Q3 Operational Highlights

• Global Licensing delivered strong 35% year-over-year revenue growth, reflecting momentum across both owned brands and WildBrain CPLG.
• Completed sale of the Company’s interest in Peanuts, eliminating the Senior Secured Credit Facility and significantly enhancing financial flexibility.
• New animated/live-action Strawberry Shortcake content launched with digital-first series on YouTube.
• Strawberry Shortcake featured in numerous fan activations, including an eight-week “swing shop” and windows at FAO Schwarz New York.
• Subsequent to the quarter, commenced a normal course issuer bid (“NCIB”) share buyback program approved by the Company’s Board of Directors and the TSX; repurchased and cancelled 358,600 common shares for $542,310.

Q3 Financial Highlights for Continuing Operations1

• Revenue from continuing operations was $61.2 million, down 16% year over year.
• Net loss from continuing operations attributable to Shareholders of the Company was $19.9 million, compared with net loss of $18.6 million in Q3 2025.
• Adjusted EBITDA from continuing operations attributable to Shareholders of the Company (“WildBrain EBITDA”)2,3 was $5.8 million, up 38% year over year.

       Q3 Financial Highlights for Discontinued Operations1

• Revenue from discontinued operations was $42.1 million, down 34% year over year, mainly due to the Peanuts transaction closing on March 2nd and the closure of the Canadian Television Business.
• WildBrain EBITDA from discontinued operations2,3 was $5.4 million, compared with $21.9 million in Q3 2025.

Toronto, Ontario, Canada — WildBrain  reported financial results for Q3.

Josh Scherba, WildBrain President and CEO, said: “This quarter marked an important milestone for WildBrain as we closed the Peanuts transaction, strengthened our balance sheet, and continued to build momentum across our core growth drivers. We are seeing strong performance in Global Licensing, growing fan engagement across our owned franchises, and encouraging progress as we position the business for its next phase of growth and scalability.”

Nick Gawne, WildBrain CFO, added: “With debt eliminated, we have significantly strengthened our financial flexibility as we continue to execute against our strategic priorities. The launch of our NCIB program reflects our commitment to returning capital to shareholders alongside disciplined capital allocation. At the same time, we have started to lay the groundwork for the next phase of the Company’s evolution through targeted investments in organizational design, automation, and foundational technology. While still in the early stages, these initiatives are expected to create a more efficient, scalable operating model and support stronger long-term profitability.”

Fiscal Year 2026 Outlook

Fiscal 2026 guidance remains paused while the Company accelerates a transformational agenda that is reshaping its growth profile and positioning it for durable, higher‑quality returns. 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 sale of its interest in Peanuts with the associated full repayment of debt—that materially strengthened the balance sheet and sharpened management’s focus on high‑growth opportunities.

With debt eliminated and strong free cash flow from continuing operations, the Company is well positioned 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.

The Company will re-segment its financial reporting structure to reflect our updated operating model and the way management reviews performance and allocates resources internally. 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.

Q3 2026 Financial Highlights from Continuing Operations1

In Q3 2026, revenue from continuing operations decreased to $61.2 million, compared to $72.9 million in Q3 2025.

Global Licensing revenue increased 35% to $25.1 million in Q3 2026, compared to $18.7 million in Q3 2025. Revenue in the quarter was driven by WildBrain’s owned brands, Strawberry Shortcake and Teletubbies, and our global licensing agency, WildBrain CPLG.

Content Creation and Audience Engagement revenue decreased 33% to $36.1 million in Q3 2026, compared to $54.2 million in Q3 2025, primarily reflecting the timing of live-action production revenue, as well as lower Audience Engagement revenue in the quarter.

Gross Margin2 for Q3 2026 increased to 46%, compared to Gross Margin of 33% in Q3 2025. Gross Margin for Q3 2026 was $28.0 million, an increase of $4.2 million, compared to $23.8 million for Q3 2025, reflecting the growing contribution of the Company’s higher-margin Global Licensing business.

WildBrain EBITDA from continuing operations increased 38% to $5.8 million in Q3 2026, compared with $4.2 million in Q3 2025, reflecting improved Gross Margin performance and continued growth in Global Licensing.

Q3 2026 net loss from continuing operations attributable to Shareholders of the Company was $19.9 million, compared to a net loss of $18.6 million in Q3 2025.

Other Financial Highlights

Cash provided by operating activities, which is presented on a consolidated basis, was $28.2 million, compared to cash provided by operating activities of $47.3 million in Q3 2025.

Free Cash Flow2, which is presented on a consolidated basis, was negative $15.5 million, compared to positive $12.7 million in Q3 2025, primarily reflecting interest paid prior to the repayment of debt following the Peanuts transaction and timing impacts related to production financing.

Supplemental Table: WildBrain EBITDA from continuing operations

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Supplemental Table: WildBrain EBITDA from discontinued operations

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1. 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, in order to provide a consistent and clear view of the continuing operations of the business, 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. For example, commissions earned representing Peanuts’ consumer products business are recorded as revenue from continuing operations, and the commensurate cost of sale is recorded as discontinued operations.
2. Free Cash Flow, Gross Margin, Adjusted EBITDA, and Adjusted EBITDA attributable to Shareholders of the Company are non-GAAP financial measures. See below for further details.
3. WildBrain EBITDA refers to Adjusted EBITDA attributable to Shareholders of the Company. WildBrain EBITDA from continuing operations and discontinued operations excludes the portion of Adjusted EBITDA attributable to non-controlling interests.
4. Continuing and discontinued operations do not sum to previously reported consolidated revenue and cost of sales primarily due to the recognition of WildBrain CPLG commissions in continuing operations, which were previously eliminated as intercompany revenue under consolidated reporting.