First Quarter 2027 (Q1 Fiscal 2027 Financial Statements)

Interim Condensed Consolidated Financial Statements (unaudited)

September 30, 2026 and September 30, 2025

Management's Responsibility for Financial Reporting 1

Interim Condensed Consolidated Balance Sheets 2

Interim Condensed Consolidated Statements of (Loss) Income 3

Interim Condensed Consolidated Statements of Comprehensive Income (Loss) 4

Interim Condensed Consolidated Statements of Changes in Equity 5

Interim Condensed Consolidated Statements of Cash Flows 6

Notes to the Financial Statements 7

1. Nature of business 7

2. Basis of preparation 7

3. Summary of material accounting policies, judgments and estimates 8

4. Acquisitions 8

5. Discontinued operations 10

6. Amounts receivable 12

7. Investment in film and television programs 12

8. Acquired and library content 13

9. Accounts payable and accrued liabilities 13

10. Credit facilities 14

11. Share capital 14

12. Share-based compensation 15

13. Income taxes 18

14. Finance costs, net 18

15. Expenses by nature 19

16. Management of financial risks and financial instruments 19

17. Income or loss per common share 21

18. Capital disclosures 21

19. Interim Condensed Consolidated statement of cash flows - supplementary information 22

20. Revenues and segmented information 24

21. Commitments and contingencies 26

22. Subsequent events 27

‌November 11, 2026‌

The accompanying interim condensed consolidated financial statements of WildBrain Ltd. (the "Company") are the responsibility of management and have been approved by the Board of Directors (the "Board"). The Board is responsible for ensuring that management fulfills its responsibilities for financial reporting and is ultimately responsible for reviewing and approving the interim condensed consolidated financial statements. The Board carries out this responsibility through its Audit Committee. The Audit Committee reviews the Company's interim condensed consolidated financial statements and recommends their approval by the Board.

The Audit Committee is appointed by the Board and all of its members are independent directors. It meets with the Company's management and reviews internal control and financial reporting matters to ensure that management is properly discharging its responsibilities before submitting the interim condensed consolidated financial statements to the Board for approval.

‌The interim condensed consolidated financial statements have been prepared by management in accordance with International Accounting Standard 34, Interim Financial Reporting as issued by the International Accounting Standards Board. When alternative methods of accounting exist, management has chosen those it deems most appropriate in the circumstances. The interim condensed consolidated financial statements include amounts based on informed judgments and estimates of the expected effects of current events and transactions with appropriate consideration to materiality. In addition, in preparing the interim condensed consolidated financial statements, management must make determinations as to the relevancy of information to be included, and make estimates and assumptions that affect reported information. Actual results in the future may differ materially from management's present assessment of this information because future events and circumstances may not occur as expected.

‌(signed) "Josh Scherba" (signed) "Nicholas Gawne" President and Chief Executive Officer Chief Financial Officer

Toronto, Ontario Toronto, Ontario

‌(expressed in thousands of Canadian dollars) Note Assets

Current assets

September 30,

2026

June 30,

2026

S

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

September 30, September 30,

Items that may be subsequently reclassified to the consolidated statements of income (loss):

Foreign currency translation adjustment attributable to shareholders of the

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

‌(expressed in thousands of Canadian dollars)‌

Common Shares

Contributed

surplus

Accumulated

other comprehensive (loss) income

Retained Earnings (deficit)

Non-controlling

interest Total

Other comprehensive income for the

Distributions to non-controlling

Balance - September 30, 2025 $ 423,371 $ 50,041 $ (4,204) $(584,750) $ 263,282 $147,740

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

‌Three months ended‌

The accompanying notes form an integral part of these interim condensed consolidated financial statements.

1. Nature of business‌

   WildBrain Ltd. (the "Company" or "WildBrain"), was incorporated on February 12, 2004 under the laws of the Province of Nova Scotia, Canada, and continued on April 25, 2006 under the Canada Business Corporations Act. The Company is a public company whose Common Shares are traded on the Toronto Stock Exchange ("TSX") under the symbol 'WILD'. The address of the Company's head office is 25 York Street, Unit 1201, Toronto, Ontario, M5J 2V5.

   The Company develops, produces and distributes films and television programs for domestic and international markets; licenses its brands in the domestic and international markets; sells advertising on various ad-supported video-on-demand platforms; and manages copyrights, licensing and brands for third parties.

   During the year ended June 30, 2026, the Company's Canadian Television Broadcasting business ceased operations on October 22, 2025, and its broadcasting licenses were formally revoked by the CRTC on October 31, 2025. On March 2, 2026, the Company completed the sale of its 41% interest in Peanuts Holdings LLC ("Peanuts"), the holding entity for the Peanuts intellectual property ("IP"), to Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc. The Canadian Television Broadcasting business and Peanuts each represented a major line of business, so both are presented as discontinued operations. The comparative results for the three months ended September 30, 2025 have been re-presented to show discontinued operations separately from continuing operations.

