Blue Ant Media Reports First Quarter 2026 Financial Results

Revenue increased 65% year-over-year to $80.5 million, reflecting contributions from recent strategic acquisitions and continued execution of the Company's growth strategy

Generated $5.2 million of cash from operations

Strong balance sheet with surplus cash, minimal debt, and substantial undrawn credit capacity to support growth

TORONTO, Jan. 14, 2026 /CNW/ - Blue Ant Media Corporation ("Blue Ant" or the "Company") (TSX: BAMI), an international streamer, production studio and rights business, today announced its financial results for the three months ended November 30, 2025, the first quarter of its fiscal 2026. All dollar ($) amounts in this news release are in Canadian dollars.

"Our Q1 results were in line with expectations and reflected the scale we have been building through disciplined execution of our growth strategy," said Michael MacMillan, Chief Executive Officer of Blue Ant Media. "Revenue increased 65% year-over-year, driven by strong performance in our Studio business and contributions from recent acquisitions. Adjusted EBITDA and margins in the quarter were impacted by planned, non-operational accounting items related to the Reverse Takeover ("RTO"), while underlying operating performance remained solid. We also generated $5.2 million in operating cash, significantly reduced corporate debt, and exited the quarter with a strong balance sheet with access to more than $100 million of current and expected capital to support continued growth. Looking ahead, we expect to further accelerate growth and earnings power with the planned acquisition of Thunderbird Entertainment Group, which we expect to close in the first quarter of calendar 2026. With increased scale and significant financial flexibility, we are well positioned for the future."  

Financial Highlights

• Q1 2026 revenue of $80.5 million versus $48.7 million in the prior year period.
• Q1 2026 Adjusted EBITDA¹ of $5.0 million versus $6.4 million in the prior year period.
• Q1 2026 net loss of $6.8 million versus a net income of $1.2 million in the prior-year period, reflecting non-recurring items including a planned non-cash accounting loss related to the monetization of the vendor take-back promissory note (the "VTB Note") issued to the Company in connection with the Company's RTO and transaction and restructuring costs associated with acquisition activity.
• In Q1 2026, generated $5.2 million of cash from operations
• Strong liquidity position, with $34.0 million of cash at November 30, 2025, bank indebtedness² of $0.5 million and $63.2 million of undrawn capacity under the Company's corporate credit facility. During the quarter, the Company made a significant repayment of $19.1 million to its operating debt facility, reducing interest expenses and providing additional financial flexibility to support the Company's M&A plans. For further details, please refer to the table under "Cash and Indebtedness Summary."
• Completed the sale of the VTB Note, generating net cash proceeds of $13.6 million consistent with the value disclosed at the time of the RTO announcement. Proceeds from the sale were applied to the repayment of amounts outstanding under the Company's operating debt facility. As anticipated, the transaction resulted in a non-cash accounting loss of $3.1 million and reflects IFRS fair value accounting.
• As previously disclosed, by March 2026, the Company anticipates receiving an additional $34.7 million capital contribution in connection with the RTO from the Value Assurance Payment from Fairfax Financial Holdings Limited ("Fairfax").³

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¹ Adjusted EBITDA is a Non-IFRS measure. For more information on non-IFRS financial measures, see "Non-IFRS Measures" and "Reconciliation of Non-IFRS Measures" in this news release and the Company's MD&A dated January 14, 2026 for the three months ended November 30, 2025 available under the Company's profile on SEDAR+ (www.sedarplus.ca).

² The Company's bank indebtedness is listed under the 2025 Credit Agreement. It does not include interim production financing. For full detail, please see "Note 8: Bank Indebtedness and interim production financing" in the Company's interim condensed consolidated financial statements dated January 14, 2026 for the three months ended November 30, 2025.

³ Pursuant to a Value Assurance Agreement dated March 23, 2025, between (among others) the Company and Fairfax Financial Holdings Limited and certain of its affiliates (the "Value Assurance Agreement"), Fairfax and/or its affiliates agreed to, among other things, provide a capital contribution of up to $34.7 million if the businesses retained by the Company as part of the RTO (being Jam Filled Entertainment, Proper Television and Insight Productions) (the "Retained Business") do not meet certain Adjusted EBITDA targets in the 2025 calendar year. 

