WILDBRAIN LTD.

Recommendation history

• Q2 2026HoldHold: Continuing Operations delivered $72 million of revenue, up 11% year over year, $15 million of adjusted EBITDA, up 30%, and $15 million of consolidated free cash flow, while the Peanuts sale should leave WildBrain debt-free with more than $40 million of cash after repayment and fees. The licensing mix and owned-IP pipeline are credible positives, but the sale removes a meaningful earnings contributor and management has paused fiscal 2026 guidance, leaving the post-transaction earnings base and cost savings unquantified.
• Q4 2025HoldHold: fiscal 2025 revenue rose 13% to $523 million and adjusted EBITDA rose 5% to $92 million, while free cash flow improved to positive $50 million. The core is guided to 15%-20% revenue and adjusted EBITDA growth in fiscal 2026, but 4.76x leverage, expected year-over-year free-cash-flow decline, and a soft distribution market keep this from being a clean buy.
• Q3 2025HoldHold: Q3 continuing-operations revenue rose 42% to C$128 million and free cash flow was C$13 million, but adjusted EBITDA rose only 18% to C$16 million and leverage remains 4.4x. The owned-IP and licensing momentum is real, yet the cut to continuing-operations EBITDA growth guidance to 5%-10%, ongoing net losses, and execution risk around the TV-channel sale prevent a clean buy.
• Q2 2025HoldHold: continuing-operations revenue rose 7% to C$126 million, Global Licensing rose 32% to C$80 million, adjusted EBITDA rose 11% to C$22 million, and free cash flow was C$49 million. The licensing and AVOD turnaround is increasingly credible, but 5.3x leverage, a C$69 million continuing-operations net loss, volatile working capital, and tariff exposure leave insufficient margin of safety for a buy.
• Q1 2023HoldHOLD: Q1 revenue rose 12% to support FY2023 guidance of $525-$575 million revenue and $95-$105 million adjusted EBITDA, but EBITDA was flat at $19.9 million, free cash flow was negative $8.9 million, and leverage was 4.2x. The integrated IP model has real brand and distribution assets, but the call does not yet show enough cash conversion or advertising recovery to justify a buy.
• Q4 2022HoldWildBrain delivered FY2022 revenue of $507.2 million, up 12%, and EBITDA of $88.8 million, up 7%, with FY2023 guidance of $525-$575 million revenue and $95-$105 million adjusted EBITDA. The branded-IP pipeline is credible, but negative FY2022 free cash flow of $17.4 million, an approximately $80 million accounts-receivable increase, and a weak Q4 make this a hold rather than a clean buy.
• Q2 2023HoldHold: Q2 revenue fell 8% to C$140.5 million and EBITDA fell 5% to C$26 million, while leverage was 4.25x. Sonic Prime and a contracted 15-plus-project pipeline support the C$525–575 million revenue and C$95–105 million adjusted EBITDA FY2023 targets, but the thesis still depends on delayed production, retail inventory normalization and unproven consumer-products conversion.