Yellow Pages Q3 2026 Earnings Call Transcript

Yellow Pages (TSX:Y) reported third-quarter financial results on Thursday. The transcript from the company’s third-quarter earnings call has been provided below.

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Summary

Yellow Pages Limited reported a 7% decline in total revenue for the third quarter of 2026, amounting to $40 million, with adjusted EBITDA decreasing by 15.3% to $8.5 million.

The company launched an AI-powered receptionist to enhance digital marketing solutions and declared a dividend of $0.25 per common share to be paid in December 2026.

Despite revenue pressures, Yellow Pages achieved a net income increase to $4.6 million due to a net recovery in restructuring charges and lower depreciation and amortization.

Full Transcript

Howard (Moderator)

Good morning, ladies and gentlemen. Welcome to Yellow Pages’ third quarter 2026 earnings release call. Today’s conference call contains forward-looking information about Yellow Pages’ outlook, objectives, and strategy. These statements are based on assumptions and are subject to important risks and uncertainties. Yellow Pages’ actual results could differ materially from expectations discussed. The details of Yellow Pages’ caution regarding forward-looking information, including key assumptions and risks, can be found in Yellow Pages’ Management Discussion and Analysis for the third quarter of 2026.

This call is being recorded and webcast, and all of the disclosure documents are available on the company’s website and on SEDAR+. I would now like to turn the meeting over to Ms. Sherlyn King, President and Chief Executive Officer. Please go ahead, Madam.

Sherlyn King (President and Chief Executive Officer)

Thank you, Howard. Good morning, everyone. Welcome to our third quarter 2026 analyst call. We appreciate you taking the time to join our call this morning. Today I’m joined by Asunta Tordist, our Chief Financial Officer. I will begin with some overview comments and then Asunta will provide you more details on our financial results for the quarter. We will answer any questions you have at the end of this call. We are pleased with our results for our third quarter of 2026. In the third quarter we continued to deliver good profitability and strong cash generation despite the ongoing revenue pressures. For the third quarter of 2026 we reported total revenue decline of 7% or 7.8% on an underlying basis. Once the impact of the Canada Post labour disruption in the prior year is adjusted for we had solid quarterly earnings as our adjusted EBITDA for the quarter was 18.8% of revenue.

Our cash on hand at the end of October stood at approximately 49 million. During the third quarter of 2026 we announced the launch of an AI receptionist, a new AI-powered solution designed to help Canadian businesses respond to their customers, capture opportunities and stay connected around the clock. This launch reflects the continued evolution of our digital marketing solutions as artificial intelligence transforms how consumers discover, evaluate and engage with local businesses.

Lastly, our Board has declared a dividend of $0.25 per common share to be paid on December 15, 2026 to shareholders of record as of November 23, 2026. I will now pass it on to Asunta to provide additional details on the numbers.

Asunta Tordist (Chief Financial Officer)

Thanks, Sherlyn. Good morning everyone. Let me take you through our financial results. For the third quarter ended September 30, 2026, our total revenues decreased by 3.3 million, or 7% year over year, and amounted to 40 million for the third quarter. The reported year-over-year decline benefited from a prior-year timing impact, as approximately 0.5 million of print revenue was deferred from the third quarter to the fourth quarter of 2025 due to the Canada Post labor disruption. Excluding this timing impact, total revenues would have decreased by 7.8% in the third quarter of 2026.

The decrease in revenues is primarily due to the decline of our higher margin digital media and PR products and, to a lesser extent, to our lower margin digital services products, thereby creating pressure on our gross profit margins. Digital revenues decreased by 6.3% year over year and amounted to 37.5 million during the third quarter of 2026. The decline in digital revenue was mainly attributable to a lower digital customer count, partially offset by higher average spend per customer.

The digital revenue decline rate was broadly stable at 6.3% compared to 6.2% in the same period last year. Print revenues decreased 9.9% year over year and amounted to 7.5 million for the three-month period ended September 30, 2026. Excluding the timing impact on the 2025 comparative period I mentioned earlier, print revenues would have decreased by approximately 14.5% in the third quarter of 2026. The underlying decline in print revenue was mainly attributable to the decrease in the number of print customers, while the spend per print customer improved year over year as the proportion of lower-spending accounts declined.

Adjusted EBITDA for the third quarter was impacted by lower revenues, pressure from product mix, and the impact of the company’s share price on cash-settled stock-based compensation. These factors were largely offset by optimizations in cost of sales and reductions in other operating costs. The change in YP’s share price resulted in an expense of 0.9 million for the third quarter of 2026 compared to a recovery of 0.3 million for the same period last year.

As a result, adjusted EBITDA decreased year over year by 1.5 million, or 15.3%, to 8.5 million for the quarter. Adjusted EBITDA margin decreased to 18.8% compared to 20.6% for the same period last year. Revenue pressures and change in product mix, partially offset by continued optimizations and cost reductions, will continue to cause pressure on margins in upcoming quarters. Adjusted EBITDA less capex for the third quarter decreased by 1.4 million year over year to 8.2 million, mainly driven by lower adjusted EBITDA. Net income increased to 4.6 million for the third quarter of 2026 compared to 4 million for the same period last year. The increase was mainly due to a net recovery in restructuring and other charges and lower depreciation and amortization, partially offset by lower adjusted EBITDA and increases in financial charges and income tax expense.

As Sherlyn mentioned, our cash on hand at the end of October stood at approximately 49 million. Finally, the Board has declared a cash dividend of $0.25 per common share, payable on December 15, 2026, to shareholders of record as at November 23, 2026. This concludes our formal remarks. Thank you for taking the time to join us this morning. We will now take your questions.

OPERATOR

Thank you, ladies and gentlemen. If you have a question or comment at this time, please press Star 11 on your telephone keypad. If your question has been answered or you wish to remove yourself from the queue, simply press Star 11 again. If you’re using a speakerphone, please pick up the handset before pressing the numbers. If you have a question or comment at this time, please press Star 11 on your telephone keypad. Please stand by while we compile the Q&A roster.

Once again, ladies and gentlemen, if you have a question or comment, please press Star 11 on your telephone keypad. I’m showing no questions in the queue at this time. I’d like to turn the conference back over to management for any closing remarks.

Sherlyn King (President and Chief Executive Officer)

Thank you, Howard. Again, I just want to say thank you. We appreciate that you took the time to join our call today, and we will talk to you again when we release Q4 results in February of 2027. So thank you.

OPERATOR

Ladies and gentlemen, thank you for participating in today’s conference. This concludes the program. You may now disconnect. Everyone have a wonderful.

Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company’s SEC filings and official press releases. Corporate participants’ and analysts’ statements reflect their views as of the date of this call and are subject to change without notice.