   On August 24, 2026, the Company acquired 100% of the issued and outstanding shares of Personality AI Inc. ("Personality AI") through its wholly owned subsidiary, WildBrain Holdings (USA) Inc. Personality AI is a Delaware corporation that creates custom AI-driven personas for interactive characters and brand avatars. The acquisition was accounted for as a business combination under IFRS 3 (Note 4).

2. Basis of preparation‌

   ‌These interim condensed consolidated financial statements were prepared in accordance with International Financial Reporting Standards as issued by International Accounting Standards Board ("IFRS Accounting Standards"), applicable to the preparation of interim financial statements, under International Accounting Standards ("IAS") 34, Interim Financial Reporting, and follow the same accounting policies as those used in the Company's most recent audited annual consolidated financial statements.

   These interim condensed consolidated financial statements do not include all the disclosures included in the Company's audited annual consolidated financial statements. Accordingly, these interim condensed consolidated financial statements should be read in conjunction with the audited annual consolidated financial statements.

   These interim condensed consolidated financial statements have been authorized for issuance by the Board of Directors on November 11, 2026.

3. Summary of material accounting policies, judgments and estimates‌

   ‌The preparation of interim condensed consolidated financial statements under IFRS Accounting Standards requires the Company to make estimates and assumptions that affect the application of policies and reported amounts. Estimates and judgments are continually evaluated and are based on historical experience and other factors including expectations of future events that are believed to be reasonable. Actual results may differ materially from these estimates.

   Amended accounting standards adopted during the period

   Effective July 1, 2026, the Company adopted the Amendments to the Classification and Measurement of Financial Instruments (Amendments to IFRS 9 and IFRS 7) and Annual Improvements to IFRS Accounting Standards - Volume 11. The adoption of these amendments did not have a material impact on the interim condensed consolidated financial statements.

   Accounting pronouncements issued but not yet effective

   There have been no changes to the status of IFRS 18, Presentation and Disclosure in Financial Statements, or other accounting pronouncements issued but not yet effective, as disclosed in the Company's audited consolidated financial statements for the year ended June 30, 2026.

4. Acquisitions‌

   On August 24, 2026, the Company acquired 100% of the issued and outstanding shares of Personality AI.

   The acquisition broadens the Company's Franchise & Global Licensing offerings by enabling licensors to provide child-safe AI models of their IP characters.

   The consideration was as follows:

   • Cash: $15,459 (US$11,235) including amounts paid to the sellers and amounts placed in escrow.

   • Closing shares: 1,000,000 WildBrain Ltd. Common Shares, recognized at fair value based on the share price on the acquisition date (the "Share Consideration").

   • Deferred share consideration: US$2,000 payable on the first anniversary of closing in WildBrain Ltd. Common Shares, capped at 1,000,000 shares, with any excess settled in cash. This obligation is recognized as a financial liability recorded within Accounts payable and accrued liabilities at its present value of $2,547.

   • Earn-out: The sellers may receive contingent cash payments of up to $77,194 (US$56,000) based on Personality AI's revenue for calendar years 2027 to 2029. The earn-out is contingent consideration classified as a financial liability measured at fair value through profit or loss. Its acquisition-date fair value has been recognized at $551 recorded within Other long-term liabilities. The Company used a Monte Carlo valuation approach. Key inputs to the calculation included expected future Revenues for the acquired business, volatility and discount rate. The Company will re-assess the estimated value of contingent consideration as a financial liability at each reporting date and subsequent changes in fair value will be recognized in profit or loss.

     The estimated fair value of consideration transferred for the acquisition of Personality AI consists of the following:

     	August 24, 2026
     Consideration paid in cash(1)	Purchase price $ 15,459
     Consideration paid in Common Shares	1,430
     Deferred share consideration(2)	2,547
     Contingent consideration - earn out(3)	551
     Total Consideration	$ 19,987

     1. Consideration paid in cash for business acquisition in the Consolidated Statements of Cash Flows excludes $77 of cash acquired.

     2. Recognized at the present value of US$2,000 and presented under Accounts payable and accrued liabilities in the interim condensed consolidated balance sheets.

     3. Contingent consideration was initially measured at $551 fair value. Subsequent fair value changes will go through profit or loss.

     The Company recorded the following preliminary purchase price allocation for the estimated fair value of the acquired assets and liabilities assumed at acquisition date:

     August 24, 2026

     Current assets

     Cash and cash equivalents $ 77

     Amounts receivable 69

     Prepaid expenses and other 197

     343 Non-current assets

     Intangible assets -

     -

     Current liabilities

     Accounts payable and accrued liabilities (185)

     (185)

     Net identifiable assets $ 158

     Goodwill 19,829

     Net assets acquired $ 19,987

     The purchase price allocation is provisional. The Company is still in the process of identifying and valuing the intangible assets acquired, and the allocation of consideration to identifiable intangible assets has not been completed. Management expects that a portion of the consideration will be allocated to identifiable intangible assets, which would reduce goodwill, and that such reduction could be material. The allocation will be finalized once the valuation of identifiable intangible assets and the post-closing working capital adjustment are complete, which the Company expects within the 12-month measurement period from the acquisition date. The related income tax effects, including any deferred tax liability on identified intangible assets, have not yet been determined.

