WildBrain Ltd. (TSX: WILD), a Toronto-based family entertainment company, reported fourth-quarter and full-year results for fiscal 2026 on September 23, 2026, covering the period ended June 30, 2026. Revenue from continuing operations for the year was $245.7 million, down 10% from fiscal 2025, and the net loss attributable to shareholders from continuing operations was $74.9 million, compared with $121.6 million a year earlier.
The results follow a year of structural change at WildBrain, which completed the sale of its interest in Peanuts, exited television broadcasting and repaid its corporate debt during fiscal 2026. The moves come as children's media companies broadly shift away from traditional broadcast toward direct-to-consumer streaming, branded licensing and advertising-supported platforms.
Fourth-quarter revenue from continuing operations was $55 million, down 29% from $77.4 million in the same period of fiscal 2025. WildBrain attributed the decline to lower content revenue and reduced licensing agency activity during the quarter.
Content revenue fell 40% to $29.2 million in the fourth quarter, from $48.7 million a year earlier. WildBrain said the decrease reflected lower live-action production activity, with no equivalent series in production compared with the prior-year quarter, along with lower distribution revenue.
Franchise & Global Licensing revenue decreased 16% to $15.6 million in the fourth quarter, compared with $18.5 million a year earlier. The company attributed the decline to lower licensing agency revenue at WildBrain CPLG, tied to timing differences and changes in certain partner relationships.
WildBrain Network revenue increased 6% to $11.5 million in the fourth quarter, up from $10.8 million in the same period of fiscal 2025. WildBrain said the increase was driven by higher direct advertising revenue.
Gross margin for the fourth quarter was 39%, or $21.2 million, compared with 41%, or $31.6 million, a year earlier. WildBrain said the decline reflected lower distribution and licensing revenue along with increased franchise marketing investment.
Net income attributable to shareholders from continuing operations was $4.5 million in the fourth quarter, compared with $6.2 million in the same period of fiscal 2025.
Adjusted EBITDA from continuing operations attributable to shareholders was a loss of $4.0 million in the fourth quarter, compared with positive $8.1 million a year earlier.
For the full year, WildBrain reported cash provided by operating activities of $57.9 million, down from $152.5 million in fiscal 2025. Free cash flow was negative $30.5 million for the year, compared with positive $49.5 million in fiscal 2025.
#Franchise Licensing Revenue Grew 27% for the Year
Franchise & Global Licensing revenue rose 27% for fiscal 2026, led by continued growth in owned-brand royalties from Strawberry Shortcake, according to the company. WildBrain also rolled out two new Strawberry Shortcake series on the WildBrain Network during the year.
"Franchise & Global Licensing revenue grew 27% for the year, led by continued growth in owned-brand royalties from Strawberry Shortcake, and direct advertising drove growth in WildBrain Network in the quarter," Josh Scherba, President and Chief Executive Officer, WildBrain, said in the earnings release.
WildBrain also continued its normal course issuer bid during the year, repurchasing and cancelling approximately $3.2 million in common shares since the program launched. The company said the buybacks reflect its approach to returning capital to shareholders alongside continued investment in the business.
#WildBrain Adds AI Capabilities Through Personality AI Deal
Subsequent to the quarter, WildBrain announced the acquisition of Personality AI, which the company described as a kid-safe, scalable interactive character platform. WildBrain said the deal adds generative artificial intelligence-driven characters to its toys, apps, games and other franchise products.
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#WildBrain Guides to 15% Revenue Growth for Fiscal 2027
For fiscal 2027, WildBrain expects revenue of $270 million to $295 million, representing growth of approximately 15% at the midpoint. The company said growth is expected across all three operating segments.
WildBrain also expects Adjusted EBITDA of $28 million to $32 million for fiscal 2027, representing growth of approximately 44% at the midpoint, according to the company.
"Fiscal 2027 will be a deliberate investment year with capital directed toward initiatives that we expect will strengthen our long-term earnings power," Nick Gawne, Chief Financial Officer, WildBrain, said in the earnings release.
WildBrain said the fiscal 2027 outlook includes approximately $30 million of planned investment in franchise marketing, content, technology, operating infrastructure and leasehold improvements. The company expects those investments to result in negative free cash flow for the year, though it said the continuing business would generate positive free cash flow absent the planned spending.
WildBrain's franchise portfolio includes Strawberry Shortcake, Teletubbies, Yo Gabba Gabba! and Degrassi, with content distributed through platforms including Apple TV, Netflix and the BBC. The company competes with other children's entertainment and licensing operators that are similarly shifting toward direct-to-consumer distribution and owned-brand consumer products.
WildBrain said its outlook is based on assumptions including stable advertising markets, timely content delivery and no material deterioration in general economic conditions. The company said actual results could differ due to risks including its reliance on key franchises, integration of the Personality AI acquisition, and changes in the regulatory environment, including with respect to artificial intelligence.
Management said it expects Adjusted EBITDA to approximately double from the midpoint of its fiscal 2027 outlook by the end of fiscal 2029, supported by growth in owned-brand licensing and advertising revenue. WildBrain said that outlook remains subject to execution risk on its investment plan, competition in children's entertainment and media, and the pace of integration for recent acquisitions.