and capital returns? A: CFO Nicholas Gawne said the company fully repaid its corporate debt and ended the year with $89 million in cash and cash equivalents, providing liquidity for the fiscal 2027 investment program. WildBrain also repurchased approximately $3.2 million of shares through its normal course issuer bid as of the end of August, reflecting its commitment to returning capital when it creates long-term value.
Q: What is the strategic rationale behind the Personality AI acquisition? A: CEO Josh Scherba said Personality AI adds a kid-safe, scalable, interactive character platform with proprietary generative AI capabilities that can be deployed across toys, apps, games, digital platforms and physical experiences. It will be reported within the Franchise and Global Licensing segment and is intended to deepen fandom and unlock new commercial opportunities for both WildBrain's own brands and partner brands represented through CPLG.
Q: How is the WildBrain Network performing and what is the growth strategy? A: CEO Josh Scherba said the network spans more than 1,000 channels across YouTube, FAST and AVOD platforms, with Q4 revenue up 6% to approximately $12 million on higher direct advertising revenue, which grew over 20%. Watch time on WildBrain-owned channels rose 10% year-over-year, with Teletubbies recording its strongest quarter ever. The company is investing in direct sales and marketing, exemplified by an exclusive direct advertising sales partnership with Miraculous Corp.
Q: What is the outlook for the Content segment in
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
