WildBrain (WLDBF) AI Stock Analysis

Company Guidance

WildBrain reaffirmed fiscal 2027 guidance for revenue of CAD 270 million to CAD 295 million, representing year-over-year growth of approximately 15% at the midpoint, and adjusted EBITDA of CAD 28 million to CAD 32 million, representing growth of approximately 44% at the midpoint; it expects negative free cash flow for fiscal '27 while executing its approximately CAD 30 million investment program, allocated across approximately CAD 6 million reflected in adjusted EBITDA, CAD 2 million in reorganization development and other expenses, CAD 13 million of capital expenditures and CAD 9 million in content and AI content capabilities. Licensing and advertising revenue are weighted towards the second quarter, contracted content production is expected to ramp through the balance of the year, and absent these planned investments, the continuing business is expected to generate positive free cash flow based on the revised definition, which deducts capital expenditures. WildBrain is also reaffirming its expectation to approximately double adjusted EBITDA from the midpoint of its fiscal 2027 guidance by the end of fiscal 2029, with Nick Gawne clarifying that the guidance is for posting CAD 60 million of EBITDA in fiscal '29 rather than exiting fiscal '29 at that level.