Summary of WildBrain's Conference Call Company Overview - **Company**: WildBrain - **Transaction**: Sale of 41% interest in Peanuts to Sony Music Entertainment Japan and Sony Pictures Entertainment for CAD 630 million [3][4] Key Points and Arguments 1. **Transaction Impact**: The sale will result in a debt-free balance sheet, saving approximately CAD 50 million in annual interest payments and leaving over CAD 40 million in cash surplus [4][24] 2. **Strategic Focus**: The transaction allows WildBrain to reinvest in high-margin franchises like Strawberry Shortcake and Teletubbies, as well as in digital content and advertising technologies [4][10] 3. **Valuation**: The transaction represents a 23 times fiscal 2025 attributable EBITDA multiple, highlighting the strength of the Peanuts franchise and the value created during WildBrain's ownership [3][4] 4. **Future Growth**: WildBrain aims to leverage its Flywheel strategy to enhance its wholly-owned brands, focusing on premium storytelling and global licensing [5][11] 5. **Financial Restructuring**: The company has undergone significant restructuring, including debt refinancing and winding down its legacy television business, which has reshaped its operating and financial profile [6][24] 6. **Guidance Update**: Fiscal 2026 guidance has been paused until the resegmentation of financial reporting is complete [7][8] 7. **Ownership Benefits**: WildBrain retains 100% ownership of Strawberry Shortcake, which is expected to generate higher returns compared to Peanuts due to full economic participation [9][12] 8. **Market Dynamics**: The kids' media landscape is shifting towards digital platforms like YouTube and FAST, with traditional linear TV viewership declining significantly [18][19] 9. **Advertising Opportunities**: WildBrain's extensive reach on digital platforms positions it well to capture advertising revenue in a fragmented market [19][20] 10. **Content Creation**: The company is focused on producing both premium and lower-cost digital-first content, with a strong pipeline including a Peanuts feature film for Apple [21][22] Additional Important Insights - **Retail Sales Potential**: Strawberry Shortcake's retail sales potential is estimated at CAD 800 million, while Teletubbies is projected at CAD 1 billion [15][16] - **Licensing Agency**: WildBrain CPLG is one of the largest independent licensing agencies, enhancing the company's ability to manage both owned and third-party brands [16][17] - **AI Integration**: WildBrain is exploring AI tools to improve production efficiency and reduce costs, which could enhance returns on franchise content [22][24] - **Long-term Strategy**: The company plans to maintain a clean balance sheet while exploring share buybacks and strategic acquisitions to drive growth [24][25] This summary encapsulates the key aspects of WildBrain's conference call, focusing on the company's strategic direction, financial implications of the recent transaction, and future growth opportunities in the evolving media landscape.

Strategic transaction crystallizes the brand's substantial value creating opportunity to accelerate growthFully de-levers WildBrain's balance sheet, eliminating all debt and saving approximately $50 million in annual interest payments and leaving over $40 million cash surplusAllows reinvestment in high-growth, cash-accretive opportunities across wholly owned franchises, premium digital network, and innovative technologiesWildBrain retained by Sony as key partner with multi-year Peanuts service arrangement ...

Core Insights - WildBrain Ltd. reported its Q1 2026 results, highlighting strong growth in its Global Licensing business and a strategic exit from its Television operations to focus on higher-margin opportunities [3][4][5]. Q1 Operational Highlights - The Global Licensing business achieved a 29% year-over-year revenue increase, reaching $81.1 million, driven by brands like Peanuts, Strawberry Shortcake, and Teletubbies [8]. - Content Creation and Audience Engagement revenue decreased by 3% to $39.8 million, reflecting growth in production but softness in content distribution [9]. Q1 Financial Highlights - Total revenue for Q1 2026 was $125.5 million, a 13% increase from $111.0 million in Q1 2025. Excluding Television, revenue was $120.8 million, up 16% year-over-year [6][7]. - Net loss attributable to shareholders was $32.6 million, compared to a loss of $10.6 million in Q1 2025. Excluding Television, the net loss was $31.4 million, compared to $15.1 million in Q1 2025 [11]. - Adjusted EBITDA increased by 37% to $20.9 million, with a 53% increase to $17.4 million when excluding Television [10][12]. Fiscal Year 2026 Outlook - The company expects strong growth in Global Licensing, projecting a 29% year-over-year increase in revenue, and reaffirmed its outlook for Fiscal Year 2026 [6][13]. - Revenue is anticipated to be between $560 million and $590 million, with Adjusted EBITDA expected to be approximately $80 million to $85 million, reflecting a growth of 15% to 20% [13].

