Thunderbird Entertainment Group. You've probably never heard of it. Tucked away in the bustling heart of Vancouver, this unassuming entertainment company might not be a household name, but it's quietly churning out some of the most popular children's and family programming you've seen on Netflix, Disney+, and more. Think CoComelon Lane, Marvel's Spidey and His Amazing Friends, My Little Pony, Highway Thru Hell – these are just a few of Thunderbird's hits.

While analysts have focused on Thunderbird's steady growth and return to profitability (which is impressive in itself, considering the recent Hollywood strikes and streaming cost-cutting), there's a hidden gem buried in their Q3 2024 transcript [1]: a silent tsunami of revenue set to hit their shores in 2025 and 2026.

Thunderbird, like many production companies, operates with a two-pronged approach: "service" productions, where they're hired by other companies to create content, and "proprietary" productions, where they own the intellectual property (IP). Service work provides reliable cash flow – they get paid as they go – while proprietary productions offer a bigger payday down the line through licensing and merchandise.

In the Q3 transcript [1], Thunderbird casually mentions an "expansion of one ongoing animation production," resulting in "approximately 30% additional revenue over the term of this project." This expansion, they note, represents "secured revenue for the company for fiscals 2025 and 2026."

A 30% Revenue Surge: A Tectonic Shift

Thirty percent. That's not a tweak; it's a tectonic shift.

Let's dive into the numbers. In fiscal 2023, Thunderbird reported total revenue of $166.73 million [2]. If we assume this 30% revenue bump is solely from service work (a conservative estimate), it translates to an additional $50 million spread across fiscal 2025 and 2026. This would boost their revenue to over $216 million, a level they haven't even come close to before.

Thunderbird's Goldmine of IP

But here's the kicker: this doesn't even factor in their proprietary productions. Thunderbird is sitting on a goldmine of potential with IPs like Mermicorno: Starfall (which recently landed major distribution deals with Warner Bros. Discovery and Corus Entertainment [1]) and Super Team Canada, their first foray into adult animation, backed by Will Arnett’s Electric Avenue [3]. The success of these IPs could send their revenue soaring even higher.

What's the Catch?

So, what’s the catch? Why isn’t everyone talking about this? Well, Thunderbird is playing it coy, not disclosing the name of the expanded production or giving specific revenue guidance for 2025 and 2026. They’re also in the midst of exploring strategic alternatives – a sale of the company is a real possibility [1].

A Content Empire in the Making

But regardless of what happens on the M&A front, the message is clear: Thunderbird is quietly building a content empire. They’re masters of their craft, trusted partners to the biggest streamers, and poised to capitalize on the growing demand for premium content. This little bird might just be ready to take flight.

Financial Performance: A Glimpse into Thunderbird's Strength

Thunderbird Entertainment Group Inc. Financial Data

"Fun Fact: Thunderbird's Atomic Cartoons studio, which specializes in animation, is a certified B Corporation, meeting high standards of social and environmental impact. They’re committed to creating great content and doing good in the world – a winning combination in today’s entertainment landscape. [3]"