Operational Highlights 

• On October 2, 2025, the Company acquired MagellanTV LLC ("Magellan"), a U.S.-based, global factual streaming service for $12 million USD. Magellan expands Blue Ant's Global Channels and Streaming business, enhances monetization opportunities, and strengthens its position as a leading provider of premium factual content worldwide.
• Integration of Magellan, as well as the newly acquired production companies Insight Productions, Jam Filled Entertainment, and Proper Television, is progressing as planned.
• Continued expansion of the Company's free ad-supported television (FAST) footprint during the quarter, with multiple channel feeds launched across several platforms globally, including Roku, Samsung, Vizio, PlutoTV, LG and FireTV. The launches included five Magellan-branded channels, further expanding the Company's global advertising distribution.
• Launched our Love Nature Pay TV channel on Telia, the largest telecommunications company in the Nordic and Baltic regions.
• Slaycation season 2 premiered on Crave on December 12^th.
• Canada's Drag Race season 6 premiered on Crave on November 20^th and season 7 was greenlit.
• Production continued on The Great Canadian Baking Show season 9 (CBC) and season 10 was greenlit.
• Several other titles are in production including Extracted season 2 (Fox), Top Chef Canada season 8 (Global), Canada Shore (Paramount+ Canada), and The Loud House season 9 (Nickelodeon).
• Major distribution sales in the quarter include Matthew Perry: A Hollywood Tragedy to over 50 territories and Mike Holmes: Building a Legacy seasons 1 and 2 licensed to Warner Bros. Discovery for HGTV US.
• On November 26, 2025, the Company entered into a definitive arrangement agreement under which Blue Ant will acquire all of the issued and outstanding common shares of Thunderbird Entertainment Group Inc. (TSXV: TBRD, OTCQX: THBRF) ("Thunderbird").
• Thunderbird is expected to hold its shareholder vote on the transaction on January 22^nd, 2026 and a final hearing order from the Supreme Court of British Columbia has been scheduled for January 26^th, 2026. The transaction is subject to other customary closing conditions.

Consolidated Financial Summary

The following table provides selected financial information from the Company's consolidated statements of income/(loss):

(dollars, in thousands, except per share amounts)		Three months ended November 30,			Change
		2025	2024		$	%
Revenues		80,464	48,707		31,757	65 %
Net income (loss)		(6,750)	1,218		(7,968)	(654) %
Net income attributable to non-controlling interests		92	119		(27)	(23) %
Net income (loss) attributable to shareholders		(6,842)	1,099		(7,941)	(723) %
Net income (loss) per share attributable to shareholders - basic		(0.31)	0.07		(0.38)	(543) %
Net income (loss) per share attributable to shareholders - diluted		(0.31)	0.06		(0.37)	(617) %
Adjusted EBITDA*		4,994	6,352		(1,358)	(21) %

* This item is a non-IFRS measure. See definition and reconciliation to IFRS in "Non-IFRS Measures" and the "Reconciliation to Non-IFRS" table.

Q1 2026 Revenue was $80.5 million compared to $48.7 million in Q1 2025. This significant increase was primarily earned in the Company's Production and Distribution segment from both proprietary and service production. These results reflect the acquisition of the production companies Insight Productions, Jam Filled Entertainment, and Proper Television, which did not factor into the prior year results.

The Company had a net loss of $6.8 million in Q1 2026 compared to net income of $1.2 million in Q1 2025. The variance is primarily driven by non-recurring items, including (a) a $3.1 million non-cash accounting loss related to the monetization of the VTB Note, and (b) $3.4 million of transaction and restructuring costs associated with the RTO and the Magellan and Thunderbird acquisitions, for which there were no equivalents in the comparative period.

The VTB Note was included in the assets acquired in the RTO and recorded at a fair value of $16.7 million, reflecting a discount rate of 3.0%.⁴ As noted above, the VTB Note was sold to a third party for net proceeds of $13.6 million, reflecting an effective interest rate of 7.7%; net proceeds of $13.6 million were anticipated and disclosed by the Company since the announcement of the RTO. However, as the change in fair value could not be recorded until the sale was complete, the sale resulted in a realized non-cash loss of $3.1 million in the quarter.

