Stingray Reports First Quarter Results for Fiscal 2026
Ongoing momentum in FAST channel sales drives revenue growth and profitability
- Organic growth of 12.5% year-over-year in Broadcast and Recurring Commercial Music Revenues;
- Revenues increased 7.4% to $95.6 million in the first quarter of 2026 from $89.1 million in the first quarter of 2025;
- Adjusted EBITDA(1) rose 8.3% to $33.7 million in the first quarter of 2026 from $31.1 million in the same period in 2025. Adjusted EBITDA(1) by segment was $24.4 million or 39.8% of revenues for Broadcasting and Commercial Music, $11.0 million or 32.3% of revenues for Radio, and $(1.8) million for Corporate;
- Net income increased to $16.8 million, or $0.24 per share, in the first quarter of 2026 compared to $7.3 million, or $0.11 per share, in the first quarter of 2025;
- Adjusted Net income(1) grew 53.0% to $21.3 million, or $0.31 per share, in the first quarter of 2026 from $13.9 million, or $0.20 per share, in the same period of 2025;
- Cash flow from operating activities amounted to $19.0 million, or $0.28 per share, in the first quarter of 2026 compared to $10.8 million, or $0.16 per share, in the first quarter of 2025;
- Adjusted free cash flow(1) improved to $18.8 million, or $0.27 per share, in the first quarter of 2026 from $15.5 million, or $0.22 per share, in the same period of 2025;
- Net debt to Pro Forma Adjusted EBITDA(1) ratio decreased to 2.24x at the end of the first quarter of 2026 compared to 2.77x at the end of the first quarter of 2025; and
- Repurchased and cancelled 342,000 shares for a total of $3.1 million in the first quarter of 2026.
MONTREAL, Aug. 05, 2025 (GLOBE NEWSWIRE) -- Stingray Group Inc. (TSX: RAY.A; RAY.B) (the “Corporation”; “Stingray”), an industry leader in music and video content distribution, business services, and advertising solutions, announced today its financial results for the first quarter of fiscal 2026 ended June 30, 2025.
| Financial Highlights (in thousands of dollars, except per share data) | Three months ended June 30 | ||||
| Q1-2026 | Q1-2025 | % | |||
| Revenues | 95,637 | 89,070 | 7.4 | ||
| Adjusted EBITDA(1) | 33,656 | 31,070 | 8.3 | ||
| Net income | 16,783 | 7,295 | 130.1 | ||
| Per share – diluted ($) | 0.24 | 0.11 | 118.2 | ||
| Adjusted Net income(1) | 21,311 | 13,933 | 53.0 | ||
| Per share – diluted ($) | 0.31 | 0.20 | 55.0 | ||
| Cash flow from operating activities | 18,987 | 10,750 | 76.6 | ||
| Adjusted free cash flow(1) | 18,797 | 15,462 | 21.6 | ||
(1) This is a non-IFRS measure and is not a standardized financial measure. The Corporation’s method of calculating 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 4 of this news release for more information about each non-IFRS measure and pages 4-5 for the reconciliations to the most directly comparable IFRS financial measures.
Reporting on first quarter results, Stingray's President, co-founder and CEO Eric Boyko stated:
“Stingray opened fiscal 2026 on a strong note with organic sales in Broadcast and Recurring Commercial Music Revenues growing double-digits for the fourth time in the last five quarters, mainly driven by continued strength in FAST channel revenues. Although our Premium Advertising Network was implemented barely a quarter ago to leverage unsold FAST channel ad inventory, we already have sold more than 20% of the remaining available hours and that percentage should rise as we build our platform with strategic vendors in the U.S and abroad. On the retail media side, we delivered a solid performance in the first quarter, but faced a tough comparable since sales had soared 53% on large orders in the same period last year. We still generated 40% revenue growth for our Stingray Advertising business, which combines FAST channel and retail media revenues, and are targeting a similar run-rate for the next quarter. We also experienced some delays in the deployment of large installation projects related to digital signage that pushed revenue recognition into the second quarter, but that didn’t prevent Stingray from achieving robust Adjusted EBITDA of $33.7 million, or 35.2% of sales, in the opening quarter.”
