WildBrain Reports Full Year 2025 and Q4 2025 Results

Q4 and Fiscal 2025 Operational Highlights

• Global Licensing delivered strong growth in Fiscal 2025, reflecting both the breakout performance of owned IP and the continued momentum of WildBrain CPLG, which expanded with new partners and deepened long-term relationships.
• With our owned brands, Strawberry Shortcake revenue grew nearly 200% year over year to become a meaningful contributor with clear upside, Peanuts recorded its strongest year ever with broad-based global demand for a record-breaking year, and Teletubbies delivered double-digit gains supported by new activations and preparations for its 30^th anniversary.

Q4 Financial Highlights¹

• Revenue including Canadian Television Broadcasting ("Television") was $139.1 million, up 7% year over year. Revenue excluding Television was $129.4 million, up 6% year over year.
• Net income including Television was $9.5 million, compared with net loss of $80.7 million in Q4 2024. Net income excluding Television was $11.2 million, compared with net loss of $17.0 million in Q4 2024.
• Adjusted EBITDA² including Television was $24.6 million, up 3% year over year. Adjusted EBITDA excluding Television was $19.1 million, down 1% year over year.
• Cash used in operating activities was $2.0 million, compared to cash provided by operating activities of $18.3 million in Q4 2024.
• Free Cash Flow³ was negative $17.3 million, compared to negative $6.6 million in Q4 2024.

Fiscal 2025 Financial Highlights

• Revenue including Television was $523.4 million, up 13% year over year. Revenue excluding Television was $487.3 million, up 14% year over year.
• Net loss including Television was $89.8 million, compared with net loss of $106.0 million in FY 2024. Net loss excluding Television was $97.6 million, compared with net loss of $58.2 million in FY 2024.
• Adjusted EBITDA including Television was $92.3 million, up 5% year over year. Adjusted EBITDA excluding Television was $68.6 million, up 3% year over year.
• Cash provided by operating activities was $152.5 million, compared to cash provided by operating activities of $73.6 million in FY 2024.
• Free Cash Flow was positive $49.5 million, compared to negative $29.5 million in FY 2024.

Toronto, Ontario--(Newsfile Corp. - September 25, 2025) - WildBrain Ltd. (TSX: WILD) ("WildBrain" or the "Company"), a global leader in kids' and family entertainment, today reported its full year and fourth quarter ("Q4 2025") results for the period ended June 30, 2025.

Josh Scherba, WildBrain President and CEO, said: "Fiscal 2025 was a pivotal year for WildBrain as we sharpened our focus on our premium franchises and delivered strong growth across our Global Licensing business. We demonstrated the resilience of our 360-degree franchise strategy across Content Creation, Audience Engagement and Global Licensing as we continued to grow love for Peanuts, Strawberry Shortcake and Teletubbies with fans of all ages worldwide. Our financial discipline led to improved free cash flow and a reduction in leverage over the course of the year."

"As previously announced, we made the difficult decision to exit the Canadian broadcast television business, a step which reflects the realities of the evolving market and our commitment to concentrating resources on higher-margin, higher-growth opportunities that are shaping the future of kids' and family entertainment. With this focus, we are well-positioned to build on our momentum in fiscal 2026 and create long-term value for shareholders."

Nick Gawne, WildBrain CFO, added: "In Fiscal 2025, our focus on our core brands, our investments in high-growth areas and our continued financial discipline drove growth in revenue, adjusted EBITDA and Free Cash Flow. Looking to Fiscal 2026, we expect that story to continue with strong underlying growth in the core business, driven by doubling down on high-growth areas alongside continued focus on operating efficiency."

Fiscal Year 2026 Outlook

In Fiscal Year 2026, the Company will cease operations of its Television business. To provide comparable results, the Company is providing its outlook both including and excluding Television.

In Fiscal Year 2026, for results including Television, we expect:

• Revenue of approximately $560 million to $590 million and
• Adjusted EBITDA of approximately $80 million to $85 million.