Overall, the Company exited the quarter with a strong balance sheet and liquidity profile, providing significant financial flexibility to support continued growth and strategic initiatives.

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⁴ For further details on the VTB Note, please refer to the management information circular dated May 9, 2025, which is available on Blue Ant's profile on SEDAR+.

Cash and Indebtedness Summary

	November 30, 2025	August 31, 2025
Cash	34,027	54,477
Bank indebtedness	(540)	(19,342)
Interim production financing	(42,218)	(52,144)

Financial Summary by Segment

	Three Months Ended
	November 30, 2025	November 30, 2024	Change
Revenues			$	%
Global Channels and Streaming	22,711	21,100	1,611	8 %
Canadian Media	14,375	15,508	(1,133)	(7) %
Production and Distribution	43,378	12,099	31,279	259 %
Segment Revenues	80,464	48,707	31,757	65 %
Adjusted EBITDA*
Global Channels and Streaming	3,317	6,313	(2,996)	(47) %
Canadian Media	4,784	4,833	(49)	(1) %
Production and Distribution	(183)	(3,550)	3,367	95 %
Corporate	(2,924)	(1,244)	(1,680)	(135) %
Adjusted EBITDA*	4,994	6,352	(1,358)	(21) %

This item is a non-IFRS measure. See definition and reconciliation to IFRS in "Non-IFRS Measures" and the "Reconciliation to Non-IFRS" table.

In Global Channels and Streaming, Q1 2026 revenue was $22.7 million, an increase of 8% over the prior year period. The growth was primarily driven by higher subscriber revenue and growth in Smart TV advertising sales. However, these gains were offset by lower free ad-supported television (FAST) advertising revenue. Q1 Adjusted EBITDA was $3.3 million, down 47% from the prior year period. Although factors such as higher advertising publisher costs contributed to the downturn in profitability, the prior year period of Q1 of 2025 was unusually high, as that period included a significant uptick in advertising performance owing to the 2024 US Presidential election, as well as a significant, one-time partnership deal on a block of programming from Blue Ant's Homeful channel.

In Canadian Media, Q1 2026 revenue was $14.4 million down 7% from the prior year period. Ongoing growth in live event consumer show revenue and an increase in distribution sales of acquired library content was offset by continued challenges in the linear advertising market in Canada. Due to a reduction in sales, general and administrative expenses, however, Adjusted EBITDA was flat year-over-year.

In Production and Distribution, Q1 2026 revenue was $43.4 million, a 259% increase from the prior year period. This significant increase was driven by higher production services and production licensing revenue, largely resulting from the inclusion of Blue Ant's newly acquired production businesses. This additional production volume increased Adjusted EBITDA by 95%, resulting in a loss of $0.2 million versus a loss of $3.6 million in the prior year period.

Television programs delivered in Q1 2026 included a number of shows produced by Insight Productions and Proper Television, which were in various stages of production at the time of close of the RTO. Accordingly, an amount of gross margin on these shows proportionate to the percentage of the show completed at that time was attributed to Boat Rocker Media Inc., the prior owner, and capitalized to the investment in content rights as a fair value adjustment as part of the assets acquired by Blue Ant. On delivery of these shows, Blue Ant recognized the full amortization of each show including these fair value adjustments, negatively impacting the margin reflected in Blue Ant's results. Had Blue Ant been the producer of these shows from their inception, it would have recognized $1.9 million more margin in the Production and Distribution segment in Q1 2026. Normalizing for these accounting adjustments, Blue Ant's margin on production licensing is relatively consistent year over year.

First Quarter 2026 Conference Call

Blue Ant will hold a conference call to discuss the Company's first quarter 2026 results.