     The Company incurred $712 in transaction related costs which were included in Reorganization, development and other expense in the interim condensed consolidated statements of (loss) income.

     The pro forma revenue and net loss as a combined entity if the acquisition had occurred on July 1, 2026 would be approximately $58,758 and $6,797, respectively. The Company recorded revenue and a net loss of $nil and $324, respectively, since the date of the acquisition.

5. Discontinued operations‌

   ‌The Company's Peanuts business and Canadian Television Broadcasting business each represented a separate major line of business and are presented as discontinued operations. The disclosures for the three months ended September 30, 2025 have been re-presented to show discontinued operations separately from continuing operations. There were no results from discontinued operations for the three months ended September 30, 2026.

   Peanuts

   On March 2, 2026, the Company completed the sale of its 41% interest in Peanuts Holdings LLC ("Peanuts") to Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc.

   Canadian Television Broadcasting

   On October 22, 2025, the Company's Canadian Television Broadcasting business ceased operations and its broadcasting licenses were formally revoked by the CRTC on October 31, 2025.

   As at September 30, 2026, the remaining provision for severance and onerous contracts related to the wind-up of the Canadian Television Broadcasting business was $838 (June 30, 2026 - $1,395), included in Accounts payable and accrued liabilities.

   Results and cash flows of discontinued operations

   The results of discontinued operations for the three months ended September 30, 2025 as presented in the Consolidated Statements of Income (Loss) were as follows:

   Three months ended September 30, 2025

   Canadian Television

   (expressed in thousands of Canadian dollars)		Peanuts		Broadcasting		Total
   Revenues	$	62,901	$	4,683	$	67,584
   Expenses
   Content, distribution, marketing and other costs		30,029		212		30,241
   Amortization of acquired and library content		777		-		777
   Amortization of property and equipment and intangible assets		247		204		451
   Selling, general and administrative and other expenses		7,735		6,076		13,811
   		38,788		6,492		45,280
   Income (loss) before taxes		24,113		(1,809)		22,304
   Provision for income taxes
   Current		1,524		-		1,524
   Deferred		1,935		-		1,935
   		3,459		-		3,459
   Net income (loss) from discontinued operations		20,654		(1,809)		18,845
   Net income from discontinued operations attributable to non-controlling
   interests		12,017		-		12,017
   Net income (loss) from discontinued operations attributable to
   shareholders of the Company	$ 8,637		$ (1,809) $			6,828
   Basic income per common share	$ 0.04		$ (0.01) $			0.03
   Diluted income per common share	$ 0.04		$ (0.01) $			0.03
   Other comprehensive income from discontinued operations
   Net income from discontinued operations	$ 20,654		$ (1,809) $			18,845
   Foreign currency translation adjustment attributable to non-controlling
   interests from discontinued operations	5,273		-		5,273
   Comprehensive income for the period from discontinued operations	$ 25,927		$ (1,809)		$ 24,118
   The net cash flows of discontinued operations were as follows:
   			September 30,		September 30,
   (expressed in thousands of Canadian dollars)			2026		2025
   Operating activities			$ (958)		$ 831
   Investing activities(1)			9,812		-
   Financing activities(2)			-		(7,222)
   Net cash flow from discontinued operations			$ 8,854		$ (6,391)

   1. The investing activities include $9,812 for the final cash consideration received from the Peanuts sale collected in the three months ended September 30, 2026 and was included in amounts receivable as at June 30, 2026.

   2. The financing activities within net cash flow from discontinued operations are presented net of distributions to all owners. Distributions attributable to the Company were $nil for the three months ended September 30, 2026 (2025 - $2,840).

6. Amounts receivable‌

   (expressed in thousands of Canadian dollars)	Note	September 30, 2026	June 30, 2026
   Trade receivables		$ 143,232	$ 144,120
   Less: ECL allowance on trade receivables		(8,650)	(8,631)
   Trade receivables, net of loss allowance		134,582	135,489
   Sales tax receivable		3,191	5,629
   Federal and provincial film tax credits		71,334	70,352
   Amounts receivable		$ 209,107	$ 211,470

7. Investment in film and television programs‌

   (expressed in thousands of Canadian dollars)	Development	In Production	Delivered	Total
   Cost Balance at June 30, 2026	$ 2,738	$ 3,246	$ 741,855	$ 747,839
   Additions	169	723	5,998	6,890
   Reclassifications(1)	(193)	(1,831)	2,024	-
   Impact of foreign exchange	-	(7)	(1,048)	(1,055)
   Balance at September 30, 2026	$ 2,714	$ 2,131	$ 748,829	$ 753,674
   Accumulated amortization
   Balance at June 30, 2026			$ 698,828	$ 698,828
   Amortization			7,373	7,373
   Impact of foreign exchange			(915)	(915)
   Balance at September 30, 2026			$ 705,286	$ 705,286
   Net book value
   Balance at September 30, 2026	$ 2,714	$ 2,131	$ 43,543	$ 48,388
   Balance at June 30, 2026	$ 2,738	$ 3,246	$ 43,027	$ 49,011

   (1) Reclassifications represent content that has progressed from one classification to another (such as from Development to In Production).

