Toronto, Ontario — February 12, 2026 — Leads & Copy — WildBrain Ltd. (TSX: WILD) reported its second quarter (Q2 2026) results for the period ended December 31, 2025, showing strong revenue growth in Global Licensing with a 24% year-over-year increase.
The company announced an agreement in December 2025 to sell its 41% stake in Peanuts, with the majority of proceeds to be used to fully repay debt, leaving over $40 million cash surplus.
Subsequent to the quarter, WildBrain’s hit Netflix show, Finding Her Edge, was greenlit for a second season, and Season 2 of Yo Gabba GabbaLand! launched on Apple TV.
Revenue from continuing operations was $72.4 million, up 11% year over year. Net loss attributable to Shareholders of the Company from continuing operations was $20.1 million, compared with net loss attributable to Shareholders of the Company of $86.4 million in Q2 2025. Adjusted EBITDA attributable to WildBrain from continuing operations was $14.9 million, up 30% year over year.
Revenue from discontinued operations was $131.8 million, up 83% year over year, driven by recognition of the Peanuts library renewal deal with Apple TV. Adjusted EBITDA attributable to WildBrain from discontinued operations was $22.6 million, up 54% year over year.
WildBrain President and CEO Josh Scherba noted the standout performance of the Global Licensing business in the second quarter, driven by Strawberry Shortcake and Teletubbies. He highlighted the successful debut and renewal of Finding Her Edge on Netflix, reinforcing the strength of WildBrain’s content.
CFO Nick Gawne stated that the second quarter marked an important period of transition as WildBrain advanced initiatives to simplify its operating and financial profile. The wind-down of the Canadian Television Broadcasting business and the announced Peanuts transaction reflect a shift toward a more focused, scalable and capital-efficient business model.
WildBrain anticipates that the repayment of its Senior Secured Credit Facility upon closing of the Peanuts transaction will significantly strengthen its balance sheet and enhance its ability to invest in its core businesses. With a streamlined cost structure, a simplified balance sheet, plus the capital flexibility to invest for growth, Gawne believes WildBrain is entering a new phase of opportunity.
Fiscal 2026 guidance remains paused while the Company accelerates a transformational agenda. Over the past twelve months, the Company has executed a series of strategic moves, including the exit of its Television business, simplification of its share structure, and the anticipated sale of its interest in Peanuts with the associated full repayment of debt.
With debt eliminated and strong free cash flow from continuing operations, the Company is primed to invest meaningfully in structural reorganization and automation initiatives that will reduce SG&A, improve scalability, and enhance long-term margins. These investments are expected to begin delivering measurable benefits in calendar 2027 and beyond, while the Company continues to drive near-term operational performance across its owned brands, WildBrain CPLG, its production slate, and its differentiated digital platforms.
To better reflect the Company’s go-forward operations and provide investors with clearer insight into underlying economics, the Company will re-segment its financial reporting. Given the timing and early stage of the infrastructure and technology investments, the Company is maintaining a pause on Fiscal 2026 guidance; management expects to learn more about the scale of our transformation opportunities in the coming months and anticipates resuming financial guidance for Fiscal 2027. The Company will continue to provide regular qualitative updates on strategic priorities, operational progress, and the path to enhanced profitability.
In Q2 2026, revenue from continuing operations increased 11% to $72.4 million, compared to $65.5 million in Q2 2025. Global Licensing revenue increased 24% to $27.3 million in Q2 2026, compared to $21.9 million in Q2 2025, driven by Strawberry Shortcake, Teletubbies, and WildBrain CPLG.
Content Creation and Audience Engagement revenue increased 4% to $45.1 million in Q2 2026, compared to $43.6 million in Q2 2025. Segment revenue reflected growth in production revenues as compared to the prior year, offset by lower Audience Engagement revenues across distribution, YouTube, and FAST. Despite lower monetization, engagement levels across distribution, YouTube, and FAST platforms remained strong during the quarter.
Gross Margin for Q2 2026 was 50%, compared to Gross Margin of 48% in Q2 2025. Gross Margin for Q2 2026 was $35.9 million, an increase of $4.7 million, compared to $31.2 million for Q2 2025.
Adjusted EBITDA from continuing operations increased 30% to $14.9 million in Q2 2026, compared with $11.5 million in Q2 2025. Q2 2026 net loss from continuing operations attributable to Shareholders of the Company was $20.1 million, compared to a net loss of $86.4 million in Q2 2025.
Cash provided by operating activities was $45.7 million, compared to $81.4 million in Q2 2025. Free Cash Flow was positive $15.3 million, compared to positive $49.3 million in Q2 2025.
Leverage as of the end of Q2 2026 was 4.88x. Proceeds from the sale of Peanuts are expected to be used to repay all of the Company’s outstanding debt.
Supplemental tables provide additional details on Adjusted EBITDA for both continuing and discontinued operations.
Subsequent to the closure of Television on October 22, 2025, and the announcement of the definitive agreement to sell its 41% stake in Peanuts Holdings LLC on December 18, 2025, the Company is presenting its results both on a continuing operations and discontinued operations basis. The continuing operations basis excludes the results of Television, and Peanuts. The results of Peanuts remove the results arising directly from the Company’s ownership of 41% of Peanuts Holdings LLC, the Company’s current role as distributor of Peanuts content, and any adjustments made to balances to consolidate Peanuts activity into the Company’s results.
Free Cash Flow, Gross Margin, Adjusted EBITDA, and Adjusted EBITDA attributable to WildBrain are non-GAAP financial measures.
Source: WildBrain
