MONTREAL , Feb. 12, 2026 /CNW/ - Yellow Pages Limited (TSX: Y) (the "Company"), a leading Canadian digital media and marketing company, released its operating and financial results today for the quarter and year ended December 31, 2025.

"In the fourth quarter, we delivered good profitability, strong cash balance and continued momentum across our revenue initiatives," said Sherilyn King, President and CEO of Yellow Pages Limited.

King commented on the key developments:

• Continued progress on revenue initiatives. "We continue to see encouraging progress on key revenue drivers as the decline rate of total revenues, digital revenues and print revenues all improved year-over-year. The total revenues decline of 7.4% for 2025 compares to 10.3% reported for 2024."
  
  
• Good quarterly earnings. "Our Adjusted EBITDA² for the quarter and full year was 21.8% and 21.6% of revenue, respectively."
  
  
• Strong cash balance. "Our cash on hand at the end of January stood at approximately $64 million."
  
  
• Pension plan contribution. "As announced on May 21, 2025, the Company intended to voluntarily contribute an additional $4.0 million to the defined benefit pension plan by the end of June 2026, subject to review by the Board of Directors. On February 11, 2026, our Board approved the completion of the remaining $2.0 million of the announced voluntary cash contributions by the end of the first quarter 2026."
  
  
• Quarterly dividend declared. "Our Board has declared a dividend of $0.25 per common share, to be paid on March 16, 2026 to shareholders of record as of February 25, 2026." 

Financial Highlights

Fourth Quarter of 2025 Results

• Total Revenues decreased 6.5% year-over-year and amounted to $48.0 million for the three-month period ended December 31, 2025, compared to the decrease of 8.1% reported for the same period last year.
• Adjusted EBITDA less CAPEX¹ totalled $10.1 million and the EBITDA less CAPEX margin¹ was 21.1%.
• Net income amounted to $7.6 million, or to $0.55 diluted income per share.

F inancial Results for the Fourth Quarter of 2025

Total revenues for the fourth quarter ended December 31, 2025 decreased by 6.5% year-over-year and amounted to $48.0 million as compared to $51.4 million for the same period last year. The decrease in revenues is mainly due to the decline of our higher margin digital media and print products and to a lesser extent our lower margin digital services products, thereby creating pressure on our gross profit margins. Print revenues in the fourth quarter were favorably impacted by the recognition of approximately $0.5 million in revenues that had been deferred from the third quarter due to the Canada Post workers' strike. The strike had delayed the distribution of certain print directories and direct mail items during the month of September, resulting in revenues initially expected in the third quarter being recorded in the fourth quarter. Had the deferred print revenues been recognized in the third quarter, the decline rate for total revenues would have been 7.4% for the fourth quarter ended December 31, 2025 compared to 8.1% reported for the same period last year.

Total digital revenues decreased 5.6% year-over-year and amounted to $39.7 million for the three-month period ended December 31, 2025 compared to $42.0 million for the same period last year. The revenue decline is mainly attributable to a decrease in digital customer count, partially offset by an increase in the average spend per customer.

Total print revenues decreased 10.9% year-over-year and amounted to $8.4 million for the three-month period ended December 31, 2025 compared to $9.4 million in the fourth quarter of 2024. The revenue decline was mostly attributable to decreases in the number of print customers while the spend per customer has improved year-over-year driven by price increases. Excluding the impact of the Canada Post labour disruption as described above, the year-over-year decline in print revenues would have been 15.6% for the three-month period ended December 31, 2025, compared to a decline rate of 11.5% for the same period last year.

Adjusted EBITDA¹ increased to $10.5 million or 21.8% of revenues in the fourth quarter ended December 31, 2025, relative to $8.2 million or 16.0% of revenues for the same period last year. The increase in Adjusted EBITDA and Adjusted EBITDA margin¹ for the three-month period ended December 31, 2025 is the result of efficiencies from optimization in cost of sales and reductions in their operating costs including reductions in our workforce and associated employee expenses, reductions in variable compensation expenses resulting from changes in the executive management team earlier in the year and the impact of the Company's share price on cash settled stock-based compensation expense, partially offset by revenue pressures and the ongoing investments in our tele-sales force capacity. The revaluation of the cash settled stock-based compensation liabilities based on the change in YP's share price resulted in a recovery of $0.3 million for fourth quarter ended December 31, 2025 compared to a charge of $1.5 million for the same period last year. Revenue pressures, coupled with continued investments in our tele-sales force capacity, partially offset by continued optimization, will cause pressure on margins in upcoming quarters.