   In the three month period ended September 30, 2026, interest of $97 (September 30, 2025 - $209) was capitalized to investment in film and television programs.

   In the three month period ended September 30, 2026, additions to investment in film and television programs were reduced by

   $3,686 (September 30, 2025 - $3,373) in respect of production tax credits.

8. Acquired and library content‌ Acquired and

   (expressed in thousands of Canadian dollars)	library content
   Cost
   Balance at June 30, 2026	$ 106,860
   Impact of foreign exchange	(146)
   Balance at September 30, 2026	$ 106,714
   Accumulated amortization
   Balance at June 30, 2026	$ 91,415
   Amortization	708
   Impact of foreign exchange	(112)
   Balance at September 30, 2026	$ 92,011
   Net book value
   Balance at September 30, 2026	$ 14,703
   Balance at June 30, 2026	$ 15,445

9. Accounts payable and accrued liabilities

(1) Assignment and direction of specific production financing, licensing contracts receivable and film tax credits receivable have been pledged as security. As at September 30, 2026, the Canadian dollar bank prime rate was 4.45% (June 30, 2026 - 4.45%).

Interim production financing comprises separate production-specific loans with multiple Canadian financial institutions, bearing interest at the Canadian dollar bank prime rate plus 0.5% and repaid from the related licensing contracts receivable and film tax credits receivable as collected. All amounts outstanding at September 30, 2026 mature within twelve months and are classified as current.

On March 2, 2026, the Company fully repaid all amounts outstanding under its credit agreement consisting of the Term Loan Facility and Revolving Facility. No amounts were outstanding at September 30, 2026 or June 30, 2026. In September 2025, the Company amended the credit agreement and recognized a loss on modification of $16,019 in finance costs for the three months ended September 30, 2025.

1. Share capital‌ Three months ended

   September 30, 2026 September 30, 2025

   (expressed in thousands of Canadian dollars) Number	Amount	Number	Amount
   Common Shares Opening balance 212,191,792 $	421,523	212,380,753 $	423,371
   Issuance of Common Shares under business
   combination	1,000,000	1,430	- -
   Sale of shares held in EEIP	-	572	- -
   Cancellation of shares held by EEIP Trust	(176,000) $	-	- -
   Common Shares purchased and cancelled	(1,006,300) $	(1,999)	- $ -
   Ending balance	212,009,492 $	421,526	212,380,753 $ 423,371

   On April 8, 2026, the Company announced a normal course issuer bid (the "NCIB") to purchase up to 11,418,541 Common Shares, representing approximately 10% of its public float. The NCIB began on April 10, 2026 and ends on the earlier of April 9, 2027 and the date the maximum number of Common Shares has been purchased.

   The following table summarizes the Company's activities under the NCIB for the quarter ended September 30, 2026:

   (expressed in thousands of Canadian dollars)	September 30, 2026
   Common shares repurchased under the NCIB for cancellation (number of shares)	1,006,300
   Cash consideration paid	1,452
   Reduction in share capital	(1,999)
   Discount paid on repurchased and cancelled shares recorded in contributed surplus	547

   Since the NCIB began, the Company has repurchased 2,680,200 Common Shares in total. Of these, 24,200 shares had not been cancelled as at September 30, 2026 by the transfer agent. Under IAS 32, they are treated as cancelled and are excluded from Common Shares outstanding and share capital. Purchases under the NCIB were suspended during the substantial issuer bid.

   On September 29, 2026, the Company announced a substantial issuer bid (the "SIB") to purchase for cancellation Common Shares for an aggregate purchase price not exceeding $20,000. No Common Shares had been purchased under the SIB as at September 30, 2026, and no liability has been recognized. The SIB expired on November 3, 2026, and subsequently the Company took up and paid for 13,793,103 Common Shares at a price of $1.45 per share for consideration of $20,000 (refer to Note 22).

   ‌Employee Equity Incentive Plan

   During the period, the Employee Equity Incentive Plan ("EEIP") was terminated and the EEIP Trust was wound down. The EEIP Trust was consolidated by the Company, and Common Shares held by the EEIP Trust were accounted for as treasury shares and deducted from share capital.

   On termination, 176,000 Common Shares held by the EEIP Trust were cancelled. The cancellation had no impact on total equity.

