Wildbrain Reports Q2 2026 Results

Core Insights - WildBrain's Global Licensing business showed strong performance in Q2 2026, driven by brands like Strawberry Shortcake and Teletubbies, along with the successful Netflix debut of Finding Her Edge, which was quickly renewed [1][14] - The sale of WildBrain's interest in Peanuts is expected to eliminate debt and provide financial flexibility for reinvestment in high-growth opportunities, marking a strategic shift towards a more focused and scalable business model [2][3] - The company is entering a new phase of opportunity with a streamlined cost structure and enhanced capital flexibility, aiming for strong revenue, EBITDA, and free cash flow growth [3][4] Q2 Financial Highlights - Revenue from continuing operations increased by 11% to $72.4 million in Q2 2026, compared to $65.5 million in Q2 2025 [6][14] - Global Licensing revenue rose by 24% to $27.3 million in Q2 2026, driven by owned brands and the global licensing agency WildBrain CPLG [6][14] - Adjusted EBITDA from continuing operations increased by 30% to $14.9 million in Q2 2026, compared to $11.5 million in Q2 2025 [9][14] Discontinued Operations - Revenue from discontinued operations was $131.8 million, up 83% year-over-year, primarily due to the Peanuts library renewal deal with Apple TV [14] - Adjusted EBITDA from discontinued operations attributable to WildBrain was $22.6 million, reflecting a 54% increase year-over-year [13][16] Operational Efficiency and Future Outlook - The company plans to invest in structural reorganization and automation initiatives to reduce SG&A costs and improve scalability, with measurable benefits expected from 2027 onwards [4][5] - Fiscal Year 2026 guidance remains paused as the company focuses on its transformational agenda, with expectations to resume guidance for Fiscal 2027 [5][14] - Leverage at the end of Q2 2026 was 4.88x, with proceeds from the Peanuts sale expected to fully repay outstanding debt [11][14]