Yellow Pages (TSE:Y) reported lower second-quarter revenue and adjusted EBITDA as continued declines in its digital and print products weighed on results, although the company said cost discipline and operating efficiencies supported profitability and cash generation.

For the quarter ended June 30, 2026, revenue fell 8% year over year to CAD 47.6 million. President and Chief Executive Officer Sherilyn King said the company delivered “solid profitability and cash generation despite ongoing revenue pressures resulting from macroeconomic uncertainty.”

Adjusted EBITDA declined 15.1% from the prior-year period to CAD 9.1 million, producing an adjusted EBITDA margin of 19.1%, compared with 20.7% a year earlier.

Chief Financial Officer Assunta Tortis said the revenue decline was primarily attributable to lower sales of the company’s higher-margin digital media and print products, with lower-margin digital services also contributing to a lesser extent. The changes in product mix created additional pressure on gross profit margins.

Digital revenue decreased 6.2% year over year to CAD 38.4 million. While the decline continued, Tortis said the rate improved modestly from the 6.4% decline reported in the second quarter of 2025. A higher average spend per customer partially offset a reduction in the number of digital customers.

Print revenue declined 14.8% to CAD 9.1 million. The company attributed the decrease mainly to a lower number of print customers. However, spending per print customer improved as lower-spending accounts represented a smaller proportion of the customer base.

The overall 8% revenue decline compared with a 7.4% decline in the corresponding period a year earlier. Tortis said the higher rate of decline was driven by print revenue, while the digital revenue decline improved slightly.

Adjusted EBITDA was affected by lower revenue, product-mix pressure, higher bad-debt expense and the impact of the company’s share price on cash-settled share-based compensation expense, Tortis said.

Those factors were partly offset by cost-of-sales optimization and lower operating costs, including workforce reductions and associated employee-expense reductions.

Adjusted EBITDA less capital expenditures fell CAD 1.7 million year over year to CAD 8.6 million, primarily because of the lower adjusted EBITDA result.

Looking ahead, Tortis said revenue pressures and product-mix changes, partly offset by ongoing cost reductions, are expected to continue to put some pressure on margins in upcoming quarters.

During the quarter, Yellow Pages completed its previously announced plan of arrangement and repurchased 2,037,489 common shares from shareholders on a pro-rata basis at CAD 12.27 per share. The transaction totaled CAD 25.3 million, including transaction costs and tax on the repurchase of equity, net of an amount related to the cancellation of shares held by a trustee.

The company also made a voluntary CAD 2 million contribution to its defined-benefit pension plan in April 2026 in connection with the arrangement.

King said that after the shareholder and pension-plan disbursements, continued cash generation brought cash on hand to about CAD 38 million as of July 31, 2026.

Net income rose to CAD 3.3 million from CAD 1.5 million in the second quarter of 2025. Tortis said the increase primarily reflected a settlement loss related to an annuity purchase recorded in 2025 and lower financial charges. These benefits were partially offset by lower adjusted EBITDA and higher restructuring and other charges.

The board declared a cash dividend of CAD 0.25 per common share, payable Sept. 15, 2026, to shareholders of record as of Aug. 17, 2026.

Yellow Pages Ltd is a media and marketing solutions company in Canada, offering small and medium-sized enterprises (SMEs) services to help them connect with local consumers. The company has two reportable segments namely Yellow Pages and Other. It generates maximum revenue from the Yellow Pages segment.

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