   The remaining 293,400 Common Shares held by the EEIP Trust were sold for proceeds of $361. The cost of the shares sold of

   $572 was reversed from share capital. The shortfall of $211 between the proceeds and the cost was recognized in contributed surplus.

2. Share-based compensation‌ Omnibus equity incentive plan ("Omnibus Plan")

   As at September 30, 2026, the total amount available for issuance under the Omnibus Plan subject to the 10% maximum was 21,201,000 (June 30, 2026 - at 10% - 21,219,000).

   During the three month period ended September 30, 2026, the Company recognized the following share-based compensation expense with a corresponding adjustment to contributed surplus:

   Three months ended

   (expressed in thousands of Canadian dollars)	September 30, 2026	September 30, 2025
   Options	$ 398	$ -
   Performance share unit plan ("PSUs")	180	-
   Restricted share unit plan ("RSUs")	134	615
   Deferred share unit plan ("DSUs")	692	640
   	$ 1,404	$ 1,255

   Options
   As at September 30, 2026 and 2025, the Company had the following stock options outstanding:
   	Number of		Weighted average exercise price per stock
   	options		option
   Outstanding at June 30, 2026	1,970,582	$	1.33
   Granted	275,000		1.24
   Outstanding at September 30, 2026	2,245,582	$	1.32
   Exercisable at September 30, 2026	125,000	$	1.24
   Outstanding at June 30, 2025	798,500	$	1.62
   Outstanding at September 30, 2025	798,500	$	1.62
   Exercisable at September 30, 2025	798,500	$	1.62

   The range of exercise prices for options outstanding at September 30, 2026 and 2025, is presented below.

   		Weighted
   	Number	average			Number
   	outstanding at	remaining		Weighted	outstanding at		Weighted
   	September 30,	contractual		average	September 30,		average
   	2026	life in years		exercise price	2025		exercise price
   Range of exercise prices $1.24 - $3.49	2,245,582	6.43	$	1.32	798,500	$	1.62
   Total	2,245,582	6.43	$	1.32	798,500	$	1.62

   Performance share unit plan ("PSUs")

   The following table illustrates the movements in the number of PSUs during the period.

   Three months ended

   September 30,	September 30,
   (Number of units) 2026	2025
   Outstanding, beginning of period 1,366,852	2,192,508
   Granted -	482,812
   Forfeited (416,695)	-
   Outstanding, end of period 950,157	2,675,320
   Restricted share unit plan ("RSUs")
   The following table illustrates the movements in the number of unvested RSUs during the period.

   Three months ended

   	September 30,	September 30,
   (Number of units)	2026	2025
   Outstanding, beginning of period	2,587,943	4,088,815
   Granted	990,673	802,577
   Forfeited	(11,218)	-
   Vested	(595,038)	-
   Outstanding, end of period	2,972,360	4,891,392

   As at September 30, 2026, 595,038 RSUs had vested but had not yet been settled. On October 2, 2026, these RSUs were settled on a net basis through the issuance of 297,653 Common Shares, with 297,385 shares withheld to satisfy employee tax withholding obligations.

   Deferred share unit plan ("DSUs")

   The following table illustrates the movements in the number of DSUs during the period.

   Three months ended

   	September 30,	September 30,
   (Number of units)	2026	2025
   Outstanding, beginning of period	3,560,897	4,235,744
   Granted	548,406	395,601
   Outstanding, end of period	4,109,303	4,631,345

3. Income taxes‌

   ‌For the three month period ended September 30, 2026, the Company recorded an income tax recovery at a rate of 3.9% on the net loss from continuing operations (September 30, 2025 - income tax provision rate of 1.6%). The income tax (recovery) provision in each period reflects the mix of taxing jurisdictions in which pre-tax income and losses were recognized. Further items impacting the effective tax rate include the different statutory tax rates in the taxing jurisdictions, non-deductible items, the utilization of certain unrecognized tax losses and the continued non-recognition of certain deferred tax assets in Canada.

4. Finance costs, net‌

   Net finance cost (income) comprises the following:

   Three months ended

   (expressed in thousands of Canadian dollars)	September 30, 2026	September 30, 2025
   Finance cost (income)
   Interest and accretion on long-term debt	-	13,428
   Loss on modification and extinguishment of debt and write-down of unamortized issue costs	-	16,019
   Interest expense on bank indebtedness	-	559
   Interest on completed and released productions	403	329
   Amortization of deferred financing fees	-	889
   Change in fair value of interest rate swap and forward contract	-	61
   Accretion on lease liabilities and other	368	253
   Interest income	(230)	(117)
   	$ 541 $ 31,421

   Interest income consists of accretion on long-term amounts receivable and cash interest earned on bank deposits, tax credit receivables and amounts held in escrow.

