Stingray Reports Third Quarter Results for Fiscal 2026

by | February 11, 2026 5:09 am | US Markets

  • Organic growth increased 8.5% year-over-year in Broadcast and Recurring Commercial Music Revenues;
  • Revenues grew 15.4% to $124.8 million in the third quarter of 2026 from $108.2 million in the third quarter of 2025;
  • Adjusted EBITDA(1) improved 5.7% to $44.5 million in the third quarter of 2026 from $42.1 million in the same period of 2025. Adjusted EBITDA by segment was $33.0 million or 37.5% of revenues for Broadcasting and Commercial Music, $13.2 million or 36.0% of revenues for Radio, and $(1.7) million for Corporate;
  • Net income totaled $7.5 million, or $0.11 per diluted share(1), in the third quarter of 2026 compared to $15.7 million, or $0.23 per diluted share(1), in the third quarter of 2025;
  • Adjusted Net income(1) amounted to $26.3 million, or $0.38 per diluted share(1), in the third quarter of 2026 compared to $23.4 million, or $0.34 per diluted share(1), in the same period of 2025;
  • Cash flow from operating activities rose 7.4% to $38.0 million, or $0.55 per diluted share(1), in the third quarter of 2026 from $35.4 million, or $0.51 per diluted share(1), in the third quarter of 2025;
  • Adjusted free cash flow(1) increased 21.5% to $34.8 million, or $0.50 per diluted share(1), in the third quarter of 2026 from $28.6 million, or $0.42 per diluted share(1), in the same period of 2025;
  • Net debt to Pro Forma Adjusted EBITDA(1) ratio improved to 2.49x at the end of the third quarter of 2026 from 2.54x at the end of the third quarter of 2025;
  • Repurchased and cancelled 303,700 shares for a total of $3.8 million in the third quarter of 2026; and
  • TuneIn synergies reached an annualized run rate of US$16.0 million in revenues and US$5.0 million in cost savings.

MONTREAL, Feb. 10, 2026 (GLOBE NEWSWIRE) — Stingray Group Inc. (TSX:RAY, 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.

Financial Highlights
(in thousands of Canadian dollars, except per share data)		 Three months ended
December 31		 Nine months ended
December 31
  2026 2025 %   2026 2025 %
Revenues 124,843 108,228 15.4   333,742 290,883 14.7
Adjusted EBITDA(1) 44,519 42,108 5.7   117,695 107,172 9.8
Net income 7,494 15,677 (52.2 ) 36,049 28,785 25.2
Per share – diluted ($) 0.11 0.23 (52.2 ) 0.52 0.42 23.8
Adjusted Net income(1) 26,284 23,424 12.2   69,479 54,086 28.5
Per share – diluted ($) 0.38 0.34 11.8   1.01 0.78 29.5
Cash flow from operating activities 38,017 35,387 7.4   81,333 65,320 24.5
Adjusted free cash flow(1) 34,796 28,636 21.5   81,991 65,201 25.8
             

(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 Results
Revenues 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 Dividend
On 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 Events

