Yellow Pages Limited Reports First Quarter 2026 Financial and Operating Results and Declares a Cash Dividend¹

MONTREAL, May 14, 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 ended
March 31, 2026.

"In the first quarter, we delivered good profitability, and cash generation, despite challenges in the global economy that affected our revenue initiatives," said Sherilyn King, President and CEO of Yellow Pages Limited.

King commented on the key developments:

• Good quarterly earnings. "Our Adjusted EBITDA² for the quarter was 19.3% of revenue."
• Progress on revenue initiatives. "Given the challenges in the global economy, our first quarter change in revenue was broadly stable compared to the same measure a year ago." 
• Strong cash balance. "Even after certain regular, seasonal cash disbursements during the quarter, our cash on hand at the end of April stood at approximately $58 million."
• Cash to Shareholders and to Pension Plan by the end of June. "As announced on April 7, 2026, our Board approved a $25.0 million share buyback through a plan of arrangement, expected to be completed by the end of June. In connection with the plan of arrangement, we contributed an additional $2.0 million to the defined benefit pension plan in April 2026. This voluntary contribution, combined with an earlier $2.0 million payment made during the first quarter brings total payments to the defined benefit pension plan to $6.0 million since the annuity purchase in May 2025."
• Quarterly dividend declared. "Our Board has declared a dividend of $0.25 per common share, to be paid on June 15, 2026 to shareholders of record as of May 25, 2026."

Financial Highlights
 (In thousands of Canadian dollars, except percentage information and per share information)

First Quarter of 2026 Results

• Total Revenues decreased 7.8% year-over-year and amounted to $46.8 million for the three-month period ended March 31, 2026, compared to the decrease of 7.6% reported for the same period last year.
• Adjusted EBITDA less CAPEX¹ totalled $8.5 million and the EBITDA less CAPEX margin¹ was 18.1%.
• Net income amounted to $4.1 million, or to $0.30 diluted income per share.

FinancialResultsforthe FirstQuarterof2026

Total revenues for the first quarter ended March 31, 2026 decreased by 7.8% year-over-year and amounted to $46.8 million as compared to $50.8 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. The total revenues decline of 7.8% for the three-month period ended March 31, 2026 compares to 7.6% reported for the same period last year. The higher decline rate is driven by the decline in print revenue while the decline rate for digital has improved.

Total digital revenues decreased 6.1% year-over-year, compared to 6.8% reported for the same period in 2025 and amounted to $38.2 million for the three-month period ended March 31, 2026, compared to $40.7 million for the same period last year. The decline in digital revenue is mainly attributable to a decrease in digital customer count, partially offset by an increase in the average spend per customer. The improvement of the digital revenue decline rate from 6.8% reported in 2025 to 6.1% for the first quarter of 2026 is mainly due to a strong renewal rate and an increase in average spend per customer, due in part to price increases.

Total print revenues decreased 14.8% year-over-year, compared to 10.5% for 2025 and amounted to $8.6 million for the three-month period ended March 31, 2026. The decline in print revenue 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.

Adjusted EBITDA¹ declined to $9.0 million or 19.3% of revenues in the first quarter ended March 31, 2026, relative to $11.9 million or 23.4% of revenues for the same period last year. The decrease in Adjusted EBITDA and Adjusted EBITDA margin¹ for the three-month period ended March 31, 2026 is the result of revenue pressures, 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 an expense of $1.7 million for the three-month period ended March 31, 2026, compared to a recovery of $1.3 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.

Adjusted EBITDA less CAPEX decreased by $2.9 million to $8.5 million during the first quarter of 2026, compared to $11.4 million during the same period last year. The decrease in Adjusted EBITDA less CAPEX and Adjusted EBITDA less CAPEX margin for the three-month period ended March 31, 2026 is driven by the decrease in Adjusted EBITDA.

Net income for the three-month period ended March 31, 2026 amounted to $4.1 million as compared to net income of $5.0 million for the same period last year. The decrease is mainly due to lower Adjusted EBITDA, partially offset by the decrease in restructuring and other charges and in depreciation and amortization.

Net cash outflows from operating activities for the three months ended March 31, 2026 were $2.5 million, compared to net cash inflows from operating activities of $3.3 million for the same period last year. Cash outflows from operating activities for the period were primarily driven by the increase in cash payments related to the settlement of stock-based compensation of $3.6 million, and a $1.8 million increase in funding of post-employment benefit plans, compared to the same period last year. Furthermore, cash outflows from operating activities were impacted by the $2.9 million decrease in Adjusted EBITDA, partially offset by an increase of $2.4 million from change in operating assets and liabilities.

Yellow Pages Limited will hold an analyst and media call and simultaneous webcast at 8:30 a.m. (Eastern Time) on May 14, 2026 to discuss first quarter 2026 results.

To join by phone: https://register-conf.media-server.com/register/BI5a4a60ce6cd0462b8c9824e88b255d29

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/duytv3ji
• FR: https://edge.media-server.com/mmc/p/duytv3ji/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. 

AboutYellowPagesLimited

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.

CautionConcerningForward-LookingStatements

Thispressreleasecontainsforward-lookingstatements abouttheobjectives, 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 May 13, 2026,aboutour businessandthemarketsweoperatein, andon variousestimatesandassumptions.Ouractualresultscouldmateriallydifferfromourexpectations ifknownorunknown risksaffectourbusiness,orifourestimatesorassumptions turnouttobe inaccurate.Asaresult,thereis noassurancethat anyforward-lookingstatementswillmaterialize. Risksthat could causeourresults todiffermateriallyfrom our currentexpectationsarediscussed in section 5 of our May 13,2026Management'sDiscussionandAnalysis.Wedisclaimanyintentionorobligation toupdateanyforward-lookingstatements,exceptasrequiredbylaw,evenifnewinformation becomesavailable,asaresultof futureeventsorforanyotherreason.

Non-GAAP Financial Measures

AdjustedEBITDAandAdjustedEBITDAmargin

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 interim condensed 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 11 of our May 13, 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.

AdjustedEBITDAlessCAPEXandAdjustedEBITDAlessCAPEXmargin

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 interim condensed consolidated statements of income. Refer to table below for reconciliation of Adjusted EBITDA less CAPEX.

Adjusted EBITDA less CAPEX
(In thousands of Canadian dollars, except percentage information)

SOURCE Yellow Pages Limited

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