Adjusted EBITDA less CAPEX increased by $2.3 million to $10.1 million during the fourth quarter of 2025, compared to $7.8 million during the same period last year. The increase in Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin for the three-month period ended December 31, 2025 is mainly due to higher Adjusted EBITDA as well as a decrease in CAPEX spend year-over-year, due in part, to the nature of IT spend, whereby more of the expense was classified as operating rather than capital.

Net income for the three-month period ended December 31, 2025 amounted to $7.6 million as compared to net income of $2.7 million for the same period last year. The increase is explained principally by the higher Adjusted EBITDA and lower income tax expense for the three-month period ended December 31, 2025. 

Cash flows from operating activities increased by $3.4 million to $11.7 million for the three-month period ended December 31, 2025 from $8.3 million for the same period last year. The increase is mainly due to higher Adjusted EBITDA of $2.3 million, lower stock-based compensation cash payments of $1.5 million, a decrease in funding of post-employment benefit plans of $1.5 million and lower income taxes paid of $0.4 million, partially offset by a decrease in the change in operating assets and liabilities of $2.4 million. 

Financial Results for the Year Ended December 31 of 2025

Total revenues for the year ended December 31, 2025 decreased by 7.4% to $198.9 million, as compared to $214.8 million for the same period last year. The decrease in revenues is mainly due to the decline of our higher margin digital media and print products and to a lesser extent to our lower margin digital services products, thereby creating pressure on our gross profit margins.

Total digital revenues decreased 6.3% year-over-year and amounted to $161.3 million for the year ended December 31, 2025, as compared to $172.1 million for the same period last year. The revenue decline for the year ended December 31, 2025, was mainly attributable to a decrease in digital customer count, partially offset by an increase in the average spend per customer.

Total print revenues decreased 12.1% year-over-year and amounted to $37.6 million for the year ended December 31, 2025. The revenue decline is mainly due to the decrease in the number of print customers while the spend per customer has improved year-over-year driven by price increases.

The decline rate of total revenues, digital revenues and print revenues all improved year-over-year. Total revenues decline of 7.4% for 2025 compares to 10.3% reported for 2024. The print revenue decline of 12.1% for 2025, compares to 13.0% for 2024. The digital revenue decline of 6.3% compares to a decline of 9.6% for the year ended 2024. The improvement of the revenue decline rates for total, print and digital revenues was mainly due to the stabilization of the customer count decline rate and an increase in average spend per customer, due in part to price increases.

For the year ended December 31, 2025 Adjusted EBITDA¹ decreased by $7.8 million or 15.3% to $43.0 million, compared to $50.8 million for the same period last year. The Adjusted EBITDA margin¹ decreased during the year ended December 31, 2025 to 21.6%, compared to 23.7% for the same period last year. The decrease in Adjusted EBITDA and Adjusted EBITDA margin for the year ended December 31, 2025 is the result of revenue pressures and the ongoing investments in our tele-sales force capacity, and the impact of the Company's share price on cash settled stock-based compensation expense, partially offset by optimizations in cost of sales and reductions in other operating costs including reductions in our workforce and associated employee expenses. The change in YP's share price resulted in a recovery of $1.3 million for the year ended December 31, 2025, compared to a recovery of $1.7 million 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.

For the year ended December 31, 2025 Adjusted EBITDA less CAPEX¹ decreased by $6.9 million or 14.2% to $41.5 million, compared to $48.4 million for the same period last year. The Adjusted EBITDA less CAPEX margin¹ decreased during the year ended December 31, 2025 to 20.9%, compared to 22.5% for the same period last year. The decrease in Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin for the year ended December 31, 2025 is driven by the decrease in Adjusted EBITDA, partially offset by the decrease in CAPEX spend year-over-year.

Net income decreased to $18.1 million for the year ended December 31, 2025 compared to net income of $25.0 million for the same period last year. The decrease in net income for the year ended December 31, 2025 is mainly due to lower Adjusted EBITDA, the increase in restructuring and other charges, the increase in financial charges, and the settlement loss on annuity purchase, partially offset by the decrease in depreciation and amortization and income taxes.

Cash flows from operating activities decreased by $4.0 million to $35.0 million for the year ended December 31, 2025 from $39.0 million for the same period last year. The decrease is mainly due to a $7.8 million decrease in Adjusted EBITDA and a $1.4 million increase in restructuring and other charges paid partially offset by a decrease in funding of post-employment benefit plans of $3.9 million and lower income taxes paid of $1.7 million.

Yellow Pages Limited will hold an analyst and media call and simultaneous webcast at 8:30 a.m. (Eastern Time) on February 12, 2026 to discuss fourth quarter 2025 results. 

To join by phone:https://register-conf.media-server.com/register/BI2de3a6fd3f9e464991401fb61481465e

1. Click on the call link and complete the online registration form.
   
   
2. Upon registering you will receive the dial-in info and a unique PIN to join the call as well as an email confirmation with the details.
   