“Altogether, revenues for our Broadcasting and Commercial Music business increased 8.0% to $61.4 million in the first quarter of 2026, while Radio revenues improved 6.2% to $34.2 million as we remain one step ahead of our peers in this competitive market.”
“Finally, earlier this week, we announced the acquisition of all the assets of The Singing Machine Company with a primary goal to bolster our in-car karaoke offering. By combining their renowned hardware with our extensive karaoke library and global distribution network, we will enhance the at-home and in-car karaoke experience for millions of fans. We see tremendous potential in developing new microphone technologies, especially for the expanding in-car entertainment market, creating exciting new opportunities for growth,” Mr. Boyko concluded.
First Quarter Results
Revenues increased $6.5 million, or 7.4%, to $95.6 million in the first quarter of 2026 from $89.1 million in the first quarter of 2025. The year-over-year growth was mainly driven by an increase in FAST channel revenues, partially offset by lower retail media advertising sales and lower equipment and installation sales related to digital signage.
Revenues in Canada rose $0.5 million, or 1.1%, to $49.5 million in the first quarter of 2026 from $49.0 million in the same period in 2025. The growth can mainly be attributed to an increase in Radio revenues, supported by higher airtime and digital sales, partially offset by a decrease related to timing differences in equipment and installation sales related to digital signage.
Revenues in the United States grew $7.2 million, or 25.8%, to $35.2 million in the first quarter of 2026 from $28.0 million in the first quarter of 2025. The year-over-year increase was primarily due to higher FAST channel revenues, partially offset by lower retail media advertising sales.
Revenues in Other countries decreased $1.2 million, or 9.5%, to $10.9 million in the first quarter of 2026 from $12.1 million in the first quarter of 2025. The decline was mainly due to lower in-store commercial revenues and reduced audio channel sales.
Broadcasting and Commercial Music revenues increased $4.6 million, or 8.0%, to $61.4 million in the first quarter of 2026 from $56.8 million in the first quarter of 2025. The growth was mainly driven by greater FAST channel revenues, partially offset by lower retail media advertising revenues and by a decrease in equipment and installation sales related to digital signage due to timing differences. For the first quarter of 2026, Radio revenues improved by $2.0 million, or 6.2%, to $34.2 million from $32.2 million in the same period of 2025. This increase was largely due to higher airtime and digital sales.
Consolidated Adjusted EBITDA grew $2.6 million, or 8.3%, to $33.7 million in the first quarter of 2026 from $31.1 million in the initial quarter of 2025. Adjusted EBITDA margin reached 35.2% in the first quarter of 2026 compared to 34.9% in the same period last year. The increase in Adjusted EBITDA and Adjusted EBITDA margin year-over-year can be attributed to higher revenues, partially offset by a decrease in gross margin related to product mix and by greater operating expenses mostly due to increased salaries.
For the first quarter of 2026, net income totaled $16.8 million, or $0.24 per share, compared to $7.3 million, or $0.11 per share, in the first quarter of 2025. The increase was mostly driven by an unrealized gain in the first quarter of 2026 compared to an unrealized loss in the first quarter of 2025 on the fair value of derivative financial instruments, along with higher operating results and a foreign exchange gain. These factors were partially offset by higher performance and deferred share units expense related to an increase in the Corporation’s share price.
Cash flow generated from operating activities amounted to $19.0 million in the first quarter of 2026 compared to $10.8 million in the first quarter of 2025. The increase was mainly due to a lower negative change in non-cash operating items, higher operating results, and a foreign exchange gain.
Adjusted free cash flow generated in the first quarter of 2026 totaled $18.8 million compared to $15.5 million in the same period in 2025. The increase was mainly due to higher operating results and lower interest paid.
As of June 30, 2025, the Corporation had cash and cash equivalents of $11.5 million and credit facilities of $337.4 million. The credit facilities consist of a revolving credit line of $500 million, of which $160.8 million was available.
Declaration of Dividend
On August 5, 2025, the Corporation declared a dividend of $0.075 per subordinate voting share, variable subordinate voting share and multiple voting share. The dividend will be payable on or around September 15, 2025, to shareholders on record as of August 29, 2025.