5. Expenses by nature‌

   The following sets out the expenses by nature:

   Three months ended
   (expressed in thousands of Canadian dollars)	Note	September 30, 2026	September 30, 2025
   Content, distribution, marketing, and other costs		$ 33,846	$ 31,818
   Selling, general and administrative:
   Salaries and employee benefits		17,103	17,178
   Office and administration		3,643	3,292
   Professional and regulatory		1,580	1,590
   Investor relations and marketing		214	73
   		$ 22,540	$ 22,133
   Reorganization, development and other expense:
   Reorganization, development and other expenses(1)		$ 1,575	$ 331
   Restructuring and people costs		473	530
   		$ 2,048	$ 861
   Amortization of property and equipment and intangible assets		$ 2,787	$ 2,967
   Amortization of acquired and library content		708	652
   Share-based compensation	12	1,404	1,255
   Finance costs, net	14	541	31,421
   Impact of foreign exchange		1,400	5,832
   		$ 6,840	$ 42,127
   		$ 65,274	$ 96,939
   (1) The following sets out the expenses included in reorganization, development and other expenses: Three months ended
   (expressed in thousands of Canadian dollars)		September 30, 2026	September 30, 2025
   M&A, refinancing, and other corporate initiatives		1,240	331
   Technology and infrastructure initiatives		277	-
   Other		58	-
   		$ 1,575	$ 331

6. Management of financial risks and financial instruments‌

   ‌The financial risks arising from the Company's operations include credit, interest rate, liquidity, currency and market risk. These risks arise from the normal course of operations. The risks associated with these financial instruments and the policies on how to mitigate these risks are set out in the audited annual consolidated financial statements.

   As a result of the repayment and termination of the debt facility, the Company has no borrowings outstanding other than interim production financing and is not subject to any financial covenants.

   ‌The following table summarizes the Company's financial liabilities and their contractual maturities(1):

   (expressed in thousands of Canadian dollars)	Total	Less than 1 year	1 to 3 years	3 to 5 years	After 5 years
   Payments Due by Period
   Accounts payable and accrued liabilities	$ 119,016	$ 119,016	$ -	$ -	$ -
   Interim production financing	56,165	56,165	-	-	-
   Other long-term liabilities	1,848	-	1,848	-	-
   Lease liabilities	25,594	6,771	5,727	4,497	8,599
   Total Contractual Obligations	$ 202,623	$ 181,952	$ 7,575	$ 4,497	$ 8,599

   Contractual payments in the table above include fixed and variable interest obligations at current rates and are not discounted.

   The Company operates a diverse range of business lines, including production studio services, content distribution, consumer products licensing, and representation. While the operating results may vary from period to period, operating cash flows are generally predictable based on the Company's production and content pipeline, contract renewals, royalty agreements, and minimum guarantees.

   As at September 30, 2026 the Company had an unrestricted cash balance of $69,078 and current amounts receivable of

   $209,107 (June 30, 2026, $89,163 and $211,470 respectively). Based on the Company's cash balances, expected collection of trade and other receivables and forecast operating results, management believes it will be able to fulfill its financial obligations as they become due.

   ‌Fair value of financial instruments

   ‌Financial instruments recorded at fair value on the interim condensed consolidated balance sheet are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements.

   ‌Fair value estimates are made at a specific point in time based on relevant market information. These are estimates and involve uncertainties, and matters of significant judgment and cannot be determined with precision. Changes in assumptions and estimates could significantly affect fair values.

   Financial assets and (liabilities) measured at fair value

   As at

   September 30, 2026 June 30, 2026

   (expressed in thousands of Canadian dollars)

   Fair value

   hierarchy Fair value

   Fair value

   hierarchy Fair value

   Derivative liability - Foreign currency forwards(1) Level 2 (30) Level 2 (31)

   Contingent consideration Level 3 (568) Level 3 -

   (1) The fair value of foreign currency contracts is determined using prevailing exchange rates. These are classified as Derivative assets and Derivative liabilities, respectively, in the consolidated balance sheet.

   As at September 30, 2026, the Company held forward contracts with the following notional value and average contractual exchange rates:

   US$ exchange for Canadian dollars

   Less than one year US$1,560

   Weighted average rate 1.3670

   ‌Financial assets and liabilities not measured at fair value

   ‌The carrying amount of all financial instruments presented in the consolidated financial statements approximate their fair values due to their short-term nature, as the effect of discounting over the short period to settlement is not significant.

7. Income or loss per common share‌

   Basic income or loss per common share is calculated by dividing the net income (loss) attributable to shareholders of the Company by the weighted average number of Common Shares outstanding during the period.