In Fiscal Year 2026, for results excluding Television, we expect:

• Revenue growth of approximately 15% to 20% and
• Adjusted EBITDA growth of approximately 15% to 20%.

Q4 2025 Financial Highlights including Television¹

In Q4 2025, revenue increased 7% to $139.1 million, compared to $130.0 million in Q4 2024.

Global Licensing revenue increased 29% to $69.4 million in Q4 2025, compared to $53.7 million in Q4 2024. Revenue in the quarter was driven by strong growth in our owned brands-Peanuts, Strawberry Shortcake and Teletubbies-supplemented by third party revenue growth from our global licensing agency, WildBrain CPLG.

Content Creation and Audience Engagement revenue decreased 12% to $60.0 million in Q4 2025, compared to $68.0 million in Q4 2024. Revenue in the quarter was driven by a reduction in distribution revenues, offset by stronger production revenue as compared to the prior year's quarter.

Gross margin for Q4 2025 was 45%, compared to gross margin of 46% in Q4 2024. Gross margin for Q4 2025 was $63.3 million, an increase of $3.7 million, compared to $59.5 million for Q4 2024.

Cash used in operating activities in Q4 2025 was $2.0 million, compared to $18.3 million cash provided by operating activities in Q4 2024. Free Cash Flow was negative $17.3 million in Q4 2025, compared with Free Cash Flow of negative $6.6 million in Q4 2024. Fiscal year 2025 Free Cash Flow was positive $49.5 million, compared to negative $29.5 million in the prior fiscal year.

Adjusted EBITDA increased 3% to $24.6 million in Q4 2025, compared with $23.9 million in Q4 2024.

Q4 2025 net income was $9.5 million, compared to net loss of $80.7 million in Q4 2024.

Leverage in Q4 2025 was 4.76x, comfortably within our financial covenants.

1. In December 2024, the Company announced that it had signed a definitive agreement ("the Sale Agreement") to sell 66 2/3% of its Canadian Television Broadcasting ("Television") and that in accordance with IFRS 5: Non-current Assets Held for Sale and Discontinued Operations, the results of Television were presented as discontinued operations during the second and third quarters of 2025. In the Q3 financial statements, the Company disclosed that as a result of Bell's decision to cancel Television channels, the Company was renegotiating certain elements of the Sale Agreement. At June 30, 2025, the Company determined that the sale of Television no longer met the threshold set out in IFRS 5 of being highly probable and as a result, reinstated the Television segment into held-for-use. In August 2025, the Company announced that it would be ceasing operation of Television later this year. Until the cessation occurs, Television will be reported in net income from operations. In Q2 2026, Television will return to discontinued operations. The Company is presenting its results isolating Television from its continuing businesses to provide a consistent and clear view of both the Company's core continuing operations and total operations in the applicable periods.
2. Free Cash Flow, Gross Margin, Adjusted EBITDA and Adjusted EBITDA attributable to WildBrain are non-GAAP financial measures - see below for further details.
3. Free Cash Flow includes discontinued operations.

Q4 2025 Conference Call

The Company will hold a conference call on September 26, 2025 at 10:00 a.m. ET to discuss the results.

To listen online, please visit the following link: https://www.gowebcasting.com/14355

To listen by phone, please dial 1-844-763-8274 in North America (toll free) or +1 647-484-8814 internationally (tolls apply). If dialing in, please allow 10 minutes to be connected to the conference call.

Replay will be available at the above link or by dialing 1-855-669-9658 in North America (toll free) or +1 412-317-0088 internationally (tolls apply), until October 26, 2025, using access code 3699353.

The audio and transcript will also be archived on WildBrain's website approximately three business days following the call.

