MONTREAL, Nov. 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 ended September 30, 2026.

"In the third quarter, we continue to deliver good profitability, and strong cash generation, despite ongoing revenue pressures," said Sherilyn King, President and CEO of Yellow Pages Limited.

King commented on the key developments:

• Solid quarterly earnings. "Our Adjusted EBITDA² for the quarter was 18.8% of revenue."
• Strong cash balance. "Our cash on hand at the end of October stood at approximately $49 million."
• Revenue initiatives. "During the third quarter of 2026, we announced the launch of AI Receptionist, a new AI-powered solution designed to help Canadian businesses respond to customers, capture opportunities and stay connected around the clock. The launch reflects the continued evolution of our digital marketing solutions as artificial intelligence transforms how consumers discover, evaluate, and engage with local businesses."
• Revenues. "For the third quarter of 2026, we reported a total revenue decline of 7.0% or 7.8% on an underlying basis once the impact of the Canada Post labour disruption in the prior year is adjusted for."
• Quarterly dividend declared. "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."

Financial Highlights

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

Third Quarter of 2026 Results

• Total Revenues decreased 7.0% year-over-year and amounted to $45.0 million for the three-month period ended September 30, 2026, compared to the decrease of 8.1% reported for the same period last year.
• Adjusted EBITDA less CAPEX¹ totaled $8.2 million and the EBITDA less CAPEX margin¹ was 18.1%.
• Net income amounted to $4.6 million, or to $0.40 diluted income per share.

Financial Results for the Third Quarter of 2026

Total revenues for the third quarter ended September 30, 2026 decreased by 7.0% year-over-year and amounted to $45.0 million, compared to $48.3 million for the same period last year. 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 labour disruption. Excluding this timing impact, total revenues would have decreased by approximately 7.8% in the third quarter of 2026. 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 to $37.5 million for the three-month period ended September 30, 2026, compared to $40.0 million for the same period last year. 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% in the third quarter of 2026, compared to 6.2% in the same period last year.

Total print revenues decreased 9.9% year-over-year, compared to 16.3% for 2025 and amounted to $7.5 million for the three-month period ended September 30, 2026. 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 labour disruption. Excluding this timing impact, 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 average spend per print customer improved year-over-year as the proportion of lower-spending accounts declined. 

Adjusted EBITDA¹ decreased by $1.5 million or 15.3% to $8.5 million, compared to $10.0 million for the same period last year. The Adjusted EBITDA margin¹ decreased during the three-month period ended September 30, 2026 to 18.8%, compared to 20.6% for the same period last year. The decrease in Adjusted EBITDA and Adjusted EBITDA margin for the three-month period ended September 30, 2026 was mainly driven by lower revenues, pressure from product mix, and the impact of the Company's share price on cash settled stock-based compensation expense. 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 three-month period ended September 30, 2026, compared to a recovery of $0.3 million for the same period last year. Revenue pressures and changes 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 $1.4 million or 14.9% to $8.2 million during the third quarter of 2026, compared to $9.6 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 September 30, 2026 is mainly driven by the decrease in Adjusted EBITDA.

Net income increased to $4.6 million for the three-month period ended September 30, 2026 compared to net income of $4.0 million for the same period last year. The year-over-year increase in net income for the three-month period ended September 30, 2026 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. 

Cash flows from operating activities increased by $4.8 million to $12.7 million for the three-month period ended September 30, 2026 from $7.9 million for the same period last year. The increase is mainly due to a $2.3 million decrease in funding of post-employment benefit plans due to the voluntary cash contributions made to the defined benefit pension plan in the third quarter of 2025, the decrease in cash payments related to the settlement of stock-based compensation of $1.4 million, lower restructuring and other charges payment of $1.0 million and an increase of $1.1 million in the change in operating assets and liabilities, partially offset by lower Adjusted EBITDA of $1.5 million. The change in operating assets and liabilities is mainly due to the timing in the payment of accounts payable.

Conference Call & Webcast 

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

To join by phone:

1. https://corporate.yp.ca/events/q3-2026-financial-and-operational-results
2. Click on the Join by phone link and complete the online registration form. 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:

• Dial-In: A dial in number and unique PIN are displayed to connect directly from your phone.
• 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:

• https://edge.media-server.com/mmc/p/ip8577h7 

Please be prepared to join the conference at least 5 minutes prior to the conference start time.

The call phone numbers and the webcast links can also be found on the Company's website at: https://corporate.yp.ca/events

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

This 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 November 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 November 11, 2026 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

Adjusted 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 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 12 of our November 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.

Adjusted 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 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