WildBrain Ltd. reported mixed fourth-quarter 2026 results, with continuing-operations revenue declining 29% to CAD 55 million, though the company outlined a restructuring plan that should stabilize profitability by fiscal 2029. The company exited its Canadian television business and sold its 41% stake in Peanuts Holdings, while fully repaying corporate debt, simplifying operations and strengthening its balance sheet. These moves positioned WildBrain to focus on three core segments: Franchise & Global Licensing, Content, and WildBrain Network, each contributing to a broader strategy of audience growth and monetization.
Revenue across segments varied significantly. Franchise & Global Licensing revenue rose 27% year-over-year to CAD 88 million for the full year, while Content revenue fell 27% to CAD 115 million. The WildBrain Network segment, which includes direct advertising and over 1,000 channels across YouTube, FAST, and AVOD platforms, saw a 6% quarterly increase to CAD 12 million. Gross margins improved to 45% in fiscal 2026 from 40% in 2025, though adjusted EBITDA dropped 22% to CAD 21 million, and net losses widened to CAD 75 million from CAD 122 million the prior year. Free cash flow turned negative to CAD 31 million, reversing a positive CAD 50 million figure in fiscal 2025.
Despite these challenges, WildBrain provided guidance for fiscal 2027, projecting revenue between CAD 270 million and 295 million—a midpoint growth rate of about 15% from the prior year. Adjusted EBITDA is expected to rise to CAD 28 million to 32 million, nearly quadrupling the midpoint of fiscal 2026’s adjusted EBITDA. The company plans to invest CAD 30 million in fiscal 2027 for marketing, technology, and infrastructure, though this spending is expected to keep free cash flow negative. Long-term, the company aims to double adjusted EBITDA from the midpoint of fiscal 2027 by fiscal 2029.
WildBrain also announced the acquisition of Personality AI, a kid-safe, generative-AI platform, and highlighted recent expansions, including a new WildBrain CPLG office in Japan and a retail store in China featuring Teletubbies and In the Night Garden. The company’s content pipeline includes Apple Original Films projects like Snoopy Unleashed and Twelve Days of Snoopy, as well as Netflix’s Finding Her Edge Season 2. CEO Josh Scherba framed fiscal 2026 as transformational, citing the restructuring as a foundation for sustainable growth through its three-unit structure, which he described as a ‘flywheel’ for brand, audience, and revenue expansion.
Analysts’ financial health metrics support the company’s improved balance sheet: an Altman Z-Score of 6.95 and a Piotroski Score of 8 out of 9 indicate a stable position relative to bankruptcy risk.
