WildBrain (TSE:WILD) Releases Earnings Results

WildBrain (TSE:WILD) released its quarterly earnings data on Thursday. The company reported C($0.03) earnings per share for the quarter, FiscalAI reports. The firm had revenue of C$58.34 million for the quarter. WildBrain had a net margin of 117.80% and a return on equity of 478.35%.

Here are the key takeaways from WildBrain’s conference call:

• WildBrain reported momentum in its owned franchises and network: Strawberry Shortcake and Teletubbies licensing revenue grew double digits combined, FAST performance was strong, and WildBrain Network revenue rose 7%. The company also added 10 first-time direct advertising clients, with its media-solutions pipeline about 85% higher than a year earlier.
• Adjusted EBITDA from continuing operations fell to CAD 2 million from CAD 4 million a year earlier, while cash used in operating activities was CAD 14 million versus CAD 14 million provided in the prior-year quarter. Management attributed results partly to content-production timing and mix, and said the Paramount licensing headwind will persist through fiscal 2027.
• Management reaffirmed fiscal 2027 guidance of CAD 270–295 million in revenue and CAD 28–32 million in adjusted EBITDA, implying midpoint growth of about 15% and 44%, respectively. It also maintained its target to approximately double adjusted EBITDA from the fiscal 2027 guidance midpoint by fiscal 2029.
• The planned approximately CAD 30 million investment program is expected to weigh on fiscal 2027 adjusted EBITDA and contribute to negative free cash flow for the year. Management expects benefits to build from fiscal 2028, but returns depend on franchise demand, advertising-market opportunities, and successful technology implementations.

WildBrain Stock Down 3.7%

WildBrain stock traded down C$0.05 during midday trading on Friday, reaching C$1.29. The stock had a trading volume of 26,426 shares, compared to its average volume of 104,406. The company has a current ratio of 1.84, a quick ratio of 0.88 and a debt-to-equity ratio of 23.14. WildBrain has a 12 month low of C$1.06 and a 12 month high of C$2.23. The company has a market capitalization of C$273.52 million, a P/E ratio of 0.75, a PEG ratio of 6.85 and a beta of -0.90. The company has a fifty day moving average price of C$1.39 and a two-hundred day moving average price of C$1.36.

Analysts Set New Price Targets

Several research firms have recently weighed in on WILD. Royal Bank Of Canada reduced their target price on WildBrain from C$2.00 to C$1.50 and set a “sector perform” rating for the company in a report on Thursday, October 1st. ATB Cormark Capital Markets lifted their price objective on WildBrain from C$1.35 to C$1.45 and gave the company a “sector perform” rating in a research report on Thursday, October 22nd. Three investment analysts have rated the stock with a Hold rating. According to data from MarketBeat, the stock currently has a consensus rating of “Hold” and an average price target of C$1.65.

WildBrain Company Profile

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.