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 Events
- On August 4, 2025, Stingray announced the acquisition of all assets of the Singing Machine Company to bolster its home and in-car karaoke services.
- On July 24, 2025, the Corporation announced the launch of six new free ad-supported streaming television (FAST) channels on WatchFree+, VIZIO’s free streaming service. This expansion increases Stingray’s offering on the platform, providing VIZIO customers with an even wider array of curated music experiences.
- On July 7, 2025, the Corporation announced that The Honourable Jean Charest, former Premier of Québec and Deputy Prime Minister of Canada, has been nominated for election to its Board of Directors at Stingray’s upcoming Annual General Meeting (AGM), to be held on August 6, 2025. Mr. Charest is one of Canada’s best known political figures.
- On June 26, 2025, the Corporation announced the launch of a suite of new Stingray Music channels in Australia, New Zealand, Philippines, Singapore, and Thailand on Samsung TV Plus, Samsung’s free ad-supported streaming TV (FAST) service.
- On June 12, 2025, the Corporation announced its contribution to the grand opening of BMO’s new branch at CF Toronto Eaton Centre. This state-of-the-art, full-service branch features Stingray Business’s cutting-edge digital signage solutions, highlighting the integration of advanced technology in customer experiences.
- On June 11, 2025, the Corporation announced the launch of four new free ad-supported streaming television (FAST) channels on TCLtv+, a free streaming service available on TCL smart TVs in North America. This expansion increases Stingray’s offering on the platform, providing users with an even wider array of curated music experiences.
- On May 13, 2025, the Corporation announced the closure of CITL-TV/CKSA-TV in Lloydminster, Alberta.
- On April 15, 2025, the Corporation announced a partnership with Zoox, an autonomous mobility company. This collaboration enhances the rider experience in Zoox robotaxis with a diverse selection of curated music channels.
Conference Call
The Corporation will hold a conference call tomorrow, August 6, 2025, at 9:30 AM (ET) to review its financial results. Interested parties can join the call by dialing 1-800-717-1738 (toll free), 1-289-514-5100 (Toronto) or 1-646-307-1865 (New York). A rebroadcast of the conference call will be available until midnight, September 6, 2025, by dialing 1-289-819-1325 or 1-888-660-6264 and entering passcode 80029.
About Stingray
Stingray (TSX: RAY.A; RAY.B), a global music, media, and technology company, is an industry leader in TV broadcasting, streaming, radio, business services, and advertising. Stingray provides an array of global music, digital, and advertising services to enterprise brands worldwide, including audio and video channels, 97 radio stations, subscription video-on-demand content, FAST channels, karaoke products and music apps, and in-car and on-board infotainment content. Stingray Business, a division of Stingray, provides commercial solutions in music, in-store advertising solutions, digital signage, and AI-driven consumer insights and feedback. Stingray Advertising is North America’s largest retail audio advertising network, delivering digital audio messaging to more than 30,000 major retail locations. Stingray has close to 1,000 employees worldwide and reaches 540 million consumers in 160 countries. For more information, visit
Forward-Looking Information
This 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 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 Measures
The 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
| 3 months | ||||||
| (in thousands of Canadian dollars) | June 30, 2025 Q1 2026 | June 30, 2024 Q1 2025 | March 31, 2025 Q4 2025 | |||
| Net income | 16,783 | 7,295 | 7,655 | |||
| Net finance expense | (2,754 | ) | 9,099 | 9,516 | ||
| Change in fair value of investments | 37 | (42 | ) | 2 | ||