   Three months ended

   September 30, September 30,

   (expressed in thousands of Canadian dollars)	2026	2025
   Net loss attributable to shareholders of the Company	$ (6,630)	$ (32,629)
   Weighted average number of Common Shares outstanding (in 000's) - Basic & Diluted	212,039	211,908
   Basic and diluted loss per Common Share attributable to shareholders of the Company(1)	$ (0.03)	$ (0.15)
   Net loss from continuing operations attributable to shareholders of the Company	$ (6,630)	$ (39,457)
   Weighted average number of Common Shares outstanding (in 000's) - Basic & Diluted	212,039	211,908
   Basic and diluted loss per Common Share from continuing operations(1)	$ (0.03)	$ (0.19)
   Net income from discontinued operations attributable to shareholders of the Company	$ -	$ 6,828
   Weighted average number of Common Shares outstanding (in 000's) - Basic & Diluted	212,039	211,908
   Basic and diluted income per Common Share from discontinued operations	$ -	$ 0.03

   (1) During the three month periods ended September 30, 2026 and September 30, 2025, the diluted weighted average number of Common Shares outstanding was the same as the basic weighted average number of Common Shares outstanding, as the Company had a net loss from continuing operations attributable to shareholders of the Company and all potential dilutive instruments were anti-dilutive.

8. Capital disclosures‌

   The Company's objectives when managing capital are to provide an adequate return to shareholders, safeguard its assets, maintain a competitive cost structure and continue as a going concern in order to pursue the development, production, distribution and licensing of its films.

   Other than normal-course interim production financing, the Company had no borrowings outstanding as at September 30, 2026 or June 30, 2026, and is not subject to any externally imposed capital requirements. The Company keeps its available cash to fund operations and general corporate purposes, including repurchases of Common Shares under its NCIB and SIB (Note 11).

   The Company's capital structure is summarized in the table below:
   (expressed in thousands of Canadian dollars)	September 30, 2026	June 30, 2026
   Cash	69,078	89,163
   Total equity	258,952	263,905

   To facilitate the management of its capital structure, the Company prepares annual operating budgets that are updated as necessary depending on various factors including industry conditions and operating cash flows. These budgets are regularly reviewed by the Board of Directors.

9. Interim Condensed Consolidated statement of cash flows - supplementary information‌

   Net change in non-cash balances related to operations
   (expressed in thousands of Canadian dollars)	September 30, 2026		September 30, 2025
   Increase in amounts receivable	$ (7,628)		$ (1,439)
   Increase in prepaid expenses and other	(706)		(5,727)
   Decrease (increase) in long-term amounts receivable	208		(563)
   Decrease in accounts payable and accrued liabilities	(2,187)		(4,009)
   Decrease in deferred revenue	(1,952)		(5,806)
   Net change in non-cash balances	$ (12,265)		$ (17,544)
   Net investment in film and television programs
   (expressed in thousands of Canadian dollars)	September 30, 2026		September 30, 2025
   Net change in development costs(1)	$ 24		$ (16)
   Net additions to productions in progress and productions completed and released(1)	(6,914)		(15,031)
   Amortization of film and television programs	7,373		13,981
   Net change in film and television programs	$	483 $	(1,066)

   (1) Net change in development costs is presented net of federal and provincial film and television tax credits and other government assistance recognized in the period, net of write-downs of amounts previously capitalized, and net of development costs transferred to productions in progress. Additions to productions in progress and productions completed and released are presented on the same basis and are also net of write-offs of amounts previously capitalized.

   Net change in interim production financing(1)
   (expressed in thousands of Canadian dollars)	September 30, 2026	September 30, 2025
   Proceeds from interim production financing	$ 15,859	$ 5,806
   Repayment of interim production financing	(11,399)	(6,713)
   	$ 4,460	$ (907)
   (1) There were no changes in cash flow for interim production financing related to discontinued operations.
   Supplemental cash flow information
   (expressed in thousands of Canadian dollars)	September 30, 2026	September 30, 2025
   Taxes paid	$ (2,508) $		(1,417)
   Taxes refunded	-		1,749
   	$ (2,508) $		332

   Reconciliation between the opening and closing balances on the interim condensed consolidated balance sheet arising from financing activities:

   (expressed in thousands of Canadian dollars)	Lease liabilities	Total
   Balance - June 30, 2026	$ 9,827 $	9,827
   Repayments	(1,630)	(1,630)
   Total financing cash flow activities	(1,630)	(1,630)
   Lease liabilities additions	10,196	10,196
   Interest paid on lease liabilities	(346)	(346)
   Accretion expense	346	346
   Impact of foreign exchange	(5)	(5)
   Total other activities	10,191	10,191
   Balance - September 30, 2026	$ 18,388 $	18,388

   Lease liability additions of $10,196 for the three months ended September 30, 2026 relate primarily to a new office lease in Vancouver that replaces the Company's existing lease. The Company recognized corresponding right of use asset additions of

   $10,450 on initial recognition which is included within property and equipment.

