Canada's WildBrain Q2 revenue up 11% on solid global licensing growth

Overview

• Canadian family entertainment firm's Q2 revenue grew 11% yr/yr, but missed analysts' expectations

• Net loss from continuing operations reduced significantly compared to last year

• Company announced sale of 41% stake in Peanuts to repay debt, leaving cash surplus

Outlook

• WildBrain maintains pause on fiscal 2026 guidance amid transformation

• Company expects investment benefits to begin in 2027

• WildBrain plans to re-segment financial reporting for clarity

Result Drivers

• GLOBAL LICENSING GROWTH - WildBrain's Global Licensing revenue rose 24% in Q2, driven by owned and partner brands like Strawberry Shortcake and Teletubbies

• CONTENT SUCCESS - 'Finding Her Edge' on Netflix was renewed for a second season, highlighting strong content engagement

• PEANUTS STAKE SALE - Sale of 41% stake in Peanuts to repay debt, providing financial flexibility for high-growth investments

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the entertainment production peer group is "buy."

• Wall Street's median 12-month price target for WildBrain Ltd is C$2.00, about 53.8% above its February 11 closing price of C$1.30

Press Release: ID:nNFC76tP8N

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