Yellow Pages Reports Q1 2026 Profitability Despite Revenue Decline and Digital Market Pressure

Yellow Pages Limited reported its first-quarter 2026 earnings with lower revenue but continued profitability, strong cash discipline, and ongoing investment in its digital sales strategy. The company held its earnings call on May 14, 2026, with President and CEO Sherilyn King and CFO Assunta Tortis discussing the results.

Q1 2026 Revenue Falls 7.8%

Total revenue for the quarter ended March 31, 2026, was CAD 46.8 million, down 7.8% from CAD 50.8 million in the same period last year. The company said the decline came mainly from weaker digital media and print products, while digital services also slipped to a lesser degree.

Digital revenue remained the largest part of the business, reaching CAD 38.2 million. This was down 6.1% year over year, but the decline improved from the 6.8% drop reported in the same period of 2025. Yellow Pages said better renewal rates and higher average spending per customer helped soften the fall.

Print Business Continues to Shrink

Print revenue fell 14.8% to CAD 8.6 million. The company said the drop was mainly caused by fewer print customers, although average spending per print customer improved because of price increases.

Adjusted EBITDA Remains Positive

Yellow Pages reported adjusted EBITDA of CAD 9.0 million, equal to 19.3% of revenue. This was lower than CAD 11.9 million, or 23.4% of revenue, in the prior-year quarter. Management said margins were pressured by revenue decline, product mix changes, investments in tele-sales capacity, and cash-settled stock-based compensation.

Net Income Reaches CAD 4.1 Million

Net income for Q1 2026 was CAD 4.1 million, or CAD 0.30 per diluted share. This was below the CAD 5.0 million reported a year earlier. The decrease was mainly linked to lower adjusted EBITDA, partly offset by lower restructuring costs and reduced depreciation and amortization.

Cash Flow and Balance Sheet

Adjusted EBITDA less capital expenditures was CAD 8.5 million, with a margin of 18.1%. Operating cash flow was negative for the quarter, with net cash outflows of CAD 2.5 million, compared with inflows of CAD 3.3 million a year earlier. The company linked the change to higher payments tied to stock-based compensation and post-employment benefit funding.

Management Remains Focused on Stability

CEO Sherilyn King said the company was pleased with its first-quarter results, pointing to continued profitability and cash generation despite economic challenges. She also noted that Yellow Pages continues to work on revenue initiatives while maintaining careful cost control.

Digital Strategy Takes Priority

The company’s results show that Yellow Pages is still moving through a long business shift. Traditional print directories continue to decline, while digital advertising and marketing services now drive most revenue. Even so, digital customer losses remain a challenge. Yellow Pages is trying to offset this through stronger renewals, price increases, and higher spending from remaining customers.

Investor Returns Remain Part of the Plan

Yellow Pages also declared a cash dividend as part of its first-quarter announcement. The company continues to balance shareholder returns with pension funding, operational investment, and cost management.

Outlook

Looking ahead, Yellow Pages is expected to remain under pressure from declining legacy products and changing customer behavior in local advertising. However, its digital revenue decline has improved, and the company still generates positive earnings. The key question for investors is whether Yellow Pages can slow revenue losses enough to protect margins and maintain cash returns.

Overall, Q1 2026 showed a business that is smaller than last year but still profitable. Yellow Pages faces clear challenges, especially in print and customer retention, but its digital base, cost controls, and cash-focused strategy give the company room to continue its transition.

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