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Wildbrain Ltd (TSE:WILD)
:WILD
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WildBrain (WILD) AI Stock Analysis

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TSE:WILD

WildBrain

(OTC:WILD)

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Neutral 49 (OpenAI - 4o)
Rating:49Neutral
Price Target:
C$2.00
▲(32.45% Upside)
WildBrain's overall stock score is driven by a positive earnings call outlook and strong licensing growth, but is weighed down by financial instability, weak technical indicators, and unattractive valuation metrics. The company's strategic focus on digital platforms offers potential, but profitability and leverage issues remain significant risks.
Positive Factors
Licensing Revenue Growth
The significant growth in licensing revenue, especially from popular brands like Strawberry Shortcake and Peanuts, indicates strong brand value and market demand. This growth supports long-term revenue stability and enhances the company's competitive position in the entertainment industry.
Digital Strategy and Media Solutions
WildBrain's strategic focus on digital platforms and media solutions positions the company to capitalize on the growing demand for digital content. This shift is likely to drive future revenue growth and expand the company's reach in the digital entertainment market.
Positive Cash Flow
The improvement in free cash flow reflects better cash management and operational efficiency. This enhances financial flexibility, allowing the company to invest in growth opportunities and manage debt more effectively, contributing to long-term financial health.
Negative Factors
High Leverage and Negative Equity
The company's high leverage and negative equity indicate financial instability, which can limit its ability to invest in growth and weather economic downturns. This financial structure poses a risk to long-term sustainability and shareholder value.
Content Creation Revenue Decline
The decline in content creation revenue suggests challenges in maintaining competitive content offerings. This could impact the company's ability to attract and retain audiences, affecting long-term growth and profitability in a content-driven industry.
Profitability Challenges
Ongoing profitability challenges, including negative net profit margins, indicate operational inefficiencies. Sustained profitability issues can hinder the company's ability to reinvest in its business and compete effectively, impacting long-term growth prospects.

WildBrain (WILD) vs. iShares MSCI Canada ETF (EWC)

WildBrain Business Overview & Revenue Model

Company DescriptionWildBrain Ltd. develops, produces, and distributes films and television programs worldwide. The company operates through two segments, Content Business and Canadian Television Broadcasting. It focuses on children and family content, including animated series; and provides production services, as well as operates children's channels on YouTube. The company also licenses initial broadcasting rights of new proprietary series or pre-sells shows that are in development to individual broadcasters, streaming services, and other media platforms; and re-licenses rights of existing series in the library or packages of programs of its own proprietary titles, as well as third-party produced titles. In addition, it holds broadcast licenses for Family Channel, Family Jr., Télémagino, and Family CHRGD television channels; and operates as entertainment, sport, and brand licensing agency for the company's own and third party brands. Further, the company licenses its brands, such as Peanuts, Strawberry Shortcake, Chip and Potato, Teletubbies, Yo Gabba Gabba!, Caillou, Johnny Test, In the Night Garden, Twirlywoos, Mattel on Bob the Builder, Fireman Sam, Little People, and Polly Pocket, as well as music publishing and retransmission rights, and live tours. It offers its films and television programs for streaming services; and conventional and specialty terrestrial and cable/satellite television broadcasters, as well as for other media platforms and digital providers. The company was formerly known as DHX Media Ltd. and changed its name to WildBrain Ltd. in December 2019. WildBrain Ltd. was incorporated in 2004 and is headquartered in Halifax, Canada.
How the Company Makes MoneyWildBrain generates revenue through multiple streams. The primary source of income is content production and distribution, where the company creates and sells television programs and digital content to broadcasters, streaming platforms, and digital networks globally. Another significant revenue stream is brand licensing and merchandising, where WildBrain licenses its intellectual properties (IPs) to various partners for use in toys, apparel, publishing, and other consumer products. Furthermore, WildBrain earns money through advertising on its WildBrain Spark network, which monetizes content views on YouTube. The company also forms strategic partnerships and collaborations with other media companies and platforms to enhance content reach and monetization opportunities.

