Stingray Reports Third Quarter Results for Fiscal 2026

Author of the article:You can save this article by registering for free here. Or sign-in if you have an account.Stingray Delivers Strong Q3 Results; TuneIn Acquisition Enhances Synergy Outlook and Drives Automotive ExpansionSubscribe now to read the latest news in your city and across Canada.Subscribe now to read the latest news in your city and across Canada.Create an account or sign in to continue with your reading experience.Create an account or sign in to continue with your reading experience.MONTREAL, Feb. 10, 2026 (GLOBE NEWSWIRE) — Stingray Group Inc. (TSX: RAY.A; RAY.B) (the “Corporation”; “Stingray”), the world’s leading connected streaming media company, announced today its financial results for the third quarter of fiscal 2026 ended December 31, 2025.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.(1) This is a non-IFRS measure and is not a standardized financial measure. The Corporation’s method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, the definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Refer to “Non-IFRS Measures” on page 5 of this news release for more information about each non-IFRS measure and pages 6-7 for the reconciliations to the most directly comparable IFRS financial measures.Reporting on third quarter results for fiscal 2026, Stingray’s President, co-founder and CEO Eric Boyko stated:“Stingray today announced exceptional third-quarter results for fiscal 2026, with revenues, adjusted EBITDA and adjusted free cash flow reaching record levels. This highlights the significant positive impact of its recent TuneIn acquisition and continued expansion in high-growth areas like FAST channels and in-car entertainment. FAST channels in particular drove our robust financial results as we leveraged Stingray’s Premium Ad Network to monetize unsold inventory and benefitted from new deployments across the LG television platform. In addition, the integration of TuneIn, has progressed even better than planned. Following the closing of this transformative acquisition on December 19th, TuneIn’s performance has exceeded our expectations, creating powerful new synergies that are already reflected in our strong financial performance.“Our recent agreements with world-class automotive brands like BYD, Mercedes, and Nissan are a powerful validation of our in-car entertainment strategy. By integrating our full suite of products—from Stingray Music and Karaoke to the rich content of TuneIn—we are cementing our role as an essential partner for the connected car. These new partnerships significantly expand our global footprint and accelerate our momentum.“Amid this flurry of activity, revenues for our Broadcasting and Commercial Music business grew 22.0% to $88.1 million in the third quarter of 2026, while Radio revenues, behind digital share gains, rose 2.0% to $36.7 million,” Mr. Boyko concluded.Third Quarter ResultsRevenues increased $16.6 million, or 15.4%, to $124.8 million in Q3 2026 from $108.2 million in Q3 2025. The year-over-year growth was largely due to enhanced advertising revenues from the recent TuneIn acquisition, higher equipment sales related to the acquisition of The Singing Machine, and greater FAST channel revenues.For the quarter, revenues in Canada decreased $0.6 million, or 1.1%, to $53.6 million from $54.2 million in Q3 2025. The decline can be attributed to lower equipment and installation sales related to digital signage, partially offset by higher Radio revenues.Revenues in the United States grew $18.0 million, or 42.5%, to $60.3 million in Q3 2026 from $42.3 million in Q3 2025. The increase mainly reflects enhanced advertising revenues from the recent TuneIn acquisition and higher equipment sales related to the acquisition of The Singing Machine.Revenues in Other countries decreased $0.8 million, or 6.7%, to $10.9 million in Q3 2026 from $11.7 million in Q3 2025. The decline was mainly due to reduced subscription revenues, partially offset by higher FAST channel sales.Broadcasting and Commercial Music revenues increased $15.9 million, or 22.0%, to $88.1 million in Q3 2026 from $72.2 million in Q3 2025. The growth was driven by enhanced advertising revenues from the recent TuneIn acquisition, higher equipment sales related to the acquisition of The Singing Machine, and greater FAST channel revenues.Radio revenues improved by $0.7 million, or 2.0% year-over-year, to $36.7 million in Q3 2026 on higher digital advertising sales, partially offset by lower airtime revenues.Consolidated Adjusted EBITDA(1) rose $2.4 million, or 5.7%, to $44.5 million in Q3 2026 from $42.1 million in Q3 2025. Adjusted EBITDA margin(1) reached 35.7% in Q3 2026 compared to 38.9% for the same period in 2025. The increase in Adjusted EBITDA(1) was mainly driven by organic revenue growth as well as the impact of the TuneIn, Singing Machine, and DMI acquisitions. The decline in EBITDA margin can be attributed to lower gross margins on sales related to the TuneIn and Singing Machine acquisitions.Net income totaled $7.5 million, or $0.11 per diluted share, in Q3 2026 compared to $15.7 million, or $0.23 per diluted share, in Q3 2025. The decrease was mainly due to a higher performance and deferred share units expense related to a rising share price as well as greater acquisition, legal, restructuring and other expenses. These factors were partially offset by an unrealized gain on the fair value of derivative financial instruments and by a foreign exchange gain.Adjusted net income(1) reached $26.3 million, or $0.38 per diluted share, in Q3 2026 compared to $23.4 million, or $0.34 per diluted share, in the same period of 2025. The increase can primarily be attributed to a foreign exchange gain and higher operating results, partially diminished by a greater income tax expense.Cash flow from operating activities totaled $38.0 million in Q3 2026 compared to $35.4 million in Q3 2025. The year-over-year improvement was mainly due to a foreign exchange gain and positive net change in non-cash operating items. These factors were partially offset by higher acquisition, legal, restructuring and other expenses.Adjusted free cash flow(1) amounted to $34.8 million in Q3 2026 compared to $28.6 million in the same period of 2025. The growth was mainly driven by higher operating results combined with lower income taxes and interest paid.As at December 31, 2025, the Corporation had cash and cash equivalents of $17.3 million and credit facilities of $519.7 million.