  • On February 4, 2026, the Corporation announced a collaboration with Nissan, one of the world’s largest automakers, to bring TuneIn’s expansive catalog of radio stations and podcasts to select Nissan and INFINITI vehicles in the United States. TuneIn will provide drivers with fast access to live sports, breaking news, curated music, millions of podcasts and tens of thousands of radio stations. Drivers will be able to access TuneIn through Nissan and INFINITI vehicles equipped with Google. 
  • On February 2, 2026, the Corporation announced an agreement with Experience Hendrix, L.L.C to release an extensive collection of concert films and documentaries from the iconic guitarist Jimi Hendrix. In celebration of Black History Month, the complete collection is now streaming on The Coda Collection. The titles will also be progressively released on Qello Concerts in the coming months, bringing the unforgettable performances of a music legend to fans around the world.
  • On January 6, 2026, the Corporation announced a partnership with 3 Screen Solutions (3SS), a global leader in powering entertainment experiences across devices and vehicles. This collaboration will integrate Stingray’s popular karaoke service into the next generation of in-car entertainment systems. As part of 3SS’ 3Ready Content Bundle, Stingray Karaoke will be available to automakers as a pre-integrated solution, enabling faster deployment of engaging, passenger-centric entertainment.
  • On December 22, 2025, the Corporation announced a partnership with one of the world’s leading premium automotive brands, Mercedes-Benz to bring its Stingray Music and Stingray Karaoke applications to all vehicles equipped with the latest generation of infotainment system MBUX. The applications will be natively pre-installed in the vehicle’s “Music & Audio” section and are expected to launch in the first half of 2026.
  • On December 19, 2025, the Corporation announced that it has closed its previously announced acquisition of TuneIn Holdings, Inc. after all conditions precedent to closing the Transaction were satisfied.
  • On December 10, 2025, the Corporation announced the launch of a co-branded music, podcast and radio solution for automakers worldwide. The service will debut as BYD Audio by Stingray in a unique partnership with BYD, a world-leading manufacturer of new energy vehicles. This launch is one of several automotive OEM deals underway and further strengthens Stingray’s position as the premier provider for an unparalleled in-car entertainment experience, as BYD now integrates Stingray’s full suite of music products, including Stingray Karaoke with microphone, and Calm Radio, which delivers a relaxing sanctuary for drivers.
  • On December 9, 2025, the Corporation announced the launch of Stingray Cityscapes and EarthDay 365 on LG Channels in the United States. This exciting expansion provides viewers with dedicated spaces to explore and appreciate the wonders of the planet and the beauty of urban landscapes, directly from their LG smart TVs.
  • On December 8, 2025, the Corporation announced the launch of five free ad-supported streaming television (FAST) music channels on Prime Video in the United States. This expansion brings a curated selection of Stingray’s popular music audio channels to more customers, offering a diverse range of genres to suit every taste. The five newly launched channels include: Stingray Hot Country, Stingray Remember the 80s, Stingray Smooth Jazz, Stingray The Spa, and Stingray Easy Listening.
  • On November 26, 2025, the Corporation announced that its wholly owned subsidiary, Stingray Radio, has entered into an agreement to acquire the assets of CHUP-FM (branded as C97.7) in Calgary, Alberta, from Rawlco Radio, subject to approval from the Canadian Radio-television and Telecommunications Commission (the “CRTC”), which is anticipated in the second quarter of Fiscal 2027.
  • On November 11, 2025, the Corporation announced it has entered into an agreement to acquire TuneIn Holdings, Inc., a pioneer in live audio streaming and ad monetization. This acquisition significantly expands Stingray’s global digital audio footprint, accelerates its growth in streaming services and bolsters its advertising offering by incorporating TuneIn’s comprehensive ad platform, which delivers targeted audio, video, and display advertising solutions.
  • On November 10, 2025, the Corporation secured an additional US$150 million term loan under its existing credit facility for the purpose of financing the acquisition of TuneIn Holdings, Inc. Additionally, the maturity date of the credit facility was extended by one year to November 10, 2029.
  • On October 30, 2025, the Corporation announced acquisition of DMI, a U.S. based leader in music branding and in-store audio advertising. This strategic acquisition expands Stingray’s retail media network by approximately 8,500 locations in the United States, bringing the total to 33,500 locations in North America and solidifying its position as a key player in the industry.
  • On October 14, 2025, the Corporation joined forces with Just For Laughs, the world’s leading comedy brand, in a strategic partnership to develop and expand Free Ad-Supported Streaming TV (FAST) channels featuring premium comedy content across global markets with an emphasis on audio entertainment.
  • On October 9, 2025, the Corporation announced the expansion of its partnership with Roku. Seven of Stingray’s popular FAST channels are now available to Roku users in the UK, offering a diverse range of free, ad-supported content. The newly launched channels provide viewers with a curated selection of music and ambient experiences to suit any mood or occasion.
  • On October 2, 2025, the Corporation partnered with TELUS, a world-leading communications technology company, to launch seven new, free ad-supported streaming television (FAST) channels on TELUS TV+ and Stream+. This strategic expansion enhances the entertainment experience for viewers across Canada, offering a diverse and expertly curated selection of music and lifestyle channels that cater to every mood and occasion, from cinematic soundscapes to serene wellness content.

Conference Call
The 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 Stingray
Stingray Group Inc. (TSX:RAY, 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. …

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