WildBrain Ltd. published a transcript of its Fiscal 2026 Q2 earnings conference call, attended by President and CEO Josh Scherba, CFO Nick Gawne and VP of Investor Relations Kathleen Persaud. Management highlighted continued execution of its strategy alongside a major balance-sheet shift tied to the planned sale of its 41 percent interest in Peanuts for $630 million, which it said will eliminate debt and leave meaningful cash proceeds for reinvestment. “This represents a significant inflection point and opportunity for WildBrain,” Scherba said, adding that the company’s focus is “clear priorities around capital allocation, cost discipline and long-term value creation.” The company also emphasized it will retain ongoing relationships with Peanuts and Sony via service agreements covering content production, global content sales, and licensing in EMEA and APAC. In continuing operations, the company reported revenue of $72 million, up 11 percent year-over-year, with Global Licensing revenue of $27 million up 24 percent and Content Creation and Audience Engagement revenue of $45 million up 4 percent. CFO Nick Gawne said adjusted EBITDA from continuing operations was $15 million, up 30 percent, and noted that after the Peanuts transaction closes, proceeds will be used to repay debt in full. He also said WildBrain expects “plus $40 million of proceeds from the transaction after full repayment of debt and transaction fees.” Scherba pointed to momentum in owned brands and licensing, citing Strawberry Shortcake and Teletubbies performance, and noted the company is preparing for Teletubbies’ 30th anniversary in 2027. On content, he highlighted Netflix success for Finding Her Edge, which was renewed quickly: “The series performed strongly enough to be renewed for a second season within a week of its premiere.” WildBrain reiterated it is pausing fiscal 2026 guidance amid its transformation and expects to resume guidance for fiscal 2027, while planning one-time infrastructure and technology investments to improve scalability and reduce SG&A over time. Gawne described this as “a onetime opportunity to renovate the house,” and Scherba said the company would consider returning capital via buybacks “when appropriate.” On potential M&A and leverage, Scherba added, “2x would certainly be comfortable.” The full transcript can be accessed through the link below.

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