WildBrain Earnings Call Summary

Earnings Call Date:Sep 26, 2025
(Q4-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong growth in licensing and successful brand strategies, particularly with Strawberry Shortcake and Peanuts. However, challenges in content creation revenue and the strategic exit from the Television business were noted. Despite these challenges, the overall sentiment leans towards optimism with a focus on future growth opportunities.
Q4-2025 Updates
Positive Updates
Significant Growth in Licensing
Licensing revenue surged by 33% year-over-year. Strawberry Shortcake alone grew nearly 200%, becoming a major contributor to the Licensing segment.
Peanuts Brand Success
Peanuts saw widespread demand across categories and geographies, establishing a new baseline for the brand, with notable outperformance in Asia, especially China.
Audience Engagement Growth
AVOD and FAST channels grew 55% in Q4, reaching 5.7 billion minutes, extending IP reach and opening monetization opportunities.
Media Solutions and Digital Strategy
Strong potential for growth in Media Solutions, with a growing pipeline and a differentiated capability in the market.
Strong Financial Performance
Fiscal 2025 revenue was $523 million, up 13% year-over-year, with $487 million excluding Television, up 14% year-over-year. Adjusted EBITDA was $92 million, up 5%.
Negative Updates
Content Creation Revenue Decline
Revenue for Content Creation and Audience Engagement was $203 million, down 5% year-over-year, with Q4 revenue down 12% year-over-year.
Television Revenue and Exit
Television revenue was $36 million for the year, with a strategic decision to exit the Canadian broadcast business following channel removals.
Distribution Revenue Timing Issues
Revenue decrease in Q4 was driven by distribution revenue timing shifts, contributing to a headwind in Adjusted EBITDA.
Company Guidance
During WildBrain's Fiscal 2025 Fourth and Full Year Earnings Conference Call, the company presented a strong outlook for growth in fiscal 2026, expecting revenue growth between 15% to 20% and adjusted EBITDA growth of 15% to 20%, excluding their Television segment. Key growth drivers include a 33% increase in global licensing revenue, propelled by the success of their Strawberry Shortcake and Peanuts brands, with Strawberry Shortcake revenue soaring nearly 200% year-over-year to $14 million. The company saw engagement on social media rise by 66% for Strawberry Shortcake and 56% for Teletubbies, translating into increased consumer product success. Josh Scherba, President and CEO, highlighted the company's strategic shift towards digital platforms and the scaling of their Media Solutions division, which is expected to see revenue potentially double next year. Despite exiting the Canadian Television business, the company remains optimistic about leveraging opportunities in FAST and AVOD channels, and sees a long-term growth potential in China and Asia for the Peanuts brand. WildBrain also aims to simplify its operations and focus on high-growth areas, with a net loss reduction to $90 million from $106 million the previous year and a positive free cash flow of $50 million compared to negative $30 million in 2024.