| Income taxes | 5,892 | 3,523 | 977 | |||
| Depreciation and write-off of property and equipment | 1,865 | 2,075 | 1,941 | |||
| Depreciation of right-of-use assets | 1,148 | 1,090 | 1,020 | |||
| Amortization of intangible assets | 4,558 | 4,171 | 5,115 | |||
| Share-based compensation | (270 | ) | 130 | 111 | ||
| Performance and deferred share unit expense | 4,132 | 836 | 5,640 | |||
| Share of results of investments in associates | 300 | 2,052 | (210 | ) | ||
| Gain on disposal of an investment | 450 | – | (845 | ) | ||
| Other income | – | – | (24 | ) | ||
| Acquisition, legal, restructuring and other expenses | 1,515 | 841 | 4,129 | |||
| Adjusted EBITDA | 33,656 | 31,070 | 35,027 | |||
| Adjusted EBITDA margin | 35.2 | % | 34.9 | % | 36.5 | % |
| Net income | 16,783 | 7,295 | 7,655 | |||
| Adjusted for: | ||||||
| Unrealized loss (gain) on derivative instruments | (4,535 | ) | 1,053 | 1,010 | ||
| Amortization of intangible assets | 4,558 | 4,171 | 5,115 | |||
| Change in fair value of investments | 37 | (42 | ) | 2 | ||
| Share-based compensation | (270 | ) | 130 | 111 | ||
| Performance and deferred share unit expense | 4,132 | 836 | 5,640 | |||
| Share of results of investments in associates | 300 | 2,052 | (210 | ) | ||
| Loss (gain) on disposal of an investment | 450 | – | (845 | ) | ||
| Other income | – | – | (24 | ) | ||
| Acquisition, legal, restructuring and other expenses | 1,515 | 841 | 4,129 | |||
| Income taxes related to above noted adjustments | (1,659 | ) | (2,403 | ) | (4,015 | ) |
| Adjusted Net income | 21,311 | 13,933 | 18,568 | |||
| Average number of shares outstanding (diluted) | 68,758 | 69,209 | 68,807 | |||
| Adjusted Net income per share (diluted) | 0.31 | 0.20 | 0.27 | |||
| (in thousands of Canadian dollars) | June 30, 2025 | June 30, 2024 | March 31, 2025 |
| LTM Adjusted EBITDA | 144,785 | 128,659 | 142,199 |
| Permanent cost-saving initiatives | 773 | 2,309 | 1,046 |
| Adjusted EBITDA for the months prior to the business | |||
| acquisition of The Coda Collection which are not already | |||
| reflected in the results | – | – | 150 |
| Pro Forma Adjusted EBITDA | 145,558 | 130,968 | 143,395 |
Reconciliation of Cash Flow From Operating Activities to Adjusted Free Cash Flow
| 3 months | ||||||
| (in thousands of Canadian dollars) | June 30, 2025 Q1 2026 | June 30, 2024 Q1 2025 | March 31, 2025 Q4 2025 | |||
| Cash flow from operating activities | 18,987 | 10,750 | 39,720 | |||
| Add / Less : | ||||||
| Acquisition of property and equipment | (2,153 | ) | (1,486 | ) | (2,057 | ) |
| Acquisition of intangible assets other than internally | ||||||
| developed intangible assets | (336 | ) | (444 | ) | (1,183 | ) |
| Addition to internally developed intangible assets | (1,394 | ) | (1,282 | ) | (1,371 | ) |
| Interest paid | (4,955 | ) | (5,979 | ) | (5,287 | ) |
| Repayment of lease liabilities | (867 | ) | (992 | ) | (954 | ) |
| Net change in non-cash operating working capital items | 9,755 | 12,833 | (17,094 | ) | ||
| Unrealized loss (gain) on foreign exchange | (1,755 | ) | 1,221 | 2,508 | ||
| Acquisition, legal, restructuring and other expenses | 1,515 | 841 | 4,129 | |||
| Adjusted free cash flow | 18,797 | 15,462 | 18,411 | |||
Calculation of Net Debt and Net Debt to Pro Forma Adjusted EBITDA Ratio
| (in thousands of Canadian dollars) | June 30, 2025 | June 30, 2024 | March 31, 2025 | |||
| Credit facilities | 337,416 | 345,854 | 341,365 | |||
| Subordinated debt | – | 25,581 | – | |||
| Cash and cash equivalents | (11,495 | ) | (9,184 | ) | (13,984 | ) |
| Net debt | 325,921 | 362,251 | 327,381 | |||
| Net debt to Pro Forma Adjusted EBITDA | 2.24 | 2.77 | 2.28 | |||
Note to readers: Consolidated financial statements and Management’s Discussion & Analysis of Operating Results and Financial Position are available on the Corporation’s website at and on SEDAR at .
Contact Information
Mathieu Péloquin
Senior Vice-President, Marketing and Communications
Stingray
(514) 664-1244, ext. 2362