DATE: January 14, 2026 

TIME: 8:30 am EDT

WEBCAST: https://app.webinar.net/ZndBjGM3AL1

RAPID CONNECT URL: https://emportal.ink/44OnfEn

DIAL-IN: 416-945-7677 (Toronto) or 1-888-699-1199 (North America)

A link to the webcast will also be available on Blue Ant's website at https://blueantmedia.com/investor-relations. Please connect at least 15 minutes prior to the conference call. An archived replay of the webcast will be available until January 21, 2026 by dialing 1-289-819-1450 (Toronto), 1-888-660-6345 (North America), Entry Code 05184#.

Non-IFRS Measures

This news release makes reference to certain non-IFRS measures including "Adjusted EBITDA" and other measures. These measures are not recognized measures under International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and do not have a standardized meaning prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS. These non-IFRS measures and other measures are used to provide investors with supplemental measures of our operating performance and thus highlight trends in our core business that may not otherwise be apparent when relying solely on IFRS measures. Our management uses these non-IFRS measures and other measures in order to facilitate operating performance comparisons from period to period, to prepare annual operating budgets and forecasts and to determine components of management compensation. We also believe that securities analysts, investors and other interested parties frequently use certain of these non-IFRS measures and other measures in the evaluation of issuers. As required by Canadian securities laws, we reconcile the non-IFRS measures to the most comparable IFRS measures. For a reconciliation of Adjusted EBITDA to net income, please see the section entitled "Reconciliation of Non-IFRS measures" at the end of this news release. For more information on non-IFRS measures and other measures, see the MD&A dated January 14, 2026 for the three months ended November 30, 2025 filed on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile and available on the Company's investor relations website.

Forward-Looking Statements

This news release contains certain statements that are prospective in nature and constitute forward-looking information and/or forward-looking statements within the meaning of applicable securities laws (collectively, "forward-looking statements"). Forward-looking statements are provided for the purposes of assisting the reader in understanding Blue Ant's financial performance, financial position and cash flows as at and for the periods ended on certain dates and to present information about management's current expectations and plans relating to the future, and readers are cautioned that such statements may not be appropriate for other purposes. Forward-looking statements generally, but not always, can be identified by the use of forward-looking terminology such as "anticipate", "be achieved", "believes", "budget", "can", "continue", "could", "would", "expect", "estimate", "forecasts", "goal", "has an opportunity", "intend", "indicate", "likely", "may", "might", "objective", "outlook", "plans", "potential", "predict", "project", "prospect", "scheduled", "seek", "should", "strategy", "target", or "will", or variations of such words and phrases or similar expressions suggesting future outcomes or events, and the negative of any of these terms. Forward-looking statements in this news release include, among other things, the Company's expectations regarding its ability to grow its business; the Company's intention to accelerate its growth and earnings power with the announced acquisition of Thunderbird; the Company's expectations regarding the timing of the closing of the acquisition of Thunderbird; and the Company's expectations regarding its scale, balance sheet, financial flexibility and positioning for the future.

The forward-looking statements in this news release reflect management's current opinions, beliefs, estimates, expectations and assumptions and are based on information currently available to management, which includes assumptions about continued revenue based on historical past performance, management's historical experience, perception of trends and current business conditions, expected future developments, and other factors which management considers appropriate and reasonable in the circumstances. As they are forward-looking in nature, forward-looking statements are subject to change. With respect to the forward-looking statements included in this news release, the Company has made certain assumptions with respect to, among other things, the timing of closing and expected benefits to the Company of the Thunderbird acquisition; its long-term growth outlook; the performance of its business and operations; its ability to meet its future objectives and strategies; that its future projects and plans are achievable and proceeding as anticipated (including assumptions regarding renewals of existing series and greenlights of new projects), as well as assumptions concerning labour availability at budgeted rates and the length and impact of any labour unrest or strikes; the current geo-political landscape (including vis-à-vis the on-going global conflicts and the associated political and economic repercussions); general economic and market segment conditions, including whether or not the entertainment industry and/or broader market experiences a recession, currency exchange and interest rates, competitive intensity and consumer preferences (including continued demand for discretionary consumer products). There can be no assurance that management's underlying opinions, beliefs, expectations, estimates and assumptions will prove to be correct and that actual results will be consistent with these forward-looking statements.

Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the future circumstances, outcomes, or results anticipated or implied by such forward-looking statements will occur or that plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve known and unknown risks and uncertainties and other factors that could cause actual results to differ materially from those contemplated by such statements, including, but not limited to, the failure to satisfy the conditions to completion of the acquisition of Thunderbird, some of which are beyond the control of the parties; the failure to complete the acquisition of Thunderbird on the terms contemplated, or at all; shifts in consumer behaviour and content demand, including with respect to content buyer commissioning preferences, may reduce the Company's revenue or lead to outdated content and other business offerings; the imposition of tariffs by the United States on the film and television sectors could materially and adversely affect the Company's business, operating and financial results; the industries and markets in which the Company operates are highly competitive and rapidly evolving; the Company's operating and financial results may be affected by external factors beyond its control; the Company's business is significantly dependent on Michael MacMillan, the Company's CEO and controlling shareholder, as well as other members of the senior management team; the loss of buyers or other strategic partners or key relationships, or changes to partner terms of service, may adversely affect the Company's revenue and growth prospects; changes in the methodologies, policies, or contractual terms applicable to streaming platforms such as Amazon, Facebook or YouTube, changes in laws or regulations applicable to such platforms, or any governmental or third-party claim against any such platform could have a material adverse effect on the Company's financial results; and other risks and factors described in the Company's most recent Annual Information Form and most recent Management's Discussion and Analysis available on SEDAR+ (www.sedarplus.ca) under the Company's issuer profile. The forward-looking statements in this news release are made as of the date of this news release and, except as expressly required by applicable law, the Company assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

About Blue Ant Media Corporation

Blue Ant Media (TSX: BAMI) is an international streamer, production studio, advertising sales, and rights-management business. The company operates a diverse portfolio of free streaming and pay TV channels internationally, including Love Nature, Cottage Life, Smithsonian Channel Canada, BBC Earth Canada, HauntTV, Homeful, and Love Pets, as well as the subscription streaming service MagellanTV. Its studio business produces and distributes a wide range of premium content across key genres for streaming and broadcast platforms worldwide. Blue Ant Media is headquartered in Toronto, with a presence in Los Angeles, New York, Miami, Singapore, London, Washington, Sydney, Halifax, and Ottawa.

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RECONCILIATION OF NON-IFRS MEASURES

Reconciliation from Net Income (Loss) to Adjusted EBITDA

The following table presents the reconciliation from net income (loss) to Adjusted EBITDA for the three months ended November 30, 2025:

	Three Months Ended
	November 30, 2025	November 30, 2024
Net income / (loss)	(6,750)	1,218
Add back:
Depreciation and intangible amortization	2,711	1,362
Interest expense, net of interest income	(133)	948
Income taxes	1,954	1,100
EBITDA*	(2,218)	4,628
Adjustments:
Share-based compensation^1	257	585
Other finance costs^2	330	253
Net losses on foreign exchange^3	243	818
Loss on sale of assets^4	3,054	--
Transaction and other related costs^5	2,540	68
Restructuring costs^6	788	--
Adjusted EBITDA*	4,994	6,352

*This item is a non-IFRS measure. For more information on non-IFRS financial measures, see "Non-IFRS Measures" and "Reconciliation of Non-IFRS Measures" in the MD&A dated January 14, 2026 for the three months ended November 30, 2025 available under the Company's profile on SEDAR+ (www.sedarplus.ca).

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¹ Non-cash expenses associated with share-based compensation granted to certain officers, directors and employees.

² Amortization of deferred financing costs and other finance-related costs outside the normal course of business.

³ Realized and unrealized net losses on foreign currency exchange.

⁴ Loss on sale of VTB Note.

⁵ Professional fees associated with the acquisition of Magellan, the proposed acquisition of Thunderbird and the RTO in the current year period, and with other non-recurring similar costs in the comparative period.

⁶ Restructuring charges primarily relating to personnel costs in the Global Channels and Streaming segment.

SOURCE Blue Ant Media Corporation

For further information, please contact: Dervla Kelly, Chief Marketing and Communications Officer: [email protected] or Madeleine Cohen, Vice President, Corporate Planning & Investor Relations: [email protected]