The Net Debt to Pro Forma Adjusted EBITDA ratio(1) stood at 2.49x as at December 31, 2025 compared to 2.54x as at December 31, 2024.Declaration of DividendOn February 10, 2026, the Corporation declared a dividend of $0.085 per subordinate voting share, variable subordinate voting share and multiple voting share. The dividend will be payable on or around March 13, 2026 to shareholders on record as of February 27, 2026.The Corporation’s dividend policy is at the discretion of the Board of Directors and may vary depending upon, among other things, our available cash flow, results of operations, financial condition, business growth opportunities, and other factors that the Board of Directors may deem relevant.The dividends paid are designated as “eligible” dividends for the purposes of the Income Tax Act (Canada) and any corresponding provisions of provincial and territorial tax legislation.Business Highlights and Subsequent EventsConference CallThe Corporation will hold a conference call tomorrow, February 11, 10:00 AM (ET), to review its financial results. Interested parties can join the call by dialing 1-800-717-1738 (toll free) or 289-514-5100 (Toronto) or 1-646-517-3975 (New York). A rebroadcast of the conference call will be available until midnight, March 12, 2026, by dialing 289-819-1325 or 1-888-660-6264 and entering passcode 33322.About StingrayStingray Group Inc. (TSX: RAY.A; RAY.B), the world’s leading connected streaming media company, delivers the best curated audio and video content to consumers worldwide. As a pioneer in multiplatform streaming and distribution, Stingray’s vast digital content portfolio includes thousands of live audio and radio stations, premium music channels, concerts and music documentaries, karaoke products, as well as ambience and wellness channels. Its offering is distributed via connected TVs, smart speakers, mobile, connected cars and retail. Reaching hundreds of millions of consumers every month, Stingray’s products offer an unparalleled advertising reach, enabling brands to connect with an engaged audience across the world. Home to globally renowned brands such as TuneIn, Singing Machine, Stingray Karaoke and Qello Concerts, Stingray is powered by a worldwide team of more than 1,000 employees. For more information, visit www.stingray.com. Forward-Looking InformationThis news release contains forward-looking information within the meaning of applicable Canadian securities law. Such forward-looking information includes, but is not limited to, information with respect to Stingray’s goals, beliefs, plans, expectations, anticipations, estimates and intentions. Forward-looking information is identified by the use of terms and phrases such as “may”, “would”, “should”, “could”, “expect”, “intend”, “estimate”, “anticipate”, “plan”, “foresee”, “believe”, and “continue”, or the negative of these terms and similar terminology, including references to assumptions. Please note, however, that not all forward-looking information contains these terms and phrases. Forward-looking information is based upon a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Stingray’s control. These risks and uncertainties could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the risk factors identified in Stingray’s Annual Information Form for the year ended March 31, 2025, which is available on SEDAR at www.sedar.com. Consequently, all of the forward-looking information contained herein is qualified by the foregoing cautionary statements, and there can be no guarantee that the results or developments that Stingray anticipates will be realized or, even if substantially realized, that they will have the expected consequences or effects on Stingray’s business, financial condition or results of operation. Unless otherwise noted or the context otherwise indicates, the forward-looking information contained herein is provided as of the date hereof, and Stingray does not undertake to update or amend such forward-looking information whether as a result of new information, future events or otherwise, except as may be required by applicable law.Non-IFRS MeasuresThe Corporation believes that Adjusted EBITDA and Adjusted EBITDA margin are important measures when analyzing its operating profitability without being influenced by financing decisions, non-cash items and income taxes strategies. Comparison with peers is also easier as companies rarely have the same capital and financing structure. The Corporation believes that Adjusted Net income and Adjusted Net income per share are important measures as it shows stable results from its operation which allows users of the financial statements to better assess the trend in the profitability of the business. The Corporation believes that Adjusted free cash flow and Adjusted free cash flow per share are important measures when assessing the amount of cash generated after accounting for capital expenditures and non-core charges. It demonstrates cash available to make business acquisitions, pay dividend and reduce debt. The Corporation believes that Net debt and Net debt to Pro Forma Adjusted EBITDA are important to analyse the company’s debt repayment capacity on an annualized basis, taking into consideration the annualized adjusted EBITDA of acquisitions made during the last twelve months.Each of these non-IFRS financial measures is not an earnings or cash flow measure recognized by International Financial Reporting Standards (IFRS) and does not have a standardized meaning prescribed by IFRS. This method of calculating such financial measures may differ from the methods used by other issuers and, accordingly, our definition of these non-IFRS financial measures may not be comparable to similar measures presented by other issuers. Investors are cautioned that non-IFRS financial measures should not be construed as an alternative to net income determined in accordance with IFRS as indicators of our performance or to cash flows from operating activities as measures of liquidity and cash flows.Reconciliation of Net income to Adjusted EBITDA, Adjusted Net income, LTM Adjusted EBITDA and Pro Forma Adjusted EBITDA Reconciliation of Cash Flow from Operating Activities to Adjusted Free Cash FlowCalculation of Net Debt and Net Debt to Pro Forma Adjusted EBITDA RatioNote to readers: Consolidated financial statements and Management’s Discussion & Analysis of Operating Results and Financial Position are available on the Corporation’s website at www.corporate.stingray.com and on SEDAR+ at www.sedarplus.ca.Contact InformationMathieu PéloquinSenior Vice-President, Marketing and CommunicationsStingray(514) 664-1244, ext. 2362mpeloquin@stingray.comPostmedia is committed to maintaining a lively but civil forum for discussion. 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