WildBrain Financial Statement Overview

Summary
WildBrain shows financial instability with recurring net losses and a negative equity position, indicating significant financial risk. While cash flows appear strong, the company's heavy reliance on debt and operational challenges may affect its long-term financial health. Continued attention to improving profitability and balance sheet strength is critical.
Income Statement
45
Neutral
WildBrain has experienced inconsistent revenue growth with a notable decline in the latest TTM. Gross profit margins remain relatively stable, but the net profit margin is negative, reflecting ongoing net losses. The negative EBITDA margin in the latest TTM indicates operational challenges in generating earnings before interest, taxes, depreciation, and amortization.
Balance Sheet
30
Negative
The company is operating with negative stockholders' equity in the latest TTM, indicating a high leverage position with a debt-to-equity ratio that cannot be calculated due to negative equity. This poses a significant financial risk. The equity ratio is also negative, highlighting the company's reliance on debt financing.
Cash Flow
55
Neutral
Cash flow from operations has improved in the latest TTM, resulting in a positive free cash flow. The operating cash flow to net income ratio is strong, suggesting good cash conversion despite net losses. However, the sustainability of cash flows given the recurring net losses remains a concern.
BreakdownTTMDec 2025Dec 2024Dec 2022Dec 2022Dec 2020
Income Statement
Total Revenue530.63M523.36M461.82M507.22M532.87M452.53M
Gross Profit242.29M215.51M221.11M221.56M241.53M194.89M
EBITDA45.23M42.64M-11.47M107.04M78.08M94.50M
Net Income-80.32M-89.81M-105.97M5.64M-45.55M-7.08M
Balance Sheet
Total Assets937.34M937.34M1.05B1.22B1.21B1.13B
Cash, Cash Equivalents and Short-Term Investments68.87M68.87M49.72M59.90M80.35M78.43M
Total Debt574.06M574.06M607.59M633.70M619.92M591.63M
Total Liabilities772.30M772.30M806.71M903.77M888.66M824.99M
Stockholders Equity-88.67M-88.67M-10.74M79.43M76.04M68.59M
Cash Flow
Free Cash Flow136.64M98.94M70.98M22.56M85.78M99.43M
Operating Cash Flow138.92M100.36M73.60M33.10M94.19M105.68M
Investing Cash Flow2.41M2.41M-6.14M-10.84M-8.40M-15.16M
Financing Cash Flow-122.31M-83.75M-98.13M-46.13M-73.27M-79.24M

WildBrain Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.51
Price Trends
50DMA
1.88
Negative
100DMA
1.97
Negative
200DMA
1.86
Negative
Market Momentum
MACD
-0.09
Positive
RSI
28.45
Positive
STOCH
9.70
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:WILD, the sentiment is Negative. The current price of 1.51 is below the 20-day moving average (MA) of 1.82, below the 50-day MA of 1.88, and below the 200-day MA of 1.86, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 28.45 is Positive, neither overbought nor oversold. The STOCH value of 9.70 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:WILD.

WildBrain Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
77
Outperform
C$54.06M10.248.74%12.31%165.69%
69
Neutral
C$735.97M16.0317.21%2.78%10.68%
60
Neutral
$48.67B4.58-11.27%4.14%2.83%-41.78%
52
Neutral
$752.40M94.91%15.67%-1396.85%
49
Neutral
C$320.69M-3581.90%14.90%26.37%
40
Neutral
C$187.79M-38.53%-59.51%-545.36%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:WILD
WildBrain
1.51
0.41
37.27%
TSE:CGX
Cineplex
11.86
1.49
14.37%
TSE:TBRD
Thunderbird Entertainment Group Inc
1.30
-0.45
-25.71%
TSE:RAY.A
Stingray Digit SV
10.81
3.86
55.54%
TSE:QYOU
QYOU Media
0.05
<0.01
28.57%
TSE:BAMI
Blue Ant Media
8.59
-0.61
-6.63%

WildBrain Corporate Events

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
WildBrain Reports Strong Q3 2025 Results with Strategic Focus on Key Franchises
Positive
May 14, 2025

WildBrain Ltd. reported a strong third quarter for 2025, with significant growth in global licensing, driven by its premium franchises and strategic partnerships like the one with Starbucks for Peanuts. The company is simplifying its operations by selling its television broadcast business and focusing on high-growth areas, which has resulted in improved financial metrics, including a 42% increase in revenue from continuing operations and a positive free cash flow. The company maintains a positive outlook for fiscal year 2025, expecting revenue and adjusted EBITDA growth, although the sale of its television business may impact these projections.

The most recent analyst rating on (TSE:WILD) stock is a Hold with a C$1.75 price target. To see the full list of analyst forecasts on WildBrain stock, see the TSE:WILD Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 09, 2025