For more information, please contact:

Investor Relations: Kathleen Persaud - VP, Investor Relations, WildBrain
kathleen.persaud@wildbrain.com
+1 212-405-6089

Media: Shaun Smith - Sr. Director, Global Communications & Public Relations, WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230

About WildBrain

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. With a library of approximately 14,000 half-hours, our shows reach kids and families everywhere, including on our YouTube network, which has generated more than 1.7 trillion minutes of watch time. Our consumer products licensing arm, WildBrain CPLG, represents our own and partner brands in every major territory worldwide. Headquartered in Toronto, WildBrain trades on the Toronto Stock Exchange, (TSX: WILD). Visit us at wildbrain.com.

Forward-Looking Statements

This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects WildBrain's current assumptions and expectations regarding future events as at the time they are made. The words "will", "expects", "anticipates", "believes", "plans", "intends" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Although the Company believes that the assumptions and factors used in preparing, and the expectations contained in, the forward-looking information and statements are reasonable, undue reliance should not be placed on such information and statements, and no assurance or guarantee can be given that such forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information and statements. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond WildBrain's control, which could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include but are not limited to: changes in general economic, business and political conditions. WildBrain undertakes no obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Non-IFRS Measures

In addition to the results reported in accordance with IFRS as issued by the International Accounting Standards Board, the Company uses various non-GAAP financial measures, which are not recognized under IFRS, as supplemental indicators of our operating performance and financial position. These non-GAAP financial measures are provided to enhance the user's understanding of our historical and current financial performance and our prospects for the future. Management believes that these measures provide useful information in that they exclude amounts that are not indicative of our core operating results and ongoing operations and provide a consistent basis for comparison between periods. The following discussion explains the Company's use of certain non-GAAP financial measures, which are Adjusted EBITDA, Adjusted EBITDA attributable to the Shareholders of the Company, Gross Margin and Free Cash Flow.

Investors are cautioned that these non-GAAP financial measures should not be construed as an alternative measure to net income or loss, or other measures as determined in accordance with GAAP, or as an indicator of the Company's financial performance or a measure of liquidity and cash flows.

"Adjusted EBITDA" means earnings (loss) before net finance costs, income taxes, amortization of property & equipment and right-of-use and intangible assets, amortization of acquired and library content, equity-settled share-based compensation expense, changes in fair value of embedded derivatives, gain/loss on foreign exchange, reorganization, development and other expenses, impairment of certain investments in film and television programs/acquired and library content/P&E/intangible assets/goodwill, and also includes adjustments for other identified charges, as specified in the accompanying tables. Adjusted EBITDA is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Management believes that certain lenders, investors and analysts use Adjusted EBITDA to measure a company's ability to service debt and meet other payment obligations, and as a common valuation measurement in the media and entertainment industry. Further, certain of our debt covenants use Adjusted EBITDA in the calculation. The most comparable GAAP measure is earnings before income taxes.

"Adjusted EBITDA attributable to the Shareholders of the Company" means Adjusted EBITDA excluding the portion of Adjusted EBITDA attributable to non-controlling interests.

"Gross Margin" means revenue less direct production costs and expense of film and television produced. Gross Margin is not an earnings measure recognized by GAAP and does not have a standardized meaning prescribed by GAAP; accordingly, Gross Margin may not be comparable to similar measures presented by other issuers. Management believes Gross Margin is a useful measure of profitability before considering operating and other expenses and can be used to assess the Company's ability to generate positive net earnings and cash flows. The most comparable GAAP measure is gross profit.

"Free Cash Flow" means operating cash flow less distributions to non-controlling interests, changes in interim production financing, cash interest paid on our long-term debt, bank indebtedness, and lease liabilities, and principal repayments on our lease liabilities. Free Cash Flow does not have a standardized meaning prescribed by GAAP; accordingly, Free Cash Flow may not be comparable to similar measures presented by other issuers. Management believes Free Cash Flow is a useful measure of the Company's ability to repay debt, finance strategic business acquisitions and investments, pay dividends, and repurchase shares. The most comparable GAAP measure is cash from operating activities.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/268009