Why is “TransBerry” in a kids show on Netflix?Lauren Chen (@TheLaurenChen):The Strawberry Shortcake show has a character who is a "TransBerry"What is wrong with these people? Why do they insist on corrupting kids with their degeneracy?To be clear, these activists don't just want to be "left alone," they're coming for your kids unless we stop it. ...

Core Insights - WildBrain Ltd. reported its full year and Q4 2025 results, highlighting strong growth in its Global Licensing business and improved financial metrics compared to the previous year [5][6][8] Q4 Financial Highlights - Revenue including Canadian Television Broadcasting was $139.1 million, up 7% year over year, while revenue excluding Television was $129.4 million, up 6% year over year [7][10] - Net income including Television was $9.5 million, a significant improvement from a net loss of $80.7 million in Q4 2024; net income excluding Television was $11.2 million compared to a net loss of $17.0 million in Q4 2024 [7][13] - Adjusted EBITDA including Television was $24.6 million, up 3% year over year; adjusted EBITDA excluding Television was $19.1 million, down 1% year over year [7][12] Fiscal 2025 Financial Highlights - Total revenue including Television was $523.4 million, up 13% year over year; revenue excluding Television was $487.3 million, up 14% year over year [7][14] - Net loss including Television was $89.8 million, an improvement from a net loss of $106.0 million in FY 2024; net loss excluding Television was $97.6 million compared to a net loss of $58.2 million in FY 2024 [7][14] - Free Cash Flow for FY 2025 was positive $49.5 million, compared to negative $29.5 million in FY 2024 [7][12] Global Licensing Performance - Global Licensing revenue increased 29% to $69.4 million in Q4 2025, driven by strong growth in owned brands such as Peanuts, Strawberry Shortcake, and Teletubbies [10] - Strawberry Shortcake revenue grew nearly 200% year over year, while Peanuts recorded its strongest year ever with broad-based global demand [7][10] Strategic Focus and Future Outlook - The company announced its decision to exit the Canadian broadcast television business to concentrate on higher-margin, higher-growth opportunities [8] - For Fiscal Year 2026, the company expects revenue growth of approximately 15% to 20% and adjusted EBITDA growth of approximately 15% to 20% [15]

Core Viewpoint - WildBrain Ltd. is ceasing its television broadcast business due to the inability to negotiate new carriage agreements with Rogers Communications and Bell, leading to the conclusion that the Channels are no longer commercially viable [2][3][5]. Company Update - WildBrain has announced that it will surrender the Channel licenses to the Canadian Radio-television and Telecommunications Commission (CRTC) and will simplify its voting structure to a single class, enhancing strategic flexibility [3]. - The decision to discontinue the Channels is expected to have minimal impact on the broader business strategy, as WildBrain continues to focus on monetizing its entertainment IP across various platforms [5]. Financial Performance - The company reported a 17% growth year-to-date through the third fiscal quarter, indicating strong performance beyond the television business despite industry challenges [6]. Strategic Direction - WildBrain is aligning its business with changing consumer habits, strategically exiting the declining broadcast space in Canada while leveraging its iconic IP such as Peanuts, Strawberry Shortcake, and Teletubbies across streaming and consumer products [5][6].