• Revenue was $461.8 million, compared to $532.9 million in FY2023.
• Net loss was $106.0 million, compared with net loss of $45.6 million in FY2023.
• Adjusted EBITDA1 was $87.6 million, compared to $97.9 million in FY2023.
• Cash provided by operating activities was $73.6 million, compared to cash provided by operating activities of $94.2 million in FY2023.
• Free Cash Flow1 was negative $29.5 million, compared to positive $29.8 million in FY2023.

Q4 2024 Highlights

• Revenue was $130.0 million, compared to $124.9 million in Q4 2023.
• Net loss was $80.7 million, compared with net loss of $44.4 million in Q4 2023.
• Adjusted EBITDA1 was $23.9 million, compared to $19.1 million in Q4 2023.
• Cash provided by operating activities was $18.3 million, compared to cash provided by operating activities of $30.4 million in Q4 2023.
• Free Cash Flow1 was negative $6.6 million, compared to positive $16.9 million in Q4 2023.

Toronto, Canada — Josh Scherba, WildBrain President and CEO, said: “In Fiscal Year 2024, we undertook a realignment of our global organization to focus on building key franchises across our core competencies of Content Creation, Audience Engagement and Global Licensing. Driven by our 360-degree franchise strategy and led by an experienced senior management team, we have begun to see benefits in accelerating growth for key owned franchises and partner brands. The build in our licensing business this year was offset by the industry-wide slowdown in the content greenlights due to the Hollywood strikes, but our production pipeline has been ramping up and we are seeing a return to normal levels for Fiscal 2025 and 2026. We are confident that the combination of our assets, our strategy and capabilities in the kids and family entertainment space, amounts to a unique and highly valuable foundation to deliver growth over the long term.”

Nick Gawne, WildBrain CFO, added: “We are pleased to have announced in July a comprehensive plan to refinance our debt and repay our convertible debentures. The successful completion of the refinancing process during a challenging period for the wider industry demonstrates the robustness of our model and strategic vision. With the extended maturity, we can continue to execute on this strategic vision and drive earnings and free cash flow growth. We will continue to focus on disciplined financial management, improving our balance sheet and reducing leverage over time.”

Q4 2024 Performance – Executing on Priorities

Q4 2024 Financial Highlights

In Q4 2024, revenue increased 4% to $130.0 million, compared to $124.9 million in Q4 2023. Fiscal Year 2024 revenue was $461.8 million, compared to revenue of $532.9 million in Fiscal Year 2023.

Content Creation and Audience Engagement revenue increased 7% to $68.0 million in Q4 2024, compared to $63.6 million in Q4 2023. Strong distribution revenue in the current quarter as well as continued strength in the YouTube and AVOD networks drove quarter-on-quarter growth but was offset by lower production revenues as a result of fewer productions in the studios. Fiscal Year revenue for the segment was $212.8 million, compared to revenue of $280.6 million in Fiscal Year 2023.

Global Licensing revenue increased 4% to $53.7 million in Q4 2024, compared to $51.8 million in Q4 2023. Revenue in the quarter was driven by growth in Peanuts and WildBrain brands, as well as growth in Asia Pacific for WildBrain CPLG. Global Licensing revenue in Fiscal Year 2024 was $213.6 million, reflecting 1% growth over Fiscal Year 2023.

Legacy WildBrain Spark revenue in Q4 2024 was $6.9 million compared to $10.3 million in Q4 2023. Kids continue to be highly engaged on our YouTube network, with over 64 billion minutes of videos watched in the quarter and strong engagement in the average duration of viewing. The YouTube network saw revenue growth in the quarter which was offset by the production headwinds seen in the broader content industry. Legacy WildBrain Spark had revenue of $45.2 million, compared to $47.1 million in Fiscal Year 2023.

Gross margin1 for Q4 2024 was 46%, consistent with gross margin of 46% in Q4 2023. Gross margin for Q4 2024 was $59.5 million, an increase of $2.0 million, compared to $57.5 million for Q4 2023. Fiscal Year 2024 consolidated gross margin was $221.1 million, a decrease of $20.4 million, compared to $241.5 million in Fiscal Year 2023.

Cash provided by operating activities in Q4 2024 was $18.3 million, compared to $30.4 million provided by operating activities in Q4 2023. Fiscal Year 2024 cash provided by operating activities was $73.6 million, compared to $94.2 million in Fiscal Year 2023. Free Cash Flow1 was negative $6.6 million in Q4 2024, compared with Free Cash Flow of positive $16.9 million in Q4 2023. Fiscal Year 2024 Free Cash Flow was negative $29.5 million, compared to positive $29.8 million in Fiscal Year 2023.

Adjusted EBITDA1 was up 25% to $23.9 million in Q4 2024, compared with $19.1 million in Q4 2023. The increase in the quarter was driven by higher gross margin dollars and a reduction in SG&A. Adjusted EBITDA in Fiscal Year 2024 was $87.6 million, compared to $97.9 million in Fiscal Year 2023.

Q4 2024 net loss was $80.7 million compared to net loss of $44.4 million in Q4 2023. The change was primarily driven by a non-cash impairment charge of intangible assets in relation to our Television Business segment and investments in film and television and acquired and library content, offset by higher income tax recovery, higher gross margin dollars, lower SG&A, and a change in fair value of embedded derivatives in the current quarter. Fiscal Year 2024 net loss was $106.0 million, compared to net loss of $45.6 million in Fiscal Year 2023.