   (expressed in thousands of Canadian dollars) Term facility

   Lease

   liabilities Total

   Balance - June 30, 2025	$ 487,133 $	19,539 $	506,672
   Repayments	(1,295)	(2,367)	(3,662)
   Payment of debt issue costs	(6,911)	-	(6,911)
   Total financing cash flow activities	(8,206)	(2,367)	(10,573)
   Amortization of deferred financing costs	889	-	889
   Interest paid on lease liabilities	-	(324)	(324)
   Accretion expense	-	324	324
   Impact of foreign exchange	10,213	73	10,286
   Loss on modification and write-down of unamortized issue costs	16,018	-	16,018
   Total other activities	27,120	73	27,193
   Balance - September 30, 2025	$ 506,047	$ 17,245	$ 523,292

10. Revenues and segmented information

WildBrain operates entities and offices throughout Canada, the United States, the United Kingdom, Europe and Asia.

The Company has an integrated approach to managing and monetizing its content and intellectual property ("IP"), including production, distribution and consumer-product royalties, representation, and organization structure.

In evaluating performance, the Chief Operating Decision Maker ("CODM"), defined as the Company's President and CEO, and CFO, reviews the operating results of the Company's operating segments to assess and allocate resources.

The Company has three reportable segments: 1) Franchise & Global Licensing; 2) Content; and 3) WildBrain Network. These are consistent with the segments described in the Company's audited annual consolidated financial statements for the year ended June 30, 2026. Comparative segment information for the three months ended September 30, 2025 has been restated to conform to the current presentation. It excludes the results of the Canadian Television Broadcasting business and Peanuts, which are presented as discontinued operations (Note 5).

The Company's three reportable segments are described below:

1. Franchise & Global Licensing - includes the management and monetization of owned and partner brands through consumer products licensing, franchise management, global partnerships and location-based entertainment. The segment includes the licensing revenues of the Company's franchise IP, primarily Strawberry Shortcake and Teletubbies, WildBrain CPLG, a licensing agency, with a portfolio of owned and third-party brands across key global markets; and the revenue and results of Personality AI.

2. Content - Content includes the creative development, production and distribution of premium animation, live-action and digital-first content for owned and partner brands.

3. WildBrain Network - WildBrain Network comprises the Company's digital distribution and advertising businesses across YouTube, FAST and AVOD platforms.

The CODM reviews the operating results of these segments before the elimination of intersegment transactions and reviews both Segment Gross Margin and Segment Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization ("Segment Adjusted EBITDA") in the assessment of segment operating performance. Unallocated corporate items are presented within a single reconciling row, "Corporate & Other selling, general and administrative," rather than being allocated to the reportable segments and are described below:

Corporate & Other selling, general and administrative- head-office and public-company costs that are not allocated to the reportable segments, including corporate executive, finance, treasury and legal functions, listing and other public-company costs, certain shared-service and information-technology costs, and other unallocated items including IFRS 16 property lease adjustments that are managed centrally and are not reviewed by the CODM on a segment basis.

Revenues and Content, distribution, marketing and other costs as presented below exclude the elimination of internal trading between the reportable segments, principally internal royalties charged by the segment that owns the underlying intellectual property to the segments that exploit it, inter-segment production service revenue and production costs, together with other group-level consolidation adjustments that are not reflected in the segment results reviewed by the CODM.

(1) Revenues and Content, distribution, marketing, and other costs are shown gross of consolidation adjustments and eliminations of $(1,552).

(2) Includes IFRS 16 property lease adjustments. Segment results reflect property lease costs as an operating expense. Under IFRS 16, these costs are recognized as depreciation and interest, presented below Segment Adjusted EBITDA, and the adjustment is therefore included in Corporate & Other.

(1) Revenues and Content, distribution, marketing, and other costs are shown gross of consolidation adjustments and eliminations of $(631).

(2) Includes IFRS 16 property lease adjustments. Segment results reflect property lease costs as an operating expense. Under IFRS 16, these costs are recognized as depreciation and interest, presented below Segment Adjusted EBITDA, and the adjustment is therefore included in Corporate & Other.

‌The following table presents the Company's disaggregated revenues, net of intercompany eliminations, recognized from contracts with customers:

The Company is, from time-to-time, involved in various claims, legal proceedings and complaints arising in the normal course of business and as such, provisions have been recorded where appropriate. Management does not believe that the final determination of these claims will have a material adverse effect on the financial position or results of operations of the Company.

On September 29, 2026, the Company announced a substantial issuer bid (the "SIB") to purchase for cancellation Common Shares for an aggregate purchase price not exceeding $20,000, by way of a modified Dutch auction at a price between $1.30 and $1.45 per Common Share. The SIB expired on November 3, 2026. Subsequent to the expiry of the SIB, on November 6, 2026, the Company took up 13,793,103 Common Shares at a price of $1.45 per Common Share, for aggregate consideration of approximately $20,000, excluding transaction costs. These Common Shares represent approximately 6.5% of the 212,330,664 Common Shares issued and outstanding as of November 3, 2026. The Common Shares were paid for on November 10, 2026 and are expected to be cancelled on November 13, 2026, after which 198,537,561 Common Shares will be issued and outstanding. This is a non-adjusting subsequent event, and no amounts have been recognized in these interim condensed consolidated financial statements. Purchases under the NCIB were suspended during the SIB.