   
3. Select a method for joining the call:
   
   
   1. 1. Dial-In: A dial in number and unique PIN are displayed to connect directly from your phone.
      2. Call Me: Enter your phone number and click "Call Me" for an immediate callback from the system. The call will come from a US number.

To join by webcast:

• ENG: https://edge.media-server.com/mmc/p/cxrni2oq
• FR: https://edge.media-server.com/mmc/p/cxrni2oq/lan/fr

The call will be simultaneously webcast on the Company's website at:

https://corporate.yp.ca/en/investors/financial-reports . 

The conference call will be archived in the Investors section of the site at:

https://corporate.yp.ca/en/investors/financial-events-presentations . 

About Yellow Pages Limited

Yellow Pages Limited (TSX: Y) is a Canadian digital media and marketing company that creates opportunities for buyers and sellers to interact and transact in the local economy. Yellow Pages holds some of Canada's leading local online properties including YP.ca, Canada411 and 411.ca. The Company also holds the YP, Canada411 and 411 mobile applications and Yellow Pages print directories. For more information visit www.corporate.yp.ca.

Caution Concerning Forward-Looking Statements

T his press release contains forward-looking statements about the objectives, strategies, financial conditions  and results of operations and businesses of YP (including, without limitation, payment of a cash dividend per share per quarter to its common shareholders). These statements are forward-looking as they are based on our current expectations, as at February 11, 2026 , about our business and the markets we operate in, and on various estimates and assumptions. Our actual results could materially differ from our expectations if known or unknown risks affect our business, or if our estimates or assumptions turn out to be inaccurate. As a result, there is no assurance that any forward-looking statements will materialize. Risks that could cause our results to differ materially from our current expectations are discussed in section 5 of our February 11, 2026 Management's Discussion and Analysis. We disclaim any intention or obligation to update any forward-looking statements, except as required by law, even if new information becomes available, as a result of future events or for any other reason.

Non-GAAP Financial Measures

A djusted EBITDA and Adjusted EBITDA margin
In order to provide a better understanding of the results, the Company uses the terms Adjusted EBITDA and Adjusted EBITDA margin. Adjusted EBITDA is equal to Income from operations before depreciation and amortization and restructuring and other charges (defined herein as Adjusted EBITDA), as shown in Yellow Pages Limited's consolidated statements of income. Adjusted EBITDA margin is defined as the percentage of Adjusted EBITDA to revenues. Adjusted EBITDA and Adjusted EBITDA margin are not performance measures defined under IFRS Accounting Standards and are not considered an alternative to income from operations or net income in the context of measuring Yellow Pages performance. Adjusted EBITDA and Adjusted EBITDA margin do not have a standardized meaning under IFRS Accounting Standards and are therefore not likely to be comparable to similar measures used by other publicly traded companies. Adjusted EBITDA and Adjusted EBITDA margin should not be used as exclusive measures of cash flow since they do not account for the impact of working capital changes, income taxes, interest payments, pension funding, capital expenditures, debt principal reductions and other sources and uses of cash, which are disclosed on page 17 of our February 11, 2026 MD&A. Management uses Adjusted EBITDA and Adjusted EBITDA margin to evaluate the performance of its business as it reflects its ongoing profitability. Management believes that certain investors and analysts use Adjusted EBITDA and Adjusted EBITDA margin to measure a company's ability to service debt and to meet other payment obligations or as common measurement to value companies in the media and marketing solutions industry as well as to evaluate the performance of a business.

A djusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin

The Company also uses Adjusted EBITDA less CAPEX, which is defined as Adjusted EBITDA, as defined above, less CAPEX which we define as additions to intangible assets and additions to property and equipment as reported in the Investing Activities section of the Company's consolidated statements of cash flows. Adjusted EBITDA less CAPEX margin is defined as the percentage of Adjusted EBITDA less CAPEX to revenues. Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin are non-GAAP financial measures and do not have any standardized meaning under IFRS Accounting Standards. Therefore, are unlikely to be comparable to similar measures presented by other publicly traded companies. We use Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin to evaluate the performance of our business as it reflects cash generated from business activities. We believe that certain investors and analysts use Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin to evaluate the performance of businesses in our industry.

The most comparable financial measure under IFRS Accounting Standards to Adjusted EBITDA less CAPEX is Income from operations before depreciation and amortization and restructuring and other charges (defined above as Adjusted EBITDA) as shown in Yellow Pages Limited's consolidated statements of income. Refer to table below for reconciliation of Adjusted EBITDA less CAPEX. 

Adjusted EBITDA less CAPEX

SOURCE Yellow Pages Limited